Meaning of a Firm
A firm is an organization that combines and organises resources for the purpose of producing goods and' or services for sale. Firms can be classified on the basis of investment limit, number of owners and government participation in business. Thus firms can be classified as follows:
Small, medium and large,
Proprietorships (owned individually), partnerships (owned by two or more individuals) and corporations (owned by stockholders), and Public sector, private sector and joint sector.
Firms are of business and non-business types. Business firms exist for profit while non business firms like universities, hospitals, libraries and museums function as 'not - for - profit' organizations.
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