The difference between Business, Profession, and Employment is covered in Chapter 1 of Business Studies in Class 11
First, let us get a brief introduction of all three.
WHAT IS BUSINESS?
Business means economic activities that are linked to the production or purchase and sale of goods or services with the main object of earning profit.
People who do business earn income in terms of profit.
WHAT IS A PROFESSION?
- It includes those activities, which require special knowledge and skill to be applied by an individual in their occupation.
- These activities are generally governed by guidelines or codes of conduct issued by professional bodies.
- For Example, Doctors who are engaged in the medical profession are subject to the regulations of the medical council of India.
WHAT IS EMPLOYMENT?
- It refers to the occupation where people work for others and are paid back.
- Those who are employed by others are identified as employees.
- People who work in factories and receive wages and salaries are in the employment of the factory owner and are employees of the factory.
Difference Between Business, Profession, and Employment
and other legal formalities
, if necessary.
|Membership in a professional body and certificate of practice||Appointment letter and service|
|Nature of work||Provision of goods and |
services to the public
|Rendering of personalized, expert|
|Performing work as per service contract|
or rules of service
|Qualification||No minimum qualifications |
|Expertise and training in a specific field is a must||Qualification|
as prescribed by the
|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 an establishment||No capital|
|Risk||Profit is uncertain and irregular; risk is present||A fee is generally regular and|
certain; some risk
|Fixed and regular pay; no risk|
|Transfer of interest||Transfer possible with some formalities||Not possible||Not|
|Code of Conduct||No code of conduct is prescribed||Professional code of |
conduct is to be followed
|Norms of behavior laid down by the|
employer is to be