Basic

Business

Profession

Employment

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

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

7. Transfer of interest

Transfer possible with some formalities

Not possible

Not possible

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

9. Example

Shop, factory

Legal, medical profession, chartered accountancy

Jobs in banks, insurance companies, government departments