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- Firm and organization can both be used to describe a group of people working together1. However, “firm” tends to be used more commonly in the context of a business or commercial enterprise, whereas “organization” can refer to any group of people working together, regardless of their purpose or structure12.The key differences between firms and organizations are3:
- Mindset and purpose: Firms are primarily focused on generating profit, while organizations can have various purposes, including profit and non-profit objectives.
- Ownership structure: All firms are organizations, but not all organizations are firms. Firms are owned by shareholders, while organizations can be owned by members or stakeholders.
- Legal requirements and regulation: Companies and organizations differ in terms of legal requirements and regulation.
- Financial sustainability: Firms are focused on generating profit, while organizations can be focused on other objectives such as social impact.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.It’s important to note that both “firm” and “organization” can be used to describe a group of people working together. However, “firm” tends to be used more commonly in the context of a business or commercial enterprise, whereas “organization” can refer to any group of people working together, regardless of their purpose or structure.thecontentauthority.com/blog/firm-vs-organizationWhile all firms are organizations, not all organizations are firms. Organizations can have various purposes, including profit and non-profit objectives, while firms are primarily focused on generating profit. Organizations can be found in different sectors and industries, providing various products and services.todayfounder.com/what-is-the-difference-between-…The Key Differences
- Mindset and Purpose One fundamental difference between companies and organizations lies in their mindset and purpose. ...
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