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A) A large-scale factory-based production system.
B) A system where goods are made by workers in their homes.
C) A method of farming practiced in rural areas.
D) A type of trade limited to selling agricultural goods.
Correct Answer: B)
A system where goods are made by workers in their homes.
Explanation
Cottage Industry refers to the small-scale businesses that are usually home-driven and labour-intensive. Here, a family usually starts producing goods to meet their financial needs, and it was highly popular before the Industrial Revolution. Families then would produce clothing, candles, and household goods.
Cottage Industries require minimum capital, and since they are usually started by family, they use household items for their production.
Although not much, cottage industry is a great option for employment generation, especially among women.
Many of the cottage industries are based on handicraft items and traditional arts. Hence, such small industries help preserve these traditions.
Unlike the industries and factories, the workers have the freedom to choose their working hours in the cottage industry. That's one key advantage of such industries.
Cottage industries don't use many machines, and hence, the energy consumption and emissions are very low. Such a low carbon footprint makes it a very environmentally friendly service.
Cottage industries have very small production compared to the major industries. This makes it difficult for them to meet high production requirements.
Since cottage industries are mostly run with small investments, they lack modern equipment. This affects their product quality and production efficiency.
The sales are highly irregular and are dependent on the market demand. This is a major disadvantage compared to the regular salaries of major production units.
Market access is largely dependent on the contacts, external help and digital tools. Such small industries lack these, and that's a big disadvantage.
Having the household members work on the product can result in varying quality. Most of the time, it would even lack the proper quality control.
