what is the purpose of a firm 
though an oversimplification the purpose of a firm is to make money a nonprofit is often not referred to as a firm therefore a firm s purpose is to facilitate trade between a manufacturer or retailer with a client a firm s purpose is to ensure a good or service is transmit to those who need it with the expectation that the firm can generate a profit along the way the bottom linea firm often refers to a company that sells a service to customers though sometimes a physical good may be transmitted as well the ultimate goal of a firm is to make money as a firm is often not a non profit the activities of a firm can usually be broken into the operating investing and financing aspects of the firm 