A commercial fishing enterprise off the coast of Lagos extracts marine fish from the sea and sells its haul to a fish processing company. The processing factory cans the fish, which is then kept in a cold storage facility before being transported by logistics agents to wholesalers and retailers. In this chain of economic activities, how does the cold storage facility serve as an auxiliary to commerce that links industrial production to final consumption?
- It creates time utility by storing processed goods until they are demanded, ensuring a smooth flow from industrial processors to commercial distributors.Answer
- BIt extracts raw biological resources directly from the ocean, fulfilling the primary industrial phase of production.
- CIt engages in direct production by preparing goods exclusively for personal family consumption rather than market trade.
- DIt provides a direct personal service directly to individual consumers, bypassing commercial trade channels entirely.
Answer
The cold storage facility creates time utility by storing processed goods until they are demanded, ensuring a smooth flow from industrial processors to commercial distributors.
The correct option highlights the true function of warehousing as an auxiliary to commerce. By storing processed canned fish under refrigerated conditions, it creates time utility and ensures continuous availability between industrial manufacturing and commercial distribution.
Step-by-Step Solution
Key Concept
Inter-relationship Between Industry, Commerce, and Occupation
Estimated Time:1m 0s