What is the difference between Profession, Business and Employment?
“Though there may not be complete distinction as far as their boundaries are concerned, some sort of division is certainly plausible. ”
Profession, Business and Employment are the terms that are frequently used in our day-today lives. Though there may not be complete distinction as far as their boundaries are concerned, some sort of division is certainly plausible.
An entrepreneur starts a business and produces goods and services for the satisfaction of human needs. He undertakes this activity with the primary aim of earning profits. He has to complete various kinds of formalities for bringing the unit into existence.
A professional firm on the other hand, comes into existence when a professional who holds suitable qualification to undertake desired work joins that body. Employment can be called a contract that is required to take up a job for somebody else.
The agreement of employment may be written or oral. While business basically comes under the purview of self- employment, services involve employment under somebody else. A professional body provides a specialized service to the clients. An employee on the other hand, undertakes the activities assigned to him by his employer.
No educational or technical qualifications are prescribed for setting up a business unit. On the other hand, a professional is required to acquire a particular degree or qualification prescribed by a particular professional body.
It is the expert knowledge that a professional is expected to exercise. There is no highest qualification binding for taking up a service, however, a well-qualified person can get a better job.
A business requires an investment as per the nature and scale of operations. A professional has to spend money on setting up his office or place of work. Employment does not require any substantial investment at all.
There is a greater element of risk in business as compared to service and profession. The motive of setting up a business is to earn profit but there can be loss too. A professional is comparatively safe as he earns fees for his services and there cannot be negative fees.
An employee earns wages or salary regularly. As long as he is in service, he has no risk at all. A professional has to be member of a body. A lawyer has to take permission from Bar Council to start legal profession. Though there are many bodies for businessmen but the membership of these bodies is not compulsory at all.
In this way, each term has certain merits and demerits associated with it along with confusion, which is evident when the question of giving concrete definitions arises.
Author - DeeKay
Tags - Finance, Economy
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