| Sr.No. | Business | Profession | Employment |
| Meaning |
| 1. | Business is an economic activity which involves production & distribution of goods & services. | Profession is an economic activity wherein expert services are provided. | Employment is an economic activity where one person works for another person. |
| Qualifications |
| 2. | Here, specific qualification is not required. | Here, specific qualification is required. | Here, nature of work determines the required qualification level. |
| Monetary Returns |
| 3. | A businessman earns monetary rewards in the form of profits. | A professional charges fees for the services rendered by him | An employee receives monetary rewards in the form of salary / wages. |
| Capital |
| 4. | Here, the scale of business determines the amount of investment to be made. | Here, only self‐employed professionals need to make an investment | Here, no money is required to be invested. |
| Decision Making |
| 5. | A businessman is free to take decisions that serve the best interests of his business. | A professional can take decisions related to his profession on his own. However, the professionals need to follow the code of conduct laid by the governing body. | An employee can take decisions confined only to his field of work. |
| Risk |
| 6. | Risk is involved in every business. | Self‐employed professionals face limited risk | There is no risk if the employer and employee adhere to the contract. |
| Commencement |
| 7. | Business can be started when all legal formalities are completed. | A professional can start working only after receiving the certificate of practice. | An employee can start working when the contract is signed by both the parties and the employee completes the joining formalities |
| Transfer of Ownership |
| 8. | Here, the ownership can be transferred from one person to another after completion of legal formalities. | Here, the ownership can be transferred to someone who is equally qualified and competent to render services. | Employment cannot be transferred as every job offered is an individual and independent contract, provided certain provisions and guidelines are given on Government level. |
| Tenure |
| 9. | Here, no fixed tenure is applicable. | Here, no fixed tenure is applicable. | Here, tenure may be mentioned in the contract or appointment letter. |
| Code of Conduct |
| 10. | Businessman is not required to follow any code of conduct. | A professional is required to follow the code of conduct laid down by the governing body. | An employee has to follow the code of conduct mentioned at the time of contract till he is under an employer. |
