Business is different from profession and employment in the following ways:
1. Formation: a business enterprise is established by an entrepreneur, who takes a decision to carry on production and or exchange of goods and services in order to earn profit by satisfying the needs of the customers. The entrepreneur has to complete all the legal formalities like registration of the form in order to bring the enterprise into existence. On the other hand, a professional firm comes into existence when a professional, who holds the membership; and the certificate of practice of the professional body, takes the decision to practice the profession. in the case of employment, a person enters into a written or oral contract of service with a business form, and no registration of the certificate of practice is required. business and profession involve self-employment while service involves employment under somebody else.
2. Qualifications: no minimum educational qualifications have been laid down by any authority for a businessman. a businessman need not be an expert. on the other hand, a professional must possess the specialized knowledge and skill prescribed for the profession concerned. in the case of employment, education and special training are not essential in all cases. however, a properly qualified person can obtain better implementation with business concerns.
3. Membership: these days businesses often have an association of their own but the membership of the association is not compulsory. but a professional must be a member of the professional body which exercises statutory control over his profession. in case of employment, membership of any association or professional body is not essential.
4. Nature of work: a businessman supplies goods and services to satisfy human needs. on the other hand, a professional render professional services of a specialized nature to his clients. the intimate personal contact and application of expert skills so essential in the practice of the profession are lacking in business. An employee performs the work assigned to him by the employer under the contract of service.
5. Motive: the basic motive of a business enterprise is to earn profit by supplying goods and services to society. but a professional is expected to emphasize the services motives and sense of mission to a greater extent than a businessman. a professional is required to follow a rigorous code of conduct or ethical behavior specially provided for the profession. for instance, professionals are not expected to advertise themselves while advertising is the necessity of business. in the case of employment, there is no sense of mission and the and the employee is required to observe the terms and conditions prescribed in the contract of service.
6. Investment: every business forms needs some capital, though the amount of capital investment varies with the nature and size of the business. A professional has to invest a limited capital in order to set up his office for rendering professional services. in the case of employment, there is no need for capital investment.
7. Reward: the reward of a businessman consists of the profit he earns. a professional receives the reward for his services in the form of a fee while an employee earns salary or wages as his reward.
8. Risk: some element of risk is involved in both business and profession. but the fee of professional is more certain and fixed than the profit of businessman. there is practically no risk in the case of employment so long as the employer continues the operations. an employee receives the wages or salary which is generally fixed and regular.
9. Transfer of interest: a businessman can transfer the ownership interest in the enterprise in accordance with the prescribed formalities. but the transfer of ownership interest is not possible in the case of profession or employment or employment.
the above descriptions reveal that there is a great number of differences between business, profession, and employment. in spite of these differences, there is a close interrelationship between them. the business employs a large number of persons in order to carry on its operations successfully. big business firms also need the services of professionals experts like chartered accountants, lawyers, engineers, etc for tackling business-related matters.