Business vs Profession MCQs Quiz | Class 9
This quiz is for Class 9 students studying the subject Elements of Business (154), focusing on Unit I: Fundamentals of Business Activities. It covers the key differences between business and profession, including aspects like qualification, income, risk, and code of conduct. Attempt all questions and click “Submit Quiz” to see your score and download a PDF of your answers.
Understanding the Core Differences: Business vs. Profession
In the world of economic activities, ‘business’ and ‘profession’ are two fundamental concepts that people often engage in to earn a livelihood. While both are crucial for the economy, they differ significantly in their objectives, qualifications, risks, and ethical guidelines. Understanding these distinctions is essential for any student of business studies.
Key Differences Explained
Let’s explore the primary factors that differentiate a business from a profession:
1. Qualification
Business: There is no mandatory minimum educational qualification required to start a business. An entrepreneur’s success depends more on skills, experience, and market knowledge rather than formal degrees.
Profession: A profession requires a prescribed set of formal education, training, and qualifications from a recognized institution. For example, a doctor must have an MBBS degree, and a lawyer must have an LLB degree.
2. Income or Reward
Business: The primary reward for a business owner is profit. Profit is the excess of revenue over expenses and is often uncertain and variable.
Profession: A professional earns a fee for their services. This fee is generally fixed or determined based on the nature of the service, and the income is relatively more regular and certain compared to business profits.
3. Risk
Business: Risk is an inherent and fundamental element of business. The financial risk is high because profits are not guaranteed, and there is always a possibility of loss.
Profession: The financial risk in a profession is comparatively low. Since the fees are more or less assured, the professional does not face the same level of uncertainty as a business person.
4. Code of Conduct
Business: While there are laws and ethical practices to follow, there is no single, mandatory code of conduct that governs all types of businesses. Business ethics can vary widely.
Profession: Every profession is governed by a strict code of conduct laid down by its respective professional body (e.g., the Bar Council of India for lawyers, the Medical Council of India for doctors). Adherence to this code is mandatory.
Comparison Table: Business vs. Profession
| Basis of Difference | Business | Profession |
|---|---|---|
| Motive | To earn profit | To provide service (and earn a fee) |
| Establishment | Entrepreneur’s decision and legal formalities | Membership of a professional body and certificate of practice |
| Qualification | No minimum qualification is necessary | Prescribed professional qualification and training required |
| Reward/Return | Profit | Professional Fee |
| Capital Investment | Required, depending on the size and nature of the business | Limited capital is needed for establishment |
| Risk | High and uncertain | Low and regular |
| Transfer of Interest | Possible with some formalities | Not possible (e.g., a doctor can’t transfer their degree) |
Quick Revision Points
- The main goal of a business is profit; for a profession, it is service.
- Professionals need specific degrees and certificates; business owners do not.
- Business involves high risk and uncertain returns (profit).
- Profession involves low risk and more certain returns (fees).
- A professional must follow a code of conduct set by a professional body, which is not the case in business.
Practice Questions
- Explain why the risk element is considered higher in business as compared to a profession.
- What is a ‘code of conduct’? Give an example of a professional body that prescribes one.
- Can a person transfer their ‘interest’ in a profession to someone else? Justify your answer with an example.
- “The basic motive of business is to earn profit.” Do you agree? Why or why not?
- List two examples of business activities and two examples of professions.
