Nature, Purpose and scope of Business — OCM STD 11 Commerce — Question

• Introduction :

• • Most of the people in society do not posses special educational qualifications, personal skill, and entrepreneurship for business.
  • Such persons are engaged in employment to generate income to fulfill their needs.
  • They are involved in this type of economic activity. It is necessary to study the meaning and characteristics of employment for clear idea.

• What is Employment? :

• • Employment means economic activity done against money as per contract of the work assigned by individual or institution e.g.
  • Government employees, bank employees, teacher, employee of private firm.

• Characteristics of Employment : They are as under :

Wages according to contract :

• • Employed person receives certain specific wages as per contract.

Physical or intellectual hard work :

• • Wages are paid for physical or intellectual hard work.

Besides wages other benefits :

• • Besides wages in employment, medical, allowance, transport allowance, dearness allowance etc. are paid.

Dependent Activity :

• • Employee has to work under his employer and has to work according to the instruction of employer.

Some Specific matters :

• • Qualifications to get employment, timing of work retirement, after retirement benefits etc. are fixed and certain.

Objective investment is not necessary :

• • Employer and employee are bound to obey the rules as per the code of contract.

Capital Investment is not necessary :

• • Employee does not have to invest capital to gain income in the form of wages.

• Conclusion :

• • Number of people are employed in various sectors in India. in our country number of people are unemployed. In most of the sectors, long queue of unemployed persons are observed to get employment.