A unit formed for the purpose of carrying on some business activity is called a business firm or a business enterprise. Its an organization that operates on profit basis and participates in selling goods and services to the consumers. Generally, the business firm has a name such as Rekha Cloth Emporium or Sabariwala & Company or Bajaj Auto Ltd. 

A commercial organization that operates on a for-profit basis and participates in selling goods or services to consumers. The management of a business firm will typically develop a set of organizational objectives and a strategy for meeting those goals to help employees understand where the company is headed and how it intends to get there.