Introduction of Business and Human Activities: Economics and Non-Economics Activities (For CBSE, ICSE, IAS, NET, NRA 2022)

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Introduction of Business

Every one surrounds us are busy in various activities. Farmers are farming, teachers are teaching, shopkeepers selling and so on. Some are busy during day, some at night while some are busy throughout year. People are doing such activities to satisfy their wants. People either earn money or discharge various obligations through activities. Let we learn more about various types of activities with which we keep ourselves busy.

Human Activities

Activities undertaken by humans are known as human activities. It is divided in two categories.

(i) Economic activities and

(ii) Non-economic activities

Economic Activities

An activity preforming to earn money is considered as economic activity.

Non-Economic Activities

Activities performing not to earn money but to get satisfaction can be called as non-economic activities.

Difference between Economic and Non-Economic Activities

Table of Difference between Economic and Non-Economic Activities
BasisEconomic activitiesNon-economic activities
PurposeEarning moneySocial and psychological motive
OutcomeFore creation of wealthFor satisfaction and happiness
ExpectationProfit or money expectedProfit or money not expected

Types of Economic Activities

Preforming activities to earn money is considered as economic activity. Normally people engage themselves in such activities on regular basis. It is called as their occupation. Occupations are categorized in three parts.

Business

Business refers to an occupation in which goods and services are produced and sold to earn money. Mining, manufacturing, trading, transporting, storing, banking and insurance are example of business activities.

Profession

profession refers to an occupation, which requires specialized knowledge and training to pursue it and primary objective of every profession is to provide service. A person may not be an expert in every field. we require services of others who specialize in one field or other. We need services of doctors for our treatment, lawyers to get legal support etc. They all called professionals.

Employment

Employment refers to an occupation in which a person works regularly to get wages/salary in return. Government servants, company executives, bank officials, factory workers are said to be in employment. Person seeking a job must join work only after being satisfied with terms and conditions.

Differences between Business, Profession and Employment

Table of Differences between Business, Profession and Employment
BasisBusinessProfessionEmployment
Nature of workSupply of goods and services to customers for profitservices for a

fee with specialization of work

Performing

work according

to orders of employer

Qualificationsminimum

qualifications not

required

Education and training in a specific field requiredSpecialized

knowledge not

necessary in all

cases

Capital requirementsRequired according to

nature, size and

scale of business

Required limited for establishmentNot required
MotivationEarning profits from sale of goodsprofessional fees for servicesFixed wage or salary
RiskRisk involved. Profits uncertainIncome fixed. Negligence of duty liableNo risk. Fixed wages/salaries
Code of conductNot specifiedIt is rigid. Maintain high standards of professionContractual terms and conditions

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