Difference between business and profession
Difference between business and profession :Generally, economic activities are divided into three major categories:
But sometimes people get confused when categorizing economic activity as either business or profession. So, let get some clarity regarding the terms- business and profession.
Meaning of Business
Business is either an occupation, profession, or trade, or is a commercial activity which involves providing goods or services in exchange for profits.
Profits in business are not necessarily money. It can be a benefit in any form which is acknowledged by a business entity involved in a business activity.
Forms of Business
There are three main legal forms a business can take:
Each of these legal forms has distinct characteristics as well as advantages and disadvantages.
Objective of the Businesses
The business objective is what makes the business go on and conduct its activities in a long run. It is the reason why the business exists. While most of the people argue that profit making is the core objective of every business. Few have come up with the new underlying objective.
According to the traditional concept, business exists only to earn profits by providing the goods and services to the customers.
According to the modern concept, the underlying objective of every business is customer satisfaction as this is what results in most profits. If the customer is satisfied, business excess.
Meaning of Profession
A profession is a disciplined group of individuals who adhere to ethical standards and who hold themselves out as, and are accepted by the public as possessing special knowledge and skills in a widely recognized body of learning derived from research, education and training at a high level, and who are prepared to apply this knowledge and exercise these skills in the interest of others.
Characteristics of a Profession
There are some following characteristics of Profession are:
- Great responsibility
- Based on specialized and theoretical knowledge
- Ethical constraints
Difference between Business and Profession
The following are some differences between business and profession:
|Basis for difference||Business||Profession|
|Meaning||Business is either an occupation, profession, or trade, or is a commercial activity which involves providing goods or services in exchange for profits.||Profession is a form of economic activities, wherein special skills, knowledge and expertise is required to be applied by the person in his occupation.|
|Basic objective||Earning profit||Rendering services|
|Qualification||No minimum qualification||Specialized knowledge of study is required|
|Transfer of Interest||Possible||Not possible|
|Risk factor||Always present||Not always present|
After a broad discussion on these two topics, it is quite clear that these two are not same at all. Business is primarily set up to make a profit and acquire wealth, while service is the basic motive of a profession. Further, business requires huge capital investment, at its initial stage. Conversely, the actual capital is the competency and specialization in the profession.