{"id":29607,"date":"2021-05-01T16:45:14","date_gmt":"2021-05-01T11:15:14","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=29607"},"modified":"2021-05-01T16:45:17","modified_gmt":"2021-05-01T11:15:17","slug":"differentiate-between-business-and-profession","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/differentiate-between-business-and-profession\/","title":{"rendered":"How to Differentiate Between Business and Profession?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A business is an entity that indulges in selling goods or in offering services for the purpose of gaining profit. The three major legal forms a business can be divided into are: &#8211; <a href=\"https:\/\/corpbiz.io\/sole-proprietorship-registration\"><strong>sole proprietorship<\/strong><\/a> business, partnership business and a company. The term profession is referred to anyone who follows some ethical standards and they earn their living by performing activities that mandates a definite level of education requirement, certain skill level, education or training. There is usually a requisite standard of proficiency, knowledge, or credential that the person is ready to apply. Therefore, there is a huge difference between business and profession which have been dealt in detail in this article.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/differentiate-between-business-and-profession\/#What_are_Business_and_its_Main_Characteristics\" >What are Business and its Main Characteristics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/differentiate-between-business-and-profession\/#What_are_Profession_and_its_Main_Characteristics\" >What are Profession\nand its Main Characteristics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/differentiate-between-business-and-profession\/#What_is_the_Difference_between_Business_and_Profession\" >What is the\nDifference between Business and Profession?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/differentiate-between-business-and-profession\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Business_and_its_Main_Characteristics\"><\/span>What are Business and its Main Characteristics?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Business\ncan be defined as an economic activity that indulges in the purchase, exchange,\nsale or manufacture of goods and providing various services with an intention\nto earn profit and assure the customer\u2019s needs in return.<\/p>\n\n\n\n<p>Businesses\ncan both be a profit derived or a non-profit organization that serves the purpose\nto gain profit or accomplish a social cause respectively. The characteristics\nof the business are given below:-<\/p>\n\n\n\n<ul><li>Economic activity<\/li><li>Buying and selling<\/li><li>Continuous process<\/li><li>Profit oriented<\/li><li>Customer satisfaction<\/li><li>Optimum utilisation of source<\/li><li>Risk &amp; Uncertainties<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/sole-proprietorship-company-can-apply-for-an-msme-registration-in-india\/\">Here\u2019s how Sole Proprietorship Company can apply For an MSME Registration?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Profession_and_its_Main_Characteristics\"><\/span>What are Profession\nand its Main Characteristics?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\n\u201cprofessional\u201d is someone who makes their income from their expertise in a\nparticular subject or talent in a specific thing. A profession is a group of disciplined\nindividuals who are mandated to follow certain principled standard.<\/p>\n\n\n\n<p>These group of individuals position themselves as possessing special knowledge, academic qualification, skill and learning which is derived from education, research and training at a higher level and is acknowledged by the public as such. The characteristics feature of profession is given below:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1000\" height=\"539\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/What-are-Profession-and-its-Main-Characteristics.png\" alt=\"Profession and its Main Characteristics\" class=\"wp-image-29636\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/What-are-Profession-and-its-Main-Characteristics.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/What-are-Profession-and-its-Main-Characteristics-300x162.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/What-are-Profession-and-its-Main-Characteristics-768x414.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Difference_between_Business_and_Profession\"><\/span>What is the\nDifference between Business and Profession?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Human activities are chiefly divided into two major categories of work i.e.<\/em><\/strong><\/p>\n\n\n\n<ul><li>Economic activities and <\/li><li>Non-economic activities. <\/li><\/ul>\n\n\n\n<p>The economic activities are those\nactivities performed with an objective of earning money and develop in terms of\neconomy. Moreover, the economic activity is further sub-divided into:-<\/p>\n\n\n\n<ul><li>Business,<\/li><li>Profession and<\/li><li>Employment.&nbsp;<\/li><\/ul>\n\n\n\n<p>There is a huge difference between Business and profession as there is no minimum qualification requisite for starting a&nbsp;business but before entering into any profession like Lawyer, Accountant, Teacher, Doctor, etc. there is a mandatory requirement of the minimum qualification. <\/p>\n\n\n\n<p>Under Section 2(13) of the <em><strong>Income Tax Act, 1961<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/The_Income-tax_Act,_1961\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, it provides an inclusive meaning of the term \u201cbusiness\u201d. According to Income Tax Act sec. 2(36) &#8211; \u201cprofession\u201d includes vocation.&nbsp;Various English dictionaries have differentiated the meaning between \u201cbusiness\u201d &amp; \u201cprofession\u201d. <\/p>\n\n\n\n<p>Supreme Court has observed\nin&nbsp;<strong><em>CIT vs. Manmohan Das&nbsp;<\/em>(1966)\n59 ITR 699 (SC)<\/strong> that a profession means and involves any occupation with purely\nmanual or intellectual skill. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Major Differences Between Business and Profession <\/h3>\n\n\n\n<p><strong><em>Basic Objective<\/em><\/strong><\/p>\n\n\n\n<p>The difference\nin business and profession lies in their basic objective and purpose. The basic\nobjective of business is to earn profit while that of a profession is to render\nservices of skill and qualification.<\/p>\n\n\n\n<p><strong><em>Establishment<\/em><\/strong><\/p>\n\n\n\n<p>The difference\nin the establishment of business and profession is that business is established\non the decision of entrepreneur and by fulfilling certain legal obligations but\nprofession is established by being a membership to the relevant professional\nbody and having the exact skill, education and certificate of practice as\nmandated in the particular profession.<\/p>\n\n\n\n<p><strong><em>Qualification<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>T<\/em><\/strong>he difference between business and\nprofession lies in the basic qualification as in starting a business there is\nno requirement of any particular minimum qualification but before entering into\na profession expert knowledge on the study is a minimum necessary requirement.<\/p>\n\n\n\n<p><strong><em>Code of Conduct<\/em><\/strong><\/p>\n\n\n\n<p>The code of\nconduct in business and profession clearly differentiates in them as because in\nbusiness there is no prescribed code of conduct for the entrepreneurs to\nfollow. But while in profession, it is mandatory to follow the Code of conduct\nas has been prescribed by the professional bodies.<\/p>\n\n\n\n<p><strong><em>Capital<\/em><\/strong><\/p>\n\n\n\n<p>The capital\nrequirement in both the business and profession determines the difference in\nthem because in starting a businessthere is capital required which\ncompletely depends on the size and nature of business. But in profession the\ncapital required in limited which is dependent on the kind of profession a\nperson desires to achieve.<\/p>\n\n\n\n<p><strong><em>Accounting Type<\/em><\/strong><\/p>\n\n\n\n<p>Business deals\nwith manufacturing, trading and managing profit and loss account. But in\nprofession usually Income &amp; Expenditure account is maintained.<\/p>\n\n\n\n<p><strong><em>Reward <\/em><\/strong><\/p>\n\n\n\n<p><strong><em>T<\/em><\/strong>he reward obtained in both the\nbusiness and profession is different as in business the much awaited reward is\nthe profit of the business and in profession the reward is the professional\nfee.<\/p>\n\n\n\n<p><strong><em>Advertisement<\/em><\/strong><\/p>\n\n\n\n<p>The\nadvertisement is the internal structure of the business and profession and both\nhave their own advertisement techniques. In business, the advertisement plays a\nmajor role in increasing their profit and hence the products, good and services\nare advertised with proper techniques to increase sales. Whereas, in profession\nthey are advised not to advertise anything shared to them to anyone out of\ntheir work and advertisement is strictly prohibited.<\/p>\n\n\n\n<p><strong><em>Transfer of Interest<\/em><\/strong><\/p>\n\n\n\n<p>There is\ndifference in transfer of interest both in business and profession. As in\nbusiness there transfer of interest is possible but in profession one cannot\ntransfer his interest to anyone.<\/p>\n\n\n\n<p><strong><em>Risk Factor<\/em><\/strong><\/p>\n\n\n\n<p>Business always\ninvolves risk factor i.e. the outcome of the business can either result in\nprofit or in loss. But the risk factor is not always present in profession.<\/p>\n\n\n\n<p><strong><em>Tax Audit<\/em><\/strong><\/p>\n\n\n\n<p>Under Section 44\nAB of the Income Tax Act, tax audit is required if the annual turnover or the\ngross receipt is exceeding beyond Rs. 1 Crore (2 crore for presumptive income\nscheme under section 44AD in case of business.<\/p>\n\n\n\n<p>In case of\nprofession, under section 44AB tax audit is required if the gross receipt is\nexceeding Rs. 50 lakhs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Thus, after reading all the differences it can be said that there is huge difference between business and profession but sometimes a profession like a teaching service shall not be considered as a profession if it is given by a corporate company or a partnership. Therefore, it is really important to know and acknowledge the difference while implementing the same in both the categories of business and profession.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/different-kinds-of-sole-proprietorship-business-can-be-formed\/\">What are the Different Kinds of Sole Proprietorship Business can be formed?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A business is an entity that indulges in selling goods or in offering services for the purpose of gaining profit. The three major legal forms a business can be divided into are: &#8211; sole proprietorship business, partnership business and a company. The term profession is referred to anyone who follows some ethical standards and they [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":29630,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[159],"tags":[1706],"acf":{"service_id":"6"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":11580,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29607"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=29607"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29607\/revisions"}],"predecessor-version":[{"id":29637,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/29607\/revisions\/29637"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/29630"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=29607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=29607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=29607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}