Difference between firm and company must be examined from two main perspectives:
- Legal perspective and;
- Linguistic perspective.
From legal perspective there is no such business structure as firm. The word "firm" is used interchangeably with the term "company".
From a linguistic point of view company is a broader notion of business entity. The notion of “company” embraces the notion of “firm”. In simple words, all business entities are usually referred as companies. Only those of companies that are partnerships are usually referred as firms. (E.g. law firms, accounting firms - those are usually partnerships)
