Question

Distinguish between business,profession and employment

Answer 1

WHAT IS BUSINESS?

Business refers to those economic activities, which are connected with the production or purchase and sale of goods or supply of services with the main object of earning profit. People engaged in business earn income in the form of profit.

Examples: Grocery Shop, Hair Salon, Medicine Shop etc. are among the vast examples of business.

WHAT IS PROFESSION?

Profession includes those activities, which require special knowledge and skill to be applied by individuals in their occupation. Such activities are generally subject to guidelines or codes of conduct laid down by professional bodies. Those engaged in professions are known as professionals.

Examples of Professionals: Doctors, Engineers, Chartered Accountants etc.

 

WHAT IS EMPLOYMENT?

Employment refers to the occupation in which people work for others and get remunerated in return. Those who are employed by others are known as employees.

Example: Any person working for other on a salary basis such as Accountant, Sales Manager, Peon etc.\

The differences between business, profession and employment can be explained by the help of this table below:

Answer 2

Answer:

Business

1. Business may commence with the decision of entrepreneur.
2. No minimum qualification required before starting a business.
3. Capital requirement depends on the scale of business.
4. In business, there is always risk & uncertainty.
5. Transfer of interest is possible with some formalities.

    6.  The main objective of business is to earn a profit.

  Profession

1. The profession may commence on completion of a degree course & by getting a certificate of practice.
2. Prescribed & professional qualification & training required.
3. Limited capital investment is required.
4. In the profession, there is little risk present.
5. Transfer of interest is not possible
6. The main objective of a profession is to provide service.

  Employment

1. Employment commences on joining duty by entering into a service agreement.
2. Qualification depends on the nature of the job.
3. No capital investment is required.
4. In employment, there is no risk involved
5. Not possible to transfer the service contract
6. The main objective of employment is to earn income in the form of salary by satisfying the employer.