What do law firms mean by commercial awareness?

When law firms talk about commercial awareness, what they are looking for is a degree of understanding of, and an interest in, the world of business. They want to know that you will understand not only the legal needs of their clients, but also the business needs and environment in which those clients are operating in. Sometimes this simply means demonstrating that you can apply common sense to a commercial question or problem. The law itself is becoming less of a profession and more of a business and firms want to see evidence that you would be an asset in this environment.