Question
Distinguish between business, profession and employment.

Answer

Sr. Difference Business Profession Employment
$1.$ Meaning Activity done with the objective of profit. Activity of offering services and charging fees for the service. Activity of getting wages for the work performed as per contract.
$2.$ Nature of work Product or services are provided for money. Services are provided through personal skill, and knowledge against fees charged. Against wages as per contract, physical or mental hard work is carried out.
$3.$ Qualifications For business, no educational qualification is required. Educational qualifications, special knowledge and training are required. As per contract according to the nature of work qualifications are necessary.
$4.$ Capital Right from establishment till the end as per the type of business capital is required. Limited Capital is required at the time os establishment. Capital is not required
$5.$ What is gained? Profit is gained. Fees is gained. Salary is gained.
$6.$ Risk Uncertainty of profit and risk of loss is involved. Risk of not getting specific fees. There is no risk because salary is paid as per contract.
$7.$ Code of conduct Transfer of ownership is possible in business. Code of conduct prescribed by association of profession is to be obeyed. Rules and conditions of contract are to ne obeyed.
$8.$ Transfer of ownership Transfer of ownership is possible in business. In profession, transfer of ownership interest is not possible. Employee can not become the owner.

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