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Guilherme Mazui

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What is the Difference Between Enterprise and Company?

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The terms "enterprise" and "company" are often used interchangeably, but they have distinct differences. Here are the key differences between an enterprise and a company:

  1. Primary Goal: A company's primary goal is to drive profitability, while an enterprise, although it does want to generate profits, may have additional goals that extend beyond profit.
  2. Size and Complexity: An enterprise is generally larger and more complex than a company. It may have multiple stores in several locations or have several different departments handling various tasks.
  3. Legal Status: A company is a legal entity with a specific legal structure, such as a partnership, sole proprietorship, private limited company, or public limited company. An enterprise, on the other hand, is not necessarily a separate legal entity but can be a part of a company or a larger organization.
  4. Industry Association: The term "enterprise" is more commonly used in specific industries, such as IT, while the term "company" is more generic and can be applied to any type of business.

In summary, an enterprise is a broader concept that may encompass multiple companies or businesses, while a company is a legal entity with a specific structure and primary goal of driving profitability.

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  • What is the Difference Between Enterprise and Company?
  • Comparative Table: Enterprise vs Company

    • Comparative Table: Enterprise vs Company

    Here is a table comparing the differences between an enterprise and a company:

    Enterprise Company
    An enterprise is a larger, more complex, and diversified business organization, often consisting of multiple companies, departments, or subsidiaries under one umbrella. A company is a legal entity owned by shareholders and has its own distinct identity separate from its owners. It can be a for-profit or non-profit organization.
    Enterprises typically have a hierarchical structure, with the central entity holding the majority stake in the group companies. Companies have multiple people with ownership stakes in the business, and they are legally separate from their owners, which means they can own property, enter into contracts, and be held legally liable.
    The term "enterprise" can also refer to a project, initiative, or endeavor, whereas "company" specifically refers to a legal business entity. The term "company" is often used synonymously with "business" or "firm," and it refers to an organization engaged in commercial activities, such as selling, manufacturing, or distributing goods and services.

    In summary, an enterprise is a larger, more complex, and diversified business organization that often encompasses multiple companies, while a company is a legal entity owned by shareholders and has a distinct identity separate from its owners.

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    Guilherme Mazui

    Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.