Is the business a profession?

Difference between business and profession

Human activities are mainly divided into two categories: economic activities and non-economic activities. Economic activities are activities aimed at making money or making a living. In addition, these activities are divided into business, occupation, and employment. There is a huge difference between business and profession in the sense that for that matter Company formation no minimum qualification is required. It is an activity related to buying and selling goods.

On the other hand is a job nothing more than a paid profession that requires a person to be formally qualified, knowledgeable, and trained in a specific field to be called a profession. Read this article to learn more about the two topics.

Comparison table

Basis of comparisonbusinessjob
importanceBusiness is an economic activity engaged in the production or buying and selling of goods and the provision of services for the purpose of making a profit.The profession is a form of economic activity in which the person must apply special skills, knowledge and expertise in their profession.
Basic goalEarn profitRendering services
FacilityAbout the decision of the entrepreneur and compliance with the legal formalities.Membership in the respective professional organization and certificate of practice.
qualificationNo minimum qualification.Specialist knowledge of the course is required.
CapitalRequired depending on the size and type of business.Limited capital is required.
rewardBenefitfee
behaviour rulesNo mandatory code of conduct.The rules of conduct prescribed by the professional associations must be observed.
advertisingProducts and services are advertised to increase sales.Advertising is prohibited according to the professional code of conduct.
Transfer of InterestPossibleNot possible
Risk factorAlways presentNot always present

Definition of business

"Business", a term that has its origin in the word "employed" and refers to the act of employing. In simple terms, business is the regular employment of a person in which they engage in an activity for the purpose of making profit and acquiring wealth.

The company represents an entity involved in the production or buying and selling of goods and providing services to meet the needs of customers. It can be a for-profit company, such as a publicly or privately owned company, or a not-for-profit company. There are essentially five forms of business organization: sole proprietorship, partnership, cooperative, Hindu family business and joint stock company. The main features of the business are:

  • An economic activity
  • Regularly producing or buying and selling goods and services.
  • The main purpose is to make a profit
  • Uncertainty of return
  • Presence of a risk

Definition of profession

The profession is defined as a paid profession in which a person is formally qualified and has undergone extensive training and provides services to the general public. It refers to any activity that requires specialist knowledge of specialist knowledge and skills acquired through formal learning and practical experience in order to be applied by the individual in their respective occupation. Some common examples of this profession are doctors, lawyers, accountants, engineers, architects, etc.

To be called as a professional, a person must be a registered member of a profession. Every profession has certain rules known as a professional code of ethics. that rules it. The purpose of a profession is to provide services to those who need it for a direct and specific compensation called a fee.

Key differences between business and profession

The following points are noteworthy when it comes to the difference between business and work:

  1. An economic activity that relates to the production or the buying and selling of goods and the rendering of services for the purpose of profit is called a business. A form of economic activity in which special skills, knowledge and expertise must be applied by the person in their profession is called a profession.
  2. The main goal of a business is to make a profit while the profession is geared towards providing services.
  3. A company can be set up by the entrepreneur's decision and after certain legal formalities have been met. On the other hand, the profession requires membership in the respective professional organization and the certificate of exercise of the branch.
  4. Any person can start their business; There is no minimum qualification to run a business. On the contrary, specialist knowledge about studies, training and specialist knowledge is the main requirement of the profession.
  5. A company requires capital investments according to its size and type. Unlike the profession, whose capital requirements are limited.
  6. A businessman receives profit in return for the work he has done. Conversely, a professional receives a fee for the services he provides.
  7. There is no mandatory code of conduct in business. In contrast to the profession, the code of conduct is prescribed by the professional bodies and must be followed.
  8. In general, every company promotes its products and services in order to increase sales. In contrast, according to the professional code of conduct, advertising is strictly prohibited.
  9. In the business world, the transfer of interest is common, like handing over a business from father to son. In contrast to the profession, where transferability is not possible as it requires special skills and knowledge.
  10. Business and risk go hand in hand, so the risk factor is always present in business. On the other hand, the risk factor may or may not be present in an occupation.

Conclusion

After much discussion on these two topics, it is pretty clear that these two are not the same at all. Business is primarily geared towards making profits and attaining wealth, while service is the basic motive of a profession. In addition, the business requires large investments in the early stages. Conversely, the actual capital is the competence and specialization in the job.