Difference between Business, Profession, and Employment
Basis |
Business |
Profession |
Employment |
---|---|---|---|
Meaning | Business is an economic activity which includes activities related to the sale and purchase of goods and services on a regular basis with the objective of earning profit. | Profession is an economic activity which includes activities requiring special skills and knowledge in their occupation. | Employment is an economic activity which includes occupation in which individuals work for their superiors with the motive of earning remuneration in return. |
Mode of establishment | Starts after legal formalities like MOA, AOA, etc., are completed. | It requires membership of a professional body like the Bar Council, etc., and a certificate of practice. | Employment starts after receiving an appointment letter. |
Qualification | No minimum qualification is required in business. | Formal qualification, expertise, and training from a professional body are essential. | Qualification requirements in employment vary according to the type of job and training prescribed by the employer. |
Nature of work | It involves providing goods and services to society. | It involves rendering specialized services. | It includes work given by the employer as per the employment contract and the rules of service. |
Reward | Profit | Professional fees | Salary and wages |
Capital | It depends on the nature and size of the business. | It requires limited capital. | It does not require any capital. |
Code of conduct | It does not have any code of conduct. | It consists of a professional code of conduct. | In employment, rules or codes of conduct are set by the employer in the terms and conditions of the service contract. |
Risk | A business involves high risk. | In profession, there is low risk. | Employment does not involve any risk. |
Transfer of interest | In business transfer of interest is possible. | In profession one cannot transfer interest. | In employment also transfer of interest is not possible. |
Example | An individual having a manufacturing plant of automobiles. | Doctors, Lawyers, Teachers, Professors, and Chartered Accountants are the professionals. | Jobs in firms, shops, banks, etc. are considered employment. |