Differentiate between business , profession and employment.
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1. Mode of establishment:
A business enterprise is established when an entrepreneur takes a decision to carry on some business activity. In a profession, on the other hand, the membership or enrollment of a recognised professional association or institution is essential. In order to take up employment, a person has to enter into a contact of service.
2. Nature of work:
A business exists to provide goods and services to satisfy human wants. On the other hand, a professional renders personalised service of a specialised nature to his clients. An employee performs the work assigned by the employer under the contract of service.
3. Qualifications:
No formal education is compulsory in order to carry on a business. But for a profession, specialised knowledge and training are essential. Minimum educational qualifications are prescribed for every profession. In case of employment, the qualifications required depend upon the nature of the job.
4. Main objective:
In business, the basic motive is to earn profits. A professional, on the other hand, is expected to emphasise the service motive and sense of mission.
That is why; a rigorous code of ethical behaviour is laid down in every profession. In case of service, the motive of an employee is to earn salary and receive other benefits.
5. Investment:
Every business requires capital depending upon the nature and scale of operations. A professional also has to invest some capital to establish an office for rendering services. There is no need for capital in case of employment.
6. Risk:
There is an inherent element of risk in business and profession but practically no risk is involved in case of employment. There can be loss in business but in profession and employment return is never negative.
7. Reward:
Profit is the reward of a businessman while professional fee is the reward of a professional. The reward in case of employment is wage or salary. Wage/salary and fee are more regular and fixed than profits.
8. Transfer of interest:
It is possible to transfer ownership interest in business. But no such transfer is possible in case of profession and employment.
9. Public advertisement:
The success of a business depends upon public advertisements. But professionals are prohibited from giving public advertisements. There is no need for public advertisements in case of service.
In spite of the above differences, there is a close interrelation between business, profession and service. A large business enterprise employs a large number of persons in order to achieve its objectives.
A business enterprise is established when an entrepreneur takes a decision to carry on some business activity. In a profession, on the other hand, the membership or enrollment of a recognised professional association or institution is essential. In order to take up employment, a person has to enter into a contact of service.
2. Nature of work:
A business exists to provide goods and services to satisfy human wants. On the other hand, a professional renders personalised service of a specialised nature to his clients. An employee performs the work assigned by the employer under the contract of service.
3. Qualifications:
No formal education is compulsory in order to carry on a business. But for a profession, specialised knowledge and training are essential. Minimum educational qualifications are prescribed for every profession. In case of employment, the qualifications required depend upon the nature of the job.
4. Main objective:
In business, the basic motive is to earn profits. A professional, on the other hand, is expected to emphasise the service motive and sense of mission.
That is why; a rigorous code of ethical behaviour is laid down in every profession. In case of service, the motive of an employee is to earn salary and receive other benefits.
5. Investment:
Every business requires capital depending upon the nature and scale of operations. A professional also has to invest some capital to establish an office for rendering services. There is no need for capital in case of employment.
6. Risk:
There is an inherent element of risk in business and profession but practically no risk is involved in case of employment. There can be loss in business but in profession and employment return is never negative.
7. Reward:
Profit is the reward of a businessman while professional fee is the reward of a professional. The reward in case of employment is wage or salary. Wage/salary and fee are more regular and fixed than profits.
8. Transfer of interest:
It is possible to transfer ownership interest in business. But no such transfer is possible in case of profession and employment.
9. Public advertisement:
The success of a business depends upon public advertisements. But professionals are prohibited from giving public advertisements. There is no need for public advertisements in case of service.
In spite of the above differences, there is a close interrelation between business, profession and service. A large business enterprise employs a large number of persons in order to achieve its objectives.
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