A timber enterprise extracts raw wood from a forest in Ondo State, which is processed by a sawmill into planks, crafted into dining tables by a furniture factory, stored in a warehouse, and transported to retail outlets for final sale. Which of the following statements accurately describes the inter-relationship between industry, commerce, and occupation illustrated in this supply chain?
- Industry creates form utility by extracting and manufacturing goods, commerce provides time and place utility by distributing them, and occupations represent the specialized activities of individuals working within these sectors.Answer
- BCommerce encompasses the extraction of wood and crafting of tables, while industry is strictly limited to retail trade and transport occupations.
- CLogging and furniture crafting are direct service occupations, while transporting and retailing the finished tables belong exclusively to primary industry.
- DThe initial timber extraction represents a manufacturing occupation, while transforming planks into furniture is an extractive activity under commercial trade.
Answer
Industry creates form utility through extraction and manufacturing, commerce provides time and place utility through distribution and trade, and occupation defines the specific work done by individuals across these stages.
Production is incomplete until goods reach the consumer. Industry extracts raw materials and manufactures goods (creating form utility), commerce facilitates distribution through trade and auxiliary services such as transport and warehousing (creating place and time utility), and occupation comprises the human labor and skills utilized across all these production phases.
Step-by-Step Solution
Key Concept
Inter-relationship Between Industry, Commerce, and Occupation
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