Distinguish between self-employment and wage employment.

Question

BasicSelf employment&nbsp;Wage employment&nbsp;1. NatureEngage in activities on one’s own.Engage in activities assigned...

Accepted Answer

BasicSelf employment&nbsp;Wage employment&nbsp;1. NatureEngage in activities on one’s own.Engage in activities assigned...

Basic	Self employment	Wage employment
1. Nature	Engage in activities on one’s own.	Engage in activities assigned by the employer.
2. Status or position	The position of the person is that of owner and may be that of an employer.	The position of the person is that of an employee.
3. Income or earning	Income or earning is not fixed. It depends on the ability of the owner.	Income of the employed person is fixed and may be increased, if the employee so decides
4. Work involved	Work involved is aimed at earning more and increasing the volume of business. The nature of work cannot be decided in advance and may vary.	The work to be performed by the employee is specific and per-decide.
5. Risk bearing	There is always the risk of loss sometime and earnings may decline at times.	There is no risk of reduced income so long as the employee continues to work.
6. Freedom of work	The owner is free to decide how to run the business depending on the available opportunities.	The employee has to work according to the terms and condition of employment.