LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
Financing plans consists of :-
Correct Answer
Internal accruals , Share capital , Term loans
Your Answer
Internal accruals , Share capital , Term loans
Multiple Choice Multiple Answer
Question
Ratios relating to working capital are :-
Correct Answer
Current ratio , Internal measure , Quick ratio
Your Answer
Current ratio , Internal measure , Quick ratio
True/False
Question
Export Market is a technique used for forecasting under Commercial appraisal technique.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
The sources of cash are :-
Correct Answer
Cash from operations , Sale of machinery , Issue of new shares
Your Answer
Cash from operations , Sale of machinery , Issue of new shares
Multiple Choice Single Answer
Question
Past trend method of Commercial appraisal technique is :-
Correct Answer
Adopted as a guide depending on the consumption pattern of the society as a whole
Your Answer
Adopted as a guide depending on the consumption pattern of the society as a whole
Select The Blank
Question
________ is a current asset
Correct Answer
Book debts
Your Answer
Book debts
Select The Blank
Question
In the GE's Stop Light Matrix, when ________ situation prevails , Products call for divestment.
Correct Answer
Average Business Strength and Low Industry attractiveness
Your Answer
Average Business Strength and Low Industry attractiveness
Select The Blank
Question
Detailed Project Report is generally prepared from a ________ report with additional information.
Correct Answer
Feasibility
Your Answer
Feasibility
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Correct Answer
Problems pertaining to the period when the project is in operation
Your Answer
Problems pertaining to the period when the project is in operation
Multiple Choice Single Answer
Question
The acronym for 'LPG' is :-
Correct Answer
Liberalisation, Privatisation and Globalisation
Your Answer
Liberalisation, Privatisation and Globalisation
True/False
Question
Miscellaneous expenditure is written on the asset side of the Balance sheet.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Defaults category of the Project report may be in respect of :-
Correct Answer
Term loans , Principal , Interest
Your Answer
Term loans , Principal , Interest
Multiple Choice Multiple Answer
Question
The Key terms used in the BCG Product Portfolio matrix are :-
Correct Answer
Stars , Question marks
Your Answer
Stars , Question marks
Select The Blank
Question
________ tries to have what the customer will want- where, when, in what form and at what price.
Correct Answer
Marketing
Your Answer
Marketing
Multiple Choice Single Answer
Question
Cost of the Project encompasses :-
Correct Answer
The total of all items of outlay associated with a project
Your Answer
The total of all items of outlay associated with a project
Select The Blank
Question
Cost of fencing comes under the ________ category of the Project report.
Correct Answer
Land and site development
Your Answer
Land and site development
Multiple Choice Multiple Answer
Question
Trend Projection method of demand forecasting consists of :-
Correct Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer
Inflow of cash
Your Answer
Inflow of cash
True/False
Question
A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Sources of funds include :-
Correct Answer
Increase in secured borrowing
Your Answer
Increase in secured borrowing
Select The Blank
Question
In the GE's Stop Light Matrix, when ________ situation prevails, Products call for Hold.
Correct Answer
Average Business Strength and Medium Industry Attractiveness
Your Answer
Average Business Strength and Medium Industry Attractiveness
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where there is :-
Correct Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
True/False
Question
Ratios are based only on the information which has been recorded in the financial statements.
Correct Answer
True
Your Answer
True
True/False
Question
Trend projection method is the important technique for forecasting demand.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
"Fly by night" operator mentality is a :-
Correct Answer
Management quality
Your Answer
Management quality
Multiple Choice Multiple Answer
Question
The applications of cash are :-
Correct Answer
Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans
Multiple Choice Single Answer
Question
A Project is a temporary endeavor to achieve some specific objectives within a :-
Correct Answer
Predefined time
Your Answer
Predefined time
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may lead to :-
Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Ratio analysis is a technique of planning and control.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :-
Correct Answer
Name of the Industrial concern , Proposed product , Location of the factory
Your Answer
Name of the Industrial concern , Proposed product , Location of the factory
Multiple Choice Multiple Answer
Question
After the SPACE chart is constructed, we would normally get any one of the following basic strategic postures :-
Correct Answer
Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer
Aggressive Posture , Competitive Posture , Defensive Posture
True/False
Question
The emphasis of a finance manager should be on taking a synergistic view of the project rather than looking at it only from the financial aspects.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
BCG Product Portfolio Matrix analyses products on the basis of :-
Correct Answer
Relative Market share and Industry Growth rate
Your Answer
Relative Market share and Industry Growth rate
True/False
Question
Change in the project concept itself may lead to cost and time overrun.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The company having ________, is appropriate for the strategic posture of Conservative under the SPACE approach.
Correct Answer
Limited competitive advantage, belonging to a not so attractive industry but enjoying financial strength and operating in a relatively stable environment
Your Answer
Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment
Select The Blank
Question
Details regarding Internal accruals comes under the ________ category of Project report.
Correct Answer
Financing plan
Your Answer
Financing plan
Match The Following
Question
Correct Answer
Your Answer
Increase in current liabilities
Decreases working capital
Decreases working capital
Increase in liabilities
Inflow of funds
Inflow of funds
Decrease in liabilities
Outflow of funds
Outflow of funds
Increase in current assets
Increases working capital
Increases working capital
Multiple Choice Multiple Answer
Question
Provision for tax can be treated as :-
Correct Answer
Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits
Your Answer
Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits
Multiple Choice Multiple Answer
Question
The data for ratio analysis is obtained from :-
Correct Answer
Profit and Loss Account , Balance Sheet
Your Answer
Profit and Loss Account , Balance Sheet
Multiple Choice Single Answer
Question
The industrial concern earned profits by increasing the sales volume under the :-
Correct Answer
Sales concept
Your Answer
Sales concept
Multiple Choice Single Answer
Question
The entire life of the project is taken into account under :-
Correct Answer
Average rate of return method
Your Answer
Average rate of return method
Match The Following
Question
Correct Answer
Your Answer
General functional layout
Present the general relationship between equipment buildings and civil works
Present the general relationship between equipment buildings and civil works
Location
Broad area such as city, industrial belt etc.
Broad area such as city, industrial belt etc.
Site
Specific piece of land where the project would be set up
Specific piece of land where the project would be set up
Plant layout
Physical layout of the factory
Physical layout of the factory
Multiple Choice Single Answer
Question
Geographic market appraisal answers to :-
Correct Answer
Where do the customers live?
Your Answer
Where do the customers live?
True/False
Question
In the BCG Matrix, the key term of Cash Cows require further commitment of funds.
Correct Answer
False
Your Answer
False
True/False
Question
For computing Interest coverage ratio, Profit after Interest and taxes are taken into account.
Correct Answer
False
Your Answer
False
Select The Blank
Question
A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________.
Correct Answer
Share
Your Answer
Share
Select The Blank
Question
Commission outstanding is ________ of funds.
Correct Answer
Application
Your Answer
Application
Multiple Choice Multiple Answer
Question
Financing plans consists of :-
Correct Answer
Internal accruals , Share capital , Term loans
Your Answer
Internal accruals , Share capital , Term loans
Multiple Choice Multiple Answer
Question
Ratios relating to working capital are :-
Correct Answer
Current ratio , Internal measure , Quick ratio
Your Answer
Current ratio , Internal measure , Quick ratio
True/False
Question
Export Market is a technique used for forecasting under Commercial appraisal technique.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
The sources of cash are :-
Correct Answer
Cash from operations , Sale of machinery , Issue of new shares
Your Answer
Cash from operations , Sale of machinery , Issue of new shares
Multiple Choice Single Answer
Question
Past trend method of Commercial appraisal technique is :-
Correct Answer
Adopted as a guide depending on the consumption pattern of the society as a whole
Your Answer
Adopted as a guide depending on the consumption pattern of the society as a whole
Select The Blank
Question
________ is a current asset
Correct Answer
Book debts
Your Answer
Book debts
Select The Blank
Question
In the GE's Stop Light Matrix, when ________ situation prevails , Products call for divestment.
Correct Answer
Average Business Strength and Low Industry attractiveness
Your Answer
Average Business Strength and Low Industry attractiveness
Select The Blank
Question
Detailed Project Report is generally prepared from a ________ report with additional information.
Correct Answer
Feasibility
Your Answer
Feasibility
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Correct Answer
Problems pertaining to the period when the project is in operation
Your Answer
Problems pertaining to the period when the project is in operation
Multiple Choice Single Answer
Question
The acronym for 'LPG' is :-
Correct Answer
Liberalisation, Privatisation and Globalisation
Your Answer
Liberalisation, Privatisation and Globalisation
True/False
Question
Miscellaneous expenditure is written on the asset side of the Balance sheet.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Defaults category of the Project report may be in respect of :-
Correct Answer
Term loans , Principal , Interest
Your Answer
Term loans , Principal , Interest
Multiple Choice Multiple Answer
Question
The Key terms used in the BCG Product Portfolio matrix are :-
Correct Answer
Stars , Question marks
Your Answer
Stars , Question marks
Select The Blank
Question
________ tries to have what the customer will want- where, when, in what form and at what price.
Correct Answer
Marketing
Your Answer
Marketing
Multiple Choice Single Answer
Question
Cost of the Project encompasses :-
Correct Answer
The total of all items of outlay associated with a project
Your Answer
The total of all items of outlay associated with a project
Select The Blank
Question
Cost of fencing comes under the ________ category of the Project report.
Correct Answer
Land and site development
Your Answer
Land and site development
Multiple Choice Multiple Answer
Question
Trend Projection method of demand forecasting consists of :-
Correct Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
Select The Blank
Question
Inflow of funds may not necessarily result in ________.
Correct Answer
Inflow of cash
Your Answer
Inflow of cash
True/False
Question
A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Sources of funds include :-
Correct Answer
Increase in secured borrowing
Your Answer
Increase in secured borrowing
Select The Blank
Question
In the GE's Stop Light Matrix, when ________ situation prevails, Products call for Hold.
Correct Answer
Average Business Strength and Medium Industry Attractiveness
Your Answer
Average Business Strength and Medium Industry Attractiveness
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where there is :-
Correct Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
True/False
Question
Ratios are based only on the information which has been recorded in the financial statements.
Correct Answer
True
Your Answer
True
True/False
Question
Trend projection method is the important technique for forecasting demand.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
"Fly by night" operator mentality is a :-
Correct Answer
Management quality
Your Answer
Management quality
Multiple Choice Multiple Answer
Question
The applications of cash are :-
Correct Answer
Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans
Multiple Choice Single Answer
Question
A Project is a temporary endeavor to achieve some specific objectives within a :-
Correct Answer
Predefined time
Your Answer
Predefined time
Multiple Choice Single Answer
Question
Delays in infrastructure Development by State Agencies may lead to :-
Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
True/False
Question
Ratio analysis is a technique of planning and control.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :-
Correct Answer
Name of the Industrial concern , Proposed product , Location of the factory
Your Answer
Name of the Industrial concern , Proposed product , Location of the factory
Multiple Choice Multiple Answer
Question
After the SPACE chart is constructed, we would normally get any one of the following basic strategic postures :-
Correct Answer
Aggressive Posture , Competitive Posture , Defensive Posture
Your Answer
Aggressive Posture , Competitive Posture , Defensive Posture
True/False
Question
The emphasis of a finance manager should be on taking a synergistic view of the project rather than looking at it only from the financial aspects.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
BCG Product Portfolio Matrix analyses products on the basis of :-
Correct Answer
Relative Market share and Industry Growth rate
Your Answer
Relative Market share and Industry Growth rate
True/False
Question
Change in the project concept itself may lead to cost and time overrun.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The company having ________, is appropriate for the strategic posture of Conservative under the SPACE approach.
Correct Answer
Limited competitive advantage, belonging to a not so attractive industry but enjoying financial strength and operating in a relatively stable environment
Your Answer
Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment
Select The Blank
Question
Details regarding Internal accruals comes under the ________ category of Project report.
Correct Answer
Financing plan
Your Answer
Financing plan
Match The Following
Question
Correct Answer
Your Answer
Increase in current liabilities
Decreases working capital
Decreases working capital
Increase in liabilities
Inflow of funds
Inflow of funds
Decrease in liabilities
Outflow of funds
Outflow of funds
Increase in current assets
Increases working capital
Increases working capital
Multiple Choice Multiple Answer
Question
Provision for tax can be treated as :-
Correct Answer
Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits
Your Answer
Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits
Multiple Choice Multiple Answer
Question
The data for ratio analysis is obtained from :-
Correct Answer
Profit and Loss Account , Balance Sheet
Your Answer
Profit and Loss Account , Balance Sheet
Multiple Choice Single Answer
Question
The industrial concern earned profits by increasing the sales volume under the :-
Correct Answer
Sales concept
Your Answer
Sales concept
Multiple Choice Single Answer
Question
The entire life of the project is taken into account under :-
Correct Answer
Average rate of return method
Your Answer
Average rate of return method
Match The Following
Question
Correct Answer
Your Answer
General functional layout
Present the general relationship between equipment buildings and civil works
Present the general relationship between equipment buildings and civil works
Location
Broad area such as city, industrial belt etc.
Broad area such as city, industrial belt etc.
Site
Specific piece of land where the project would be set up
Specific piece of land where the project would be set up
Plant layout
Physical layout of the factory
Physical layout of the factory
Multiple Choice Single Answer
Question
Geographic market appraisal answers to :-
Correct Answer
Where do the customers live?
Your Answer
Where do the customers live?
True/False
Question
In the BCG Matrix, the key term of Cash Cows require further commitment of funds.
Correct Answer
False
Your Answer
False
True/False
Question
For computing Interest coverage ratio, Profit after Interest and taxes are taken into account.
Correct Answer
False
Your Answer
False
Select The Blank
Question
A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________.
Correct Answer
Share
Your Answer
Share
Select The Blank
Question
Commission outstanding is ________ of funds.
Correct Answer
Application
Your Answer
Application
Project Finance - 1
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
Audit report
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
Select The Blank
Question
________ is a current asset
Correct Answer
Book debts
Your Answer
Trade credit
Multiple Choice Single Answer
Question
The formula for Break Even Point is :-
Correct Answer
Fixed cost / ( Sales Price - Variables)
Your Answer
Fixed cost / ( Sales Price - Variables)
True/False
Question
Banks and Financial Institutions, world-wide, are now financing projects with strategies and terms that would have been hard to believe/imagine just a few years back.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Liabilities side of Balance sheet includes :-
Correct Answer
Unsecured loans
Your Answer
Unsecured loans
Multiple Choice Single Answer
Question
Net Working Capital means :-
Correct Answer
Current assets less Current liabilities
Your Answer
Current assets less Current liabilities
Multiple Choice Multiple Answer
Question
Trend Projection method of demand forecasting consists of :-
Correct Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
True/False
Question
It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project.
Correct Answer
True
Your Answer
True
True/False
Question
Debt Service Coverage Ratio is one of the most important ratios calculated by the bankers or financial institutions giving long term finance to the organisation.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities.
Correct Answer
Fund
Your Answer
Investment
Multiple Choice Multiple Answer
Question
The applications of cash are :-
Correct Answer
Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans , Issue of new machinery
Select The Blank
Question
________ tries to have what the customer will want- where, when, in what form and at what price.
Correct Answer
Marketing
Your Answer
Marketing
Multiple Choice Multiple Answer
Question
Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer
Trend Projection method , Moving Averages method
Your Answer
Trend Projection method , Consumption-level method , Moving Averages method
Multiple Choice Single Answer
Question
Disposal of fixed assets is categorised under :-
Correct Answer
Miscellaneous
Your Answer
Land and site cost
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
Match The Following
Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project report
Location of factory
Consultancy fees
Cost aspect of the project report
Consultancy fees
Location of factory
Financing plan
Unsecured loans
Unsecured loans
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Marketing aspects includes :-
Correct Answer
Demand forecasting , Promotion , Distribution
Your Answer
Demand forecasting , Promotion , Distribution
Multiple Choice Multiple Answer
Question
Marketing category of the Project report consists of :-
Correct Answer
Pricing policy , Target market , Market potential
Your Answer
Target market , Market potential , Pricing policy
Multiple Choice Multiple Answer
Question
Sources of funds includes :-
Correct Answer
Depreciation , Preliminary expenses written off , Increase in secured borrowing
Your Answer
Depreciation , Preliminary expenses written off , Increase in secured borrowing
Match The Following
Question
Correct Answer
Your Answer
Moving into new areas/product lines
Diversification Projects
Modernisation Projects
Suppliers' credit
Short term finance
Short term finance
Deferred credit
Long term finance
Long term finance
Setting up new units
New Projects
New Projects
Multiple Choice Single Answer
Question
BCG Product Portfolio Matrix analyses products on the basis of :-
Correct Answer
Relative Market share and Industry Growth rate
Your Answer
Relative Market share and Industry Growth rate
Multiple Choice Single Answer
Question
Sewerage and drainage cost of the project is categorised under :-
Correct Answer
Building cost
Your Answer
Building cost
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :-
Correct Answer
Name of the Industrial concern , Proposed product , Location of the factory
Your Answer
Proposed product , Location of the factory , Land cost
True/False
Question
The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In the GE's Stop Light Matrix, when ________ situation prevails , Products call for divestment.
Correct Answer
Average Business Strength and Low Industry attractiveness
Your Answer
Weak Business strength and high Industry attractiveness
Multiple Choice Multiple Answer
Question
Provision for tax can be treated as :-
Correct Answer
Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits
Your Answer
Added back to the profit as per profit and loss account to arrive at operating profits , Item of current assets , Item of working capital
Multiple Choice Single Answer
Question
The cost of Plant and Machinery may be adjusted for a possible increase known as :-
Correct Answer
Escalation
Your Answer
Escalation
Multiple Choice Single Answer
Question
Ratio analysis is a widely used tool of :-
Correct Answer
Financial analysis
Your Answer
Financial analysis
True/False
Question
The advantage of secondary sources of data is that it is readily and economically available.
Correct Answer
True
Your Answer
True
True/False
Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Excessive expenditures on foreign technicians leads to ________.
Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
Multiple Choice Multiple Answer
Question
Financing plans consists of :-
Correct Answer
Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Salaries
Select The Blank
Question
Retained earnings is a source of ________ finance.
Correct Answer
Internal
Your Answer
Internal
Select The Blank
Question
In order to meet the cost of large project, the technique of ________ has been developed so that the financial commitment and risks associated with a project are shared between the project sponsor and the lending institutions.
Correct Answer
Limited recourse financing
Your Answer
Unlimited recourse financing
True/False
Question
A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Correct Answer
Problems pertaining to the period when the project is in operation
Your Answer
Problems pertaining to the period when the project is in operation
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
Ratio analysis is a technique of planning and control.
Correct Answer
False
Your Answer
True
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 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 Single Answer
Question
In the Cash flow statement, the sources of funds include :-
Correct Answer
Development rebate reserve
Your Answer
Development rebate reserve
Select The Blank
Question
Name and designation of the chief executive comes under the ________ category.
Correct Answer
General
Your Answer
Project organisation
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where there is :-
Correct Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
Multiple Choice Single Answer
Question
The BCG product Portfolio Matrix, General Electric Stop Light Matrix and Strategic Position and Action Evaluation Model are considered to be highly relevant as :-
Correct Answer
Portfolio Planning Tools
Your Answer
Portfolio Planning Tools
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
General category
Multiple Choice Single Answer
Question
The emphasis of the Banks and Financial institutions particularly in India has shifted from 'Sanctions', 'Disbursements' and 'Security-orientation' to 'Recovery/Recycling' and :-
Correct Answer
Activity orientation
Your Answer
Activity orientation
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
Audit report
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
Select The Blank
Question
________ is a current asset
Correct Answer
Book debts
Your Answer
Trade credit
Multiple Choice Single Answer
Question
The formula for Break Even Point is :-
Correct Answer
Fixed cost / ( Sales Price - Variables)
Your Answer
Fixed cost / ( Sales Price - Variables)
True/False
Question
Banks and Financial Institutions, world-wide, are now financing projects with strategies and terms that would have been hard to believe/imagine just a few years back.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Liabilities side of Balance sheet includes :-
Correct Answer
Unsecured loans
Your Answer
Unsecured loans
Multiple Choice Single Answer
Question
Net Working Capital means :-
Correct Answer
Current assets less Current liabilities
Your Answer
Current assets less Current liabilities
Multiple Choice Multiple Answer
Question
Trend Projection method of demand forecasting consists of :-
Correct Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer
Linear Relationship , Exponential Relationship , Polynomial Relationship
True/False
Question
It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project.
Correct Answer
True
Your Answer
True
True/False
Question
Debt Service Coverage Ratio is one of the most important ratios calculated by the bankers or financial institutions giving long term finance to the organisation.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities.
Correct Answer
Fund
Your Answer
Investment
Multiple Choice Multiple Answer
Question
The applications of cash are :-
Correct Answer
Purchase of fixed assets , Payment of long term loans
Your Answer
Purchase of fixed assets , Payment of long term loans , Issue of new machinery
Select The Blank
Question
________ tries to have what the customer will want- where, when, in what form and at what price.
Correct Answer
Marketing
Your Answer
Marketing
Multiple Choice Multiple Answer
Question
Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer
Trend Projection method , Moving Averages method
Your Answer
Trend Projection method , Consumption-level method , Moving Averages method
Multiple Choice Single Answer
Question
Disposal of fixed assets is categorised under :-
Correct Answer
Miscellaneous
Your Answer
Land and site cost
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
Match The Following
Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project report
Location of factory
Consultancy fees
Cost aspect of the project report
Consultancy fees
Location of factory
Financing plan
Unsecured loans
Unsecured loans
Multiple Choice Multiple Answer
Question
In the Detailed Project Report, Marketing aspects includes :-
Correct Answer
Demand forecasting , Promotion , Distribution
Your Answer
Demand forecasting , Promotion , Distribution
Multiple Choice Multiple Answer
Question
Marketing category of the Project report consists of :-
Correct Answer
Pricing policy , Target market , Market potential
Your Answer
Target market , Market potential , Pricing policy
Multiple Choice Multiple Answer
Question
Sources of funds includes :-
Correct Answer
Depreciation , Preliminary expenses written off , Increase in secured borrowing
Your Answer
Depreciation , Preliminary expenses written off , Increase in secured borrowing
Match The Following
Question
Correct Answer
Your Answer
Moving into new areas/product lines
Diversification Projects
Modernisation Projects
Suppliers' credit
Short term finance
Short term finance
Deferred credit
Long term finance
Long term finance
Setting up new units
New Projects
New Projects
Multiple Choice Single Answer
Question
BCG Product Portfolio Matrix analyses products on the basis of :-
Correct Answer
Relative Market share and Industry Growth rate
Your Answer
Relative Market share and Industry Growth rate
Multiple Choice Single Answer
Question
Sewerage and drainage cost of the project is categorised under :-
Correct Answer
Building cost
Your Answer
Building cost
Multiple Choice Multiple Answer
Question
General category of the Project report consists of :-
Correct Answer
Name of the Industrial concern , Proposed product , Location of the factory
Your Answer
Proposed product , Location of the factory , Land cost
True/False
Question
The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In the GE's Stop Light Matrix, when ________ situation prevails , Products call for divestment.
Correct Answer
Average Business Strength and Low Industry attractiveness
Your Answer
Weak Business strength and high Industry attractiveness
Multiple Choice Multiple Answer
Question
Provision for tax can be treated as :-
Correct Answer
Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits
Your Answer
Added back to the profit as per profit and loss account to arrive at operating profits , Item of current assets , Item of working capital
Multiple Choice Single Answer
Question
The cost of Plant and Machinery may be adjusted for a possible increase known as :-
Correct Answer
Escalation
Your Answer
Escalation
Multiple Choice Single Answer
Question
Ratio analysis is a widely used tool of :-
Correct Answer
Financial analysis
Your Answer
Financial analysis
True/False
Question
The advantage of secondary sources of data is that it is readily and economically available.
Correct Answer
True
Your Answer
True
True/False
Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Excessive expenditures on foreign technicians leads to ________.
Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
Multiple Choice Multiple Answer
Question
Financing plans consists of :-
Correct Answer
Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Salaries
Select The Blank
Question
Retained earnings is a source of ________ finance.
Correct Answer
Internal
Your Answer
Internal
Select The Blank
Question
In order to meet the cost of large project, the technique of ________ has been developed so that the financial commitment and risks associated with a project are shared between the project sponsor and the lending institutions.
Correct Answer
Limited recourse financing
Your Answer
Unlimited recourse financing
True/False
Question
A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The third phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Correct Answer
Problems pertaining to the period when the project is in operation
Your Answer
Problems pertaining to the period when the project is in operation
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
Ratio analysis is a technique of planning and control.
Correct Answer
False
Your Answer
True
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 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 Single Answer
Question
In the Cash flow statement, the sources of funds include :-
Correct Answer
Development rebate reserve
Your Answer
Development rebate reserve
Select The Blank
Question
Name and designation of the chief executive comes under the ________ category.
Correct Answer
General
Your Answer
Project organisation
Multiple Choice Multiple Answer
Question
As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where there is :-
Correct Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
Your Answer
Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
Multiple Choice Single Answer
Question
The BCG product Portfolio Matrix, General Electric Stop Light Matrix and Strategic Position and Action Evaluation Model are considered to be highly relevant as :-
Correct Answer
Portfolio Planning Tools
Your Answer
Portfolio Planning Tools
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
General category
Multiple Choice Single Answer
Question
The emphasis of the Banks and Financial institutions particularly in India has shifted from 'Sanctions', 'Disbursements' and 'Security-orientation' to 'Recovery/Recycling' and :-
Correct Answer
Activity orientation
Your Answer
Activity orientation
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