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Difference between Business, Profession, and Employment

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What is Business?

Business is an economic activity that includes activities related to the sales and purchase of goods and services on a regular basis with the objective of earning profit. For example, fishing, farming, etc. According to Wheeler, “Business is an institution organised and operated to provide goods and services to society under the incentive of private gain.” People running a business earn income in the form of profit. Some of the basic characteristics of a business include an element of risk, an economic activity, profit earning, sale or exchange of goods and services, etc.

Difference between Business, Profession, and Employment

What is Profession?

A profession is an economic activity that includes activities requiring special skills and knowledge in their occupation. For example, teachers, doctors, lawyers, etc. An individual engaged in a profession is known as a professional. People providing professional services earn income in the form of fees. Some of the basic characteristics of a profession include a well-defined body of knowledge, restricted entry, code of conduct, service motive, reward or return, etc.

What is Employment?

Employment is an economic activity including occupation in which individuals work for their superiors with the motive of earning remuneration in return. For example, clerks, managers, peons, etc. An individual employed by others is known as an employer. People performing their work as per their service contract earn income in the form of salary. Some of the basic characteristics of employment include contractual relations, capital investment, reward or return, qualification, etc.

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. 

Last Updated : 07 Feb, 2024
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