What is "on error resume next" in QTP? Explain with an example.

This is used for handling Run time errors. If you use this statement in the script then it will close any kind of run error dialogs while running the script.

On Error Resume Next is used when you are sure about the step at which error
occurs in QTP. Based on that you can use an if statement to close that error
box.

For Eg.

if error.exist then

     error.close

endif

Whereas recovery scenarios will only come in picture when the error are
unpredictable or uncertain.