Question

Explain the term ‘Firm’.

Answer 1

A firm is a business unit or an institutional arrangement where one or more persons come together to carry out business activities. It may or may not be registered under the law and is responsible for the ownership, management, and control of business operations. A firm engages in producing, buying, or selling goods and services to earn profits. It can take the form of a sole proprietorship, partnership, or company, and while every firm is an organisation, not every organisation qualifies as a firm.