Business, Profession and Employment

ASSIGNMENT 2
BUSINESS, PROFESSION AND

EMPLOYMENT
NANSHAL BAJAJ
4TH YEAR B.ARCH SEC: B
ROLL NO.: 170044
PROFESSIONAL PRACTICE I
S.B.P.C.O.A.D.
Q No 1 Explain the basic Differences between Business,
Trade, and Employment with Respect to the
following points
1. Nature of Work
Business: A Business exists to provide
goods and services to satisfy human wants.
Trade: Trade involves the transfer of goods or services
from one person or entity to another, often in
exchange for money.
Employment: An employee performs the work
assigned by the employer under the contract of
service.
2. Mode of Establishment
Business: A business enterprise is established when an
entrepreneur takes a decision to carry on some
business activity.
Trade: In Trade, the manufacturers or producer
produces the goods, then moves on to the wholesaler,
then to retailer and finally to the ultimate consumer.
Employment: In order to take up employment, a
person has to enter into a contact of service with an
Employer. The person being employed is called an
Employee.
3. Advertisement
Business: Success of Business depends on Public
Advertisement.
Trade: In Trade, advertising is undertaken by the
manufacturer and directed toward the wholesaler or
retailer.
Employment: No need for public advertisements
in case of Employment.
4. Salary
Business: Profit.
Trade: Money or barter transaction in exchange of
goods and services.
Employment: salary or wages.
5. Qualifications
Business: No formal education is compulsory in order
to carry on a Business. Every time the nature of
Business changes new knowledge may be acquired for
the new Business.
Trade: Specialized knowledge and certain experience
are essential for a Trade.
Employment: The qualifications required depend
upon the nature of the job that the Employee is
expected to perform for the Employer. Some Training
(not all) may be given to the Employee.
6. Main Objective
Business: In business the basic motive is to earn
profits.
Trade: It involves transfer or exchange of goods
and services for money or money's worth.
Employment: In case of service, the motive of an
employee is to earn salary and receive other
benefits.
7. Risk
Business: There is an element of risk and hence
high Profits are expected. However one could also
face Losses.
Trade: Least risk involved.
Employment: No risk is involved in case
of Employment.
8. Transfer of Interest
Business: One could transfer ownership in Business.
Trade: Possible future takeover or merger.
Employment: No Transfer at all.
9. Investment
Business: Every Business requires capital depending
upon the nature and scale of operations.
Trade: Requires more of working capital and less fixed
capital.
Employment: There is no need for capital in case of
Employment.
Q No 2 Please classify the following either as Business or

Profession or Employment giving reasons
1. Farming:
Farming can be considered as a Business, because in
farming a person earns revenue by selling the
agricultural commodities that he or she produces on
his or her land.
2. A Law Firm:
A law firm is a Business entity where one or
more lawyers engage in the practice of law to
provide services to satisfy the needs of other clients
with an ultimate motive to earn profits.
3. A Pharmaceutical Shop:
It is a Business because it involves production
or purchase & sale of goods or supply of services
with the main object of earning a profit.
4. A Landscape Designer:
It is a Profession because designers earn means for
their livelihood by using their Skills and Special
knowledge that is acquired from many studies and
practice in that particular field.
5. A Shop selling Surgical Instruments

It is a Business because it involves production
or purchase & sale of goods or supply of services
with the main object of earning a profit.
6. An Interior Decorator who carries on Turn Key

Projects:
It is a Profession because the interior decorator
is using his/her Skills and Special knowledge.
It is also Business because the interior decorator
construct and sells it to a buyer as completed product
and ears profit.

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ASSIGNMENT 2

BUSINESS, PROFESSION AND

Q No 2 Please classify the following either as Business or

5. A Shop selling Surgical Instruments

6. An Interior Decorator who carries on Turn Key

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