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Question -

Compare business with profession and employment.



Answer -

Basis of comparison

Business

Profession

Employment

Mode of Establishment

Entrepreneur’s decision and other legal formalities, if felt necessary

Certificate of practice and a membership of a professional body

Service agreement and appointment letter

Nature of Work

Providing goods and services to public

Providing expert and personalized services

Working as per rules of service or service contract

Risk involved

Uncertain risk is there as profit and loss cannot be determined beforehand

Some risk can be there

Little or no risk

Transfer of ownership

It can be transferred by following certain formalities.

No transfer possible as degree and certification received for self

No transfer possible

Reward or remuneration

In form of profit

In form of fees for consultation

In form of salary

Code of conduct

There is no code of conduct as such

Professional code of conduct must be followed

Code of conduct as per rules of organisation

Qualification

No minimum qualification required

Qualification as prescribed by the awarding body

Qualification and training as per employers direction

 

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