The difference between firm and industry is that firms mainly exist to maximize profits and are managed by two or more partners providing professional services whereas industry is made up of firms.
What is a Firm?
A firm operates within an industry and is a for-profit business organization such as a corporation, partnership, and limited liability company that provides professional services. It can be a partnership or a sole proprietorship, but it is typically a for-profit operation.
A business firm consists of more than one physical establishment or more than one location, in which all fall under the same ownership and uses and report under the same Employer Identification Number (EIN) whereas most firms have just one location when operating.
The term firm can be associated with many things like businesses that practices law and other businesses like consulting, accounting, and graphic design firms. In some countries firm simply means business whereas in some countries firm is used to describe companies such as law firms that provide judicial services.
What is an Industry?
An industry consists of all the firms or businesses that are involved in the production, and sale of a specific service or product and can be either retail, service, or wholesale. Profitable industries include Legal services, Accounting, Outpatient care centers, Real estate, Offices of health care practitioners.
It is a sector that produces goods or service within an economy where retail industry consists of firms that sell products directly to customers; service industries provide a service to an individual r another firm, whereas, wholesale firms sell products to other businesses.
The industrial revolution happened from the mid 18th century to the mid 19th century where there was popularization and development of merchandised means of production as a replacement for hand production.
The difference between firm and industry is that when there are multiple sources of revenue generation by a large corporate group then it is considered as working in different industries, but firms are smaller than industries.
The Difference between Firm and Industry
|1||Definition||It is a discrete entity which is a business establishment inside an industry.||It consists of several different firms selling similar products or services.|
|2||Rules and Regulation||The rules and regulations made for industry has been applied to all the firms.||There are rules and regulations made for industry.|
|3||Made up of||Firms make up industries.||Industry consists of several different firms selling similar products or services.|
|4||Involvement||It is involved in the trade of services, goods, or both to the customers.||It is involved in production of services and goods field within an economy.|
|5||Example||Restaurants, Convenience stores, Clothing stores, Law firms, etc.||Fashion industry, Food industry, Chemical industry, Paper industry, Petroleum industry, etc.|