Wednesday, 20 July 2011

Project Finance -1

Select The Blank
Question
The basic difference between the feasibility study report and ________ is the level of accuracy and degree of detail.
Correct Answer
Detailed Project report
Your Answer
Detailed Project report

Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :-
Correct Answer
A list of industries wherein the product is used is made and quantity and volume is arrived at
Your Answer
A list of industries wherein the product is used is made and quantity and volume is arrived at

True/False
Question
The advantage of secondary sources of data is that it is readily and economically available.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer
Source
Your Answer
Source

Multiple Choice Multiple Answer
Question
Casual methods of Demand forecasting consists of :-
Correct Answer
Consumption-level method , Econometric method
Your Answer
Consumption-level method , Econometric method

Multiple Choice Multiple Answer
Question
Financial and economic aspect of the Visit report consists of :-
Correct Answer
Company's financial year , Impact of Government policies on company operations , Comments on the last published accounts
Your Answer
Company's financial year , Impact of Government policies on company operations , Comments on the last published accounts

Multiple Choice Single Answer
Question
The statement which shows the movement of cash into and out of firm's kittie is known as :-
Correct Answer
Cash flow statement
Your Answer
Cash flow statement

True/False
Question
Name of the finance manager comes under the Project organisation category of the Project report.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Cost of laying roads comes under :-
Correct Answer
Land and site cost
Your Answer
Land and site cost

True/False
Question
Debt Service means payment of installments and interest against an amount borrowed as per terms of loan.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Infrastructural projects include :-
Correct Answer
Power Generation and Distribution
Your Answer
Power Generation and Distribution

True/False
Question
The 'BCG Matrix 'analysis various products of the organisation in the terms of Business strength and Industry Attractiveness.
Correct Answer
False
Your Answer
False

Select The Blank
Question
A Project has a ________ represented by growth, maturity and decay.
Correct Answer
Life cycle
Your Answer
Life cycle

Select The Blank
Question
Position regarding requirement and training of operational staff comes under the ________ category of Project report.
Correct Answer
Project organisation
Your Answer
Project organisation

Multiple Choice Single Answer
Question
Receivables is categorised under :-
Correct Answer
Current assets and liabilities
Your Answer
Current assets and liabilities

True/False
Question
Managerial problems in a project are the most pervasive.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Disposition of funds includes :-
Correct Answer
Increase in working capital , Preliminary expenses , Dividend
Your Answer
Increase in working capital , Preliminary expenses , Dividend

True/False
Question
A project is unique and no two projects are similar.
Correct Answer
True
Your Answer
True

True/False
Question
The cost factors of the product mixed is also taken into account to arrive at cost at various levels of production and its cost impact of the manufacturing.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :-
Correct Answer
To indicate the financial strength and weakness of the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , To find out the uses of loans raised by the business
Your Answer
To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , To find out the uses of loans raised by the business , To indicate the financial strength and weakness of the business

Select The Blank
Question
Under the SPACE Model, Customer loyalty is determined under the ________ dimension.
Correct Answer
Company's competitive advantage
Your Answer
Company's competitive advantage

True/False
Question
Cost and time overrun of the project may lead to loss on account of lost market opportunities.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The ratio which indicates the ability of the company to meet current obligations is termed as :-
Correct Answer
Current ratio
Your Answer
Current ratio

Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors should be considered :-
Correct Answer
Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors
Your Answer
Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors

Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :-
Correct Answer
Equity shares , Public deposit
Your Answer
Equity shares , Public deposit

Select The Blank
Question
More accurate the estimation of the level of current assets and current liabilities, more accurate will be estimation of the requirement of ________.
Correct Answer
Working capital
Your Answer
Working capital

True/False
Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Organisation and Management
Strikes/lay-offs/lockouts etc.
Strikes/lay-offs/lockouts etc.
Material inputs and utilities
Stock of raw material
Stock of raw material
Working capital
Sanctioned bank limit
Sanctioned bank limit
Marketing
Pricing policy
Pricing policy

Multiple Choice Multiple Answer
Question
Management qualities includes :-
Correct Answer
Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative

Select The Blank
Question
________ in liabilities involves inflow of funds.
Correct Answer
Increase
Your Answer
Increase

Select The Blank
Question
The ________ market is longer the order of the day since this is an era of professionalization and specialised services are available at cost.
Correct Answer
Monopolistic
Your Answer
Monopolistic

Multiple Choice Multiple Answer
Question
Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer
Moving Averages method , Trend Projection method
Your Answer
Trend Projection method , Moving Averages method

Multiple Choice Single Answer
Question
Borrower's contribution towards Working capital is known as :-
Correct Answer
Margin money
Your Answer
Margin money

Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed as :-
Correct Answer
Strategic perspective
Your Answer
Strategic perspective

Multiple Choice Single Answer
Question
The basic characteristic of a project is :-
Correct Answer
That it involves current outlay of funds in expectation of future benefits
Your Answer
That it involves current outlay of funds in expectation of future benefits

Select The Blank
Question
Name and designation of the chief executive comes under the ________ category.
Correct Answer
General
Your Answer
General

Select The Blank
Question
Under ________ method, the forecasts are modified in the light of observed errors.
Correct Answer
Exponential smoothing
Your Answer
Exponential smoothing

Multiple Choice Single Answer
Question
The rate of discount which would equate the present value of investments to the present value of benefits over the life of the project is known as :-
Correct Answer
Internal rate of return
Your Answer
Internal rate of return

Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Technical aspects includes :-
Correct Answer
Plant capacity , Quality standards , Raw material requirement
Your Answer
Plant capacity , Quality standards , Raw material requirement

True/False
Question
Delay in recruitment of staff may lead to cost and time overrun
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The basic document for facilitating Project financing is the :-
Correct Answer
Detailed Project report
Your Answer
Detailed Project report

Multiple Choice Multiple Answer
Question
External sources of cash are as follows :-
Correct Answer
Issue of new shares , Long term loans , Short term borrowings
Your Answer
Issue of new shares , Long term loans , Short term borrowings

Multiple Choice Multiple Answer
Question
The following are the sources of funds :-
Correct Answer
Operating Profit , Non operating Income
Your Answer
Operating Profit , Non operating Income

Select The Blank
Question
Retained earnings indicates that whatever profits are earned by the company are not distributed by it by way of ________ but are kept aside for use in future for expansion or other purpose.
Correct Answer
Dividend
Your Answer
Dividend

Multiple Choice Multiple Answer
Question
Limitations of fund flow statement are :-
Correct Answer
It does not provide any new information but only rearranges the various facts , It does not consider non-fund transactions
Your Answer
It does not provide any new information but only rearranges the various facts , It does not consider non-fund transactions

Match The Following
Question
Correct Answer
Your Answer
Project appraisal
It is the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investment
It is the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investment
Program
It is large in scope, is activity oriented and is not necessarily time bound
It is large in scope, is activity oriented and is not necessarily time bound
Project
It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of varied skills and resources
It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of varied skills and resources
Pre-feasibility study















LIST OF ATTEMPTED QUESTIONS AND ANSWERS



Select The Blank
Question
The basic difference between the feasibility study report and ________ is the level of accuracy and degree of detail.
Correct Answer
Detailed Project report
Your Answer
Detailed Project report

Multiple Choice Single Answer
Question
End use method of Commercial appraisal technique is :-
Correct Answer
A list of industries wherein the product is used is made and quantity and volume is arrived at
Your Answer
A list of industries wherein the product is used is made and quantity and volume is arrived at

True/False
Question
The advantage of secondary sources of data is that it is readily and economically available.
Correct Answer
True
Your Answer
True

Select The Blank
Question
Depreciation is sometimes treated as ________ funds.
Correct Answer
Source
Your Answer
Source

Multiple Choice Multiple Answer
Question
Casual methods of Demand forecasting consists of :-
Correct Answer
Consumption-level method , Econometric method
Your Answer
Consumption-level method , Econometric method

Multiple Choice Multiple Answer
Question
Financial and economic aspect of the Visit report consists of :-
Correct Answer
Company's financial year , Impact of Government policies on company operations , Comments on the last published accounts
Your Answer
Company's financial year , Impact of Government policies on company operations , Comments on the last published accounts

Multiple Choice Single Answer
Question
The statement which shows the movement of cash into and out of firm's kittie is known as :-
Correct Answer
Cash flow statement
Your Answer
Cash flow statement

True/False
Question
Name of the finance manager comes under the Project organisation category of the Project report.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Cost of laying roads comes under :-
Correct Answer
Land and site cost
Your Answer
Land and site cost

True/False
Question
Debt Service means payment of installments and interest against an amount borrowed as per terms of loan.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Infrastructural projects include :-
Correct Answer
Power Generation and Distribution
Your Answer
Power Generation and Distribution

True/False
Question
The 'BCG Matrix 'analysis various products of the organisation in the terms of Business strength and Industry Attractiveness.
Correct Answer
False
Your Answer
False

Select The Blank
Question
A Project has a ________ represented by growth, maturity and decay.
Correct Answer
Life cycle
Your Answer
Life cycle

Select The Blank
Question
Position regarding requirement and training of operational staff comes under the ________ category of Project report.
Correct Answer
Project organisation
Your Answer
Project organisation

Multiple Choice Single Answer
Question
Receivables is categorised under :-
Correct Answer
Current assets and liabilities
Your Answer
Current assets and liabilities

True/False
Question
Managerial problems in a project are the most pervasive.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Disposition of funds includes :-
Correct Answer
Increase in working capital , Preliminary expenses , Dividend
Your Answer
Increase in working capital , Preliminary expenses , Dividend

True/False
Question
A project is unique and no two projects are similar.
Correct Answer
True
Your Answer
True

True/False
Question
The cost factors of the product mixed is also taken into account to arrive at cost at various levels of production and its cost impact of the manufacturing.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The objectives of the funds flow statement is as follows :-
Correct Answer
To indicate the financial strength and weakness of the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , To find out the uses of loans raised by the business
Your Answer
To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , To find out the uses of loans raised by the business , To indicate the financial strength and weakness of the business

Select The Blank
Question
Under the SPACE Model, Customer loyalty is determined under the ________ dimension.
Correct Answer
Company's competitive advantage
Your Answer
Company's competitive advantage

True/False
Question
Cost and time overrun of the project may lead to loss on account of lost market opportunities.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The ratio which indicates the ability of the company to meet current obligations is termed as :-
Correct Answer
Current ratio
Your Answer
Current ratio

Multiple Choice Multiple Answer
Question
While choosing the location for a project, the following factors should be considered :-
Correct Answer
Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors
Your Answer
Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors

Multiple Choice Multiple Answer
Question
The sources of long term and medium term finance are :-
Correct Answer
Equity shares , Public deposit
Your Answer
Equity shares , Public deposit

Select The Blank
Question
More accurate the estimation of the level of current assets and current liabilities, more accurate will be estimation of the requirement of ________.
Correct Answer
Working capital
Your Answer
Working capital

True/False
Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Organisation and Management
Strikes/lay-offs/lockouts etc.
Strikes/lay-offs/lockouts etc.
Material inputs and utilities
Stock of raw material
Stock of raw material
Working capital
Sanctioned bank limit
Sanctioned bank limit
Marketing
Pricing policy
Pricing policy

Multiple Choice Multiple Answer
Question
Management qualities includes :-
Correct Answer
Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative

Select The Blank
Question
________ in liabilities involves inflow of funds.
Correct Answer
Increase
Your Answer
Increase

Select The Blank
Question
The ________ market is longer the order of the day since this is an era of professionalization and specialised services are available at cost.
Correct Answer
Monopolistic
Your Answer
Monopolistic

Multiple Choice Multiple Answer
Question
Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer
Moving Averages method , Trend Projection method
Your Answer
Trend Projection method , Moving Averages method

Multiple Choice Single Answer
Question
Borrower's contribution towards Working capital is known as :-
Correct Answer
Margin money
Your Answer
Margin money

Multiple Choice Single Answer
Question
A project objective which states "What' is to be viewed" is termed as :-
Correct Answer
Strategic perspective
Your Answer
Strategic perspective

Multiple Choice Single Answer
Question
The basic characteristic of a project is :-
Correct Answer
That it involves current outlay of funds in expectation of future benefits
Your Answer
That it involves current outlay of funds in expectation of future benefits

Select The Blank
Question
Name and designation of the chief executive comes under the ________ category.
Correct Answer
General
Your Answer
General

Select The Blank
Question
Under ________ method, the forecasts are modified in the light of observed errors.
Correct Answer
Exponential smoothing
Your Answer
Exponential smoothing

Multiple Choice Single Answer
Question
The rate of discount which would equate the present value of investments to the present value of benefits over the life of the project is known as :-
Correct Answer
Internal rate of return
Your Answer
Internal rate of return

Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Technical aspects includes :-
Correct Answer
Plant capacity , Quality standards , Raw material requirement
Your Answer
Plant capacity , Quality standards , Raw material requirement

True/False
Question
Delay in recruitment of staff may lead to cost and time overrun
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The basic document for facilitating Project financing is the :-
Correct Answer
Detailed Project report
Your Answer
Detailed Project report

Multiple Choice Multiple Answer
Question
External sources of cash are as follows :-
Correct Answer
Issue of new shares , Long term loans , Short term borrowings
Your Answer
Issue of new shares , Long term loans , Short term borrowings

Multiple Choice Multiple Answer
Question
The following are the sources of funds :-
Correct Answer
Operating Profit , Non operating Income
Your Answer
Operating Profit , Non operating Income

Select The Blank
Question
Retained earnings indicates that whatever profits are earned by the company are not distributed by it by way of ________ but are kept aside for use in future for expansion or other purpose.
Correct Answer
Dividend
Your Answer
Dividend

Multiple Choice Multiple Answer
Question
Limitations of fund flow statement are :-
Correct Answer
It does not provide any new information but only rearranges the various facts , It does not consider non-fund transactions
Your Answer
It does not provide any new information but only rearranges the various facts , It does not consider non-fund transactions

Match The Following
Question
Correct Answer
Your Answer
Project appraisal
It is the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investment
It is the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investment
Program
It is large in scope, is activity oriented and is not necessarily time bound
It is large in scope, is activity oriented and is not necessarily time bound
Project
It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of varied skills and resources
It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of varied skills and resources
Pre-feasibility study
It is a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising
It is a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising

Multiple Choice Single Answer
Question
Psychographic market appraisal answers to :-
Correct Answer
Why they buy?
Your Answer
Why they buy?

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