Distinguish between.
1) Industry and Commerce
Ans:-
Sr. No. | Point of difference | Industry | Commerce |
1) | Meaning | Industry is engaged in production of goods and services | Commerce is engaged in distribution of goods and services. |
2) | Location | It is located in factories and workshops | It is conducted in markets and offices. |
3) | Utility | It creates form utility | It creates place, time and possession utility |
4) | Resources | It uses machine and manpower | It requires more manpower |
5) | Capital | Huge capital is required to start industry | Commerce comparatively requires less capital |
6) | Interdependence | Industrial activities are meaningless without commerce | Commercial activities cannot be started without the production of goods & services. |
7) | Conducted by | Producers and manufacturers | Traders, mercantile agents etc. |
8) | Status | Primary Importance | Secondary importance |
9) | Classification | Primary, Secondary and Tertiary industry | Trade and Auxiliaries to Trade |
10) | Market force | It represents supply side of market | It represents demand and supply side of market |
2) Business and Commerce
Ans:-
Sr. No. | Point of Difference | Business | Commerce |
1) | Meaning | It is an economic activity which deals in production and distribution of goods and services. | It is a part of business which is concerned with distribution of goods and service |
2) | Concept | It is a broader concept as it includes commerce. | It is a narrow concept as it is a part of business. |
3) | Skill | It requires technical as well as marketing skill. | It requires only marketing skill |
4) | Classification | It is classified into Industry and Commerce. | It is classified as trade and auxiliaries to trade. |
3) Business and Profession
Ans:-
Sr. No. | Point of Difference | Business | Profession |
1) | Meaning | In this economic activity, goods and services are produced and distributed. | In this economic activity, expert services are rendered. |
2) | Reward / Return | Businessmen earn profit. | Professional charges fees as a return to professionals. |
3) | Capital investment | Capital investment depends on size and nature of business. | Limited capital investment is required except the self-employed professional. |
4) | Nature of work | It provides goods and services to the public. | It renders personalized expert services. |
5) | Qualification | No minimum qualification is prescribed. | Expert knowledge and training in a particular field needed. |
6) | Decision Making | Businessmen are free to take the decisions. | Professionals take expert decisions in their profession. |
7) | Risk | Profit is uncertain and irregular so high risk is present. | Fees is generally not certain and regular. |
8) | Examples | Builders, Grocers, Super market etc. | Doctor, C.A., Lawyer etc. |
4) Employment and Profession
Ans:-
Profession | Employment |
In this economic activity, expert services are rendered. | In this economic activity, one person works under another person. |
Professional charges fees as a return to professionals. | An employee receives wages or salary |
Limited capital investment is required except the self-employed professional. | No capital investment is necessary. |
It renders personalized expert services. | They perform the work as per service contract. |
Expert knowledge and training in a particular field needed. | It is prescribed by the employer. |
Professionals take expert decisions in their profession. | Employee does not have any power to take any decision. |
Fees is generally not certain and regular. | Fixed and regular pay is given by employer as per contract so no risk is involved. |
Doctor, C.A., Lawyer etc. | Clerk, Teacher, Officers etc. |