Sunday 5 February 2017

Class 11 - Business Studies - Nature and Purpose of Business - Business vs Profession vs Employment

Business vs Profession vs Employment

Class 11 - Business Studies - Nature and Purpose of Business - Business vs Profession vs Employment

Important Differences

Sno. Business Profession Employment
1. Definition It refers to those economic activities which are connected with purchase, production and/or sale of goods and services with an objective of earning profits. It includes those economic activities that require special knowledge or skills in the occupation. It refers to the occupation in which people work for others get remuneration in return.
2. Examples Fishing, Mining, Production and selling of electronic goods Medical Doctor, Lawer (Legal), Accountant Worker, Salesman, Employee
3. Mode of Establishment Starts after completing some legal formalities needed. Membership of a professional body and certificate/license to practice required. Start after getting appointment (formal or informal)
4. Nature of work Provision of goods and services to the public. Personalized services of expert nature. Work allotted by employer or as prescribed by contract.
5. Qualification No minimum qualification necessary. Professional qualification and training required. Qualification and training as prescribed by employer.
6. Capital Investment Capital needed according to its nature and size. Limited capital for establishment. No capital required.
7. Rewards/Returns Profits Professional fee Salary or wage
8. Transfer of Interest Transfer fasible after some formalities. Not feasible Not feasible
9. Code of conduct No code of conduct Professional code of conduct to be followed. Terms and conditions as laid by appointment letter or contract.
Risk Involves high risk Low risk Verlow or no risk.

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