LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question ________ is a current liability.
Correct Answer Trade credit
Your Answer Trade credit
Multiple Choice Multiple Answer
Question Marketing category of the Project report consists of :-
Correct Answer Target market , Market potential , Pricing policy
Your Answer Target market , Market potential , Pricing policy
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
Multiple Choice Single Answer
Question Sources of funds include :-
Correct Answer Increase in secured borrowing
Your Answer Increase in secured borrowing
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 False
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
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
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
Multiple Choice Multiple Answer
Question Management qualities includes :-
Correct Answer Honesty , Financial resources , Initiative
Your Answer Honesty , Financial resources , Initiative
Multiple Choice Single Answer
Question The second phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Correct Answer Problems faced during the Construction and Project implementation
Your Answer Problems faced during the Construction and Project implementation
True/False
Question A project is unique and no two projects are similar.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Land and site development cost includes cost of :-
Correct Answer Gates
Your Answer Gates
Multiple Choice Single Answer
Question A project objective which states What “achieving it ” would cost is known as :-
Correct Answer Finance cost aspect
Your Answer Finance cost aspect
Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase
Your Answer Increase
Match The Following
Question Correct Answer Your Answer
Management problems Lack of exposure Lack of exposure
Management Quality Initiative Initiative
Management Perception Aspiration level/ conservative Aspiration level/ conservative
Organisational Climate Person oriented Person oriented
Match The Following
Question Correct Answer Your Answer
Source of funds Depreciation Equity capital
Fixed assets Building Building
Current assets Debtors Debtors
Current liability Trade credit Trade credit
Multiple Choice Single Answer
Question Disposal of fixed assets is categorised under :-
Correct Answer Miscellaneous
Your Answer Miscellaneous
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 Geographic market appraisal answers to :-
Correct Answer Where do the customers live?
Your Answer Where do the customers live?
Multiple Choice Single Answer
Question Every project involves financial outlay which can be referred to as :-
Correct Answer Project finance
Your Answer Project finance
Select The Blank
Question ________ occupies a unique position in the macro economic development which helps in induction of new technology and facilitates, greater efficiency as well as higher productivity.
Correct Answer Investment
Your Answer Production
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
Multiple Choice Single Answer
Question Pre-operative expenses include :-
Correct Answer Interest on deferred payments
Your Answer Interest on deferred payments
Multiple Choice Multiple Answer
Question Advantages of fund flow statement are :-
Correct Answer It determines financial consequences of the business operations , It enables the firm to plan its financial resources properly , It helps as a reliable guide for the future requirement of funds
Your Answer It determines financial consequences of the business operations , It considers non-fund transactions , It enables the firm to plan its financial resources properly
True/False
Question Managerial problems in a project are the most pervasive.
Correct Answer True
Your Answer True
True/False
Question In the BCG Matrix “DOGS” indicate products which are generally during the stage of Decline of a Product Life Cycle.
Correct Answer True
Your Answer True
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
True/False
Question Debt Equity ratio is a ‘Solvency ratio’.
Correct Answer True
Your Answer True
True/False
Question Current assets includes stock-in-process.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect
Your Answer Strategic perspective , Time span , Finance cost aspect
Multiple Choice Single Answer
Question Liabilities side of Balance sheet includes :-
Correct Answer Unsecured loans
Your Answer Unsecured loans
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
Select The Blank
Question A Project has a ________ represented by growth, maturity and decay.
Correct Answer Life cycle
Your Answer Life cycle
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
Select The Blank
Question ________ is the summary of cash book or Receipts and Payments statement.
Correct Answer Cash flow statement
Your Answer Cash flow statement
Multiple Choice Single Answer
Question The point at which the unit neither earns profit nor incurs loss is known as :-
Correct Answer Break Even Point
Your Answer Break Even Point
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 The various aspects which need to be considered while assessing Project finance financing are :-
Correct Answer Environmental factors , Risk involved , Managerial compensation
Your Answer Environmental factors , Risk involved , Managerial compensation
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
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 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
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 Single Answer
Question Infrastructural projects include :-
Correct Answer Power Generation and Distribution
Your Answer Power Generation and Distribution
Multiple Choice Single Answer
Question The ratio that roughly measures the company’s potential reserve of cash is termed as :-
Correct Answer Net Working capital to total assets
Your Answer Net Working capital to total assets
Select The Blank
Question Name and designation of the chief executive comes under the ________ category.
Correct Answer General
Your Answer General
Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :-
Correct Answer Cables
Your Answer Cables
Multiple Choice Single Answer
Question In the Cash flow statement, the sources of funds include
Correct Answer Share Issue
Your Answer Share Issue
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