Difference between Business, Profession and Employment
| Sr. No | Basis | Business | Profession | Employment |
|---|---|---|---|---|
| 1 | Meaning | Business includes trade and commerce. | Profession includes rendering of services based on personalized expert service under code of conduct. | Employment includes rendering of services under a contract of employment or rules of service. |
| 2 | Code of Conduct | Does not require. | Require (professional codes). | Require (employer’s codes). |
| 3 | Mode of establishment | Entrepreneur’s decision and other legal formalities, if necessary | Membership of a professional body and certificate of practice. | Appointment letter and service agreement. |
| 4 | Qualifications | No minimum qualification is required. | Professional qualification & experience from professional body is necessary. | Require as prescribed by the employer. |
| 5 | Return | profit. | Professional fee. | Wages & Salaries. |
| 6 | Investment | Require as per size and nature of business. | Limited requirement for set up of office/clinic etc. | None. |
| 7 | Risk | High. | Low. | Very low. |
| 8 | Freedom/Autonomy | Full. | Quite a bit. | Not much. |
| 9 | Transfer of interest | Possible with few requirements. | Not possible. | Not possible. |
| 10 | Stability | Certain. | Quite certain. | Quite certain. |
| 11 | example | Factory, Company, Shop and so on. | Accountancy, Legal and Medical and so on. | Companies, Government departments, PSUs, Banks etc. |