Types Of Economic Activities Assignment Help | Types Of Economic Activities Homework Help

Types of Economic Activities

People are engaged in different kinds of economic activities to earn income. These activities are also called occupations. Human occupations may be classified into three groups-(i) Business, (ii) Profession and (iii) Employment. These are discussed below:

(i)    Business. The term ‘business’ denotes economic activities pursued primarily with the purpose of earning profits. These involve production and exchange of goods and services on a regular basis and carry and element of risk and uncertainty. Manufacturing, trading, mining, banking, transport, insurance, etc. are business activities.

(ii)    Profession. A profession may be defined as an occupation which involves rendering of personal services of a specialized nature, based on professional knowledge, education and training. The examples are physicians, lawyers, accountants, etc. The professionals charge fee from their clients for the services rendered to them. The important features of a profession are listed below :

(a)    A professional requires specialized knowledge and training about the concerned field. He must acquire the prescribed qualifications such as C.A., LL.B., M.B.B.S., etc.

(b)    The membership of the professional body is compulsory in case of a profession.

(c)    There is an established code of conduct which is enforced by the professional body.

(d)    A professional is responsive to the needs of the society and so enjoys social status.

(e)    A professional charges fee for the services rendered to his clients.

(iii) Employment or Service. A person is said to be in the employment of an organization when he undertakes to render personal services under a contract of employment or service. He receives wages of salaries, allowances, bonus and other employment benefits for his services. Employment may be in a Government department or undertaking, or in a private firm. Even professionally qualified persons service as employees in various organizations. The employee performs the duties assigned to them by their employers.

For more help in Types of Economic Activities click the button below to submit your homework assignment