What is the minimum qualification for doing business?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- No minimum qualification is necessary.
* To start a business no qualification is required. The difference between business, employemnt and profession is given below for a better understanding.
|
Basic |
Business |
Profession |
Employment |
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1. 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 |
|
2. Nature of work |
Provision of goods and services to the public |
Rendering of personalised, expert services |
Performing work as per service contract or rules of service |
|
3. Qualification |
No minimum qualification is necessary |
Qualifications, expertise and training in specific field as prescribed by the professional body is a must |
Qualification and training as prescribed by the employer |
|
4. Reward or return |
Profit earned |
Professional fee |
Salary or wages |
|
5. Capital investment |
Capital investment required as per size and nature of business |
Limited capital needed for establishment |
No capital required |
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6. Risk |
Profits are uncertain and irregular; risk is present |
Fee is generally regular and certain; some risk |
Fixed and regular pay; no or little risk |
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7. Transfer of interest |
Transfer possible with some formalities |
Not possible |
Not possible |
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8. Code of conduct
|
No code of conduct is prescribed |
Professional code of conduct is to be followed |
Norms of behaviour laid down by the employer are to be followed |
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9. Example |
Shop, factory |
Legal, medical profession, chartered accountancy |
Jobs in banks, insurance companies, government departments
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