An executive officer engages a private fitness trainer to provide personal physical instruction at his residence, while his logistics firm retains an independent shipping agent to clear international cargo at the seaport. Which of the following statements correctly differentiates the occupational category of the fitness trainer from that of the shipping agent?
- The fitness trainer provides a direct service yielding personal satisfaction to an individual, while the shipping agent provides a commercial auxiliary service facilitating trade.Answer
- BBoth individuals belong to commercial occupations because both render intangible services for monetary compensation.
- CThe fitness trainer is engaged in direct production, whereas the shipping agent is classified under primary trade activities.
- DThe fitness trainer provides a commercial service, while the shipping agent carries out a direct non-commercial service.
Answer
The fitness trainer provides a direct service yielding personal satisfaction to an individual, while the shipping agent provides a commercial auxiliary service facilitating trade.
Occupations in the tertiary sector are broadly divided into direct services and commercial services. Direct services consist of personal activities rendered directly to individuals for personal satisfaction, such as private health, personal training, or domestic work. Commercial services comprise trade and auxiliaries to trade (such as transport, shipping, insurance, warehousing, and banking) that assist in the exchange and distribution of goods and services.
Step-by-Step Solution
Key Concept
Distinction between Direct Services and Commercial Occupations