Cottage Industries and Small Businesses Flashcard

Front

What is a cottage industry?

Back

A home-based production business

Front

Which of the following is an example of a product from a cottage industry? Automobiles, Jams and jellies, Electronics, Pharmaceuticals

Back

Jams and jellies

Front

What is one advantage of cottage industries?

Back

Low capital requirements

Front

What is a disadvantage of cottage industries?

Back

Low sales due to tourism market uncertainty

Front

Which of the following is a characteristic of small businesses? They have no formal production methods, They employ only family members, They produce only handmade goods, They own separate premises

Back

They own separate premises

Front

What is one function of small businesses?

Back

Provide services that large firms won't produce

Front

What is a key benefit of business growth?

Back

Increased output and sales

Front

What are economies of scale?

Back

Cost advantages from increased production

Front

What is internal growth?

Back

Growth using own resources

Front

What is a joint venture?

Back

A temporary partnership for a specific project.