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While all companies are businesses, not all businesses are companies. A company is a formal legal entity, whereas a business can refer to any activity or organization engaged in commerce.

A company is formed by registering with the appropriate government authority, creating foundational documents like articles of incorporation, and fulfilling legal requirements specific to its type.

Shareholders own a portion of the company through shares and have a say in major decisions, typically through voting rights. They also benefit from the company’s profits in the form of dividends.

Companies raise capital through various means, such as issuing stocks, obtaining loans, or reinvesting profits to fund growth and operations.

Companies measure success through financial performance indicators like revenue and profit, customer satisfaction, market share, and the achievement of strategic goals.