Last updated: May 29, 2020.
The term Business can be defined differently depending on the purpose of the definition, country, level of business, and the semantic meaning intended. Generally, the term business can refer to a noun or verb/activity.
As a noun: business is an organization or enterprise that produces goods or gives services to customers at a price in order to make profit OR is an organization involved in the trade of goods, services, or both to consumers
As a verb: business is the activity of providing goods and services involving financial and commercial and industrial aspects OR is a commercial, industrial, or professional activity engaged in as a means of earning a livelihood.
Therefore, a business is simply a human economic activity that involves continuous and regular production and distribution of goods and services with a view to earning profit. It is an organization that is formed to produce and supply goods or services to satisfy the needs of the people (consumers).
It refers to an occupation in which goods and services are produced and sold in return for money. So, a business is simply an organization that is formed to produce and supply goods or services to satisfy the needs of people
The distinction between Business and Profession
A Profession may be defined as an occupation that involves the rendering of personal services of a specialized nature, based on professional knowledge, education, and training such as services rendered by physicians, lawyers, auditors, etc.
The terms business and profession are similar in the many aspects but they are differing from each other as explained below:-
Establishment: A business enterprise comes into existence when an entrepreneur takes a decision to carry on production and/or exchange of goods and services in order to earn profits while the professional firm is established by the decision of a professional (lawyer, chartered accountant, architect, etc) who holds the membership and the certificate of practice of a professional body.