+91-8076753736 support@wiredfaculty.com

Sponsor Area

Nature And Purpose Of Business

Question

Wired Faculty App

Compare business with profession and employment.

Solution

1. Business refers to an enterprise that is engaged in the production and distribution of goods for sale in the market or rendering of services for a price.

2. Profession is an occupation involving the provision of personal services of a specialized and expert nature.

3. Employment involves working under a contract of employment for or under someone known as the employer in return for wages or salary.

Basis	Business		Profession		Employment
1. Mode of establish	•	Promoters take de	•	Membership of a	•	Service contact or
ment		cision, registration and other formalities as prescribed by law.		professional body or certificate.		letter of appointment.
2. Nature of work	•	Goods and services provided to the public	•	Personalized.	•	Performing work assigned by employer.
3.Qualification	•	No minimum qualification is essential.	•	Specialized knowledge.	•	As per service requirement.
4. Basic motive	•	Earning profits by satisfying needs of society.	•	Rendering service.	•	Earning salary or wage by serving the employer.
5. Capital	•	Capital or investment required as per size of the firm.	•	United capital required.	•	No capital required.
6. Reward	•	Profits.	•	Professional fee.	•	Salary or wages.
7. Risk	•	Profits are uncertain and irregular high risk	•	Fee is regular and certain. some risk	•	No risk.
8. Transfer of Interest	•	Transfer of interest is possible with some formalities.	•	Not possible.	•	Not transferable.

Some More Questions From Nature and Purpose of Business Chapter

Define External Trade.

Define risk.

Name the functions of business.

How is business an economic activity?

Explain how industry, trade and commerce are related.

What is the role of profit in business?

How auxiliaries to trade help in removing hindrance?

What is business risk. What is its nature?

How would you classify business activities?

What are various types of industries?

Mock Test Series

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation