Question

Attempt the following.

Give a comparative analysis of business, profession, and employment.

Answer 1

Business, profession, and employment are part of economic activities. These activities are conducted to earn money. However, the nature of all three activities is different.

A comparative analysis of all three activities is given below:

Business	Profession	Employment
1. Meaning: Business is an economic activity, conducted to earn a profit.	The profession is also an economic activity under which a person uses his knowledge and provide services.	Employment is an economic activity, conducted to earn remuneration.
2. Nature: A person invests his capital and starts a business. He may or may not have the proper skills or knowledge.	A professional has to take formal education and training before starting his profession.	A person works for another person or organisation to get his livelihood.
3. Formal education: A businessman may or may not take formal education. It is not required.	Formal education is a must for a professional to enter into a profession.	It depends upon the type of employment whether a specific formal education is required.
4. Returns: A businessman gets to profit from the business.	A professional gets fees for the services rendered.	An employee gets remuneration in the form of a wage or salary.
5. Capital requirement: More capital is required to run a business. Capital is brought by a businessman.	Comparatively less capital is required to carry out a profession. The required capital is brought by a professional.	Employees need not invest money in the business. He does not require capital.
6. Registration: A businessman need not register with a particular body or association. But it is always better for the businessman to get the membership of the associations like Chamber of Commerce.	A professional has to register under the respective body or association e.g. A Lawyer has to register himself with the Bar Council of India before carrying out his profession.	An employee does not require registering himself with specific associations.
7. Decision making: Businessman is free to take his decisions.	A Professional can take his own decisions as he is the owner.	The employee has no right to make decisions in the organisations unless he is asked.
8. Code of conduct: The businessman is the owner of the business. He may for his own code of conduct for his business.	There is a specific code of conduct for a professional. This code is decided by the respective association.	The employee has to follow the rules and regulations of his organisation.
9. Risk: Risk is involved in every business.	Limited risk is involved in the case of self-employed professionals.	Risk is involved as long as the job continues.
10. Commencement: It can be started after completing certain legal formalities	It can be started after receiving a certificate of practice.	It can be started after receiving specific qualifications.
11. Transfer of Ownership: It can be transferred to another person with necessary legal formalities.	It cannot be transferred to anyone else as certain qualification and training is a must.	It cannot be transferred from one person to another.
12. Examples: Builder, Grocery Shop, Shopping mall, etc.	Doctor, Architect, Lawyers, etc.	Receptionist, Clerks, etc.