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Compare business with profession and employment. - Business Studies

Answer in Brief

Compare business with profession and employment.

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Solution

Business, profession and employment can be compared as shown in the chart below.

 

Basis of distinction

Business

Profession

Employment

1.

Commencement

A business can be started by an entrepreneur depending on his or her decision to do so and subject to the fulfillment of certain legal formalities.

A profession can be commenced only after the successful completion of a (professional) degree or a certificate course.

Employment commences when the appointment letter and the service agreement are signed by the employer and the employee.

2.

Investment

The amount of capital required depends on the size and nature of the business.

Limited capital investment is required.

Capital is not required.

3.

Risk involved

Profits are unpredictable. The degree of risk involved depends on the nature of the types of goods produced by a business and the scale of business operations.

A comparatively low degree of risk is involved.

Negligible risk involved.

4.

Transfer of ownership

Ownership can be transferred subject to the fulfillment of some legal formalities.

Ownership cannot be transferred as a professional has acquired the required degree and the skills only for himself or herself.

Ownership is not possible.

5.

Reward or remuneration

Profit earned

Professional fees

Salary

6.

Code of conduct

No code of conduct

As prescribed by the professional association concerned.

As per the terms and conditions laid down by the organisation concerned.

7.

Qualification

No minimum qualification is necessary.

Prescribed professional qualification is necessary.

Depends upon the nature of the job. For instance, for the blue-collar jobs, low educational qualifications are adequate, whereas higher qualifications are required for white-collar jobs.

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APPEARS IN

NCERT Ncert Class 11 Business Studies
Chapter 1 Business, Trade and Commerce
Long Answer Questions | Q 3 | Page 26
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