Question

Choose the point(s) of differentiation between cottage and small-scale industries.

• A. Cottage industries have higher investments as compared to small-scale industries.
• B. Cottage industries produce traditional goods, while small-scale industries produce modern goods.
• C. Cottage industries work with hired workers, while small-scale industries work with their family members.
• D. Cottage industries use traditional tools to produce goods, while small-scale industries use modern machines for the production of goods.

Answer 1

Answer: (B), (D)

Cottage industries use traditional tools to produce goods, while small-scale industries use modern machines for the production of goods.

Cottage industries fulfill local needs, have low investments, produce traditional products with family labour and traditional tools. On the other hand, small-scale industries produce goods for a wider section of the society with comparatively higher amount of investment, hired workers, and machine run by power. The goods produced are modern in nature.