question_answer 17)

Compare business with profession and employment.

Answer:

Economic activities may be divided into three major categories (i) 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. (ii) Profession Profession includes those activities, which require special knowledge and skill to be applied by individuals in their occupation. Those engaged in professions are known as professionals and are generally subject to guidelines or codes of conduct laid down by professional bodies, e.g., lawyers are engaged in the legal profession, governed by the Bar Council of India and Chartered Accountants belonging to the accounting profession are subject to the regulations of the Institute of Chartered Accountants of India. (iii) 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. Thus, people who work in factories, offices of banks, insurance companies or government department, etc at various posts are the employees of these organizations. They receive wages and salaries.  

Basis	Business	Profession	Employment
Mode of establishment	Entrepreneur’s decision and other legal formalities, if necessary.	Membership of a professional body and certificate of practice.	Appointment letter and service agreement.
Nature of work	Provision of goods and services to the public.	Rendering of personalized, expert services.	Performing work as per service contract or rules of service.
Qualification	No minimum qualification is necessary.	Expertise and training in a specific field is must.	Qualification and training as prescribed by the employer.
Reward or return	Profit earned.	Professional fee.	Salary or wages.
Capital investment	Capital investment required as per size and nature of business.	Limited capital needed for establishment.	No capital required.
Risk	Profits are uncertain and irregular; risk is present.	Fee is generally regular and certain; some risk.	Fixed and regular pay; no or little risk.
Transfer of interest	Transfer possible with some formalities.	Not possible.	Not possible.
Code of conduct	No code of conduct is prescribed.	Professional code of conducts is to be followed.	Norms of behavior laid down by the employer are to be followed.