If a buyer repeatedly delays payment in handicrafts, what collective step is suitable?
Answer and explanation
Correct answer: Set written payment terms, take an advance, and diversify buyers
When payments are repeatedly delayed, artisans or their group should set written payment terms, such as an advance, a fixed due date, and action for delay. Diversifying buyers reduces dependence on one buyer and protects cash flow. Continuing unrestricted credit increases risk, while removing records weakens proof of transactions. Exam tip: In collective marketing, written agreements and advance payments are key financial safeguards.
Frequently asked questions
What is the correct answer to this question?
Set written payment terms, take an advance, and diversify buyers
Why is this the correct answer?
When payments are repeatedly delayed, artisans or their group should set written payment terms, such as an advance, a fixed due date, and action for delay. Diversifying buyers reduces dependence on one buyer and protects cash flow. Continuing unrestricted credit increases risk, while removing records weakens proof of transactions. Exam tip: In collective marketing, written agreements and advance payments are key financial safeguards.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Traditional occupations in India - Handicrafts.
