> Is it misnomer to call a linear-equation a linear-function, or it is completely wrong to say that?
Neither. The meaning of some mathematical terms ( _normal_ , _regular_ , _smooth_ , etc) is context-dependent. E.g., _smooth function_ means $C^\infty$ in some papers/books and $C^1$ in others.
In certain contexts, _linear_ means "additive and commutes with scalar multiplication". In other contexts, it means "a function of the form $x\mapsto ax+b$".