The difference between a company and a firm.

- Shouldn't we start a company?

- Maybe a firm?

- Is there a difference?

It turns out that there is a fairly significant one. However, many aspiring businessmen have little idea of ​​the differences. But to create a truly successful business, you need to start by learning about the basic concepts and their differences.

Definition

Company - the name comes from the French compagnie, which means society. By its activity, this type of organization is an association of several legal entities or individuals. All together they are doing a common cause - they make a profit by jointly engaging in different types of economic activity. This may include: production, insurance, intermediation, financial transactions, etc. All people who are part of this association have certain rights and influence on the overall activity. Regardless of what kind of persons are included in the structure (legal or physical), the company must be registered as a legal entity.

Firm - the word traveled first from Italian to German, and then got into the Russian language. Initially, firma means signature. In Russia, this was the designation for a commercial or industrial enterprise that provided various services under its own brand. Today, two meanings can be distinguished: 1) the official name of an organization or enterprise that is engaged in business activities. Necessarily registered in the commercial register, as well as in the state register of legal entities. persons. As a result, it turns out that the name acquires the status of a trademark. 2) An enterprise or organization created by several or one natural or legal person to conduct activities related to making a profit.

Comparison

Let's take the second definition of a firm to make it clearer, since the first has more to do with intellectual property rights. So, if we proceed from these two definitions, it becomes clear that in the first case it is necessarily an association of legal entities or individuals. At the same time, a firm can easily be an enterprise created by one person.

Hence the conclusion itself suggests itself that the activities of the company are more developed. It can consist of several directions at the same time. For example, it is easy to own a chain of restaurants or hotels, but at the same time to engage in transportation, steel industry, logging and so on. A firm can only be engaged in one activity, for the purpose of which it was created.

And one more thing. All persons who set up a company have a vote on the board, on the basis of which they can vote on decisions, this gives them equal rights in the management of the affairs of the company. And in the firm there is no clear relationship between the parties.

Conclusions TheDifference.ru

  1. A company is created necessarily by several legal entities or individuals, and a company can be founded by one person.
  2. The size of the company is larger and the firm is smaller.
  3. A company can be engaged in several types of activities at once, and a firm - only in one type of activity.
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