A Nigerian conglomerate undergoes a restructuring exercise to classify its operational divisions according to economic sectors and occupational sub-categories. The operations of four divisions are recorded as follows:
- Division I: Extracts raw silica sand and gravel from riverbed deposits for industrial sale.
- Division II: Provides custom hand-tailored ceremonial attire for individual private clients on a fee-for-service basis.
- Division III: Converts raw rubber latex into vulcanized automotive tires inside a factory facility.
- Division IV: Provides warehousing, packaging, and freight distribution for third-party agricultural merchants.
Which of the following correctly classifies Division II and Division IV within the occupational taxonomy?
- Division II is a direct service occupation, while Division IV is a commercial service occupation.Answer
- BBoth Division II and Division IV are commercial service occupations within the tertiary sector.
- CDivision II is a secondary manufacturing occupation, while Division IV is a direct service occupation.
- DDivision II is a direct production occupation, while Division IV is a secondary construction occupation.
Answer
Division II is classified as a direct service occupation, while Division IV is classified as a commercial service occupation.
Occupations in the tertiary sector are subdivided into direct services and commercial services. Direct services involve personal services rendered directly to individuals (e.g., custom tailoring for private clients). Commercial services comprise trade and auxiliaries to trade (e.g., warehousing, packaging, and freight transport) that aid the distribution of products from producers to consumers. Therefore, classifying Division II as a direct service occupation and Division IV as a commercial service occupation is completely accurate.
Step-by-Step Solution
Key Concept
Classification of Tertiary Occupations: Direct Services vs. Commercial Services