What should a group assess before taking a cooperative loan in handicrafts?
Answer and explanation
Correct answer: Sales plan, repayment capacity and members' responsibilities
Before taking a cooperative loan, the group should assess whether sales of its products can generate enough income, whether instalments can be repaid on time, and what responsibility each member will carry. Knowing only festivals or colour preferences does not show the group’s repayment capacity. Exam tip: For loan planning, remember income, repayment capacity, and shared responsibility together.
Frequently asked questions
What is the correct answer to this question?
Sales plan, repayment capacity and members' responsibilities
Why is this the correct answer?
Before taking a cooperative loan, the group should assess whether sales of its products can generate enough income, whether instalments can be repaid on time, and what responsibility each member will carry. Knowing only festivals or colour preferences does not show the group’s repayment capacity. Exam tip: For loan planning, remember income, repayment capacity, and shared responsibility together.
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.
