Question

Please discuss the difference between and business and a hobby listing distinctions between the two.

Answer 1

Basis	Business	Hobby
Objective	Main objective of business is to earn profit	Main objective of hobby is pleasure and not profit
Sustenance	Sustenance of an individual is dependent on Business. In other words an Individual is dependent for its bread and butter on the business	An individual is not dependent on its hobby or its sustenance
Intention	Activity conducted in businesslike manner will be considered business	Activity conducted just for recreation is a hobby
Research	If an individual conducts detailed research on various aspects of the activity to increase his profits then it can be considered as a business	No detailed research are conducted for hobbies.
Time and Efforts	If an individual puts his time and effort with an intention to increase his profits then it can be considered as a business	Hobbies do not involve extensive time or effort.
Growth Expectations	Where an individual expects expansion/ growth in his activities it will be considered as business	There are no such expectations from hobbies
Other sources of income	if an individual earns substantial part of his earnings from activity it will be considered business especially if it doea not involve any recreation or pleasure.	Ele it will be treated as hobby