Which term describes a business operated from one's home?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

The term that best describes a business operated from one's home is "cottage industry." This concept refers to small-scale manufacturing or production that takes place in a home rather than in a factory or larger commercial setting. Typically, cottage industries are characterized by the production of goods or services that can be managed by an individual or small group, often utilizing local resources or traditional methods. This model allows individuals to operate their businesses in a flexible environment while maintaining a balance between personal life and professional commitments.

Home-based business also describes operations conducted from the home, but it is a broader term and can include a variety of activities, not strictly limited to manufacturing or production, whereas cottage industry emphasizes the artisanal and localized nature of the enterprise.

Freelance work typically refers to individuals who provide services on a contract or project basis, which may or may not be home-based. This term lacks the focus on the production or business aspect found in a cottage industry.

Remote entrepreneurship involves running a business from any location but does not specifically imply that the business is home-based. It encompasses a wider range of possibilities than simply a cottage industry, which is more narrowly defined.

Focusing on the traditional elements and characteristics of businesses that originate from a residence, "cottage industry" captures

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