The arrangement between the merchants and weavers is known as:

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Putting out system

Putting in and out system

Putting in system

None of these

answer is A.

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Detailed Solution

The arrangement between the merchant and the weavers is an example of a putting-out system, in which the merchant supplies raw materials and receives finished goods. It is widely used in the weaving business throughout India. The merchant divides the job among the weavers based on the cloth orders he has received. The weavers obtain the yarn from the merchant and provide him with the cloth. This arrangement appears to have two benefits for the weavers. Weavers are not required to spend money on yarn purchases. Also addressed is the issue of selling the completed cloth. Weavers know exactly what cloth they want to weave and how much of it they need to weave.

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