Skip to main content

Difference Between Business and Profession

Following are the main difference between business and profession.

1. Minimum qualification

→ No qualification is required to start a business.

→ A minimum technical or academic qualification is needed to join a profession.

2. Capital 

→ An adequate amount of capital is required to run the business efficiently.

→ Real capital is the competency and specialized knowledge of the profession.

3. Objective 

→ The main objective of the business is to earn profits.

→ Service first, profit second is the main objective of the profession.

4. Risk

→ There is an element of risk in the business.

→ In profession, there is minimum risk.


5. Secrecy

→ The secrecy in the business transactions is not necessary.

→ A professional must maintain the secrecy of dealings with his clients.


6. Code of Conduct

→ There is no specific code of conduct for the business.

→ There is a code of conduct for every profession for regulating their dealings.


7. Specialization

→ A businessman need not to have a specialized knowledge for starting a business

→ A professional must have a specialized knowledge in the profession which he wants to join.

8. Advertisement

→ Generally, the goods are advertised in business to increase sales.

→ Advertisement is prohibited in all the professions according to their code of conduct.


9. Criteria of Efficiency

→ Profits in business is the only criteria of efficiency.

→ Quality of service rendered is the basis of measuring the efficiency.

10. Transferability

→ One can easily transfer his interest in business to other. For example father can transfer his business to his son.

→ Profession involves the specialized knowledge which can not be transferred to any other person.


Comments

.

Popular posts from this blog

Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
4. Technological Planning 
Today, technology is changing very fastly. 3 years ago, I have to search software for downloading …

Technological Environment

Definition of Technological Environment :-


“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "

Limitation of Business Environment Analysis

Following are main limitation of business environment analysis:

1. Unexpected and Unanticipated Events 

We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.

2. No sufficient Guarantee

Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.

3. Uncritical Faith 

Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.

4. To much information

Sometime too much information relating to business environment analysis will create the doubt in businessmen.