In a Nigerian agribusiness ecosystem, cassava farmers in Ogun State harvest raw tubers, which are processed into industrial starch by a local milling plant. Wholesalers then purchase the starch, utilizing haulage services and commercial bank financing to distribute it to pharmaceutical companies nationwide. Which of the following statements accurately analyzes the inter-relationship between industry, commerce, and occupations in this chain?
- ACassava farming represents a secondary industrial activity because it supplies the fundamental raw materials needed by processing mills.
- Industry creates form utility by processing cassava into industrial starch, while commercial occupations create place and time utility to bridge the gap between the producer and final industrial consumers.Cevap
- CCommerce is strictly confined to the buying and selling of starch between wholesalers and pharmaceutical firms, excluding haulage and banking services.
- DHaulage drivers and commercial bankers in this ecosystem are engaged in direct service occupations because their services directly support the business.
Cevap
Industry creates form utility by processing raw cassava into industrial starch, while commercial occupations provide place and time utility, connecting industrial output to final organizational users.
The industrial phase transforms raw cassava into industrial starch, creating form utility by altering its physical state. Commercial activities (wholesaling, transport, and banking) do not alter the product's physical form but move and store it across distance and time, creating place and time utility necessary to complete the economic chain.
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Inter-relationship Between Industry, Commerce, and Occupation
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