Question

Which of the following statements are incorrect with respect to cottage and small-scale industries?

• A. Small-scale industries have low demand.
• B. Cottage industries have a very high cost of production.
• C. Cottage industries lack raw material.
• D. Small-scale industries face issues like lack of knowledge and skilled labour.

Answer 1

Answer: (A), (B)

Cottage industries have a very high cost of production.

The major problems faced by cottage and small-scale industries are as follows:

1. Primitive production methods
2. Lack of raw materials
3. Lack of capital
4. Competition with large-scale industries
5. Lack of knowledge
6. Lack of skilled labour

Hence, options 1 and 2 are incorrect.