There are similarities at a deeper level, as well. A biological virus is not a living thing. A virus is a fragment of DNA inside a protective jacket. Unlike a cell, a virus has no way to do anything or to reproduce by itself -- it is not alive. Instead, a biological virus must inject its DNA into a cell. The viral DNA then uses the cell's existing machinery to reproduce itself. In some cases, the cell fills with new viral particles until it bursts, releasing the virus. In other cases, the new virus particles bud off the cell one at a time, and the cell remains alive.

A computer virus shares some of these traits. A computer virus must piggyback on top of some other program or document in order to get executed. Once it is running, it is then able to infect other programs or documents. Obviously, the analogy between computer and biological viruses stretches things a bit, but there are enough similarities that the name sticks.

Viruses are sometimes also referred to as malware.  Short for malicious software, this is software designed specifically to damage or disrupt a system

Src: http://computer.howstuffworks.com/virus.htm