Question:

Read the following characteristics of 'cottage industries' carefully and choose the most appropriate option: I. These are the smallest manufacturing units. II. Artisans use local raw materials in these units. III. All craftsmen use electrically powered simple tools for production. IV. The products of these industries are mostly for own consumption or for local markets.

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Remember: Cottage = Manual labor at home. Electricity is not a mandatory characteristic.
Updated On: Jul 10, 2026
  • Only I, II and III are correct.
  • Only I, II and IV are correct.
  • Only I, III and IV are correct.
  • Only II, III and IV are correct.
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The Correct Option is B

Solution and Explanation

Step 1: Concept
Characteristics of manufacturing industries based on size, specifically household or cottage industries.

Step 2: Meaning

Cottage manufacturing is the most basic form of production where artisans work from home using locally available resources.

Step 3: Analysis


• Statement I is true: They are indeed the smallest unit of manufacturing.
• Statement II is true: They rely heavily on everyday, locally sourced raw materials.
• Statement III is false: Cottage industries primarily rely on manual labor and basic hand tools, not necessarily "electrically powered" tools for all craftsmen.
• Statement IV is true: The goods produced are usually for the family's daily use or sold in local village markets.

Step 4: Conclusion

Since Statement III is incorrect, the combination of I, II, and IV is the correct answer. Final Answer: (B)
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