Final answer:
The rise of the factory system led to the demise of cottage industries as factories enabled large-scale production and increased productivity.
Step-by-step explanation:
The rise of the factory system did indeed lead to the demise of cottage industries. Prior to the factory system, many goods were produced in individuals' homes or small workshops known as cottage industries. However, with the advent of factories, large-scale production became more efficient and cost-effective, leading to the decline of cottage industries. For example, the introduction of machinery in factories allowed for increased productivity and the ability to produce goods on a much larger scale than could be achieved through manual labor in cottage industries.