Q.(a) Compare business, profession and employment. (Any 5)

(a) Business earns profit and bears high risk, a profession earns a fee and needs special training, and employment earns a fixed salary with little risk. (b) A person can invest personal savings in bank deposits, post office schemes, shares/securities, insurance policies and real estate or gold.

(a) Comparison of Business, Profession and Employment (any five bases):

1. Mode of establishment — Business begins with the owner's decision and legal formalities; a profession begins after acquiring the required qualification and membership; employment begins on appointment through a service agreement.
2. Nature of work — Business involves producing and exchanging goods and services; a profession involves rendering specialised personal services; employment involves doing the work assigned by an employer.
3. Qualification — No minimum qualification is fixed for business; a profession needs prescribed expert qualifications and training; employment needs the qualification fixed for the particular job.
4. Capital — Business needs capital according to its size; a profession needs limited capital for setting up; employment needs no capital.
5. Reward/Return — The reward of business is profit; of a profession, a fee; of employment, salary or wages.
6. Risk — Business carries high risk and uncertain income; a profession carries some risk; employment carries little or no risk with a fixed income.

(b) Five personal investment avenues:

1. Bank deposits — savings, fixed and recurring deposits give safety and assured interest with easy liquidity. …