Question

Which of the following is an example of a raw goods producer?

Answer 1

Answer:

C, a lumber company

Explanation:

The definition of a raw goods producer is a type of producer whose job is to provide raw goods, which are goods in their natural state.  A raw goods producer cannot provide services but only basic commodities (actual items).

Raw goods are usually  basic goods collected or retrieved from nature (the good is not changed or manipulated) and used in the production of manufactured goods.

Basically, think of raw goods as the ingredients in a cooking recipe. A cook does not make or produce the ingredients, the cook simply collects the ingredients from farm who collects the ingredients from nature (raw goods provider). Manufactured goods are what the cook produces out of the cooking ingredients(raw goods).

Out of all the answer choices, the only company which provides raw goods is a lumber company; they simply collect wood, which can be found naturally (without producing it in a factory / man-made) and sell it to producers.

A is wrong, since people use raw goods when MAKING sushi. Since sushi is being produced, it is a manufactured product.

B is wrong, since a comedy club provides services not the selling of real goods.

D may sound right, however many items in grocery stores are produced by factories. In order to be a raw goods producer, the company must specialize and serve only raw goods. Grocery stores have manufactured goods such as ice cream, shampoo, cereal, etc.