Question

Amal has employed a few people to weave bamboo baskets at his home in Guwahati, which he then sells in the market for profit. What kind of industry has he set up?

Answer 1

The correct answer to this open question is the following.

Although there are no options attached, we can say the following.

The kind of industry Amal has set up is the manufacturing industry.

Amal has employed a few people to weave bamboo baskets at his home in Guwahati, which he then sells in the market for profit.

The manufacturing industry is the one that takes raw materials and natural resources to produce a final product that can be sold in different markets.

Amal has five people weaving bamboo baskets to be sold. He has to invest in buying the raw materials, the tools needed to wave the bamboo, and has fixed costs to produce the baskets and pay the salaries of the people who are working with him. Amal could already have the mentality of an entrepreneur, and if he thinks big, then the next step is to invest some money to have a small factory and mass produce its goods.