Q.Distinguish between Business and Profession (any four points).

Business and Profession differ chiefly in how income is earned, what qualification is required, and how much risk is involved.

Compare on basis of reward, qualification, risk, and governing relationship.

Business vs. Profession:

1. Basis of reward — Business earns profit, which is uncertain and variable; Profession earns a fee for services rendered, based on the professional's skill.
2. Qualification required — Business requires no formal qualification by law; Profession requires specialised knowledge acquired through long, formal training and a recognised qualification (e.g. law, medicine, accountancy).
3. Risk — Business involves substantial risk of loss, borne entirely by the owner; Profession involves limited (mainly reputational) risk, not the capital risk a business owner carries.
4. Governing relationship — A business owner acts independently, subject only to general law; a professional is governed by a professional body and its code of conduct.