The 3/5 compromise is when 3 out of 5 slaves count for representatives . So this represents the interest of both northern and southern states by showing that they wanted representation in population in order for each state to be more powerful than the other.
In the factory system, the work is conducted on site by employees of the factory or company. In the putting out system, work is subcontracted to outside employees who conduct their own in off-site workspaces (their own homes or in smaller shops). In the factory system, work is localized and there tends to be a stronger output of good. In the putting out system, there is no need to pay for and monitor a factory.
Article 6, clause 2 of United States Confederation.