Which statement is incorrect about cottage industry?
A) Smallest manufacturing unit
B) Use locally available raw material
C) Family members provide labour
D) Large scale investment
Answers
Answer:
A.)
A) Smallest manufacturing unit
Explanation:
COTTAGE INDUSTRIES - DEFINITION
Cottage industries refer to those industries which are carried on in the homes of artisans. The work is usually assisted by the members of his family. It may be a whole time work or if he is not an artisan but a cultivator, he may carry on this as a subsidiary occupation during his leisure period.
DIFFERENCE BETWEEN COTTAGE AND SMALL-SCALE INDUSTRIES - DEFINITION
Difference between cottage and small-scale industries:
Basis Cottage industries Small-scale industries
Capital investment Comparatively very small amount of investment is made which is generally arranged from households own resources. Fixed capital investment upto Rs 5 crore capital is generally arranged from banks and other sources.
Labour used Family members of the artisan work as labour usually don't hire labours from outside. Usually employ hired labourers.
Technique of production Traditional and old techniques, hand made tools and implements used. These industries use modern techniques and implements.
Resources They generally use locally available resources. They may also arrange resources from other places.