Which of the following forms the trading arrangement between a weaver and a…
2019
Which of the following forms the trading arrangement between a weaver and a merchant under the "Putting out" system?
Choose the correct option.
- A.
Yarn is bought for the lowest bid from merchant; and cloth is sold at highest bid.
- B.
Yarn is sold to the weaver by the merchant; and weaver makes cloth for self-consumption.
- C.
Yarn is supplied by the merchant to the weaver and cloth produced is bought back from weaver at a low price.
- D.
Yarn is bought by weaver from the open market and cloth is sold to merchant at a low price.
Attempted by 2 students.
Show answer & explanation
Correct answer: C
Under the putting-out system, the merchant supplies yarn to the weaver and buys back the finished cloth at a low price.