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Comparison of Business, Profession and Employment

As mentioned earlier, economic activities may be divided into three major categories viz.,
  1. Business
  2. Profession
  3. Employment
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. Profession includes those activities, which require special knowledge and skill to be applied by individuals in their occupation. Such activities are generally subject to guidelines or codes. Accountants belong to the accounting of conduct laid down by professional profession and are subject to the bodies. Those engaged in professions regulations of the Institute of Chartered are known as professionals. For Accountants of India. example, doctors are engaged in the Employment refers to the medical profession and are subject to occupation in which people work for the regulations of the Medical Council others and get remunerated in return. of India, the concerned professional Those who are employed by others are body. Similarly, lawyers are engaged known as employees. Thus, people who in the legal profession, governed by the work in factories and receive wages and salaries are in the employment of factory owners and are employees of the factory. Similarly, people who work in the offices of banks, insurance companies or government department, as managers, assistants, clerks, peons or security guards are the employees of these organizations.

Business Functions at Enterprise Level

Business includes many number of functions performed by many different types of organizations known as business enterprises or firms. To carry on any business the enterprise has to perform four major functions namely financing, production marketing and human resource management . Mobilizing and utilizing funds for running a business enterprise is meant by financing. The conversion of raw materials into finished goods comes under production. The activities which facilitate exchange of goods and services from producers to the people who need them, at a place they require, at a time they need and at a price they are ready to pay is known as marketing. Human resource management means ensuring the availability of working people who have proper skills to perform various jobs in a firm.


salaries are in the employment of factory owners and are employees of the factory. Similarly, people who work in the offices of banks, insurance companies or government department, as managers, assistants, clerks, peons or security guards are the employees of these organizations.

 

COMPARISON OF BUSINESS, PROFESSION AND EMPLOYMENT
 

Basic

Business

Profession

Employment

1. 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

2. 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

3. Qualification

No minimum

qualification is

necessary

Expertise and

training in a

specific field is a

must

Qualification and

training as

prescribed by the

employer

4. Reward or

return

Profit earned

Professional fee

Salary or wages

5. Capital

investment

Capital investment

required as per

size and nature of

business

Limited capital

needed for

establishment

No capital required

6. Risk

Profits are

uncertain and

irregular; risk is

present

Fee is generally

regular and

certain;some risk

Fixed and regular

pay; no risk

7. Transfer of

interest

Transfer possible

with some

formalities

Not possible

Not possible

8.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 are to be

followed





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