Understanding the Difference Between a Company and a Firm

When diving into the world of business structures, it's common to encounter the terms company and firm. Though often used interchangeably, these terms have distinct meanings that can vary based on context and geography. Understanding the difference between a company and a firm is essential for entrepreneurs, investors, and anyone involved in the business world. What is a Company? A company is a legal entity formed by individuals or groups to conduct business. Companies are typically registered with government authorities and can own assets, incur liabilities, and enter into contracts. One of the key aspects of a company is that it offers limited liability to its owners or shareholders, which means their personal assets are protected from business debts. There are various types of companies, including: Private Limited Companies (Ltd.) : Owned by a limited number of shareholders, and shares cannot be sold to the public. Public Limited Companies (PLC) : Companies that can sell shares...