LIST OF ATTEMPTED QUESTION-S 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
LIST OF ATTEMPTED QUESTION-S AND ANSWERS
Multiple Choice Multiple Answer
*Question-The permanent requirement of working capital should be financed out of :-
Correct Answer Debentures , Cash Profits , Shares
Your Answer Debentures , Cash Profits , Shares
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 , Bridge loan , Public deposit
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
Multiple Choice Single Answer
*Question-Technology, design, layout of the plant as well as inputs and infrastructural facilities are to be considered under :-
Correct Answer Technical appraisal
Your Answer Financial appraisal
Select The Blank
*Question-Detailed Project Report is generally prepared from a ________ report with additional information.
Correct Answer Feasibility
Your Answer Feasibility
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 formula for Break Even Point is :-
Correct Answer Fixed cost / ( Sales Price – Variables)
Your Answer (Profit after tax +Depreciation + Interest)/ Interest
Multiple Choice Single Answer
*Question-Receivables is categorised under :-
Correct Answer Current assets and liabilities
Your Answer Material inputs and utilities
Multiple Choice Multiple Answer
*Question-Ratios relating to working capital are :-
Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Internal measure
Select The Blank
*Question-Longer the duration of production cycle, higher the requirement of ________.
Correct Answer Working capital
Your Answer Fixed assets
Multiple Choice Multiple Answer
*Question-In the Detailed Project Report, Management aspects includes :-
Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Organisation Building , Person / system oriented , Promoter’s equity / stake
True/False
*Question-Financial analysis based on accounting ratios will give mis-leading results if the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
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
Select The Blank
*Question-Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer Decrease in funds
Multiple Choice Multiple Answer
*Question-Building cost consists of :-
Correct Answer Factory building , Auxiliary buildings , Administrative block
Your Answer cost of development , Factory building , Auxiliary buildings
Match The Following
*Question-Correct Answer Your Answer
Increase in current liabilities Decreases working capital Stability of funds
Increase in liabilities Inflow of funds Inflow of funds
Decrease in liabilities Outflow of funds Increases working capital
Increase in current assets Increases working capital Outflow of funds
Select The Blank
*Question-Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities.
Correct Answer Fund
Your Answer Fund
True/False
*Question-Name of the finance manager comes under the Project organisation category of the Project report.
Correct Answer True
Your Answer False
True/False
*Question-Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
True/False
*Question-The maximum Seed Capital assistance provided by IDBI under the project will be restricted to 50% of the required promoter’s contribution or Rs. 50 lakhs whichever is lower.
Correct Answer False
Your Answer True
Match The Following
*Question-Correct Answer Your Answer
Project organisation Finance manager Completion date of the project
General category of Project report Location of factory Reasons for cost escalations
Cost aspect of the project report Consultancy fees Finance manager
Financing plan Unsecured loans Location of factory
True/False
*Question-Trend projection method is the important technique for forecasting demand.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
*Question-Production and sales aspect of Visit report consists of :-
Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability
Multiple Choice Multiple Answer
*Question-The sources of cash are :-
Correct Answer Cash from operations , Sale of machinery , Issue of new shares
Your Answer Purchase of fixed assets , Cash from operations , Sale of machinery
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
True/False
*Question-Production line diagrams show the organisation structure of the project along with information on location, personnel required for various departments, and their inter-relationship.
Correct Answer False
Your Answer True
Select The Blank
*Question-________ is a current asset
Correct Answer Book debts
Your Answer Book debts
Select The Blank
*Question-The company having ________, is appropriate for the strategic posture of Defensive under the SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment
Your Answer High financial strength, high industrial strength, enjoying a competitive advantage and belonging to an attractive industry, operating in a relatively stable environmental conditions
Multiple Choice Single Answer
*Question-Management aspect of detailed project report includes
Correct Answer Organisation structure
Your Answer Demand forecasting
Select The Blank
*Question-________ profitability reduces the strain on working capital.
Correct Answer High
Your Answer High
Multiple Choice Multiple Answer
*Question-The following are the sources of funds :-
Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Operating Loss , Non operating Income
Multiple Choice Single Answer
*Question-The cash flow of all the years during the expected life of the project are discounted at a pre-determined cut off rate and :-
Correct Answer Net Present value is obtained
Your Answer Internal rate of return is obtained
Multiple Choice Multiple Answer
*Question-The objectives of the funds flow statement is as follows :-
Correct Answer To find out the uses of loans raised by the business , 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
Your Answer To find out the uses of loans raised by the business , 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
Multiple Choice Single Answer
*Question-Cost of materials include :-
Correct Answer Cost of components and consumable stores
Your Answer Cost of electricity
True/False
*Question-The Detailed Project report must indicate the gestation period of the project.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
*Question-Strategic Position and Action Evaluation Model :-
Correct Answer Is an approach to hammer out an appropriate strategic posture for a firm and its individual business
Your Answer Which is highly respected for the sophistication, maturity and quality in its planning systems
Select The Blank
*Question-Location of the factory comes under the ________ category of the Project report.
Correct Answer General
Your Answer General
Select The Blank
*Question-Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Internal
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
Select The Blank
*Question-Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer Two
Multiple Choice Single Answer
*Question-Appointments made at senior level during the half-year is categorised under :-
Correct Answer Organisation and management
Your Answer Current assets and liabilities
Select The Blank
*Question-Commission outstanding is ________ of funds.
Correct Answer Application
Your Answer Application
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 Profit and Loss statement
Multiple Choice Single Answer
*Question-Cost of utilities include :-
Correct Answer Cost of electricity
Your Answer Cost of components and consumable stores
Multiple Choice Single Answer
*Question-Marketing aspect of Detailed Project report includes :-
Correct Answer Demand forecasting
Your Answer Detailed Project Engineering
True/False
*Question-In both the extreme situations of trade cycles i.e. Inflation and depression, requirement of working capital may be high.
Correct Answer True
Your Answer False
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 , Plant capacity , Availability of infrastructure
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
LIST OF ATTEMPTED QUESTION-S AND ANSWERS
Multiple Choice Multiple Answer
*Question-The permanent requirement of working capital should be financed out of :-
Correct Answer Debentures , Cash Profits , Shares
Your Answer Debentures , Cash Profits , Shares
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 , Bridge loan , Public deposit
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
Multiple Choice Single Answer
*Question-Technology, design, layout of the plant as well as inputs and infrastructural facilities are to be considered under :-
Correct Answer Technical appraisal
Your Answer Financial appraisal
Select The Blank
*Question-Detailed Project Report is generally prepared from a ________ report with additional information.
Correct Answer Feasibility
Your Answer Feasibility
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 formula for Break Even Point is :-
Correct Answer Fixed cost / ( Sales Price – Variables)
Your Answer (Profit after tax +Depreciation + Interest)/ Interest
Multiple Choice Single Answer
*Question-Receivables is categorised under :-
Correct Answer Current assets and liabilities
Your Answer Material inputs and utilities
Multiple Choice Multiple Answer
*Question-Ratios relating to working capital are :-
Correct Answer Current ratio , Internal measure , Quick ratio
Your Answer Current ratio , Debt Equity ratio , Internal measure
Select The Blank
*Question-Longer the duration of production cycle, higher the requirement of ________.
Correct Answer Working capital
Your Answer Fixed assets
Multiple Choice Multiple Answer
*Question-In the Detailed Project Report, Management aspects includes :-
Correct Answer Determination , Organisation Building , Person / system oriented
Your Answer Organisation Building , Person / system oriented , Promoter’s equity / stake
True/False
*Question-Financial analysis based on accounting ratios will give mis-leading results if the effects of changes in price level are not taken into account.
Correct Answer True
Your Answer True
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
Select The Blank
*Question-Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash
Your Answer Decrease in funds
Multiple Choice Multiple Answer
*Question-Building cost consists of :-
Correct Answer Factory building , Auxiliary buildings , Administrative block
Your Answer cost of development , Factory building , Auxiliary buildings
Match The Following
*Question-Correct Answer Your Answer
Increase in current liabilities Decreases working capital Stability of funds
Increase in liabilities Inflow of funds Inflow of funds
Decrease in liabilities Outflow of funds Increases working capital
Increase in current assets Increases working capital Outflow of funds
Select The Blank
*Question-Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities.
Correct Answer Fund
Your Answer Fund
True/False
*Question-Name of the finance manager comes under the Project organisation category of the Project report.
Correct Answer True
Your Answer False
True/False
*Question-Change in the project concept itself may lead to cost and time overrun.
Correct Answer True
Your Answer True
True/False
*Question-The maximum Seed Capital assistance provided by IDBI under the project will be restricted to 50% of the required promoter’s contribution or Rs. 50 lakhs whichever is lower.
Correct Answer False
Your Answer True
Match The Following
*Question-Correct Answer Your Answer
Project organisation Finance manager Completion date of the project
General category of Project report Location of factory Reasons for cost escalations
Cost aspect of the project report Consultancy fees Finance manager
Financing plan Unsecured loans Location of factory
True/False
*Question-Trend projection method is the important technique for forecasting demand.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
*Question-Production and sales aspect of Visit report consists of :-
Correct Answer Utilisation of installed capacity , Input availability , Sales trends
Your Answer Utilisation of installed capacity , Input availability
Multiple Choice Multiple Answer
*Question-The sources of cash are :-
Correct Answer Cash from operations , Sale of machinery , Issue of new shares
Your Answer Purchase of fixed assets , Cash from operations , Sale of machinery
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
True/False
*Question-Production line diagrams show the organisation structure of the project along with information on location, personnel required for various departments, and their inter-relationship.
Correct Answer False
Your Answer True
Select The Blank
*Question-________ is a current asset
Correct Answer Book debts
Your Answer Book debts
Select The Blank
*Question-The company having ________, is appropriate for the strategic posture of Defensive under the SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment
Your Answer High financial strength, high industrial strength, enjoying a competitive advantage and belonging to an attractive industry, operating in a relatively stable environmental conditions
Multiple Choice Single Answer
*Question-Management aspect of detailed project report includes
Correct Answer Organisation structure
Your Answer Demand forecasting
Select The Blank
*Question-________ profitability reduces the strain on working capital.
Correct Answer High
Your Answer High
Multiple Choice Multiple Answer
*Question-The following are the sources of funds :-
Correct Answer Operating Profit , Non operating Income
Your Answer Operating Profit , Operating Loss , Non operating Income
Multiple Choice Single Answer
*Question-The cash flow of all the years during the expected life of the project are discounted at a pre-determined cut off rate and :-
Correct Answer Net Present value is obtained
Your Answer Internal rate of return is obtained
Multiple Choice Multiple Answer
*Question-The objectives of the funds flow statement is as follows :-
Correct Answer To find out the uses of loans raised by the business , 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
Your Answer To find out the uses of loans raised by the business , 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
Multiple Choice Single Answer
*Question-Cost of materials include :-
Correct Answer Cost of components and consumable stores
Your Answer Cost of electricity
True/False
*Question-The Detailed Project report must indicate the gestation period of the project.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
*Question-Strategic Position and Action Evaluation Model :-
Correct Answer Is an approach to hammer out an appropriate strategic posture for a firm and its individual business
Your Answer Which is highly respected for the sophistication, maturity and quality in its planning systems
Select The Blank
*Question-Location of the factory comes under the ________ category of the Project report.
Correct Answer General
Your Answer General
Select The Blank
*Question-Retained earnings is a source of ________ finance.
Correct Answer Internal
Your Answer Internal
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
Select The Blank
*Question-Short term finance is normally for a period upto ________ year.
Correct Answer One
Your Answer Two
Multiple Choice Single Answer
*Question-Appointments made at senior level during the half-year is categorised under :-
Correct Answer Organisation and management
Your Answer Current assets and liabilities
Select The Blank
*Question-Commission outstanding is ________ of funds.
Correct Answer Application
Your Answer Application
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 Profit and Loss statement
Multiple Choice Single Answer
*Question-Cost of utilities include :-
Correct Answer Cost of electricity
Your Answer Cost of components and consumable stores
Multiple Choice Single Answer
*Question-Marketing aspect of Detailed Project report includes :-
Correct Answer Demand forecasting
Your Answer Detailed Project Engineering
True/False
*Question-In both the extreme situations of trade cycles i.e. Inflation and depression, requirement of working capital may be high.
Correct Answer True
Your Answer False
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 , Plant capacity , Availability of infrastructure
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