firm

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Firm

Refers to an order to buy or sell that can be executed without confirmation for some fixed period. Also, a synonym for company.

Firm

1. A company or any other for-profit business.

2. Describing an order to buy or sell a security that may be executed without confirming the order with the person or company making it. Most firm orders have a time limit.

firm

see BUSINESS.

firm

or

company

or

supplier

or

enterprise

A transformation unit concerned with converting FACTOR INPUTS into higher-valued intermediate and final GOODS or SERVICES. The firm or BUSINESS is the basic producing/supplying unit and is a vital building block in constructing a theory of the market to explain how firms interact and how their pricing and output decisions influence market supply and price (see THEORY OF THE FIRM, THEORY OF MARKETS). The legal form of a firm consists of:
  1. a sole proprietorship: a firm owned and controlled (managed) by a single person, i.e. the type of firm that most closely approximates to that of the ‘firm’ in economic theory.
  2. a partnership: a firm owned and controlled by two or more persons who are parties to a partnership agreement.
  3. a JOINT-STOCK COMPANY: a firm that is owned by a group of ordinary shareholders and the capital of which is divided up into a number of SHARES. See COOPERATIVE.

The economic form of a firm consists of:

  1. a horizontal firm: a firm that is engaged in a single productive activity, e.g. motor-car assembly.
  2. a vertical firm: a firm that undertakes two or more vertically linked productive activities, e.g. the production of car components (clutches, steel body shells) and car assembly.
  3. a diversified or conglomerate firm: a firm that is engaged in a number of unrelated productive activities, e.g. car assembly and the production of bread.

For purposes of COMPANY LAW and the application of many company taxes and allowances (e.g. CORPORATION TAX and CAPITAL ALLOWANCES), a distinction is made between ‘small and medium-sized’ companies and ‘large’ companies. Small and medium-sized companies are defined as follows (Companies Act, 1995):

  1. annual turnover of less than £11.2 million;
  2. gross assets of under £5.6 million;
  3. not more than 250 employees.

In 2004 there were some 3,800,000 firms in the UK, of which 70% were run by the self-employed. Most businesses were small, with around 3,766,000 firms employing fewer than 50 people, 27,200 firms employing between 50 and 249 people, while only 6,900 firms employed more than 250 people. In terms of their contribution to GROSS DOMESTIC PRODUCT (GDP), however, firms employing more than 50 people contributed in excess of 75% of total output.

The total stock of firms fluctuates from year to year, depending on the net balance of new start-up businesses and those businesses ceasing trading (see INSOLVENCY). Generally, the total stock of firms increases when the economy is expanding (or as a result of some ‘special’ factor, e.g. the surge in newly established INTERNET businesses) and falls in a recession.

A final point to note is that with the increasing globalization of the world economy, MULTINATIONAL COMPANIES are becoming more prevalent in economies such as the UK's (see FOREIGN INVESTMENT for further details). See HORIZONTAL INTEGRATION, VERTICAL INTEGRATION, DIVERSIFICATION, BUSINESS CYCLE.

References in periodicals archive ?
In addition terra firme forest is common as well as white sand forest, and palm forest which exists on standing water (Holdridge 1967).
The aim of this paper is to describe and analyse the floristic composition and diversity in the large survey of 15 1-ha plots in terra firme tropical rainforest at the Embrapa Experimental site, in central Amazon, Manaus, Amazonas State and to compare their floristic composition with other nine plots spread over the Amazonas State, by analysing the influence of the geographical distance on the floristic similarity between plots across Amazonas State, Brazil.
marlin azul--Makaira nigricans--Emparentado con el pez vela, su carne se rebana en filetes gruesos de carne roja, de sabor fuerte y textura firme.
II aidera egalement cette firme innovatrice a introduire plusieurs nouveaux produits sur le marche.
En la Selva Baja Peruana encontramos dos ambientes diferenciados por los suelos y las geoformas de su superficie: Los bosques de tierra firme no inundados y los bosques pantanosos resultado de los procesos de subsidencia.
Los sitios de muestreo corresponden a bosque de tierra firme, bosque inundable y sabana casmofita de tepui.
It began early Thursday morning, when George Firme, 23, of Oxnard picked up three female hitchhikers near Denny's in Oxnard.
Matt Firme, vice president and editorial director of Imagine Media, says "It's a rare and very rewarding honor when one publishing company can achieve so many nominations.
La firme californienne Apple a annonce qu'elle souhaite fabriquer des iPhone et autres iPad avec des materiaux entierement recycles, rapporte le site tomsguide.
Le vaccin (cAd3-ZEBOV), developpe par la firme britannique GSK (GlaxoSmithKline) : il utilise comme vecteur un adenovirus de chimpanze dans lequel a ete insere un gene du virus Ebola.
Seulement, la FAF et la firme allemande ont signe l'accord, sans pour autant parapher le contrat liant les deux parties.