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Subjects

If an artisan receives a large order but no advance payment, what is the main financial risk?

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Answer and explanation

Correct answer: Cash shortage in meeting raw material and labour costs

Working capital is necessary for large orders. In exams, remember advance payment and cash flow.

Tags

handicraftsworking-capitallarge-ordercash-flow

Frequently asked questions

What is the correct answer to this question?

Cash shortage in meeting raw material and labour costs

Why is this the correct answer?

Working capital is necessary for large orders. In exams, remember advance payment and cash flow.

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.

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