A petroleum refining company processes crude oil into petrol, after which logistics firms, insurance companies, and commercial banks facilitate its movement to retail filling stations. Which statement best explains the inter-relationship between industry, commerce, and occupation in this economic process?
- ACommerce directly extracts crude oil from the ground, while industry handles only the buying and selling of finished petrol.
- Industry creates form utility by transforming raw crude oil into petrol, while commercial occupations facilitate trade and auxiliaries to ensure the petrol reaches final consumers.Answer
- CTrade handles transport, insurance, and banking, while commerce is strictly limited to retail sales at filling stations.
- DThe logistics firms and commercial banks provide direct personal services, operating outside of both industry and commercial occupations.
Answer
Industry creates form utility by transforming raw crude oil into petrol, while commercial occupations facilitate trade and auxiliaries to ensure the petrol reaches final consumers.
The correct answer accurately captures how industry and commerce interact: industry alters raw materials to produce finished goods (creating form utility), while commercial occupations provide trade and auxiliary support (creating place, time, and possession utility) to bring products from the refinery to end users.
Step-by-Step Solution
Key Concept
Inter-dependence of Industry and Commerce in Production
Estimated Time:45s