A commercial bank hires a private security firm to safeguard its treasury vault, while the bank's managing director hires a personal bodyguard for private family protection. How are the services rendered by the security firm to the bank and the bodyguard to the manager classified respectively?
- Commercial service and direct serviceAnswer
- BDirect service and commercial service
- CDirect production and indirect production
- DTrade service and commercial service
Answer
Commercial service and direct service
The service provided by the security firm to the commercial bank facilitates business operations and risk mitigation, making it a commercial service (auxiliary to trade). In contrast, the personal bodyguard provides protection directly to an individual and his family for personal satisfaction, which is classified as a direct service occupation.
Step-by-Step Solution
Key Concept
Distinction between Commercial Services (business support and auxiliaries to trade) and Direct Services (personal services rendered directly to private individuals).
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