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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.


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Business environment may be defined as the set of external and internal factors which affects the decisions of business. We can divide business environment into two parts

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These are powers which are deeply related with company and company can control these type of environment by improving its capacity and efficiency.

1. Suppliers

Suppliers are the persons who supply raw material to company.

2. Customers

Customers are the persons who buy goods from company.

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Financial intermediaries are those institutions who provide loan, credit and advance to company.

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Competitors are those who also sell same product of company.

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Public is those group of people who can buy or who can show their interest to buy the products of company.

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