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 misleading 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 at 1:54 AM 1 comments Links to this post

Labels: Research Methodology and Project Report

Research Methodology and Project Report - 1

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

SCDL Paper of Research Methodology and Project Report - 2

SCDL Paper of Research Methodology and Project Report - 2

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 interrelationship. 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