“Though there may not be complete distinction as far as their boundaries are concerned, some sort of division is certainly plausible. ”
Profession, Business and Employment are the terms that are frequently used in our day-today lives. Though there may not be complete distinction as far as their boundaries are concerned, some sort of division is certainly plausible.
An entrepreneur starts a business and produces goods and services for the satisfaction of human needs. He undertakes this activity with the primary aim of earning profits. He has to complete various kinds of formalities for bringing the unit into existence.
A professional firm on the other hand, comes into existence when a professional who holds suitable qualification to undertake desired work joins that body. Employment can be called a contract that is required to take up a job for somebody else.
The agreement of employment may be written or oral. While business basically comes under the purview of self- employment, services involve employment under somebody else. A professional body provides a specialized service to the clients. An employee on the other hand, undertakes the activities assigned to him by his employer.
No educational or technical qualifications are prescribed for setting up a business unit. On the other hand, a professional is required to acquire a particular degree or qualification prescribed by a particular professional body.
It is the expert knowledge that a professional is expected to exercise. There is no highest qualification binding for taking up a service, however, a well-qualified person can get a better job.
A business requires an investment as per the nature and scale of operations. A professional has to spend money on setting up his office or place of work. Employment does not require any substantial investment at all.
There is a greater element of risk in business as compared to service and profession. The motive of setting up a business is to earn profit but there can be loss too. A professional is comparatively safe as he earns fees for his services and there cannot be negative fees.
An employee earns wages or salary regularly. As long as he is in service, he has no risk at all. A professional has to be member of a body. A lawyer has to take permission from Bar Council to start legal profession. Though there are many bodies for businessmen but the membership of these bodies is not compulsory at all.
In this way, each term has certain merits and demerits associated with it along with confusion, which is evident when the question of giving concrete definitions arises.
- Direct impacts. The outcome of improved capacity and efficiency where transport provides employment, added value, larger markets as well as time and costs improvements. The overall demand of an economy is increasing.
- Indirect impacts. The outcome of improved accessibility and economies of scale. Indirect value-added and jobs are the result of local purchases by companies directly dependent upon transport activity. Transport activities are responsible for a wide range of indirect value-added and employment effects, through the linkages of transport with other economic sectors (e.g. office supply firms, equipment and parts suppliers, maintenance and repair services, insurance companies, consulting and other business services).
- Induced impacts. The outcome of the economic multiplier effects where the price of commodities, goods or services drops and/or their variety increases. For instance, the steel industry requires cost efficient import of iron ore and coal for the blast furnaces and export activities for finished products such as steel booms and coils. Manufacturers and retail outlets and distribution centers handling imported containerized cargo rely on efficient transport and seaport operations.
Discuss the role of Joint Stock Company in the development of trade and commerce with relevant example.
1. Large Capital: -It is possible for a joint stock company to raise huge financial resources. There is no maximum limit on membership in a public limited company. Shares issued are available in small denominations. Therefore people can invest any small amount as per their needs and capacity due to the features of limited liability. Free transferability of shares etc. many investors are attracted to become shareholders of the company. Loans can be taken from banks and other financial institutions by the company.
2. Democratic Management: - Though shareholders elect the Board of Directors, who manage the business efficiently, the directors are accountable to shareholders, their activities are supervised and controlled by shareholders indirectly.
3. Transferability of Shares: -There is free transferability of shares in a public limited company. No permission is required to be sought from the directors or members of the company for buying or selling shares. However, a private limited company, does not permit free transferability of shares.
4. Limited Liability: - The liability of a member in a public limited company is limited to the extent of the unpaid amount of the shares held by him. Since the company has an independent legal status, its liabilities are its own.
5. Expert Services: - Due to large financial resources available with joint stock company, it can appoint experts for managing each area or functions of the company business, by paying attractive salaries to them, these brings in a great degree of professionalism and thereby, efficiency in management of business.
6. Relief Taxation: - The companies are required to pay taxes at flat rate. The amount of tax on a high taxable income therefore may be less for a joint stock company than individuals in a same tax bracket.
7. Public Confidence: - Joint stock company enjoys public confidence. The working of joint stock companies in India is governed by the provisions of Indian Companies Act, 1956.
8. Scope for Growth and Expansion: - There is possibility of growth and expansion in the company business. The company can raise large financial resources. Attractive salaries can be paid to engage the services of experts for business expansion and for managing the business professionally.
A personal secretary is normally of middle management level; however, as the key official responsible for disseminating the decision of ministers.