Economic activities may be divided into three major categories

(i) Business: Business refers to those economic activities, which are connected with the production or purchase and sale of goods or supply of services with the main object of earning profit. People engaged in business earn income in the form of profit. 

(ii) Profession: Profession includes those activities, which require special knowledge and skill to be applied by individuals in their occupation. Those engaged in professions are known as professionals and are generally subject to guidelines or codes of conduct laid down by professional bodies, e.g., lawyers are engaged in the legal profession, governed by the Bar Council of India and Chartered Accountants belonging, to the accounting profession are subject to the regulations of the Institute of Chartered Accountants of India. 

(iii) Employment: Employment refers to the occupation in which people work for others and get remunerated in return. Those who are employed by others are known as employees. Thus, people who work in factories, offices of banks, insurance companies or government department, etc. at various posts are the employees of these organizations. They receive wages and salaries.