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

Introduction :

• • Some people in society instead of business activity provided services through their personal skill, knowledge, educational qualification and charge fees and earn income.
  • They charge fees to the persons who take their services.
  • Such person is called a professional person.
  • Study of its meaning and characteristics is required to have clear idea of profession.
  • What is profession? :
  • When a person through his special skill, knowledge, training and services, this activity is called professional activity e.g. doctor, lawyer, chartered accountant, teacher, musician etc.
  • Characteristics of profession : They are as under.
  • Objective of Services :
    • Basic objective of professional person is to provide his services.
  • Requirement of Special knowledge – Skill :
  • For profession, knowledge, skill and educational qualification related to the concerned profession is required.

Different Standards of fees :

• • professional persons charge their according to their knowledge.
  • Experience, skill. So there is no uniform standard of fees.

Not associated to production :

• • Professional people provided their services according to their knowledge and skill, they are not associated to manufacturing process.

Membership of professional association :

• • Every professional person should hold the membership of their professional association.

Obeying of Code of conduct :

• • Every member has to obey the code of conduct prescribed by their association.

It is an independent activity :

• • Professional person independently takes decision and selects profession.

Uncertain compensation :

• • It is certain that how much reward a professional person would receive.