LIST OF ATTEMPTED QUESTIONS AND ANSWERS Match The Following Question Correct Answer Your Answer Project Financing Help improving Corporate Return on Equity Industrial Finance Corporation of India Finance in international financial markets Issue of Euro bonds Issue of Euro bonds International financial institutions World Bank Increasing emphasis on the Private initiative Policy of Liberalisation, Privatisation and Globalisation Increasing emphasis on the Private initiative Help improving Corporate Return on Equity 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 , Auditors report , Balance Sheet Multiple Choice Single Answer Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Management problems Select The Blank Question The Project Cycle should be in the ________ order Correct Answer Identification of Project - Project Appraisal - Negotiations for loans Your Answer Identification of Project - Project Appraisal - Negotiations for loans True/False Question Change in the project concept itself may lead to cost and time overrun. Correct Answer True Your Answer True Multiple Choice Single Answer Question The industrial concern earned profits by increasing the sales volume under the :Correct Answer Sales concept Your Answer Marketing concept 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 Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Initiative , Too ambitious promoters 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 , Chain ratio Relationship , Exponential Relationship 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 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 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 , Helps to prepare financial statements 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 Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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 , Social aspect
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 Multiple Choice Single Answer Question The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects Multiple Choice Multiple Answer Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Your Answer Technology , Layout of the plant , Design of the plant 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 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 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 Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash Your Answer Inflow of cash Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Select The Blank Question Details regarding Administrative / controlling office comes under the ________ category. Correct Answer General Your Answer Project organisation 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 , Quick ratio Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer Source Multiple Choice Single Answer Question Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Multiple Choice Single Answer Question In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate Your Answer Products which enjoy a high market share as well as a high growth rate Select The Blank Question ________ is a current liability. Correct Answer Trade credit Your Answer Unsecured loans Match The Following Question Correct Answer Your Answer Econometric method Mathematical representation of economic relationship Suitable for forecasting the demand for intermediate products
Primary source of data Market survey Market survey Secondary source of data Collected in some other context Collected in some other context Leading indicators Variables that change faster than others Mathematical representation of economic relationship Multiple Choice Multiple Answer Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Depreciation , Increase in secured borrowing True/False Question The construction of National Golden Quadrilateral can be recognised as Project. 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 Single Answer Question Capital Issue expenses include :Correct Answer Brokerage fees to registrars Your Answer Market research expenses Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology 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 A list of industries wherein the product is used is made and quantity and volume is arrived at Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Electrical engineers , Committees of the board Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :Correct Answer Working capital Your Answer Production, Sales and Profitability Multiple Choice Single Answer Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness Your Answer Business strength and Industrial Attractiveness 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 , Sales trends Multiple Choice Single Answer Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Your Answer Cost of repairs and maintenance 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 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 High financial strength, high industrial strength, enjoying a competitive advantage and belonging to an attractive industry, operating in a relatively stable environmental conditions True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 cost of Plant and Machinery includes :Correct Answer Cost of stores and spares Your Answer Building and civil construction 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
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The sources of long term and medium term finance are :Correct Answer Public deposit , Equity shares Your Answer
Equity shares , Bridge loan , Working capital loan
Multiple Choice Multiple Answer Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend Your Answer
Increase in working capital , Dividend , Preliminary expenses written off
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 Limited financial strength, enjoying competitive advantage, belonging to attractive industry and operating in a relatively volatile environment Select The Blank Question A market survey generally is a ________ survey. Correct Answer Sample Your Answer
Sample
Multiple Choice Single Answer Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Your Answer
Quick ratio
Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
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 Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer
Manufacturing process and technology
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 help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements 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 , Cash flow statement
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer
Increase
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
Technical appraisal
True/False Question
The Detailed Project report must indicate the gestation period of the project. Correct Answer True Your Answer
False
True/False Question
Interest and Dividend are to be considered while calculating Operating ratio. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
True/False Question
Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship. Correct Answer True Your Answer
True
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 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
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
Net Present value
Multiple Choice Multiple Answ er 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 , Political issues
Match The Following Question
Correct Answer
Your Answer
Private investment
Power generation
Nearness to market
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment Machine tools
Power generation
True/False Question
The advantage of secondary sources of data is that it is readily and economically available. 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
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 True/False
Strategic perspective , Time span , Finance cost aspect
Question
A project is unique and no two projects are similar.
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 Profit is the result of customer satisfaction, indeed customer delight under the :Correct Answer Marketing concept Your Answer
Marketing concept
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 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 ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer
Cash flow statement
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
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 smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________. Correct Answer Share Your Answer
Share
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 Average Business Strength and Medium Industry Attractiveness , Average Business strength and high Industry attractiveness , Average Business Strength and Low Industry attractiveness 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
True/False Question
The General Electric Company incorporated in the USA, is highly respected for the sophistication, maturity and quality in its planning systems. Correct Answer True Your Answer
False
Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer
Outflow of cash
Match The Following
Question
Correct Answer
Your Answer
Current ratio
Liquidity ratio
Current liability
Debt-Equity ratio
Solvency ratio
Debt
External liabilities
Debt
Relationship between Net Profit after taxes and total shareholders funds
Shareholders funds
Equity
Equity
True/False Question
There is a need for studying Project finance both for the lenders as well as the borrowers as both of them have equal stake in making the Project a success. 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 Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer
Balance Sheet
Multiple Choice Multiple Answer Question In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented Your Answer
Determination , Organisation Building , Person / system oriented
Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer
Source
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
Multiple Choice Single Answer Question In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share Your Answer
Products which have high growth potential but low market share
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
PROJECT FINANCE Multiple Choice Multiple Answer Question The objectives of the funds flow statement is as follows :Correct 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 Your Answer To find out the uses of loans raised by the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer Inflow of cash
Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance True/False Question The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer True Select The Blank Question As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Decreases Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Loss on sale of fixed assets
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 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
True/False Question In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True
Qnt. Project Manager General category of Project report Cost aspect of the project Financing plan
Correct Finance Manager Location of factory
Your Ans Finance Manager Location of factory
Consultancy fees Unsecured
Consultancy fees Unsecured
Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :Correct Answer Working capital Your Answer Production, Sales and Profitability
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
True/False Question Trend projection method is the important technique for forecasting demand. Correct Answer True Your Answer True
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 Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer Increase 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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer General
Your Answer General
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Internal accruals
Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution
True/False Question Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer True 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 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Strategic perspective
Multiple Choice Single Answer Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective Your Answer Social aspect True/False Question Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer True 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 Long term financing 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 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
Multiple Choice Single Answer
Question The norms for providing open areas have to be strictly followed for safety of labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit Your Answer Chemical unit
Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun
Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer Creditors Match The Following QuestionCorrect Answer Your Answer
Private investment Project Programme Foreign direct investment
Power generation Time-bound Not necessarily time bound Machine tools
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 Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative 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
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 Detailed Project Report is generally prepared from a ________ report with additional information. Correct Answer Feasibility Your Answer Feasibility Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun
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 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 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 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 Multiple Choice Single Answer Question The cost which change in the same proportion in which the level of production changes is known as :-
Correct Answer Variable cost Your Answer Variable cost 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 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 True/False Question In the BCG Matrix, the key term of Cash Cows require further commitment of funds. 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 Average Business Strength and Low Industry attractiveness 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 ________ tries to have what the customer will want- where, when, in what form and at what price. Correct Answer Marketing Your Answer Finance Multiple Choice Single Answer Question Financial aspect of Detailed Project report includes :-
Correct Answer Fixation of means of financial structure Your Answer Fixation of means of financial structure Multiple Choice Single Answer Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result Your Answer Specific result 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 Single Answer Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource allocation Your Answer Is a tool for strategic ( product ) planning and resource allocation 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 Select The Blank Question ________ capital represents permanent capital. Correct Answer Equity Your Answer Debentures 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 Relati onship
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 ________ in liabilities involves inflow of funds. Correct Answer Increase Your Answer Cash 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 Investment Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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 Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Management problems Multiple Choice Single Answer Question Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management 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 Delays in infrastructure Development by State Agencies may lead to :-
Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 cost of Plant and Machinery may be adjusted for a possible increase known as :Correct Answer Escalation Your Answer Inflation Multiple Choice Multiple Answer Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product Your Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product 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 As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Decreases 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 , Issue of new machinery 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 Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Shares , Debentures True/False Question Ratio analysis is a technique of planning and control. Correct Answer False Your Answer False True/False Question Miscellaneous expenditure is written on the asset side of the Balance sheet. Correct Answer True Your Answer False 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 Single Answer Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Your Answer Quick ratio Multiple Choice Single Answer Question The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects 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 Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method True/False Question Unlike financial projections, there cannot be any fixed, well-recognised or structure formula/steps for management evaluation/appraisal. Correct Answer True Your Answer True 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 False Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Trade credit True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer True Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Correct Answer Financing plan Your Answer Cost aspect Multiple Choice Multiple Answer Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Institutional nominees , Committees of the board True/False Question Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer False
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 Multiple Choice Multiple Answer Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income Your Answer Operating Profit , Dividends True/False Question Change in the project concept itself may lead to cost and time overrun. Correct Answer True Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money Your Answer Margin money Multiple Choice Multiple Answer Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block Your Answer Factory building , Auxiliary buildings , Administrative block Multiple Choice Single Answer Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potential Your Answer Products which have high market share but low growth potential 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 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 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 True True/False Question Name of the finance manager comes under the Project organisation category of the Project report. Correct Answer True Your Answer True 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 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 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 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 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 Select The Blank Question ________ profitability reduces the strain on working capital. Correct Answer High Your Answer Stable 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 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 Single Answer Question "Fly by night" operator mentality is a :Correct Answer Management quality Your Answer Management quality 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 As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Increases Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer Shareholders , Bankers , Financial Institutions 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 True/False Question A project is unique and no two projects are similar. Correct Answer True Your Answer True 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 , It does not help in determining future requirement of funds 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 Receivables is categorised under :Correct Answer Current assets and liabilities Your Answer Current assets and liabilities Multiple Choice Single Answer Question It is said that a second rate project in the hands of first rate management is better than a first rate project in the hands of :Correct Answer Second rate management Your Answer Second rate management 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 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 Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Profit maximisation 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 Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology
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 True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Shares , Debentures 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 True/False Question The construction of National Golden Quadrilateral can be recognised as Project. Correct Answer True Your Answer True 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 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 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 Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement Your Answer Quality standards , Raw material requirement , Power / telecom facilities 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 Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer True Multiple Choice Single Answer Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Your Answer Financial analysis Multiple Choice Single Answer Question Preoperative expenses includes :Correct Answer Bank guarantees Your Answer Bank guarantees Select The Blank Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle True/False Question If the organisation is a trading organisation, the requirement of working capital will be on the lower side. Correct Answer False Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question In the BCG Matrix, the key term of Cash Cows require further commitment of funds. 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 Average Business Strength and Low Industry attractiveness 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 ________ tries to have what the customer will want- where, when, in what form and at what price. Correct Answer Marketing Your Answer Finance Multiple Choice Single Answer Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure Your Answer Fixation of means of financial structure Multiple Choice Single Answer Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result Your Answer Specific result 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 Single Answer Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource allocation Your Answer Is a tool for strategic ( product ) planning and resource allocation
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 Select The Blank Question ________ capital represents permanent capital. Correct Answer Equity Your Answer Debentures Match The Following Question Correct Answer Your Answer Export market technique of Commercial appraisal Government provides ample encouragement Government provides ample encouragement Demand Technique forecasting of Commercial appraisal Future demand of the product Future demand of the product Past trend method of Commercial appraisal Adopted as a guide depending on the consumption pattern of the society as a whole Adopted as a guide depending on the consumption pattern of the society as a whole End use method of Commercial appraisal A list of industries wherein the product is used is made and quantity and volume is arrived at A list of industries wherein the product is used is made and quantity and volume is arrived at 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 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 ________ in liabilities involves inflow of funds. Correct Answer Increase
Your Answer Cash 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 Investment Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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 Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Management problems Multiple Choice Single Answer Question Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management 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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 Match The Following Question Correct Answer Your Answer Source of funds Depreciation Equity capital Fixed assets Building Building Current assets Debtors Investment Current liability Trade credit Debtors 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 Inflation Multiple Choice Multiple Answer Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product Your Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product 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 As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Decreases 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 , Issue of new machinery 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 Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Shares , Debentures True/False Question Ratio analysis is a technique of planning and control. Correct Answer False Your Answer False True/False Question Miscellaneous expenditure is written on the asset side of the Balance sheet. Correct Answer True Your Answer False 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 Single Answer Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Your Answer Quick ratio Multiple Choice Single Answer Question The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects 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 Time Series Projection Methods of Demand forecasting consists of :-
Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method True/False Question Unlike financial projections, there cannot be any fixed, well-recognised or structure formula/steps for management evaluation/appraisal. Correct Answer True Your Answer True 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 interrelationship. Correct Answer False Your Answer False Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Trade credit True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer True Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Correct Answer Financing plan Your Answer Cost aspect Multiple Choice Multiple Answer Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Institutional nominees , Committees of the board True/False Question Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer False 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 Multiple Choice Multiple Answer Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income Your Answer Operating Profit , Dividends True/False Question Change in the project concept itself may lead to cost and time overrun. Correct Answer True Your Answer True LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question 1 The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Your Answer True True/False Question2 In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True True/False Question3 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 Select The Blank Question 4 ________ is a current asset Correct Answer Book debts Your Answer Furniture Multiple Choice Multiple Answer Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Multiple Choice Single Answer Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Management problems Multiple Choice Single Answer Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering Your Answer Detailed Project Engineering Multiple Choice Multiple Answer Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing Multiple Choice Single Answer Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Select The Blank Question 10 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 Multiple Choice Single Answer Question11 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 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer Building cost Multiple Choice Multiple Answer Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Goodwill written off
Multiple Choice Multiple Answer Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented Your Answer Determination , Organisation Building , Person / system oriented Select The Blank Question15 Short term finance is normally for a period upto ________ year. Correct Answer One Your Answer One True/False Question16 Current assets includes stock-in-process. Correct Answer True Your Answer True Multiple Choice Single Answer Question17 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 Multiple Answer Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method Select The Blank Question 19 ________ is a current liability. Correct Answer Trade credit Your Answer Trade credit True/False Question20 Managerial problems in a project are the most pervasive. Correct Answer True Your Answer True Select The Blank Question21 Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question22 Retained earnings is a source of ________ finance. Correct Answer Internal
Your Answer Short term Select The Blank Question23 ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer Trial balance True/False Question24 In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Correct Answer False Your Answer True True/False Question25 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 Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Finance cost aspect Multiple Choice Multiple Answer Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Multiple Choice Single Answer Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate Your Answer Products which enjoy a high market share as well as a high growth rate Multiple Choice Single Answer Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy? Your Answer Why they buy? True/False Question30 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 False Multiple Choice Multiple Answer Question31 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 Question32 The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer Variable cost Select The Blank Question33 Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Decreases Multiple Choice Multiple Answer Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Debt Equity ratio , Quick ratio Multiple Choice Single Answer Question35 Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management Multiple Choice Single Answer Question36 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 Multiple Choice Multiple Answer Question37 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 , Sales trends Match The Following Question38 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 Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance Multiple Choice Multiple Answer Question 40 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 41 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 Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice Multiple Answer Question43 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 44 ________ 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 Marketing Multiple Choice Single Answer Question45 Infrastructural projects include :-
Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Select The Blank Question46 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer General Match The Following Question47 Correct Answer Your Answer Private investment Power generation Machine tools Project Time -bound Time -bound Programme Not necessarily time bound Not necessarily time bound Foreign direct investment Machine tools Power generation
Project Finance _15
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The objectives of the funds flow statement is as follows :Correct 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 Your Answer To find out the uses of loans raised by the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer
Inflow of cash
Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer
Project finance
True/False Question
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer
True
Select The Blank Question As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer
Decreases
Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off
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Project Finance _15 Your Answer
Funds from operation , Loss on sale of fixed assets
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 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
True/False Question
In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer
True
Match The Following Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project report
Location of factory
Location of factory
Cost aspect of the project Consultancy fees report
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer
Working capital
Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :-
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Project Finance _15 Correct Answer Working capital Your Answer
Production, Sales and Profitability
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
True/False Question
Trend projection method is the important technique for forecasting demand. Correct Answer True Your Answer
True
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
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer
Increase
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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
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Project Finance _15
Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer General Your Answer
General
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer
Power Generation and Distribution
True/False Question
Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer
True
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 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer
Strategic perspective
Multiple Choice Single Answer Question A project objective which states "What' is to be viewed" is termed as :-
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Project Finance _15 Correct Answer Strategic perspective Your Answer
Social aspect
True/False Question
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer
True
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
Long term financing
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 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 Multiple Choice Single Answer Question The norms for providing open areas have to be strictly followed for safety of labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit Your Answer
Chemical unit
Multiple Choice Single Answer Question Short supplies of materials may lead to :-
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Project Finance _15 Correct Answer Cost and time overrun Your Answer
Cost and time overrun
Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer
Creditors
Match The Following Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment Machine tools
Machine tools
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 Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer
Honesty , Financial resources , Initiative
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
True/False
-6 -
Project Finance _15 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 Detailed Project Report is generally prepared from a ________ report with additional information. Correct Answer Feasibility Your Answer
Feasibility
Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
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 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 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 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
-7 -
Project Finance _15 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
Multiple Choice Single Answer Question The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer
Variable cost
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 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
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Project Finance _16
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer
Source
Your Answer
Source
Multiple Choice Multiple Answer Question External sources of cash are as follows :Correct Answer Your Answer
Issue of new shares , Long term loans , Short term borrowings Long term loans , Short term borrowings , Issue of new shares
Multiple Choice Single Answer Question In BCG Matrix " CASH COWS" indicate :Correct Answer Your Answer
Products which have high market share but low growth potential Products which have high market share but low growth potential
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 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 True/False Question
Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship.
-1 -
Project Finance _16 Correct Answer
True
Your Answer
True
Multiple Choice Single Answer Question Preoperative expenses includes :Correct Answer
Bank guarantees
Your Answer
Bank guarantees
Select The Blank Question Retained earnings is a source of ________ finance. Correct Answer
Internal
Your Answer
Internal
Select The Blank Question ________ profitability reduces the strain on working capital. Correct Answer
High
Your Answer
High
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
True/False Question
Cost under-estimation at the project preparation and evaluation stage leads to cost and time over run. Correct Answer True Your Answer
False
Multiple Choice Single Answer Question Cost of laying roads comes under :Correct Answer Land and site cost Your Answer
Preoperative cost
-2 -
Project Finance _16 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
A project is unique and no two projects are similar.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money Your Answer
Margin money
Multiple Choice Multiple Answer Question General category of the Project report consists of :Correct Answer Your Answer
Name of the Industrial concern , Proposed product , Location of the factory Name of the Industrial concern , Proposed product , Location of the factory
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
Time span , Finance cost aspect , Strategic perspective
Multiple Choice Single Answer Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Your Answer
Cost of repairs and maintenance
Multiple Choice Single Answer Question Short supplies of materials may lead to :-
-3 -
Project Finance _16 Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
True/False Question Correct Answer
Unlike financial projections, there cannot be any fixed, well-recognised or structure formula/steps for management evaluation/appraisal. True
Your Answer
True
Multiple Choice Multiple Answer Question Management qualities includes :Correct Answer
Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Match The Following Question
Correct Answer
Your Answer
Preliminary and capital Brokerage and issue expenses commission
Foundation and erection charges
Land and site development cost
Cost of laying roads
Brokerage and commission
Building cost
Cost of factory building Cost of factory building
Plant and machinery cost
Foundation and erection charges
Cost of laying roads
Multiple Choice Single Answer Question The basic characteristic of a project is :Correct Answer Your Answer
That it involves current outlay of funds in expectation of future benefits That it involves current outlay of funds in expectation of future benefits
Select The Blank Question ________ capital represents permanent capital. Correct Answer
Equity
Your Answer
Equity
-4 -
Project Finance _16
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 entire life of the project is taken into account under Correct Answer Average rate of return method Your Answer
Pay back method
Select The Blank Question ________ in liabilities involves inflow of funds. Correct Answer
Increase
Your Answer
Increase
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 True/False Question
Relative Market share and Industry Growth rate
Correct Answer
A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners. True
Your Answer
True
Match The Following Question
Correct Answer
Project Financing
Help improving Corporate Return on Equity Finance in international Issue of Euro bonds financial markets
-5 -
Your Answer Help improving Corporate Return on Equity World Bank
Project Finance _16 International financial World Bank institutions
Issue of Euro bonds
Policy of Liberalisation, Increasing emphasis on Increasing emphasis on Privatisation and the Private initiative the Private initiative Globalisation True/False Question Correct Answer
Land and site development comes under the cost aspect of the Project report. True
Your Answer
True
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
Limited recourse financing
Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer
Bankers , Financial Institutions
True/False Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer Question Technical aspect of detailed project report includes :Correct Answer
Detailed Project Engineering
Your Answer
Detailed Project Engineering
True/False
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Project Finance _16 Question Correct Answer
Cost and time overrun of the project may lead to loss on account of lost market opportunities. True
Your Answer
True
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 True/False Question
Share
Correct Answer
There is a need for studying Project finance both for the lenders as well as the borrowers as both of them have equal stake in making the Project a success. True
Your Answer
True
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer
Increase
Your Answer
Increase
Multiple Choice Multiple Answer Question Production and sales aspect of Visit report consists of :Correct Answer Your Answer
Utilisation of installed capacity , Input availability , Sales trends Utilisation of installed capacity , Input availability , Sales trends
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
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Project Finance _16 Question
________ is a current asset
Correct Answer
Book debts
Your Answer
Book debts
Multiple Choice Multiple Answer Question Building cost consists of :Correct Answer Your Answer True/False Question
Factory building , Auxiliary buildings , Administrative block Factory building , Auxiliary buildings , Administrative block
Correct Answer
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. True
Your Answer
True
Multiple Choice Single Answer Question In the Cash flow statement, the sources of funds include Correct Answer
Share Issue
Your Answer
Share Issue
Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer
Cash Profits , Shares , Debentures
Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer
Inflow of cash
Your Answer
Inflow of cash
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Project Finance _17
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money Your Answer Margin money Multiple Choice Multiple Answer Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block Your Answer Factory building , Auxiliary buildings , Administrative block Multiple Choice Single Answer Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potential Your Answer Products which have high market share but low growth potential 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 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 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 True True/False Question Name of the finance manager comes under the Project organisation category of the Project report. Correct Answer True Your Answer True 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 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 Match The Following Question Correct Answer Your Answer Management problems Lack of exposure Lack of exposure Management Quality Initiative Initiative
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Project Finance _17
Management Perception Aspiration level/ conservative Aspiration level/ conservative Organisational Climate Person oriented Person oriented 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 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 Select The Blank Question ________ profitability reduces the strain on working capital. Correct Answer High Your Answer Stable 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 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 Single Answer Question "Fly by night" operator mentality is a :Correct Answer Management quality Your Answer Management quality 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 As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Increases Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer Shareholders , Bankers , Financial Institutions Multiple Choice Single Answer Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect
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Project Finance _17
Your Answer Finance cost aspect True/False Question A project is unique and no two projects are similar. Correct Answer True Your Answer True 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 , It does not help in determining future requirement of funds 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 Receivables is categorised under :Correct Answer Current assets and liabilities Your Answer Current assets and liabilities Multiple Choice Single Answer Question It is said that a second rate project in the hands of first rate management is better than a first rate project in the hands of :Correct Answer Second rate management Your Answer Second rate management 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 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 Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Profit maximisation 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 Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology
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Project Finance _17
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 True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Shares , Debentures 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 True/False Question The construction of National Golden Quadrilateral can be recognised as Project. Correct Answer True Your Answer True 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 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 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 Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Multiple Choice Multiple Answer
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Project Finance _17
Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement Your Answer Quality standards , Raw material requirement , Power / telecom facilities 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 Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer True Multiple Choice Single Answer Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Your Answer Financial analysis Multiple Choice Single Answer Question Preoperative expenses includes :Correct Answer Bank guarantees Your Answer Bank guarantees Select The Blank Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle True/False Question If the organisation is a trading organisation, the requirement of working capital will be on the lower side. Correct Answer False Your Answer True
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Project Finance _18
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The sources of long term and medium term finance are :Correct Answer Public deposit , Equity shares Your Answer
Equity shares , Bridge loan , Working capital loan
Multiple Choice Multiple Answer Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Dividend Your Answer
Increase in working capital , Dividend , Preliminary expenses written off
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 Limited financial strength, enjoying competitive advantage, belonging to attractive industry and operating in a relatively volatile environment Select The Blank Question A market survey generally is a ________ survey. Correct Answer Sample Your Answer
Sample
Multiple Choice Single Answer Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Your Answer
Quick ratio
Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
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Project Finance _18
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 Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer
Manufacturing process and technology
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 help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements 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 , Cash flow statement
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer
Increase
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
Technical appraisal
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Project Finance _18
True/False Question
The Detailed Project report must indicate the gestation period of the project. Correct Answer True Your Answer
False
True/False Question
Interest and Dividend are to be considered while calculating Operating ratio. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
True/False Question
Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship. Correct Answer True Your Answer
True
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 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
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
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Project Finance _18 project is known as :Correct Answer Internal rate of return Your Answer
Net Present value
Multiple Choice Multiple Answ er 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 , Political issues
Match The Following Question
Correct Answer
Your Answer
Private investment
Power generation
Nearness to market
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment Machine tools
Power generation
True/False Question
The advantage of secondary sources of data is that it is readily and economically available. 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
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
True/False
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Project Finance _18 Question
A project is unique and no two projects are similar.
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 Profit is the result of customer satisfaction, indeed customer delight under the :Correct Answer Marketing concept Your Answer
Marketing concept
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 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 ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer
Cash flow statement
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
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Project Finance _18
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 smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________. Correct Answer Share Your Answer
Share
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 Average Business Strength and Medium Industry Attractiveness , Average Business strength and high Industry attractiveness , Average Business Strength and Low Industry attractiveness 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
True/False Question
The General Electric Company incorporated in the USA, is highly respected for the sophistication, maturity and quality in its planning systems. Correct Answer True Your Answer
False
Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer
Outflow of cash
Match The Following
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Project Finance _18 Question
Correct Answer
Your Answer
Current ratio
Liquidity ratio
Current liability
Debt-Equity ratio
Solvency ratio
Debt
External liabilities
Debt
Relationship between Net Profit after taxes and total shareholders funds
Shareholders funds
Equity
Equity
True/False Question
There is a need for studying Project finance both for the lenders as well as the borrowers as both of them have equal stake in making the Project a success. 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 Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer
Balance Sheet
Multiple Choice Multiple Answer Question In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented Your Answer
Determination , Organisation Building , Person / system oriented
Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer
Source
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Project Finance _18
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
Multiple Choice Single Answer Question In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share Your Answer
Products which have high growth potential but low market share
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
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Project Finance _19 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
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Project Finance _19
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
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Project Finance _19 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
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Project Finance _19 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
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Project Finance _19 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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Project Finance _20 LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Land and site development comes under the cost aspect of the Project report. Correct Answer True Your Answer True Multiple Choice Single Answer Question Location of the factory comes under the :Correct Answer General category Your Answer General category 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 a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising 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 deals with the impact of the investment project on people and their lives Pre-feasibility study It is a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of varied skills and resources Multiple Choice Single Answer Question The sources of funding have expanded from banks, insurance companies and multilateral agencies to include the :Correct Answer Capital market Your Answer Debt market Multiple Choice Single Answer Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Your Answer Cost of electricity True/False Question The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer True 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 True/False
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Project Finance _20 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 Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer Application Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Management problems 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 , Invest True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 , Auditors report , Balance Sheet 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 , Chain ratio Relationship , Exponential Relationship Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Profit maximisation 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 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 consider non-fund transactions , It does not help in determining future requirement of funds , It does not provide any new information but only rearranges the various facts Select The Blank
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Project Finance _20 Question As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Increases Multiple Choice Single Answer Question Preoperative expenses includes :Correct Answer Bank guarantees Your Answer Brokerage on capital issue Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 Limited recourse financing True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer True Multiple Choice Single Answer Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Your Answer Current ratio Multiple Choice Multiple Answer Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Electrical engineers , Institutional nominees Multiple Choice Single Answer Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness Your Answer Relative Market share and Industry Growth rate Multiple Choice Single Answer Question The basic document for facilitating Project financing is the :Correct Answer Detailed Project report Your Answer Detailed Project report 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 True/False
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Project Finance _20 Question Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product Your Answer Future demand of the product , Export market , Future availability and supply of the product Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology 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 , Moving Averages method 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 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 Match The Following Question Correct Answer Your Answer General functional layout Present the general relationship between equipment buildings and civil works The plan of work concerning installation as well as initial operation Location Broad area such as city, industrial belt etc. The diagrams indicating the flow of materials, utilities, final product, by-products and emission Site Specific piece of land where the project would be set up Broad area such as city, industrial belt etc. Plant layout Physical layout of the factory Specific piece of land where the project would be set up True/False Question If the organisation is a trading organisation, the requirement of working capital will be on the lower side. Correct Answer False Your Answer True Select The Blank
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Project Finance _20 Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Your Answer Building cost 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 , Preliminary expenses written off 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 , Preliminary expenses Multiple Choice Single Answer Question The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects 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 Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer Creditors Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer Shareholders , Bankers , Creditors Multiple Choice Single Answer Question Dissentions among the promoters is a :Correct Answer Management problem Your Answer Management perception Select The Blank Question Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Does not result True/False Question The secondary data is collected through market survey, specific for the project being appraised. Correct Answer False Your Answer False
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Project Finance _20 Multiple Choice Single Answer Question Profit is the result of customer satisfaction, indeed customer delight under the :Correct Answer Marketing concept Your Answer Marketing concept Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Goodwill written off , Funds from long term loans
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Project Finance _21 LIST OF ATTEMPTED QUESTIONS 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
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Project Finance _21 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
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Project Finance _21 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
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Project Finance _21 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
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Project Finance _21
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
-5-
LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question
For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer
True
Multiple Choice Multiple Answer Question The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit Your Answer
Working capital loan , Equity shares
Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer
Power Generation and Distribution
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 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer
Land and site cost
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 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 method based on the assumption that the behavior of the variables would continue in similar/same direction and magnitude, as in the past Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer
Equity financing
True/False Question
There is a need for studying Project finance both for the lenders as well as the borrowers as both of them have equal stake in making the Project a success. Correct Answer True Your Answer
True
Select The Blank Question Details regarding Bridge finance comes under the ________ category of Project report. Correct Answer Financing plan Your Answer
Cost aspect
Multiple Choice Single Answer Question Cost of utilities include :Correct Answer Cost of electricity Your Answer
Cost of insurance
Select The Blank Question A market survey generally is a ________ survey. Correct Answer Sample Your Answer
Census
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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
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
Select The Blank Question ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer
Fund flow statement
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 , Finance cost aspect
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 is for an indefinite period of time 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
Multiple Choice Multiple Answer
Question
Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer
Consumption-level method , Econometric method
Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer
Profit maximisation
True/False Question
Debt Equity ratio is a 'Solvency ratio'.
Correct Answer True Your Answer
True
Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer
Size of the plant
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer
Increase
Multiple Choice Multiple Answer Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution Your Answer
Cost / Time overruns , Promotion
Match The Following Question Increase in current liabilities
Correct Answer
Your Answer
Decreases working capital Decreases working capital
Increase in liabilities
Inflow of funds
Cash flow analysis
Decrease in liabilities
Outflow of funds
Increases working capital
Increase in current assets Increases working capital Outflow of funds
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
Limited recourse financing
Select The Blank Question Short term finance is normally for a period upto ________ year. Correct Answer One Your Answer
One
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
Selling
True/False Question
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer
True
Select The Blank Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer
Application
Multiple Choice Single Answer Question Profit is the result of customer satisfaction, indeed customer
delight under the :Correct Answer Marketing concept Your Answer
Profitability concept
True/False Question
The secondary data is collected through market survey, specific for the project being appraised. Correct Answer False Your Answer
False
Multiple Choice Single Answer Question The method for evaluating the profitability of industrial projects whose object is to ascertain the period required for recovering the entire investment made in a project is known as :Correct Answer Pay back method Your Answer
Pay back method
Multiple Choice Single Answer Question Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering Your Answer
Fixation of means of financial structure
Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer
Project finance
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 True/False Question
Trend projection method is the important technique for forecasting demand. Correct Answer True
Your Answer
True
Match The Following Question
Correct Answer
Your Answer
Organisation and Management
Strikes/lay-offs/lockouts etc.
Sanctioned bank limit
Material inputs and utilities Stock of raw material
Stock of raw material
Working capital
Sanctioned bank limit
Finished goods
Marketing
Pricing policy
Receivables
True/False Question
Cost under-estimation at the project preparation and evaluation stage leads to cost and time over run. Correct Answer True Your Answer
True
True/False Question
In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer
True
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 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)
Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :-
Correct Answer Working capital Your Answer
Production, Sales and Profitability
Select The Blank Question Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer
Does not result
Multiple Choice Single Answer Question The assets held by a business which can be converted in the form of cash or used during the course of normal operations is termed as :Correct Answer Current assets Your Answer
Current assets
True/False Question
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer
True
Project Finance _2
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer
Sales rise
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 Multiple Answer Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks Your Answer
Stars , Question marks
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 , Auditors report
Match The Following Question
Correct Answer
Your Answer
Technical aspect of detailed project report
Detailed Project Engineering
Transport
Financial aspect of Detailed Project report
Profitability
Detailed Project Engineering
Marketing aspect of Detailed Project report
Distribution
Conservativeness
Management aspect of detailed project report
Conservativeness
Distribution
True/False Question
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity.
-1 -
Project Finance _2 Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Your Answer
Demand forecasting
True/False Question
In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Correct Answer False 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
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 a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising
Program
It is large in scope, is It deals with the impact of activity oriented and is not the investment project on necessarily time bound people and their lives
Project
It is one-shot, time-limited, It involves the allocation of goal oriented, major resources among undertaking requiring the competing projects commitment of varied skills and resources
Pre-feasibility study
It is a preliminary It is large in scope, is assessment of the project activity oriented and is not idea to determine whether necessarily time bound or not the investment opportunity is promising
-2 -
Project Finance _2
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
Land and site development comes under the cost aspect of the Project report. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question It is said that a second rate project in the hands of first rate management is better than a first rate project in the hands of :Correct Answer Second rate management Your Answer
Second rate management
Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer General Your Answer
Cost aspect
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 The Project Cycle should be in the ________ order Correct Answer Identification of Project - Project Appraisal - Negotiations for loans Your Answer Procurement of Goods/services - Project Appraisal - Monitoring of operations on completion Multiple Choice Single Answer Question Cost of materials include :-
-3 -
Project Finance _2 Correct Answer Cost of components and consumable stores Your Answer
Cost of components and consumable stores
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer
Share capital , Term loans
True/False Question
The Detailed Project report must indicate the gestation period of the project. Correct Answer True Your Answer
True
Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer
Size of the plant
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
Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer
No flow
Select The Blank Question ________ is that scarce input which financial resources alone cannot mobilise. Correct Answer Management Your Answer
Sales
-4 -
Project Finance _2
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 Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer
Short term
Multiple Choice Single Answer Question In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share Your Answer
Products which enjoy a high market share as well as a high growth rate
Select The Blank Question ________ capital represents permanent capital. Correct Answer Equity Your Answer
Equity
Multiple Choice Single Answer Question Demographic market appraisal answers to Correct Answer Who they are? Your Answer
When they buy?
Select The Blank Question ________ is a current liability. Correct Answer Trade credit Your Answer True/False Question
Trade credit
The construction of National Golden Quadrilateral can be recognised as Project.
-5 -
Project Finance _2 Correct Answer True Your Answer
True
Select The Blank Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Your Answer
Building cost
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 The norms for providing open areas have to be strictly followed for safety of labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit Your Answer
Chemical unit
True/False Question
Name of the finance manager comes under the Project organisation category of the Project report. Correct Answer True Your Answer
True
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 Miscellaneous fixed assets includes :Correct Answer Cables Your Answer
Plant and machinery
-6 -
Project Finance _2
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 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 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing Multiple Choice Multiple Answer Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Your Answer
Technology , Layout of the plant , Production costs
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
Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer
Book debts
Multiple Choice Single Answer Question The second phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
-7 -
Project Finance _2 Correct Answer Problems faced during the Construction and Project implementation Your Answer Problems faced during the Construction and Project implementation 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 , Dividends
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 Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer
Cash Profits , Shares
-8 -
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer
Sales rise
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 Multiple Answer Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks Your Answer
Stars , Question marks
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 , Auditors report
Match The Following Question
Correct Answer
Your Answer
Technical aspect of detailed project report
Detailed Project Engineering
Transport
Financial aspect of Detailed Project report
Profitability
Detailed Project Engineering
Marketing aspect of Detailed Project report
Distribution
Conservativeness
Management aspect of detailed project report
Conservativeness
Distribution
True/False Question
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity.
Correct Answer True Your Answer
True
Multiple Choice Single Answer Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Your Answer
Demand forecasting
True/False Question
In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Correct Answer False 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
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 a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising
Program
It is large in scope, is It deals with the impact of activity oriented and is not the investment project on necessarily time bound people and their lives
Project
It is one-shot, time-limited, It involves the allocation of goal oriented, major resources among undertaking requiring the competing projects commitment of varied skills and resources
Pre-feasibility study
It is a preliminary It is large in scope, is assessment of the project activity oriented and is not idea to determine whether necessarily time bound or not the investment opportunity is promising
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
Land and site development comes under the cost aspect of the Project report. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question It is said that a second rate project in the hands of first rate management is better than a first rate project in the hands of :Correct Answer Second rate management Your Answer
Second rate management
Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer General Your Answer
Cost aspect
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 The Project Cycle should be in the ________ order Correct Answer Identification of Project - Project Appraisal - Negotiations for loans Your Answer Procurement of Goods/services - Project Appraisal - Monitoring of operations on completion Multiple Choice Single Answer Question Cost of materials include :-
Correct Answer Cost of components and consumable stores Your Answer
Cost of components and consumable stores
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer
Share capital , Term loans
True/False Question
The Detailed Project report must indicate the gestation period of the project. Correct Answer True Your Answer
True
Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer
Size of the plant
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
Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer
No flow
Select The Blank Question ________ is that scarce input which financial resources alone cannot mobilise. Correct Answer Management Your Answer
Sales
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 Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer
Short term
Multiple Choice Single Answer Question In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share Your Answer
Products which enjoy a high market share as well as a high growth rate
Select The Blank Question ________ capital represents permanent capital. Correct Answer Equity Your Answer
Equity
Multiple Choice Single Answer Question Demographic market appraisal answers to Correct Answer Who they are? Your Answer
When they buy?
Select The Blank Question ________ is a current liability. Correct Answer Trade credit Your Answer True/False Question
Trade credit
The construction of National Golden Quadrilateral can be recognised as Project.
Correct Answer True Your Answer
True
Select The Blank Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Your Answer
Building cost
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 The norms for providing open areas have to be strictly followed for safety of labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit Your Answer
Chemical unit
True/False Question
Name of the finance manager comes under the Project organisation category of the Project report. Correct Answer True Your Answer
True
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 Miscellaneous fixed assets includes :Correct Answer Cables Your Answer
Plant and machinery
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 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 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing Multiple Choice Multiple Answer Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Your Answer
Technology , Layout of the plant , Production costs
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
Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer
Book debts
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 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 , Dividends
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 Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer
Cash Profits , Shares
Multiple Choice Multiple Answer Question The objectives of the funds flow statement is as follows :Correct 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 Your Answer To find out the uses of loans raised by the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer
Inflow of cash
Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer
Project finance
True/False Question
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer
True
Select The Blank Question As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer
Decreases
Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer
Funds from operation , Loss on sale of fixed assets
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 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
True/False Question
In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer
True
Match The Following Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project report
Location of factory
Location of factory
Cost aspect of the project report
Consultancy fees
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer
Working capital
Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :Correct Answer Working capital Your Answer Select The Blank
Production, Sales and Profitability
Question
Cost of fencing comes under the ________ category of the Project report.
Correct Answer Land and site development Your Answer
Land and site development
True/False Question
Trend projection method is the important technique for forecasting demand. Correct Answer True Your Answer
True
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
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer
Increase
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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer General Your Answer
General
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer
Power Generation and Distribution
True/False Question
Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer
True
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 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer
Strategic perspective
Multiple Choice Single Answer Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective Your Answer True/False Question
Social aspect
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True
Your Answer
True
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
Long term financing
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 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 Multiple Choice Single Answer Question The norms for providing open areas have to be strictly followed for safety of labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit Your Answer
Chemical unit
Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer
Creditors
Match The Following Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment
Machine tools
Machine tools
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 Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer
Honesty , Financial resources , Initiative
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
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 Detailed Project Report is generally prepared from a ________ report with additional information. Correct Answer Feasibility Your Answer
Feasibility
Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
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 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 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 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
Multiple Choice Single Answer Question The cost which change in the same proportion in which the level of production changes is known as :-
Correct Answer Variable cost Your Answer
Variable cost
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
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
LIST OF ATTEMPTED QUESTIONS AND ANSWERS LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question 1 The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Your Answer True True/False Question2 In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True True/False Question3 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 Select The Blank Question 4 ________ is a current asset Correct Answer Book debts Your Answer Furniture Multiple Choice Multiple Answer Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Multiple Choice Single Answer Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Management problems
Multiple Choice Single Answer Question 7 Technical aspect of detailed project report includes : Correct Answer Detailed Project Engineering Your Answer Detailed Project Engineering Multiple Choice Multiple Answer Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing Multiple Choice Single Answer Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Select The Blank Question 10 A smaller unit into which the overall requirement of capital of a company is subdivided is termed as ________. Correct Answer Share Your Answer Share Multiple Choice Single Answer Question11 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 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer Building cost Multiple Choice Multiple Answer Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Goodwill written off Multiple Choice Multiple Answer Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented Your Answer Determination , Organisation Building , Person / system oriented Select The Blank Question15 Short term finance is normally for a period upto ________ year. Correct Answer One Your Answer One True/False Question16 Current assets includes stock-in-process. Correct Answer True Your Answer True Multiple Choice Single Answer Question17 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 Multiple Answer Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method Select The Blank Question 19 ________ is a current liability. Correct Answer Trade credit Your Answer Trade credit True/False Question20 Managerial problems in a project are the most pervasive. Correct Answer True Your Answer True Select The Blank Question21 Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question22 Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Short term Select The Blank Question23 ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer Trial balance True/False Question24 In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Correct Answer False Your Answer True True/False Question25 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 Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Finance cost aspect Multiple Choice Multiple Answer Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Multiple Choice Single Answer Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate
Your Answer Products which enjoy a high market share as well as a high growth rate Multiple Choice Single Answer Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy? Your Answer Why they buy? True/False Question30 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 False Multiple Choice Multiple Answer Question31 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 Question32 The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer Variable cost Select The Blank Question33 Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Decreases Multiple Choice Multiple Answer Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Debt Equity ratio , Quick ratio Multiple Choice Single Answer Question35 Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management Multiple Choice Single Answer Question36 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 Multiple Choice Multiple Answer Question37 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 , Sales trends Match The Following Question38 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 Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance Multiple Choice Multiple Answer Question 40 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 41 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 Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice Multiple Answer Question43 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 44 ________ 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 Marketing Multiple Choice Single Answer Question45 Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Select The Blank Question46 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer General Match The Following Question47 Correct Answer Your Answer Private investment Power generation Machine tools
Project Time -bound Time -bound Programme Not necessarily time bound Not necessarily time bound Foreign direct investment Machine tools Power generation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Match The Following Question
Correct Answer
Your Answer
Econometric method
Mathematical representation of economic relationship
Mathematical representation of economic relationship
Primary source of data
Market survey
Market survey
Secondary source of data Collected in some other context
Collected in some other context
Leading indicators
Variables that change faster than others
Variables that change faster than others
Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Correct Answer Financing plan Your Answer
Financing plan
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 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 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
Limited recourse financing
Select The Blank Question ________ is a current liability. Correct Answer Trade credit Your Answer
Trade credit
Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer
Book debts
Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer
Bankers , Creditors , Financial Institutions
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
Multiple Choice Single Answer Question Cost of laying roads comes under :Correct Answer Land and site cost Your Answer
Preoperative cost
Multiple Choice Single Answer Question Pre-operative expenses include :Correct Answer Interest on deferred payments Your Answer True/False
Market research expenses
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 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 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
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer
True
Multiple Choice Single Answer Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness Your Answer
Company's competitive advantage and Company's financial strength
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 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 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 Detailed Project Report is generally prepared from a ________ report with additional information. Correct Answer Feasibility Your Answer
Feasibility
Select The Blank Question Under ________ method, the forecasts are modified in the light of observed errors. Correct Answer Exponential smoothing Your Answer
Cobb Douglas Relationship
Match The Following Question
Correct Answer
Your Answer
Source of funds
Depreciation
Investment
Fixed assets
Building
Building
Current assets
Debtors
Debtors
Current liability
Trade credit
Trade credit
True/False Question
The Detailed Project report must indicate the gestation period of the project. Correct Answer True Your Answer
True/False
True
Question
Delay in recruitment of staff may lead to cost and time overrun
Correct Answer True Your Answer
True
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
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 method for evaluating the profitability of industrial projects whose object is to ascertain the period required for recovering the entire investment made in a project is known as :Correct Answer Pay back method Your Answer
Pay back method
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer
Increase
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 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 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
Quick ratio
Multiple Choice Single Answer Question The sources of funding have expanded from banks, insurance companies and multilateral agencies to include the :Correct Answer Capital market Your Answer
Capital market
True/False Question
Sensitivity analysis consists of assessing the degree of risk.
Correct Answer True Your Answer
True
Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer
Cash Profits , Shares
Multiple Choice Single Answer Question Sources of funds include :Correct Answer Increase in secured borrowing Your Answer
Increase in secured borrowing
True/False Question
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. 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 Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer
Share capital , Term loans , Internal accruals
True/False Question
Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship. 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 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Chain ratio Relationship , Exponential Relationship Multiple Choice Multiple Answer Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Your Answer
Technology , Layout of the plant , Design of the plant
Multiple Choice Single Answer Question Demographic market appraisal answers to Correct Answer Who they are?
Your Answer
Where do the customers live?
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 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 , Social aspect
Multiple Choice Multiple Answer Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer
Trend Projection method , Consumption-level method , Moving Averages method
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
Multiple Choice Multiple Answer Question The objectives of the funds flow statement is as follows :Correct 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 Your Answer To find out the uses of loans raised by the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer
Inflow of cash
Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer
Project finance
True/False Question
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer
True
Select The Blank Question As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer
Decreases
Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Loss on sale of fixed assets 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 Multiple Choice Multiple Answer Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans Your Answer True/False Question
Purchase of fixed assets , Payment of long term loans
In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs
and high selling cost. Correct Answer True Your Answer
True
Match The Following Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project report
Location of factory
Location of factory
Cost aspect of the project Consultancy fees report
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer
Working capital
Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :Correct Answer Working capital Your Answer
Production, Sales and Profitability
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
True/False Question
Trend projection method is the important technique for forecasting demand. Correct Answer True Your Answer
True/False
True
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
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer
Increase
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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer General Your Answer
General
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution
Your Answer
Power Generation and Distribution
True/False Question
Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer
True
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 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer
Strategic perspective
Multiple Choice Single Answer Question A project objective which states "What' is to be viewed" is termed as :Correct Answer Strategic perspective Your Answer
Social aspect
True/False Question
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer
True
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
Long term financing
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 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 Multiple Choice Single Answer Question The norms for providing open areas have to be strictly followed for safety of labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit Your Answer
Chemical unit
Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer
Cost and time overrun
Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer
Creditors
Match The Following Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment Machine tools
Machine tools
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 Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer
Honesty , Financial resources , Initiative
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
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 Detailed Project Report is generally prepared from a ________ report with additional information. Correct Answer Feasibility Your Answer
Feasibility
Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer True/False
Cost and time overrun
Question
Miscellaneous expenditure is written on the asset side of the Balance sheet. Correct Answer True Your Answer
True
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 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 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
Multiple Choice Single Answer Question The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer
Variable cost
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
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
Topic industrial policy after independence project investment decisions and resource identification foreign direct investment location of project environmental aspects - a matter of public interest object of environmental clearance project objective project financing - a strategic prespective and models BCG product portfolio matrix seynive tiles SPACE relative market share STARS QUESTION MARKS CASH COWS DOGS GE's stop light matrix business strength industry attractiveness the SPACE model dimesion and factor evaluated company's competitive advantage company's financial strength industry strength environmental stability SPACE modus operandi SPACE chart THE OUTCOME strategic posture postures
Pg Number 1 2 2 2 3 3 4 4 7 7 7 7 8 8 8 8 8 9 10 10 10 11 11 11 11 11 11 13 13 13
aggressive posture competetive posture conservative posture defensive posture SPACE CHART generic strategies and key options project finance what / why is the need for project financing project project cycle types of project new projects expansion project diversification project backward integration projects forward integration projects modernisation projects rehabiliation projects short term finance long term finance bridge loan seed money seed capital technical appraisal phase I , II , III process / production technology project engineering competitiveness indicators manufacturing process / technology technical arrangements size of the plant product mix selection of the plant and machinery procurement of plant and machinery plant layout appraisal - financial capital cost of the project sources of funds financial projections ratio analysis break even point cost of the project land and site development buildings and civil construction / works plant and machinery technical know-how and related feeds / charges expenses on foregin technicians misc fixed assets
14 14 14 14 15 15 17 19 21 23 25 25 25 25 25 25 25 25 26 26 26 27 27 29 29 30 30 30 31 31 32 32 32 32 33 35 35 36 36 36 36 36 37 37 38 38 38 38
preliminary expenses capital issue expenses pre-operative expenses provision of contingencies margin money for working capital initial cash loses sources of funds sales / production forecast cost of production discounted cash flow techniques pay back method average rate of return method time value of money - discounting technique net present value method internal rate of return information required for calculation of net present value and IRR life of the project cash outflow cash inflow residual or terminal value of the project cost of the capital cost of convertibe debentures cost of working capital break even point analysis fixed costs variable cost BEP significance / utility of BEP for financial appraisal projected cash flow sources of funds deployment of funds cash flows cash inflow projected balance sheets liablities assets financial indicators debt serice coverage ratio interest cover ratio appraisal - commercial demand technique forecasting past trend method end use method export market supply depth of competition marketing aspects appraisal market market appraisal
39 39 39 40 40 40 40 45 46 47 47 50 50 50 51 51 51 52 52 52 52 53 53 53 54 54 54 55 55 56 56 57 58 58 58 58 59 59 59 61 61 61 61 61 62 62 66 66
demand analysis qualitative methods time series projection methods casual methods quantitative methods jury or executive opninion method delphi method time series projection methods trend projection method exponential smoothing method casual methods chain ratio method consumption level method end use method appraisal management management perception management qualities organisational climate organisational structure form management problems appraisal environmental working capital requirement / fianancing working capital margin money for working capital ratio analysis net working capital to total assets current ratio quick (acid test) ratio internal measure projected working results profitablity projections or estimates of working results project implementation financing plan comments project organization project scheduling additional comments capital expenditure and financing production sales and profitability current assets and liabilities material inputs and utilities working capital commercial bank borrowing organization and management visit report production and sales financial and economic financial projections key steps in market and demand analysis and their relationships
67 67 68 68 68 68 68 69 69 69 69 69 69 69 73 74 74 74 74 74 77 79 79 80 82 82 82 82 82 84 84 87 92 92 92 93 93 94 94 95 95 95 95 96 98 99 100 101
project report norms of regulatory authority and Fis key business considerations detailed project report financial aspects marketing aspects management aspects technical aspects government policies infrastructure social cost benefit sensitivity analysis vegprotein LTS basic assumptions underlying financial projections depreciation schedule
103 103 104 106 106 106 106 106 106 107 107 107 109 111 112
LIST OF ATTEMPTED QUESTIONS AND ANSWERS LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question 1 The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Your Answer True True/False Question2 In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True True/False Question3 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 Select The Blank Question 4 ________ is a current asset Correct Answer Book debts Your Answer Furniture Multiple Choice Multiple Answer Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship
Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Multiple Choice Single Answer Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Management problems Multiple Choice Single Answer Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering Your Answer Detailed Project Engineering Multiple Choice Multiple Answer Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing Multiple Choice Single Answer Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Select The Blank Question 10 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 Multiple Choice Single Answer Question11 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 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer Building cost Multiple Choice Multiple Answer Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer Funds from operation , Goodwill written off Multiple Choice Multiple Answer Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented Your Answer Determination , Organisation Building , Person / system oriented Select The Blank Question15 Short term finance is normally for a period upto ________ year. Correct Answer One Your Answer One True/False Question16 Current assets includes stock-in-process. Correct Answer True Your Answer True Multiple Choice Single Answer Question17 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 Multiple Answer Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method Select The Blank Question 19 ________ is a current liability. Correct Answer Trade credit Your Answer Trade credit True/False Question20 Managerial problems in a project are the most pervasive. Correct Answer True Your Answer True Select The Blank Question21 Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank
Question22 Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Short term Select The Blank Question23 ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer Trial balance True/False Question24 In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Correct Answer False Your Answer True True/False Question25 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 Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Finance cost aspect Multiple Choice Multiple Answer Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Multiple Choice Single Answer Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate Your Answer Products which enjoy a high market share as well as a high growth rate Multiple Choice Single Answer Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy? Your Answer Why they buy? True/False
Question30 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 False Multiple Choice Multiple Answer Question31 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 Question32 The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer Variable cost Select The Blank Question33 Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Decreases Multiple Choice Multiple Answer Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Debt Equity ratio , Quick ratio Multiple Choice Single Answer Question35 Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management Multiple Choice Single Answer Question36 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 Multiple Choice Multiple Answer Question37 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 , Sales trends
Match The Following Question38 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 Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance Multiple Choice Multiple Answer Question 40 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 41 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 Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice Multiple Answer Question43 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 44 ________ 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 Marketing
Multiple Choice Single Answer Question45 Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Select The Blank Question46 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer General Match The Following Question47 Correct Answer Your Answer Private investment Power generation Machine tools Project Time -bound Time -bound Programme Not necessarily time bound Not necessarily time bound Foreign direct investment Machine tools Power generation LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question In the BCG Matrix, the key term of Cash Cows require further commitment of funds. 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 Average Business Strength and Low Industry attractiveness 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 ________ tries to have what the customer will want- where, when, in what form and at what price. Correct Answer Marketing Your Answer Finance Multiple Choice Single Answer Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure Your Answer Fixation of means of financial structure Multiple Choice Single Answer Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result Your Answer Specific result 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 Single Answer Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource allocation Your Answer Is a tool for strategic ( product ) planning and resource allocation 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 Select The Blank Question ________ capital represents permanent capital. Correct Answer Equity Your Answer Debentures Match The Following Question Correct Answer Your Answer Export market technique of Commercial appraisal Government provides ample encouragement Government provides ample encouragement Demand Technique forecasting of Commercial appraisal Future demand of the product Future demand of the product
Past trend method of Commercial appraisal Adopted as a guide depending on the consumption pattern of the society as a whole Adopted as a guide depending on the consumption pattern of the society as a whole End use method of Commercial appraisal A list of industries wherein the product is used is made and quantity and volume is arrived at A list of industries wherein the product is used is made and quantity and volume is arrived at 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 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 ________ in liabilities involves inflow of funds. Correct Answer Increase Your Answer Cash 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 Investment Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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
Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Management problems Multiple Choice Single Answer Question Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management 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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 Match The Following Question Correct Answer Your Answer Source of funds Depreciation Equity capital Fixed assets Building Building Current assets Debtors Investment Current liability Trade credit Debtors 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 Inflation
Multiple Choice Multiple Answer Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product Your Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product 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 As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Decreases 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 , Issue of new machinery 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 Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Shares , Debentures True/False Question Ratio analysis is a technique of planning and control. Correct Answer False Your Answer False True/False Question Miscellaneous expenditure is written on the asset side of the Balance sheet.
Correct Answer True Your Answer False 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 Single Answer Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Your Answer Quick ratio Multiple Choice Single Answer Question The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects 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 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method True/False Question Unlike financial projections, there cannot be any fixed, well-recognised or structure formula/steps for management evaluation/appraisal. Correct Answer True Your Answer True 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 False
Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Trade credit True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer True Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Correct Answer Financing plan Your Answer Cost aspect Multiple Choice Multiple Answer Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Institutional nominees , Committees of the board True/False Question Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer False 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 Multiple Choice Multiple Answer Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income Your Answer Operating Profit , Dividends True/False Question Change in the project concept itself may lead to cost and time overrun. Correct Answer True Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question 1 The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Your Answer True True/False Question2 In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True True/False Question3 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 Select The Blank Question 4 ________ is a current asset Correct Answer Book debts Your Answer Furniture Multiple Choice Multiple Answer Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Multiple Choice Single Answer Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Management problems Multiple Choice Single Answer Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering Your Answer Detailed Project Engineering Multiple Choice Multiple Answer Question 8 Sources of funds includes :-
Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing Multiple Choice Single Answer Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Select The Blank Question 10 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 Multiple Choice Single Answer Question11 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 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer Building cost Multiple Choice Multiple Answer Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Goodwill written off Multiple Choice Multiple Answer Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented Your Answer Determination , Organisation Building , Person / system oriented Select The Blank Question15 Short term finance is normally for a period upto ________ year. Correct Answer One Your Answer One True/False Question16 Current assets includes stock-in-process. Correct Answer True
Your Answer True Multiple Choice Single Answer Question17 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 Multiple Answer Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method Select The Blank Question 19 ________ is a current liability. Correct Answer Trade credit Your Answer Trade credit True/False Question20 Managerial problems in a project are the most pervasive. Correct Answer True Your Answer True Select The Blank Question21 Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question22 Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Short term Select The Blank Question23 ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer Trial balance True/False Question24 In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Correct Answer False Your Answer True
True/False Question25 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 Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Finance cost aspect Multiple Choice Multiple Answer Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Multiple Choice Single Answer Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate Your Answer Products which enjoy a high market share as well as a high growth rate Multiple Choice Single Answer Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy? Your Answer Why they buy? True/False Question30 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 False Multiple Choice Multiple Answer Question31 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
Question32 The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer Variable cost Select The Blank Question33 Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Decreases Multiple Choice Multiple Answer Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Debt Equity ratio , Quick ratio Multiple Choice Single Answer Question35 Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management Multiple Choice Single Answer Question36 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 Multiple Choice Multiple Answer Question37 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 , Sales trends Match The Following Question38 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 Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance
Your Answer Project finance Multiple Choice Multiple Answer Question 40 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 41 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 Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice Multiple Answer Question43 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 44 ________ 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 Marketing Multiple Choice Single Answer Question45 Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Select The Blank Question46 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer General Match The Following Question47 Correct Answer Your Answer
Private investment Power generation Machine tools Project Time -bound Time -bound Programme Not necessarily time bound Not necessarily time bound Foreign direct investment Machine tools Power generation LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money Your Answer Margin money Multiple Choice Multiple Answer Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block Your Answer Factory building , Auxiliary buildings , Administrative block Multiple Choice Single Answer Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potential Your Answer Products which have high market share but low growth potential 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 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 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 True True/False Question Name of the finance manager comes under the Project organisation category of the Project report. Correct Answer True
Your Answer True 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 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 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 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 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 Select The Blank Question ________ profitability reduces the strain on working capital. Correct Answer High Your Answer Stable 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 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 Single Answer Question "Fly by night" operator mentality is a :Correct Answer Management quality Your Answer Management quality 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 As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Increases Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer Shareholders , Bankers , Financial Institutions 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 True/False Question A project is unique and no two projects are similar. Correct Answer True Your Answer True 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 , It does not help in determining future requirement of funds
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 Receivables is categorised under :Correct Answer Current assets and liabilities Your Answer Current assets and liabilities Multiple Choice Single Answer Question It is said that a second rate project in the hands of first rate management is better than a first rate project in the hands of :Correct Answer Second rate management Your Answer Second rate management 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 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 Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Profit maximisation 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 Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology 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 True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Shares , Debentures 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 True/False Question The construction of National Golden Quadrilateral can be recognised as Project. Correct Answer True Your Answer True 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 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 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 Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Multiple Choice Multiple Answer Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement Your Answer Quality standards , Raw material requirement , Power / telecom facilities 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 Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer True Multiple Choice Single Answer Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Your Answer Financial analysis Multiple Choice Single Answer Question Preoperative expenses includes :Correct Answer Bank guarantees Your Answer Bank guarantees Select The Blank Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle True/False Question If the organisation is a trading organisation, the requirement of working capital will be on the lower side. Correct Answer False Your Answer True
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 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Land and site development comes under the cost aspect of the Project report. Correct Answer True Your Answer True Multiple Choice Single Answer Question Location of the factory comes under the :Correct Answer General category Your Answer General category 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 a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising 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 deals with the impact of the investment project on people and their lives Pre-feasibility study It is a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of varied skills and resources Multiple Choice Single Answer Question The sources of funding have expanded from banks, insurance companies and multilateral agencies to include the :Correct Answer Capital market Your Answer Debt market Multiple Choice Single Answer Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Your Answer Cost of electricity True/False Question The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer True 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 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 Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer Application Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Management problems 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 , Invest True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 , Auditors report , Balance Sheet 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 , Chain ratio Relationship , Exponential Relationship Multiple Choice Single Answer Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Profit maximisation 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
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 consider non-fund transactions , It does not help in determining future requirement of funds , It does not provide any new information but only rearranges the various facts Select The Blank Question As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Increases Multiple Choice Single Answer Question Preoperative expenses includes :Correct Answer Bank guarantees Your Answer Brokerage on capital issue Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 Limited recourse financing True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer True Multiple Choice Single Answer Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Your Answer Current ratio Multiple Choice Multiple Answer Question Management category of Visit report consists of :-
Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Electrical engineers , Institutional nominees Multiple Choice Single Answer Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness Your Answer Relative Market share and Industry Growth rate Multiple Choice Single Answer Question The basic document for facilitating Project financing is the :Correct Answer Detailed Project report Your Answer Detailed Project report 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 True/False Question Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product Your Answer Future demand of the product , Export market , Future availability and supply of the product Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology 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 , Moving Averages method 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 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 Match The Following Question Correct Answer Your Answer General functional layout Present the general relationship between equipment buildings and civil works The plan of work concerning installation as well as initial operation Location Broad area such as city, industrial belt etc. The diagrams indicating the flow of materials, utilities, final product, by-products and emission Site Specific piece of land where the project would be set up Broad area such as city, industrial belt etc. Plant layout Physical layout of the factory Specific piece of land where the project would be set up True/False Question If the organisation is a trading organisation, the requirement of working capital will be on the lower side. Correct Answer False Your Answer True Select The Blank Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Your Answer Building cost 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 , Preliminary expenses written off
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 , Preliminary expenses Multiple Choice Single Answer Question The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects 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 Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer Creditors Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer Shareholders , Bankers , Creditors Multiple Choice Single Answer Question Dissentions among the promoters is a :Correct Answer Management problem Your Answer Management perception Select The Blank Question Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Does not result True/False Question The secondary data is collected through market survey, specific for the project being appraised. Correct Answer False Your Answer False
Multiple Choice Single Answer Question Profit is the result of customer satisfaction, indeed customer delight under the :Correct Answer Marketing concept Your Answer Marketing concept Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Goodwill written off , Funds from long term loans LIST OF ATTEMPTED QUESTIONS 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 Project Finance assgn :01: Sushant
True/False Question Trend projection method is the important technique for forecasting demand. Correct Answer True Your Answer True Multiple Choice Single Answer Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource allocation
Your Answer allocation
Is a tool for strategic ( product ) planning and resource
Select The Blank Question A market survey generally is a ________ survey. Correct Answer Sample Your Answer Primary Select The Blank Question ________ capital represents permanent capital. Correct Answer Equity Your Answer Equity 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 True/False Question Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. Correct Answer True Your Answer True 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 True/False Question There is a need for studying Project finance both for the lenders as well as the borrowers as both of them have equal stake in making the Project a success. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Management category of Visit report consists of :-
Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Institutional nominees , Committees of the board Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Financial arrangement True/False Question Debt service coverage ratio indicates whether cash earned is sufficient for debt service. Correct Answer True Your Answer False 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 , Political issues 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 ________ 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 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 True 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 Single Answer Question The Projects which are undertaken to manufacture certain products which require the products of existing units as raw material is known as :Correct Answer Forward Integration Projects Your Answer Backward Integration Projects Match The Following Question Correct Answer Your Answer Management problems Lack of exposure Lack of exposure Management Quality Initiative Person oriented Management Perception Aspiration level/ conservative Corporate Organisational Climate Person oriented Aspiration level/ conservative Multiple Choice Multiple Answer Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the product , Future availability and supply of the product Your Answer Future demand of the product , Proper survey of the product , Export market , Future availability and supply of the product Select The Blank Question Details regarding Administrative / controlling office comes under the ________ category. Correct Answer General Your Answer Cost aspect Multiple Choice Multiple Answer Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing 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 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 The profit earned from operations of the project during life of the project is known as :Correct Answer Cash inflow Your Answer Profit after appropriation 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 , Sales trends Select The Blank Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle True/False Question Current assets includes stock-in-process. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Export market technique of Commercial appraisal Government provides ample encouragement Government provides ample encouragement
Demand Technique forecasting of Commercial appraisal Future demand of the product A method based on the assumption that the behaviour of the variables would continue in similar/same direction and magnitude, as in the past Past trend method of Commercial appraisal Adopted as a guide depending on the consumption pattern of the society as a whole Adopted as a guide depending on the consumption pattern of the society as a whole End use method of Commercial appraisal A list of industries wherein the product is used is made and quantity and volume is arrived at A list of industries wherein the product is used is made and quantity and volume is arrived at 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 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 Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Internal accruals Multiple Choice Single Answer Question Disposition of funds includes :Correct Answer Interest on term loans Your Answer Increase in secured borrowing Multiple Choice Single Answer Question Gross Working Capital means :Correct Answer Current assets Your Answer Current assets less Current liabilities
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer Increase Select The Blank Question The Project Cycle should be in the ________ order Correct Answer Identification of Project - Project Appraisal Negotiations for loans Your Answer Identification of Project - Project Appraisal Negotiations for loans True/False Question Debt Equity ratio is a 'Solvency ratio'. Correct Answer True Your Answer True Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer Creditors Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital 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 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 Multiple Answer Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Your Answer Technology , Layout of the plant , Design of the plant True/False Question Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer True Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology 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 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 Preliminary expenses include :Correct Answer Drafting of Memorandum expenses Your Answer Drafting of Memorandum expenses
LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Cost under-estimation at the project preparation and evaluation stage leads to cost and time over run. Correct Answer True Your Answer True Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 Location of factory Cost aspect of the project report Consultancy fees Reasons for cost escalations Financing plan Unsecured loans Finance manager Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Furniture Multiple Choice Single Answer Question Disposition of funds includes :Correct Answer Interest on term loans Your Answer Increase in secured borrowing Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Commercial Papers 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
Select The Blank Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer No flow Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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 help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements 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 The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. 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 , Plant capacity , Availability of infrastructure 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 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer Project organisation 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 Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Funds from long term loans Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Internal accruals Multiple Choice Single Answer Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure Your Answer Fixation of means of financial structure Select The Blank Question ________ is that scarce input which financial resources alone cannot mobilise. Correct Answer Management Your Answer Management Multiple Choice Single Answer Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result Your Answer Specific result 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 Short term finance is normally for a period upto ________ year.
Correct Answer One Your Answer One 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 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 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 Medium Industry Attractiveness , Average Business strength and high Industry attractiveness Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer Increase True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer True 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 Average rate of return is obtained
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 True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True True/False Question In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True Multiple Choice Single Answer Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Your Answer Demand forecasting True/False Question The secondary data is collected through market survey, specific for the project being appraised. Correct Answer False Your Answer True True/False Question Debt service coverage ratio indicates whether cash earned is sufficient for debt service. Correct Answer True Your Answer True 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 Match The Following Question Correct Answer Your Answer Moving into new areas/product lines Diversification Projects Rehabilitation Projects Suppliers' credit Short term finance Short term finance
Deferred credit Long term finance Long term finance Setting up new units New Projects Diversification Projects 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 The basic document for facilitating Project financing is the :Correct Answer Detailed Project report Your Answer Articles of Association 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 , Power / telecom facilities 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 Multiple Choice Single Answer Question General Electric Stop Light Matrix :Correct Answer Which is highly respected for the sophistication, maturity and quality in its planning systems Your Answer Which is highly respected for the sophistication, maturity and quality in its planning systems Multiple Choice Single Answer Question Geographic market appraisal answers to :Correct Answer Where do the customers live? Your Answer Where do the customers live? Select The Blank Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities. Correct Answer Fund Your Answer Fund
Multiple Choice Multiple Answer Question The temporary requirement of working capital can be financed out of :Correct Answer Inter-corporate Deposits , Commercial Papers Your Answer Inter-corporate Deposits , Commercial Papers True/False Question Current assets includes stock-in-process. Correct Answer True Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Match The Following Question Correct Answer Your Answer Project Financing Help improving Corporate Return on Equity Industrial Finance Corporation of India Finance in international financial markets Issue of Euro bonds Issue of Euro bonds International financial institutions World Bank Increasing emphasis on the Private initiative Policy of Liberalisation, Privatisation and Globalisation Increasing emphasis on the Private initiative Help improving Corporate Return on Equity 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 , Auditors report , Balance Sheet Multiple Choice Single Answer Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Management problems Select The Blank Question The Project Cycle should be in the ________ order Correct Answer Identification of Project - Project Appraisal - Negotiations for loans Your Answer Identification of Project - Project Appraisal - Negotiations for loans True/False Question Change in the project concept itself may lead to cost and time overrun. Correct Answer True Your Answer True Multiple Choice Single Answer Question The industrial concern earned profits by increasing the sales volume under the :Correct Answer Sales concept Your Answer Marketing concept 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 Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Initiative , Too ambitious promoters 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 , Chain ratio Relationship , Exponential Relationship 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 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 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 , Helps to prepare financial statements 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 Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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 , Social aspect
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 Multiple Choice Single Answer Question The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects Multiple Choice Multiple Answer Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Your Answer Technology , Layout of the plant , Design of the plant 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 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 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 Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash Your Answer Inflow of cash Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Select The Blank Question Details regarding Administrative / controlling office comes under the ________ category. Correct Answer General Your Answer Project organisation 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 , Quick ratio Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer Source Multiple Choice Single Answer Question Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Multiple Choice Single Answer Question In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate Your Answer Products which enjoy a high market share as well as a high growth rate Select The Blank Question ________ is a current liability. Correct Answer Trade credit Your Answer Unsecured loans Match The Following Question Correct Answer Your Answer Econometric method Mathematical representation of economic relationship Suitable for forecasting the demand for intermediate products
Primary source of data Market survey Market survey Secondary source of data Collected in some other context Collected in some other context Leading indicators Variables that change faster than others Mathematical representation of economic relationship Multiple Choice Multiple Answer Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Depreciation , Increase in secured borrowing True/False Question The construction of National Golden Quadrilateral can be recognised as Project. 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 Single Answer Question Capital Issue expenses include :Correct Answer Brokerage fees to registrars Your Answer Market research expenses Select The Blank Question Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology 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 A list of industries wherein the product is used is made and quantity and volume is arrived at Multiple Choice Multiple Answer
Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Your Answer Managing Director , Electrical engineers , Committees of the board Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :Correct Answer Working capital Your Answer Production, Sales and Profitability Multiple Choice Single Answer Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness Your Answer Business strength and Industrial Attractiveness 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 , Sales trends Multiple Choice Single Answer Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Your Answer Cost of repairs and maintenance 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 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 High financial strength, high industrial strength, enjoying a competitive advantage and belonging to an attractive industry, operating in a relatively stable environmental conditions True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 cost of Plant and Machinery includes :Correct Answer Cost of stores and spares Your Answer Building and civil construction 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 Correct Answer
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. True
Your Answer
True
True/False Question Correct Answer
Production line diagrams show the organisation structure of the project along with information on location, personnel required for various departments, and their inter-relationship. False
Your Answer
False
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
Multiple Choice Single Answer Question In BCG Matrix "STARS" indicate :Correct Answer
Products which enjoy a high market share as well as a high growth rate
Your Answer
Products which enjoy a high market share as well as a high growth rate
Multiple Choice Multiple Answer Question Management category of Visit report consists of :Correct Answer
Managing Director , Institutional nominees , Committees of the board
Your Answer
Managing Director , Institutional nominees , Committees of the board
Select The Blank Question
A Project has a ________ represented by growth, maturity and decay.
Correct Answer
Life cycle
Your Answer
Set of objectives
Multiple Choice Multiple Answer Question Casual methods of Demand forecasting consists of :Correct Answer
Consumption-level method , Econometric method
Your Answer
Consumption-level method
Select The Blank
1
Question
Excessive expenditures on foreign technicians leads to ________.
Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
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
Time span
Multiple Choice Single Answer Question Marketing aspect of Detailed Project report includes :Correct Answer
Demand forecasting
Your Answer
Demand forecasting
Multiple Choice Multiple Answer Question The sources of cash are :Correct Answer
Sale of machinery , Cash from operations , Issue of new shares
Your Answer
Cash from operations , Sale of machinery , Issue of new shares
Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer
Power Generation and Distribution
Your Answer
Industrial machinery
Select The Blank Question
________ is the summary of cash book or Receipts and Payments statement.
Correct Answer
Cash flow statement
Your Answer
Trial balance
Multiple Choice Single Answer Question Receivables is categorised under :Correct Answer
Current assets and liabilities
Your Answer
Current assets and liabilities
True/False Question
A project is unique and no two projects are similar.
Correct Answer
True
2
Your Answer
True
Match The Following Question
Correct Answer
Your Answer
End use method of Commercial appraisal
A list of industries wherein the product A list of industries wherein the product is is used is made and quantity and used is made and quantity and volume volume is arrived at is arrived at
Export market technique of Commercial appraisal
Government provides ample encouragement
Government provides ample encouragement
Demand Technique forecasting of Commercial appraisal
Future demand of the product
Future demand of the product
Past trend method of Commercial appraisal
Adopted as a guide depending on the Adopted as a guide depending on the consumption pattern of the society as consumption pattern of the society as a a whole whole
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
Select The Blank Question
________ in liabilities involves inflow of funds.
Correct Answer
Increase
Your Answer
Increase
True/False Question Correct Answer
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. True
Your Answer
True
Multiple Choice Single Answer Question Cost of utilities include :Correct Answer
Cost of electricity
Your Answer
Cost of electricity
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
Multiple Choice Single Answer
3
Question
In BCG Matrix "QUESTION MARKS" indicate :-
Correct Answer
Products which have high growth potential but low market share
Your Answer
Products which have high growth potential but low market share
Select The Blank Question
Location of the factory comes under the ________ category of the Project report.
Correct Answer
General
Your Answer
General
True/False Question Correct Answer
It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project. True
Your Answer
False
Multiple Choice Single Answer Question Disposition of funds includes :Correct Answer
Interest on term loans
Your Answer
Interest on term loans
Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer
Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer
Funds from operation
Select The Blank Question
Depreciation is sometimes treated as ________ funds.
Correct Answer
Source
Your Answer
Application
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 , Average Business Strength and Low Industry attractiveness Multiple Choice Multiple Answer Question The sources of long term and medium term finance are :Correct Answer
Equity shares , Public deposit
4
Your Answer True/False Question
Equity shares , Bridge loan , Working capital loan
Correct Answer
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. True
Your Answer
True
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 Single Answer Question Technical aspect of detailed project report includes :Correct Answer
Detailed Project Engineering
Your Answer
Detailed Project Engineering
Match The Following Question
Correct Answer
Your Answer
Technical aspect of detailed project report
Detailed Project Engineering
Detailed Project Engineering
Financial aspect of Detailed Project report
Profitability
Profitability
Marketing aspect of Detailed Project report
Distribution
Distribution
Management aspect of detailed project Conservativeness report
Conservativeness
Multiple Choice Multiple Answer Question Advantages of fund flow statement are :Correct Answer Your 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 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
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
5
Question
Details regarding Internal accruals comes under the ________ category of Project report.
Correct Answer
Financing plan
Your Answer
General category
True/False Question Correct Answer
The 'BCG Matrix 'analysis various products of the organisation in the terms of Business strength and Industry Attractiveness. False
Your Answer
False
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
The Project Cycle should be in the ________ order
Correct Answer
Identification of Project - Project Appraisal - Negotiations for loans
Your Answer
Identification of Project - Project Appraisal - Negotiations for loans
True/False Question Correct Answer
Financial analysis based on accounting ratios will give mis-leading results if the effects of changes in price level are not taken into account. True
Your Answer
True
True/False Question Correct Answer
There is a need for studying Project finance both for the lenders as well as the borrowers as both of them have equal stake in making the Project a success. True
Your Answer
True
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
True/False Question
Current assets includes stock-in-process.
Correct Answer
True
6
Your Answer
False
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 , Depreciation
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
Multiple Choice Single Answer Question The Projects which are undertaken for further enhancing/augmenting the existing capacity is known as :Correct Answer Expansion Projects Your Answer Select The Blank Question
Expansion Projects
Correct Answer
Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities. Fund
Your Answer
Investment
7
True/False Question 1 The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Your Answer True True/False Question2 In small scale organisation, requirement of working capita l is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True True/False Question3 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 Select The Blank Question 4 ________ is a current asset Correct Answer Book debts Your Answer Furniture Multiple Choice Multiple Answer Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Multiple Choice Single Answer Question 6 Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Management problems Multiple Choice Single Answer Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering Your Answer Detailed Project Engineering Multiple Choice Multiple Answer Question 8 Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Preliminary expenses written off , Increase in secured borrowing Multiple Choice Single Answer Question 9 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Select The Blank Question 10 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 Multiple Choice Single Answer Question11 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
1
Question 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer Building cost Multiple Choice Multiple Answer Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Goodwill written off Multiple Choice Multiple Answer Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system oriented Your Answer Determination , Organisation Building , Person / system oriented Select The Blank Question15 Short term finance is normally for a period upto ________ year. Correct Answer One Your Answer One True/False Question16 Current assets includes stock-in-process. Correct Answer True Your Answer True Multiple Choice Single Answer Question17 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 Multiple Answer Question18 Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Moving Averages method Select The Blank Question 19 ________ is a current liability. Correct Answer Trade credit Your Answer Trade credit True/False Question20 Managerial problems in a project are the most pervasive. Correct Answer True Your Answer True Select The Blank Question21 Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question22 Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Short term Select The Blank Question23 ________ is the summary of cash book or Receipts and Payments statement. Correct Answer Cash flow statement Your Answer Trial balance
2
True/False Question24 In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Correct Answer False Your Answer True True/False Question25 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 Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Finance cost aspect Multiple Choice Multiple Answer Question27 Casual methods of Demand forecasting consists of : Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Multiple Choice Single Answer Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high growth rate Your Answer Products which enjoy a high market share as well as a high growth rate Multiple Choice Single Answer Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy? Your Answer Why they buy? True/False Question30 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 False Multiple Choice Multiple Answer Question31 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 Question32 The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer Variable cost Select The Blank Question33 Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Decreases Multiple Choice Multiple Answer Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Debt Equity ratio , Quick ratio
3
Multiple Choice Single Answer Question35 Appointments made at senior level during the half-year is categorised under :Correct Answer Organisation and management Your Answer Organisation and management Multiple Choice Single Answer Question36 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 Multiple Choice Multiple Answer Question37 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 , Sales trends Match The Following Question38 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 Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance Multiple Choice Multiple Answer Question 40 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 41 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 Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice Multiple Answer Question43 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 44 ________ 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 Marketing
4
Multiple Choice Single Answer Question45 Infrastructural projects include : Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Select The Blank Question46 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer General Match The Following Question47 Correct Answer Your Answer Private investment Power generation Machine tools Project Time -bound Time -bound Programme Not necessarily time bound Not necessarily time bound Foreign direct investment Machine tools Power generation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Match The Following Question
Correct Answer
Your Answer
Econometric method
Mathematical representation of economic relationship
Mathematical representation of economic relationship
Primary source of data
Market survey
Market survey
Secondary source of data
Collected in some other context
Collected in some other context
Leading indicators
Variables that change faster than others
Variables that change faster than others
Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Correct Answer Financing plan Your Answer
Financing plan
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 A smaller unit into which the overall requirement of capital of a company is subdivided is termed as ________. Correct Answer Share
5
Your Answer
Share
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
Limited recourse financing
Select The Blank Question ________ is a current liability. Correct Answer
Trade credit
Your Answer
Trade credit
Select The Blank Question ________ is a current asset Correct Answer
Book debts
Your Answer
Book debts
Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer
Bankers , Creditors , Financial Institutions
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
Multiple Choice Single Answer Question Cost of laying roads comes under :Correct Answer
Land and site cost
Your Answer
Preoperative cost
Multiple Choice Single Answer Question Pre-operative expenses include :Correct Answer
Interest on deferred payments
Your Answer
Market research expenses
6
True/False Question Correct Answer
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. True
Your Answer
True
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 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 Correct Answer
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. True
Your Answer
True
Multiple Choice Single Answer Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer
Business strength and Industrial Attractiveness
Your Answer
Company's competitive advantage and Company's financial strength
True/False Question Correct Answer
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. True
Your Answer
True
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
7
Question Correct Answer
The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison. False
Your Answer
False
Select The Blank Question Detailed Project Report is generally prepared from a ________ report with additional information. Correct Answer Feasibility Your Answer
Feasibility
Select The Blank Question Under ________ method, the forecasts are modified in the light of observed errors. Correct Answer
Exponential smoothing
Your Answer
Cobb Douglas Relationship
Match The Following Question
Correct Answer
Your Answer
Source of funds
Depreciation
Investment
Fixed assets
Building
Building
Current assets
Debtors
Debtors
Current liability
Trade credit
Trade credit
True/False Question
The Detailed Project report must indicate the gestation period of the project.
Correct Answer
True
Your Answer
True
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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
8
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 method for evaluating the profitability of industrial projects whose object is to ascertain the period required for recovering the entire investment made in a project is known as :Correct Answer Pay back method Your Answer
Pay back method
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer
Increase
Your Answer
Increase
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 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 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
Quick ratio
Multiple Choice Single Answer Question The sources of funding have expanded from banks, insurance companies and multilateral agencies to include the :Correct Answer Capital market Your Answer
Capital market
True/False
9
Question
Sensitivity analysis consists of assessing the degree of risk.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer
Cash Profits , Shares , Debentures
Your Answer
Cash Profits , Shares
Multiple Choice Single Answer Question Sources of funds include :Correct Answer
Increase in secured borrowing
Your Answer
Increase in secured borrowing
True/False Question Correct Answer
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. True
Your Answer
True
Multiple Choice Multiple Answer Question While choosing the location for a project, the following factors should be considered :Correct Answer Your Answer
Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer
Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
True/False Question Correct Answer
Ratio should be computed on the basis of inter-related figures which have a cause and effect relationship. True
Your Answer
True
True/False Question Correct Answer
In the BCG Matrix "DOGS" indicate products which are generally during the stage of Decline of a Product Life Cycle. True
10
Your Answer
True
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 , Chain ratio Relationship , Exponential Relationship
Multiple Choice Multiple Answer Question Technical appraisal is basically concerned with :Correct Answer
Technology , Layout of the plant , Design of the plant
Your Answer
Technology , Layout of the plant , Design of the plant
Multiple Choice Single Answer Question Demographic market appraisal answers to Correct Answer
Who they are?
Your Answer
Where do the customers live?
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 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 , Social aspect
Multiple Choice Multiple Answer Question Casual methods of Demand forecasting consists of :Correct Answer
Consumption-level method , Econometric method
Your Answer
Trend Projection method , Consumption-level method , Moving Averages method
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
11
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The objectives of the funds flow statement is as follows :Correct Answer
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 To find out the uses of loans raised by the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements
Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer
Inflow of cash
Your Answer
Inflow of cash
Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer
Project finance
Your Answer
Project finance
True/False Question Correct Answer
The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. True
Your Answer
True
Select The Blank Question As the plant capacity increase, the investment cost unit capacity ________. Correct Answer
Decreases
Your Answer
Decreases
Multiple Choice Multiple Answer Question Internal sources of funds are :Correct Answer
Funds from operation , Loss on sale of fixed assets , Goodwill written off
Your Answer
Funds from operation , Loss on sale of fixed assets
Multiple Choice Single Answer Question End use method of Commercial appraisal technique is :Correct Answer Your Answer
A list of industries wherein the product is used is made and quantity and volume is arrived at A list of industries wherein the product is used is made and quantity and volume is arrived at
12
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
True/False Question Correct Answer
In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. True
Your Answer
True
Match The Following Question
Correct Answer
Your Answer
Project organisation
Finance manager
Finance manager
General category of Project report Location of factory
Location of factory
Cost aspect of the project report
Consultancy fees
Consultancy fees
Financing plan
Unsecured loans
Unsecured loans
Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer
Working capital
Your Answer
Working capital
Multiple Choice Single Answer Question Sanctioned bank limits is categorised under :Correct Answer
Working capital
Your Answer
Production, Sales and Profitability
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
True/False Question Correct Answer
Trend projection method is the important technique for forecasting demand. True
13
Your Answer
True/False Question
True
Correct Answer
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. True
Your Answer
True
Select The Blank Question ________ in assets involves outflow of funds. Correct Answer
Increase
Your Answer
Increase
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 Delays in infrastructure Development by State Agencies may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer
General
Your Answer
General
Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer
Share capital , Term loans , Internal accruals
Your Answer
Share capital , Term loans , Internal accruals
Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer
Power Generation and Distribution
Your Answer
Power Generation and Distribution
True/False
14
Question
Market potential should be determined under the Marketing aspect of the Project report.
Correct Answer
True
Your Answer
True
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 A project objective which states What "achieving it " would cost is known as :Correct Answer
Finance cost aspect
Your Answer
Strategic perspective
Multiple Choice Single Answer Question A project objective which states "What' is to be viewed" is termed as :Correct Answer
Strategic perspective
Your Answer
Social aspect
True/False Question Correct Answer
Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity. True
Your Answer
True
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
Long term financing
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 Past trend method of Commercial appraisal technique is :-
15
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
Multiple Choice Single Answer Question The norms for providing open areas have to be strictly followed for safety of labour and allow sufficient space for outflow of effluents safely in case of :Correct Answer Chemical unit Your Answer
Chemical unit
Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
Select The Blank Question Investors who invest in the debentures of the company are the ________ of the company. Correct Answer Creditors Your Answer
Creditors
Match The Following Question
Correct Answer
Your Answer
Private investment
Power generation
Power generation
Project
Time -bound
Time -bound
Programme
Not necessarily time bound
Not necessarily time bound
Foreign direct investment
Machine tools
Machine tools
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 Multiple Answer Question Management qualities includes :Correct Answer
Honesty , Financial resources , Initiative
Your Answer
Honesty , Financial resources , Initiative
Multiple Choice Single Answer
16
Question
The industrial concern earned profits by increasing the sales volume under the :-
Correct Answer
Sales concept
Your Answer
Sales concept
True/False Question Correct Answer
The 'BCG Matrix 'analysis various products of the organisation in the terms of Business strength and Industry Attractiveness. False
Your Answer
False
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 Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer
Cost and time overrun
Your Answer
Cost and time overrun
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 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 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 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
17
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
Multiple Choice Single Answer Question The cost which change in the same proportion in which the level of production changes is known as :Correct Answer Variable cost Your Answer
Variable cost
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
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
18
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Borrower's contribution towards Working capital is known as :Correct Answer Margin money Your Answer Margin money Multiple Choice Multiple Answer Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block Your Answer Factory building , Auxiliary buildings , Administrative block Multiple Choice Single Answer Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potential Your Answer Products which have high market share but low growth potential 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 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
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 True True/False Question Name of the finance manager comes under the Project organisation category of the Project report. Correct Answer True Your Answer True 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 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 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 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 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 Select The Blank Question ________ profitability reduces the strain on working capital. Correct Answer High Your Answer Stable 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 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 Single Answer Question "Fly by night" operator mentality is a :Correct Answer Management quality Your Answer Management quality 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 As the plant capacity increase, the investment cost unit capacity ________. Correct Answer Decreases Your Answer Increases Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer Shareholders , Bankers , Financial Institutions 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 True/False Question A project is unique and no two projects are similar. Correct Answer True
Your Answer True 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 , It does not help in determining future requirement of funds 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 Receivables is categorised under :Correct Answer Current assets and liabilities Your Answer Current assets and liabilities Multiple Choice Single Answer Question It is said that a second rate project in the hands of first rate management is better than a first rate project in the hands of :Correct Answer Second rate management Your Answer Second rate management 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 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 Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Profit maximisation 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 Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology 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 True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True 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 Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Shares , Debentures 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 True/False Question The construction of National Golden Quadrilateral can be recognised as Project. Correct Answer True Your Answer True 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 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 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 Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Multiple Choice Multiple Answer Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requirement Your Answer Quality standards , Raw material requirement , Power / telecom facilities 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 Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Your Answer True Multiple Choice Single Answer Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Your Answer Financial analysis Multiple Choice Single Answer Question Preoperative expenses includes :Correct Answer Bank guarantees Your Answer Bank guarantees Select The Blank Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle True/False Question If the organisation is a trading organisation, the requirement of working capital will be on the lower side. Correct Answer False Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Cost under-estimation at the project preparation and evaluation stage leads to cost and time over run. Correct Answer True Your Answer True Multiple Choice Single Answer Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 Location of factory Cost aspect of the project report Consultancy fees Reasons for cost escalations Financing plan Unsecured loans Finance manager Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Furniture Multiple Choice Single Answer Question Disposition of funds includes :Correct Answer Interest on term loans Your Answer Increase in secured borrowing Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Your Answer Cash Profits , Commercial Papers 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
Select The Blank Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer No flow Multiple Choice Single Answer Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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 help to understand the changes in assets as well as asset sources which are not revealed by the income statement , Helps to prepare financial statements 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 The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives. 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 , Plant capacity , Availability of infrastructure 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 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer Project organisation 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 Multiple Answer Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwill written off Your Answer Funds from operation , Funds from long term loans Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Internal accruals Multiple Choice Single Answer Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure Your Answer Fixation of means of financial structure Select The Blank Question ________ is that scarce input which financial resources alone cannot mobilise. Correct Answer Management Your Answer Management Multiple Choice Single Answer Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result Your Answer Specific result 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 Short term finance is normally for a period upto ________ year.
Correct Answer One Your Answer One 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 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 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 Medium Industry Attractiveness , Average Business strength and high Industry attractiveness Select The Blank Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Select The Blank Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer Increase True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer True 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 Average rate of return is obtained
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 True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True True/False Question In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True Your Answer True Multiple Choice Single Answer Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Your Answer Demand forecasting True/False Question The secondary data is collected through market survey, specific for the project being appraised. Correct Answer False Your Answer True True/False Question Debt service coverage ratio indicates whether cash earned is sufficient for debt service. Correct Answer True Your Answer True 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 Match The Following Question Correct Answer Your Answer Moving into new areas/product lines Diversification Projects Rehabilitation Projects Suppliers' credit Short term finance Short term finance
Deferred credit Long term finance Long term finance Setting up new units New Projects Diversification Projects 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 The basic document for facilitating Project financing is the :Correct Answer Detailed Project report Your Answer Articles of Association 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 , Power / telecom facilities 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 Multiple Choice Single Answer Question General Electric Stop Light Matrix :Correct Answer Which is highly respected for the sophistication, maturity and quality in its planning systems Your Answer Which is highly respected for the sophistication, maturity and quality in its planning systems Multiple Choice Single Answer Question Geographic market appraisal answers to :Correct Answer Where do the customers live? Your Answer Where do the customers live? Select The Blank Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities. Correct Answer Fund Your Answer Fund
Multiple Choice Multiple Answer Question The temporary requirement of working capital can be financed out of :Correct Answer Inter-corporate Deposits , Commercial Papers Your Answer Inter-corporate Deposits , Commercial Papers True/False Question Current assets includes stock-in-process. Correct Answer True Your Answer True