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

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.