The system in which raw materials are distributed by entrepreneurs to homes in which family members process those materials into finished products is referred to as
A) the factory system.
B) an apprenticeship.
C) specialisation.
D) free enterprise.
E) the domestic system.

Question

Quizplus · Accepted Answer

The system described is the domestic system, in which the production of goods takes place in homes rather than in factories or other centralized locations. Raw materials are distributed by entrepreneurs (often known as putting-out or cottage industry merchants) to family members, who process the materials into finished products. The domestic system was prevalent in Europe from the 16th to the 19th centuries, before the rise of the factory system.

The System in Which Raw Materials Are Distributed by Entrepreneurs