Question

Difficulty: MediumCommercial vs Direct Service Occupations

A sole proprietor operating a clothing factory employs an accountant to maintain business records, a delivery driver to haul finished garments to retail outlets, a night security guard to protect the factory premises, and a personal cook to prepare daily meals for his household. Which of these employees is engaged in a direct service occupation?

  1. The personal cookAnswer
  2. B
    The delivery driver
  3. C
    The accountant
  4. D
    The night security guard

Answer

The personal cook is engaged in a direct service occupation.
The personal cook provides a personal, non-commercial service directly to the employer's family. Direct services cater directly to human personal needs and satisfaction rather than facilitating commercial exchange or trade.

Step-by-Step Solution

1
Define the key characteristic of direct service occupations.
Direct services are personal, non-commercial services rendered directly to individuals or households for personal satisfaction and paid for directly by the beneficiary.
Direct services do not aid in the distribution, exchange, or commercial sale of goods and services in the market.
2
Analyze each worker's role in the scenario.
The accountant, delivery driver, and factory security guard all support commercial production and distribution (auxiliaries to trade). The personal cook serves the owner's private family.
Commercial occupations involve trade and activities auxiliary to trade (e.g., transport, accounting, commercial security), whereas personal household services are direct services.
3
Identify the direct service worker.
The personal cook is the only employee performing a non-commercial personal service.
Preparing meals for a private household directly satisfies personal human needs without any connection to market trade or business operations.

Key Concept

Distinction between commercial occupations (aids to trade and commercial activities) and direct service occupations (personal/non-commercial services rendered directly to consumers).
Estimated Time:1m 0s
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