Difference between Business and Profession

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The difference between business and profession is qualification and reward. For starting a new venture, no minimum qualification is needed but in profession special qualification and training is required.

On the other side, profit is a reward for business, and a fee is known as a reward for the profession.

To know about the differences we have to know about the meaning of both the terms which are shown below:

1. Meaning of business:

It means an activity that deals with the buying and selling of goods and services for mutual gain. It is an integral part of economic activities which are directly concerned with money. For example, shopkeepers/retailers purchase grocery items from wholesalers and sell to customers.

Definition :

“Business is an activity directed towards producing or acquiring wealth through buying and selling goods.”

-By Lewis H. Honey

2.Meaning of Profession:

Profession means all those activities which require special knowledge and skills. People who are connected with these activities are called professionals.

For example, doctors are in the profession of medicine and are governed by the Medical Council of India.

The Chart of difference between Business and Employment:

Points of differences

 Business

Profession
Meaning Activities which are performed by the people with the purpose of obtaining profit are called business, Profession means all those activities which require special knowledge and skills.
Purpose  Earning Profits or gains. The purpose of the profession is to provide service to society.
Reward  The Businessmen will get profit from the business as a reward. The professionals will get a fee as a reward.
Examples Shopkeepers/retailers purchase grocery items from wholesalers and sell to customers. For example, doctors are in the profession of medicine and are governed by the Medical Council of India.
Qualification No minimum qualification is necessary for starting the business. In profession special qualification and training is required.
Investment business can not run without investment. In the profession, limited capital is required.
Work Production of goods and services. Providing service to the people.
Basis of risk Risk and uncertainty are involved in the business. There is little risk in the profession.
commencement The business may start with the decision of the entrepreneur.

Profession starts after completion of a degree course with a certificate of practice.

 

Conclusion:

Thus, business deals with buying and selling of goods and services with the main objective to earn profit whereas the profession deal with the activities related to providing service and professionals charge fee against their service rendered.

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Also, Check our Tutorial on the following subjects: 

  1. https://tutorstips.com/financial-accounting/
  2. https://tutorstips.com/advanced-financial-accounting-tutorial/

 

 

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