SUBJECT: BUSINESS STUDIES
TOPIC: PRODUCTION OF SERVICE
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Service production is also known as tertiary production and it is divided into Commercial Service and Direct Service.
Commercial Service involves trade and aids to trade. It is a service that makes sure that goods produced are taken to where people will buy and make use of them. Commercial service involves a lot of people before they are accomplished. Transporters make sure that goods are taken from places of production to places of consumption. Bank clerks are involved in commercial service banks provides financial assistance to traders. Insurance companies help to share some of the risks faced by traders. Communication provides information about availability of goods. To make goods available to the consumers, the following are involved- sellers, buyers, communication agents, bank clerks, insurance companies, transporters, e.t.c.
Direct Service involves people who earn their living by rendering personal services to others. Some of them render their service in such a manner that it becomes clear that they are contributing to the living of standard of others. Those who consume direct services do not go through commerce rather, they consume them directly from the producer. Examples, teachers, doctors, musicians, housemaids, night watchmen, gardeners, cooks, e.t.c.
Advantages Of Production
1, It creates employment.
2, It helps to develop the society.
3, It provides essential services.
4, It helps to boost the economy of the nation.
5, Production helps to provide roads, airports, railways, e.t.c.
Disadvantages Of Production
1, It causes air pollution: The smoke from the engines used by industries pollutes the air. This pollution poses a serious health hazard to the people who live in the environment.
2, It causes water pollution: Some industries dump their waste materials in the environment and these wastes flow into water bodies- rivers, streams, and pollute them. When people drink from these contaminated rivers and streams, they can develop all kinds of sickness.
3, Erosion: Some extractive industries practise excavation before they extract raw materials. The excavation creates big holes that can cause gully erosion.
4, Noise: Some industries use heavy machines that make a lot of noise. The noise level of these machines is hazardous to health. It can cause hard of hearing.
5, Deforestation: Deforestation is cutting down trees and burning them to discontinue their growth without replacement. When these unique trees are burnt down without being replaced, getting timber can be difficult.
1, What is another name for service production?
2, Service production is divided into …………… and …………….
3, Which service involves those who render personal services?
4, List 2 advantages and 3 disadvantages of production.
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