Question

Q6. Dr. Anant Kumar is an Orthopedic surgeon in Jaipur Golden Hospital and Dr. Sukumar Anand, his friend is a Pediatrician who has set his own clinic. Dr. Sukumar Anand's wife, Ms. Sukumar Priya Anand operates a retail store specializing in the selling of antiques. On the basis of the above given information, answer the following questions: (a) Identify the type of economic activity undertaken by Dr. Anant Kumar, Dr. Sukumar Anand and Ms. Sukumar Priya Anand. (b) Differentiate between them on the basis of nature, capital investment, transfer of interest. (6)​

Answer 1

ANSWER :

❒ Given Case :-

• Dr. Anant Kumar is an Orthopedic surgeon in Jaipur Golden Hospital and Dr. Sukumar Anand, his friend is a Pediatrician who has set his own clinic. Dr. Sukumar Anand's wife, Ms. Sukumar Priya Anand operates a retail store specializing in the selling of antiques.

❒ Questions to Answer :-

• (a) Identify the type of economic activity undertaken by Dr. Anant Kumar, Dr. Sukumar Anand and Ms. Sukumar Priya Anand.

• (b) Differentiate between them on the basis of nature, capital investment, transfer of interest.

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❍ Required Answers :-

(a)

✠ Identification of the type of economic activity undertaken by Dr. Anant Kumar, Dr. Sukumar Anand and Ms. Sukumar Priya Anand is done as follows :-

• ✎ Dr. Anant Kumar is an Orthopedic surgeon in Jaipur Golden Hospital. Therefore, the economic activity undertaken by Dr. Anant Kumar is Employment.

• ✎ Dr. Sukumar Anand is a Pediatrician who has set his own clinic. Therefore, the economic activity undertaken by Dr. Sukumar Anand is Profession.

• ✎ Ms. Sukumar Priya Anand operates a retail store specializing in the selling of antiques. Therefore, the economic activity undertaken by Ms. Sukumar Priya Anand is Business.

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(b)

✠ Difference between Employment, Profession and Business on the basis of Nature, Capital Investment and Transfer of Interest are as follows :-

• ✎ On the basis of Nature : Employment is the economic activity that involves performing the work as assigned by the employer. While, Profession is the economic activity that involves rendering of personalized service of specialized nature. Again, Business is the economic activity that involves production, purchase and dale or exchange of goods and services.

• ✎ On the basis of Capital Investment : No capital investment is required in Employment. While, a limited capital investment is required in Profession. Again, requirement of capital investment depends on the scale of Business.

• ✎ On the basis of Transfer of Interest : It is not possible to transfer the service contract in case of Employment. While, in case of Profession also, transfer of interest is not possible. But, in case of Business, transfer of interest is possible with some formalities.