Flashcards for:
Business, Trade, and Commerce Lecture Notes

The key components include engaging in economic activity, producing or procuring goods/services, selling or exchanging them regularly, aiming for profit, dealing with uncertainty of return, and accepting associated risks.

In business, the nature of work involves the production or sale of goods and services, while in employment, the nature of work depends on the specific job role assigned.

The risk in employment is generally low because an employee receives a fixed income (salary/wages) and benefits from job security.

Economic activities are done to earn money and sustain livelihood, while non-economic activities are done out of love, affection, care, etc., and are not aimed at earning money.

Economic activity, production or procurement of goods and services, sale or exchange of goods and services, dealing on a regular basis, profit earning, uncertainty of return, and risk.

A business usually requires significant capital investment, whereas a profession might need limited investment based on the professional practice.

Examples of economic activities include shopkeeper selling fruits and a doctor attending to patients.

The main objective of business activities is to earn profit by providing goods and services.

Business involves high risk due to uncertainties in the market and return, whereas profession involves moderate risk as it largely depends on the demand for specific professional services.

A profession is governed by rules of the professional body that oversees it, whereas a business has no specific code of conduct unless self-imposed or legally required.

In employment, the reward earned is typically a salary or wages, which is a fixed income for work done.

Starting a profession requires membership in a relevant professional body and obtaining necessary degrees and credentials.

Starting a business typically relies on the decision of the entrepreneur and any required legal formalities, as opposed to formal qualifications or degrees.

'Uncertainty of return' refers to the inherent risk in business activities where returns are not guaranteed and are subject to various unpredictable factors.

In a profession, the transfer of interest is not possible because it involves specialized education and training that cannot be transferred to another person, unlike business ownership.