Distinction between Business, Profession and Employment

Correct answer: A. Earning income through one’s own work or business

Self-employment means working for oneself and earning income from one’s own trade, profession, service, or business activity. The person may work alone or employ others, but is not simply receiving a salary as an employee of another organisation. Hence option A is correct; salary employment describes wage employment.

Correct answer: A. Works in another organization and receives salary

In wage employment, a person works under an employer or organisation according to agreed duties and receives wages or salary in return. The employee may have important responsibilities, so wage employment does not mean having no responsibility. Therefore option A is correct; the other options do not define the employment relationship.

Correct answer: A. An entrepreneur creates opportunities, while an employee generally performs assigned work

An entrepreneur typically identifies an opportunity, organizes resources, bears business risk, and makes decisions about a venture. An employee generally works under an employer’s direction in return for wages or salary, although employees may also show initiative and creativity. Option A gives the intended distinction; the other choices make clearly false absolute claims.

Correct answer: A. Earning income by running one’s own work or business

Self-employment means that a person works for themselves by operating a business, profession, trade, or independent activity and earns income from it. The person generally bears responsibility for decisions, costs, and results. Therefore option A is correct. Government employment is salaried employment, while income without work and taking others’ responsibilities do not define self-employment.

Correct answer: A. Running one’s own work or business using one’s skills

Self-employment occurs when a person works for their own account, using personal skills, effort and often resources to provide goods or services and earn income. It may involve freelancing, a small shop or another own venture. Option A is correct; government employment and merely following an employer’s orders are forms of employment, not self-employment.

Correct answer: A. In enterprise a person creates opportunities, in employment a person performs assigned work

An entrepreneur generally identifies an opportunity, organises resources, makes decisions, and bears the possibility of profit or loss. An employee normally performs assigned duties for an organisation in return for wages or salary. Employment also involves responsibility and income, so the other statements are false. The distinction is about role, control, and risk-bearing.

Correct answer: B. Entrepreneur creates opportunities and takes risk, while employee performs assigned work

An entrepreneur identifies or creates an opportunity, organises resources, makes key business decisions, and bears the possibility of profit or loss. An employee generally performs defined duties within an organisation in return for wages or salary, although employees also have responsibilities and may make decisions within their role. Thus option B gives the best general distinction without claiming that employees lack accountability.