What's the main difference between a "firm," "company," "enterprise," and a "corporation?" Or are they all interchangeable?
Native speaker’s answer
Rebecca
This is a good question, and a bit difficult to answer. They are synonyms for each other, but some are more formal or legal in meaning. A company, a corporation, a firm and an enterprise are all businesses. "Company" is the most general, common term used to describe businesses. Note that not all companies are for profit! Ex: I started my own little company selling custom-made t-shirts. Ex: I work in the company that my father started. Corporations can be understood as very large companies, or a group of companies. In a legal sense, a company can only be considered a corporation (Co. or Incorporated, Inc.) if it has gone through the process of incorporation. Ex: I work for the pharmaceutical business of a large corporation. Ex: Amazon is one of the biggest corporations in the world. Meanwhile, a firm is a business that is owned by a core group of individuals, and is often comprised of senior group of partners that provide services. For example, law firms or accounting firms. Ex: I am an accountant at an accounting firm. Ex: I am interning at a small firm for family law. Lastly, an enterprise is a business run by an entrepreneur (or entrepreneurs). It may be more diverse in nature, and is always intended to create profit. Ex: I proposed the creation of a new enterprise in the supply chain industry. Ex: My plan is to launch my personal enterprise within the next five years.
