Difference Between Business, Profession, and Employment

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.


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.


  • 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.


  • 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

Mode of
Entrepreneur’s decision
and other legal formalities
, if necessary.
Membership in a professional body and certificate of practice Appointment letter and service
Nature of workProvision of goods and
services to the public
Rendering of personalized, expert
Performing work as per service contract
or rules of service
QualificationNo minimum qualifications
are necessary
Expertise and training in a specific field is a mustQualification
and training
as prescribed by the
Reward or returnProfit EarnedProfessional feeSalary or wages
Capital InvestmentCapital investment required
as per size and nature of business
Limited capital needed for an establishmentNo capital
RiskProfit is uncertain and irregular; risk is presentA fee is generally regular and
certain; some risk
Fixed and regular pay; no risk
Transfer of interestTransfer possible with some formalitiesNot possibleNot
Code of ConductNo code of conduct is prescribedProfessional code of
conduct is to be followed
Norms of behavior laid down by the
employer is to be

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