Terminolgy varies around countries.
This should answer your question.
Legalfilings.com, Incorporate, Incorporation, 501c3, Tax Exempt, Non Profit
A Pty Ltd here or LLC there is a legal entity, able to buy, borrow, sell and trade.
That means if the company for instance suffers a loss unless there's a directors or presidents guarantee personal assets cannot be seized unless you are convicted of insolvent trading.
It's a smart way to separate your business from personal assets. Insurance doesn't cover everything, especially losses.
In a real live case a guy I know who had a company .... the OHS people fined the company $25K, so he shut the company down and walked away. If that was DBA he would have had to pay it and they could take assets.
