Compare business with profession and employment.
Business, profession and employment can be compared as shown in the chart below.
Basis of distinction |
Business |
Profession |
Employment |
|
1. |
Commencement |
A business can be started by an entrepreneur depending on his or her decision to do so and subject to the fulfillment of certain legal formalities. |
A profession can be commenced only after the successful completion of a (professional) degree or a certificate course. |
Employment commences when the appointment letter and the service agreement are signed by the employer and the employee. |
2. |
Investment |
The amount of capital required depends on the size and nature of the business. |
Limited capital investment is required. |
Capital is not required. |
3. |
Risk involved |
Profits are unpredictable. The degree of risk involved depends on the nature of the types of goods produced by a business and the scale of business operations. |
A comparatively low degree of risk is involved. |
Negligible risk involved. |
4. |
Transfer of ownership |
Ownership can be transferred subject to the fulfillment of some legal formalities. |
Ownership cannot be transferred as a professional has acquired the required degree and the skills only for himself or herself. |
Ownership is not possible. |
5. |
Reward or remuneration |
Profit earned |
Professional fees |
Salary |
6. |
Code of conduct |
No code of conduct |
As prescribed by the professional association concerned. |
As per the terms and conditions laid down by the organisation concerned. |
7. |
Qualification |
No minimum qualification is necessary. |
Prescribed professional qualification is necessary. |
Depends upon the nature of the job. For instance, for the blue-collar jobs, low educational qualifications are adequate, whereas higher qualifications are required for white-collar jobs. |