A palm fruit farmer in Enugu State harvests oil palm bunches and sells them to a processing mill, which extracts and refines them into cooking oil. A logistics company then transports the packaged oil to wholesalers and retailers across the country for sale to households. Which of the following statements best illustrates the inter-relationship between industry and commerce in this scenario?
- Commerce facilitates the distribution of refined oil produced by industry to final consumers through trade and transport services.Answer
- BCommerce performs the primary extraction of raw palm fruits from the farm before industrial milling begins.
- CCommerce is strictly confined to buying raw palm fruits, while industry handles all physical distribution and retail sales.
- DCommerce functions as a direct personal service provided exclusively to the mill owners.
Answer
Commerce facilitates the distribution of refined oil produced by industry to final consumers through trade and transport services.
Industrial processes transform raw palm fruits into refined cooking oil (form utility). Commerce then takes over via transport, warehousing, wholesaling, and retailing to ensure the finished oil reaches consumers across the country (place, time, and possession utilities). Thus, commerce links industrial production to the market.
Step-by-Step Solution
Key Concept
Inter-relationship Between Industry, Commerce, and Occupation