The difference between Business and Employment

The difference between Business and Employment-min

The main difference between business and employment is related to profit and risk. In the business, there is always risk and uncertainty in the business and the main objective of the business is to earn profit whereas there is no risk involved in employment and the main objective of employment is to earn income.

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 Employment:

It means when an individual works regularly for another person and earn money in return. These individuals are called employees. A person who employs these people is called the employer.

For example, working in colleges, banks, companies, showrooms, as a clerk, peon, sales executive.

The Chart of difference between Business and Employment:

Points of differences

 Business

 Employment

Meaning Activities which are performed by the people with the purpose of obtaining profit are called business, It means when an individual works regularly for another person and earn money in return
Purpose  Earning Profits or gains. Earning income in the form of salary.
Reward  The Businessmen will get profit from the business as a reward The Employee will get salary or wages as a reward.
Examples Shopkeepers/retailers purchase grocery items from wholesalers and sell to customers. Working in colleges, banks, companies, showrooms, as a clerk, peon, sales executive
Qualification No minimum qualification is necessary for starting the business.  Minimum qualification is needed according to the job profile or nature of the.
Investment business can not run without investment. There is no need for investment to do any job.
Work Production of goods and services. Performing the work as assigned by the employer.
Basis of risk Risk and uncertainty are involved in the business. There is no risk in employment.
commencement The business may start with the decision of the entrepreneur.

Employment start with the joining duty.

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The Chart of difference between Business and Employment 1 min 281x300 - The difference between Business and Employment
The Chart of difference between Business and Employment
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The Chart of difference between Business and Employment-compressed

 

 

 

 

 

Conclusion:

Thus, business deals with buying and selling of goods and services with the main objective to earn profit whereas employment includes individual works regularly for another person and earn money in return in the form of salary.

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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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