Business difference from profession and employment in the following respects.
A business is organized to produce or distribute goods or services to society in order to earn profit. It involves various kinds of activities such as purchase, sale, store, transport, finance, service which all aim at gaining profit. Business is useful to society in many ways.
- It provides material needs to the people.
- It gives theme employment and regular income
- It carries on research and thus makes the best use of scarce resources of the country
- It strengthens the economy
- It raises the standard of living of the people
- It provides income to the state.
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Profession, on the other hand refers to a vocation which a person adopts after getting specialized training. The professional men provide services of specialized nature to the community. The professionals are mainly of two types.
- Those who carry on the profession purely for profit motive
- Those who are not guided by profit motive but are strongly motivated to provide services to the community. The professor, doctors, engineers, accountants, artists, scholars etc fall in the category of professionals.
In the materialistic world of today, the professional men are rendering very useful service in the society as they have a specialized knowledge in a particular field. a cost accountant, for instance, can give valuable suggestions to the management for minimizing cost of production consistent with efficiency. Similarly, a professional manager can better meet the challenge created by rapid race of innovation and technological inventions in the business growth business and profession are closely interrelated.
It is an engagement of a person on an agreed payment for assistance in production or in the purchase and sale of goods and services. the payment which is paid to the employee is called wages or salary.
Difference between Business Profession and Employment
|Mode of establishment||A lawful business established when a decision to carry on the business is undertake.||A person is supposed to enroll himself with a recognized professional institution.||Appointment commences when a person agrees to work under a contract of employment.|
|Minimum qualification||Qualification is not necessary for Starting a business||Minimum technical and academic qualification are necessary to enter a profession.||Specific qualification is needed in some cases but not in all cases|
|Main objective||The main objective of business is to earn profit.||An element of service along with earning of money is present in profession.||The main objective is to earn a living by way of wages or salaries.|
|Secrecy||It is not necessary to maintain secrecy in business||Maintain secrecy in customer dealing is necessary in profession||An employee is required to follow the rules of service as prescribed under a contract of employment|
|Efficiency||The efficiency of business is measured by profits||The efficiency is judged by the quality of services provided to the clients.||The efficiency is urged by the work he puts in and his loyalty to the employer.|
|Transfer of interest/ownership||Transfer of ownership and interest possible in business with legal formalities if any.||Transfer of profession certificate is not possible||An employee can’t transfer his job to any other person.|
|Degree of risk||All business activities are full of risk||There is very negligible risk in profession||An employee does no incur any risk of business so long he remains in job.|
|Capital||Capital is required as per nature of business||Limited capital is needed for establishing an office for carrying on profession||No capital is required|