Answer: D. People who produce goods out of their homes.
The cottage industry is a small unit of the manufacturing sector involved in the production of goods and services by using only low-technology methods. Locally produced textiles and handicrafts are good examples of cottage industries. In rural economies around the world, the cottage industries serve as the backbone and are widely considered informal. Cottage industries are predominantly operated on a small scale and are generally done at home.
In other words, the cottage industry is not operated in a purpose-built facility. The amount of investment required starting, together with the number of employees are just what defines a cottage industry. Although very significant in the manufacturing market, cottage industries are disadvantaged when competing with mass-produce goods from factory-based manufacturers.