• Commercial Services: All services which are related to distribution of goods and services from producers to customers for example communication, finance, insurance, advertising, retailers and wholesalers.
• Direct Personal Services: Provision of personal services directly to the consumer without anyone else involved for example teacher, actor and tailor. Are usually personal services to satisfying immaterial wants.
The process of Production is completed only when goods are reached to the consumers.
Machines can be used in their full capacity.
Workers may find new efficient techniques to produce goods.
Less wastage.
Workers can be appointed into the jobs which are most suited to them.
• Direct Personal Services: Provision of personal services directly to the consumer without anyone else involved for example teacher, actor and tailor. Are usually personal services to satisfying immaterial wants.
The process of Production is completed only when goods are reached to the consumers.
Specialization/Division of Labour
Specialization or Division of Labour is breaking down of a productive activity into simpler tasks so that a person can specialize in that task.
Advantages of Specialization
• Increased out put per worker.
• Mechanization can occur.
• Economy of scale can be achieved (low average cost of product).
• Less time consuming.
• Saving of tools and equipment.
• Skills in particular field develops. Specialization or Division of Labour is breaking down of a productive activity into simpler tasks so that a person can specialize in that task.
Advantages of Specialization
• Increased out put per worker.
• Mechanization can occur.
• Economy of scale can be achieved (low average cost of product).
• Less time consuming.
• Saving of tools and equipment.
Machines can be used in their full capacity.
Workers may find new efficient techniques to produce goods.
Less wastage.
Workers can be appointed into the jobs which are most suited to them.
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