Work is an essential part of human life. The necessity of indulging in work arises out of the numerous wants of human beings. In order to satisfy the wants, human beings undertake several types of work.
These works are concerned with the production and exchange of wealth, which helps in satisfying various wants of human beings. In other words economic activities are those activities which are concerned with the production and exchange of goods and services. Economic activities may be of different types.
a. Professions: which involve rendering personal services of special and expert nature in return for a consideration called fees? For example: a lawyer, a doctor or a chartered accountant etc.
b. Employment: which makes a person to work under an agreement between himself and the employer? The remuneration paid will be in the form of wages or salaries and allowances for the work done.
c. Business: which involves work which is neither professional nor an employment? Business activities are usually concerned with the production, transfer or exchange of goods and services. The primary motive behind such activities is profit earning.