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