1.3 Types of Economic Activities

Economic activities or the types of occupation of people can be divided into three categories:

i) Business

ii) Profession

iii) Employment

Business refers to those economic activities in the production and purchase or sale of goods or services, with the aim of making profit. The income from business is profit.



Profession is an occupation requiring special knowledge and skill in doing the job. Such activities are generally subject to codes of conduct laid down by professional bodies. Those engaged in profession are known as professionals. Doctors, Lawyers and Chartered Accountants are professionals.



Employment refers to the occupation in which people work for others and get paid for it. Those who employ people are known as employers. People who work in factories and offices for salary are employees.