If a woman entrepreneur does not understand loan instalments, what risk can occur?
Answer and explanation
Correct answer: Risk of increasing debt burden and repayment default
If a woman entrepreneur does not understand the instalment amount, interest rate, due date, or late-payment charges, she may fail to repay on time. This can increase outstanding debt and lead to repayment default. Profit does not automatically double, and a loan is not automatically waived. Exam tip: In loan-related questions, connect instalments and interest with timely repayment.
Frequently asked questions
What is the correct answer to this question?
Risk of increasing debt burden and repayment default
Why is this the correct answer?
If a woman entrepreneur does not understand the instalment amount, interest rate, due date, or late-payment charges, she may fail to repay on time. This can increase outstanding debt and lead to repayment default. Profit does not automatically double, and a loan is not automatically waived. Exam tip: In loan-related questions, connect instalments and interest with timely repayment.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Women and work: issues and concerns.
