PROJECT FINANCE LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The basic difference between

the feasibility study report and ________ is the le vel of accuracy and degree of detail. Correct Answer Detailed Project report Your Answer Detailed Project report 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 True/False Question The advantage of secondary sources of data is that it is readily and economicall y available. Correct Answer True Your Answer True Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer Source 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 Multiple Choice Multiple Answer Question Financial and economic aspect of the Visit report consists of :Correct Answer Companys financial year , Impact of Government policies on company operations , C omments on the last published accounts Your Answer Companys financial year , Impact of Government policies on company operations , C omments on the last published accounts Multiple Choice Single Answer Question The statement which shows the movement of cash into and out of firms kittie is kn own as :Correct Answer Cash flow statement Your Answer Cash flow statement True/False

Question Name of the finance manager comes under the Project organisation category of the Project report. Correct Answer True Your Answer True Multiple Choice Single Answer Question Cost of laying roads comes under :Correct Answer Land and site cost Your Answer Land and site cost True/False Question Debt Service means payment of installments and interest against an amount borrow ed as per terms of loan. Correct Answer True Your Answer True Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution True/False Question The BCG Matrix analysis various products of the organisation in the terms of Busin ess strength and Industry Attractiveness. Correct Answer False Your Answer False Select The Blank Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle 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 Multiple Choice Single Answer Question Receivables is categorised under :Correct Answer Current assets and liabilities Your Answer Current assets and liabilities True/False

Question Managerial problems in a project are the most pervasive. Correct Answer True 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 , Dividend True/False Question A project is unique and no two projects are similar. Correct Answer True Your Answer True True/False Question The cost factors of the product mixed is also taken into account to arrive at co st at various levels of production and its cost impact of the manufacturing. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The objectives of the funds flow statement is as follows :Correct Answer To indicate the financial strength and weakness of the business , To help to und erstand 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 Your Answer To help to understand the changes in assets as well as asset sources which are n ot revealed by the income statement , To find out the uses of loans raised by th e business , To indicate the financial strength and weakness of the business Select The Blank Question Under the SPACE Model, Customer loyalty is determined under the ________ dimensi on. Correct Answer Companys competitive advantage Your Answer Companys competitive advantage 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 Multiple Answer Question While choosing the location for a project, the following factors should be consi dered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment policies and other factors Your Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment 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 Select The Blank Question More accurate the estimation of the level of current assets and current liabilit ies, more accurate will be estimation of the requirement of ________. Correct Answer Working capital Your Answer Working capital True/False Question Debt Equity ratio is a Solvency ratio. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Organisation and Management Strikes/lay-offs/lockouts etc. Strikes/lay-offs/lockouts etc. Material inputs and utilities Stock of raw material Stock of raw material Working capital Sanctioned bank limit Sanctioned bank limit Marketing Pricing policy Pricing policy Multiple Choice Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative Select The Blank Question

________ in liabilities involves inflow of funds. Correct Answer Increas Y e our Answer Increas S e elect The Blank Question The ________ market is longer the order of the day since this is an era of profe ssionalization and specialised services are available at Correct cost. Answer Monopolistic Your Answer Monopolistic Multiple Choice Multiple Answer Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Moving Averages method , Trend Projection method Your Answer Trend Projection method , Moving Averages method Multiple Choice Single Answer Question Borrowers contribution towards Working capital is known as :Correct Answer Margin money Your Answer Margin money 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 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 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer General Select The Blank Question Under ________ method, the forecasts are modified in the light of observed error s. Correct Answer Exponential smoothing Your Answer Exponential smoothing 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 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 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 The basic document for facilitating Project financing is the :Correct Answer Detailed Project report Your Answer Detailed Project report 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 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 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 fo r expansion or other purpose. Correct Answer Dividend Your Answer Dividend 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 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 the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investment 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 com mitment of varied skills and resources It is one-shot, time-limited, goal oriented, major undertaking requiring the com mitment of varied skills and resources Pre-feasibility study It is a preliminary assessment of the project idea to determine whether or not t he investment opportunity is promising It is a preliminary assessment of the project idea to determine whether or not t he investment opportunity is promising Multiple Choice Single Answer Question Psychographic market appraisal answers to :Correct Answer Why they buy? Your Answer Why they buy? LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Internal accruals , Share capital , Term loans Your Answer Internal accruals , Share capital , Term loans Multiple Choice Multiple Answer Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Internal measure , Quick ratio True/False Question Export Market is a technique used for forecasting under Commercial appraisal tec hnique. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new shares Your Answer Cash from operations , Sale of machinery , Issue of new shares Multiple Choice Single Answer Question Past trend method of Commercial appraisal technique is :-

Correct Answer Adopted as a guide depending on the consumption pattern of the society as a whol e Your Answer Adopted as a guide depending on the consumption pattern of the society as a whol e Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Book debts Select The Blank Question In the GEs Stop Light Matrix, when ________ situation prevails , Products call fo r divestment. Correct Answer Average Business Strength and Low Industry attractiveness Your Answer Average Business Strength and Low Industry attractiveness Select The Blank Question Detailed Project Report is generally prepared from a ________ report with additi onal information. Correct Answer Feasibility Your Answer Feasibility Multiple Choice Single Answer Question The third phase of the technical appraisal which focuses upon appraising the lik ely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation Your Answer Problems pertaining to the period when the project is in operation Multiple Choice Single Answer Question The acronym for LPG is :Correct Answer Liberalisation, Privatisation and Globalisation Your Answer Liberalisation, Privatisation and Globalisation True/False Question Miscellaneous expenditure is written on the asset side of the Balance sheet. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Defaults category of the Project report may be in respect of :Correct Answer Term loans , Principal , Interest Your Answer Term loans , Principal , Interest Multiple Choice Multiple Answer Question

The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks Your Answer Stars , Question marks Select The Blank Question ________ tries to have what the customer will want- where, when, in what form an d at what price. Correct Answer Marketing Your Answer Marketing Multiple Choice Single Answer Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project Your Answer The total of all items of outlay associated with a project Select The Blank Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Your Answer Land and site development Multiple Choice Multiple Answer Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer Inflow of cash True/False Question A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners. Correct Answer True Your Answer True Multiple Choice Single Answer Question Sources of funds include :Correct Answer Increase in secured borrowing Your Answer Increase in secured borrowing Select The Blank Question In the GEs Stop Light Matrix, when ________ situation prevails, Products call for Hold.

Correct Answer Average Business Strength and Medium Industry Attractiveness Your Answer Average Business Strength and Medium Industry Attractiveness Multiple Choice Multiple Answer Question As per the GEs Stop Light Matrix, Products may justify substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness True/False Question Ratios are based only on the information which has been recorded in the financia l statements. Correct Answer True Your Answer True True/False Question Trend projection method is the important technique for forecasting demand. Correct Answer True Your Answer True Multiple Choice Single Answer Question Fly by night operator mentality is a :Correct Answer Management quality Your Answer Management quality Multiple Choice Multiple Answer Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans Your Answer Purchase of fixed assets , Payment of long term loans Multiple Choice Single Answer Question A Project is a temporary endeavor to achieve some specific objectives within a : Correct Answer Predefined time Your Answer Predefined time Multiple Choice Single Answer Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun True/False Question

Ratio analysis is a technique of planning and control. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the factory Your Answer Name of the Industrial concern , Proposed product , Location of the factory Multiple Choice Multiple Answer Question After the SPACE chart is constructed, we would normally get any one of the follo wing basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture Your Answer Aggressive Posture , Competitive Posture , Defensive Posture True/False Question The emphasis of a finance manager should be on taking a synergistic view of the project rather than looking at it only from the financial aspects. Correct Answer True Your Answer True Multiple Choice Single Answer Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate Your Answer Relative Market share and Industry Growth rate True/False Question Change in the project concept itself may lead to cost and time overrun. Correct Answer True Your Answer True Select The Blank Question The company having ________, is appropriate for the strategic posture of Conserv ative under the SPACE approach. Correct Answer Limited competitive advantage, belonging to a not so attractive industry but enj oying financial strength and operating in a relatively stable environment Your Answer Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Correct Answer Financing plan Your Answer Financing plan

Match The Following Question Correct Answer Your Answer Increase in current Decreases liabilities working capital Decreases working capital Increase in Inflow of liabilities funds Inflow of funds Decrease in Outflow liabilitiesof funds Outflow of funds Increase in current Increases working capital assets Increases working capital Multiple Choice Multiple Answer Question Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit and loss ac count to arrive at operating profits Your Answer Item of current liabilities , Added back to the profit as per profit and loss ac count to arrive at operating profits Multiple Choice Multiple Answer Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet Your Answer Profit and Loss Account , Balance Sheet Multiple Choice Single Answer Question The industrial concern earned profits by increasing the sales volume under the : Correct Answer Sales concept Your Answer Sales concept Multiple Choice Single Answer Question The entire life of the project is taken into account under :Correct Answer Average rate of return method Your Answer Average rate of return method Match The Following Question Correct Answer Your Answer General functional layout Present the general relationship between equipment buildings and civil works Present the general relationship between equipment buildings and civil works Location Broad area such as city, industrial belt etc. Broad area such as city, industrial belt etc. Site Specific piece of land where the project would be set up Specific piece of land where the project would be set up

Plant layout Physical layout of the factory Physical layout of the factory Multiple Choice Single Answer Question Geographic market appraisal answers to :Correct Answer Where do the customers live? Your Answer Where do the customers live? True/False Question In the BCG Matrix, the key term of Cash Cows require further commitment of funds . Correct Answer False Your Answer False True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer False Select The Blank Question A smaller unit into which the overall requirement of capital of a company is sub -divided is termed as ________. Correct Answer Share Your Answer Share Select The Blank Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer Application LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question The basic difference between the feasibility study report and ________ is the le vel of accuracy and degree of detail. Correct Answer Detailed Project report Your Answer Audit report True/False Question The cost factors of the product mixed is also taken into account to arrive at co st at various levels of production and its cost impact of the manufacturing. Correct Answer True Your Answer True Select The Blank

Question ________ is a current asset Correct Answer Book debts Your Answer Trade credit Multiple Choice Single Answer Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price Variables) Your Answer Fixed cost / ( Sales Price Variables) True/False Question Banks and Financial Institutions, world-wide, are now financing projects with st rategies and terms that would have been hard to believe/imagine just a few years back. Correct Answer True Your Answer True Multiple Choice Single Answer Question Liabilities side of Balance sheet includes :Correct Answer Unsecured loans Your Answer Unsecured loans Multiple Choice Single Answer Question Net Working Capital means :Correct Answer Current assets less Current Your Answer liabilities Current assets less Current Multiple liabilitiesChoice Multiple Answer Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship True/False Question It is mandatory for each unit to obtain necessary clearance from Pollution Contr ol Authorities before setting up any project. Correct Answer True Your Answer True True/False Question Debt Service Coverage Ratio is one of the most important ratios calculated by th e bankers or financial institutions giving long term finance to the organisation . Correct Answer True Your Answer True

Select The Blank Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and mark etable Correct Answer securities. Fund Your Answer Investment Multiple Choice Multiple Answer Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans Your Answer Purchase of fixed assets , Payment of long term loans , Issue of new machinery Select The Blank Question ________ tries to have what the customer will want- where, when, in what form an d at what price. Correct Answer Marketing Your Answer Marketing Multiple Choice Multiple Answer Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Consumption-level method , Moving Averages method Multiple Choice Single Answer Question Disposal of fixed assets is categorised under :Correct Answer Miscellaneous Your Answer Land and site cost Multiple Choice Multiple Answer Question Financial and economic aspect of the Visit report consists of :Correct Answer Companys financial year , Impact of Government policies on company operations , C omments on the last published accounts Your Answer Companys financial year , Impact of Government policies on company operations , C omments on the last published accounts Match The Following Question Correct Answer Your Answer Project organisation Finance manager Finance manager General category of Project report Location of factory Consultancy fees Cost aspect of the project report Consultancy fees Location of factory Financing plan

Unsecured loans Unsecured loans Multiple Choice Multiple Answer Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution Your Answer Demand forecasting , Promotion , Distribution Multiple Choice Multiple Answer Question Marketing category of the Project report consists of :Correct Answer Pricing policy , Target market , Market potential Your Answer Target market , Market potential , Pricing policy Multiple Choice Multiple Answer Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Match The Following Question Correct Answer Your Answer Moving into new areas/product lines Diversification Projects Modernisation Projects Suppliers credit Short term finance Short term finance Deferred credit Long term finance Long term finance Setting up new units New Projects New Projects Multiple Choice Single Answer Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate Your Answer Relative Market share and Industry Growth rate Multiple Choice Single Answer Question Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer Building cost Multiple Choice Multiple Answer Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the factory Your Answer Proposed product , Location of the factory , Land cost

True/False Question The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison. Correct Answer False Your Answer False Select The Blank Question In the GEs Stop Light Matrix, when ________ situation prevails , Products call fo r divestment. Correct Answer Average Business Strength and Low Industry attractiveness Your Answer Weak Business strength and high Industry attractiveness Multiple Choice Multiple Answer Question Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit and loss ac count to arrive at operating profits Your Answer Added back to the profit as per profit and loss account to arrive at operating p rofits , Item of current assets , Item of working capital Multiple Choice Single Answer Question The cost of Plant and Machinery may be adjusted for a possible increase known as :Correct Answer Escalation Your Answer Escalation Multiple Choice Single Answer Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Your Answer Financial analysis True/False Question The advantage of secondary sources of data is that it is readily and economicall y available. Correct Answer True Your Answer True True/False Question Debt Equity ratio is a Solvency ratio. Correct Answer True Your Answer True Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun

Your Answer Cost and time overrun Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Salaries Select The Blank Question Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Internal Select The Blank Question In order to meet the cost of large project, the technique of ________ has been d eveloped so that the financial commitment and risks associated with a project ar e shared between the project sponsor and the lending institutions. Correct Answer Limited recourse financing Your Answer Unlimited recourse financing True/False Question A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners. Correct Answer True Your Answer True Multiple Choice Single Answer Question The third phase of the technical appraisal which focuses upon appraising the lik ely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation Your Answer Problems pertaining to the period when the project is in operation Select The Blank Question More accurate the estimation of the level of current assets and current liabilit ies, more accurate will be estimation of the requirement of ________. Correct Answer Working capital Your Answer Working capital True/False Question Ratio analysis is a technique of planning and control. Correct Answer False Your Answer True True/False Question Cost and time overrun of the project may lead to loss on account of lost market opportunities.

Correct Answer True Your Answer True Multiple Choice Multiple Answer Question While choosing the location for a project, the following factors should be consi dered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment policies and other factors Your Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment policies and other factors Multiple Choice Single Answer Question In the Cash flow statement, the sources of funds include :Correct Answer Development rebate reserve Your Answer Development rebate reserve Select The Blank Question Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer Project organisation Multiple Choice Multiple Answer Question As per the GEs Stop Light Matrix, Products may justify substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness Multiple Choice Single Answer Question The BCG product Portfolio Matrix, General Electric Stop Light Matrix and Strateg ic Position and Action Evaluation Model are considered to be highly relevant as :Correct Answer Portfolio Planning Tools Your Answer Portfolio Planning Tools Select The Blank Question Position regarding requirement and training of operational staff comes under the ________ category of Project report. Correct Answer Project organisation Your Answer General category Multiple Choice Single Answer Question The emphasis of the Banks and Financial institutions particularly in India has s hifted from Sanctions, Disbursements and Security-orientation to Recovery/Recycling :-

Correct Answer Activity orientation Your Answer Activity orientation 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 Companys competitive advantage Your Answer Companys 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 Pollut ion 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 wha t 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 calcula ted by the bankers or financial institutions giving long term finance to the org anisation. 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 appraisi ng 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 a s :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/ conservat ive 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 vie w 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 w hich 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 be nefits 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 re liable 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 res ources 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 s tage 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 investment s 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 kno wn 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 obser ved 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 pro fit 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 com pany 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 companys potential reserve of cash i s 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 ________ ca tegory. 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 The basic difference between the feasibility study report and ________ is the le vel of accuracy and degree of detail. Correct Answer Detailed Project report Your Answer

Detailed Project report 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 True/False Question The advantage of secondary sources of data is that it is readily and economicall y available. Correct Answer True Your Answer True Select The Blank Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer Source 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 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 Multiple Choice Single Answer Question The statement which shows the movement of cash into and out of firm known as :Correct Answer Cash flow statement Your Answer Cash flow statement True/False Question Name of the finance manager comes under the Project organisation category of the Project report.

s kittie is

Correct Answer True Your Answer True Multiple Choice Single Answer Question Cost of laying roads comes under :Correct Answer Land and site cost Your Answer Land and site cost True/False Question Debt Service means payment of installments and interest against an amount borrow ed as per terms of loan. Correct Answer True Your Answer True Multiple Choice Single Answer Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution True/False Question The BCG Matrix analysis various products of the organisation in the terms of B usiness strength and Industry Attractiveness. Correct Answer False Your Answer False Select The Blank Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle 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 Multiple Choice Single Answer Question Receivables is categorised under :Correct Answer

Current assets and liabilities Your Answer Current assets and liabilities True/False Question Managerial problems in a project are the most pervasive. Correct Answer True 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 , Dividend True/False Question A project is unique and no two projects are similar. Correct Answer True Your Answer True True/False Question The cost factors of the product mixed is also taken into account to arrive at co st at various levels of production and its cost impact of the manufacturing. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The objectives of the funds flow statement is as follows :Correct Answer To indicate the financial strength and weakness of the business , To help to und erstand 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 Your Answer To help to understand the changes in assets as well as asset sources which are n ot revealed by the income statement , To find out the uses of loans raised by th e business , To indicate the financial strength and weakness of the business Select The Blank Question Under the SPACE Model, Customer loyalty is determined under the ________ dimensi on. Correct Answer Company s competitive advantage Your Answer Company s competitive advantage 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 Multiple Answer Question While choosing the location for a project, the following factors should be consi dered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment policies and other factors Your Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment 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 Select The Blank Question More accurate the estimation of the level of current assets and current liabilit ies, more accurate will be estimation of the requirement of ________. Correct Answer Working capital Your Answer Working capital True/False Question Debt Equity ratio is a Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Organisation and Management Strikes/lay-offs/lockouts etc. Strikes/lay-offs/lockouts etc. Material inputs and utilities

Solvency ratio

Stock of raw material Stock of raw material Working capital Sanctioned bank limit Sanctioned bank limit Marketing Pricing policy Pricing policy Multiple Choice Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative Select The Blank Question ________ in liabilities involves inflow of funds. Correct Answer Increas Y e our Answer Increas e Select The Blank Question The ________ market is longer the order of the day since this is an era of profe ssionalization and specialised services are available at Correct cost. Answer Monopolistic Your Answer Monopolistic Multiple Choice Multiple Answer Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Moving Averages method , Trend Projection method Your Answer Trend Projection method , Moving Averages method Multiple Choice Single Answer Question Borrower s contribution towards Working capital is known as :Correct Answer Margin money Your Answer Margin money Multiple Choice Single Answer Question A project objective which states "What Correct Answer Strategic perspective Your Answer Strategic perspective Multiple Choice Single Answer Question

is to be viewed" is termed as :-

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 Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer General Select The Blank Question Under ________ method, the forecasts are modified in the light of observed error s. Correct Answer Exponential smoothing Your Answer Exponential smoothing 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 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 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 The basic document for facilitating Project financing is the :Correct Answer Detailed Project report Your Answer Detailed Project report 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 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 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 fo r expansion or other purpose. Correct Answer Dividend Your Answer Dividend 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 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 the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investment 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 com mitment of varied skills and resources It is one-shot, time-limited, goal oriented, major undertaking requiring the com mitment of varied skills and resources Pre-feasibility study It is a preliminary assessment of the project idea to determine whether or not t he investment opportunity is promising It is a preliminary assessment of the project idea to determine whether or not t he investment opportunity is promising Multiple Choice Single Answer Question Psychographic market appraisal answers to :Correct Answer Why they buy?

Your Answer Why they buy? at 5:00 AM 0 comments Links to this post Labels: Project Finance Project Finance - 2 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Internal accruals , Share capital , Term loans Your Answer Internal accruals , Share capital , Term loans Multiple Choice Multiple Answer Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Internal measure , Quick ratio True/False Question Export Market is a technique used for forecasting under Commercial appraisal tec hnique. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new shares Your Answer Cash from operations , Sale of machinery , Issue of new shares Multiple Choice Single Answer Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of the society as a whol e Your Answer Adopted as a guide depending on the consumption pattern of the society as a whol e Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Book debts

Select The Blank Question In the GE s Stop Light Matrix, when ________ situation prevails , Products call for divestment. Correct Answer Average Business Strength and Low Industry attractiveness Your Answer Average Business Strength and Low Industry attractiveness Select The Blank Question Detailed Project Report is generally prepared from a ________ report with additi onal information. Correct Answer Feasibility Your Answer Feasibility Multiple Choice Single Answer Question The third phase of the technical appraisal which focuses upon appraising the lik ely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation Your Answer Problems pertaining to the period when the project is in operation Multiple Choice Single Answer Question The acronym for LPG is :Correct Answer Liberalisation, Privatisation and Globalisation Your Answer Liberalisation, Privatisation and Globalisation True/False Question Miscellaneous expenditure is written on the asset side of the Balance sheet. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Defaults category of the Project report may be in respect of :Correct Answer Term loans , Principal , Interest Your Answer Term loans , Principal , Interest Multiple Choice Multiple Answer Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks Your Answer Stars , Question marks Select The Blank

Question ________ tries to have what the customer will want- where, when, in what form an d at what price. Correct Answer Marketing Your Answer Marketing Multiple Choice Single Answer Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project Your Answer The total of all items of outlay associated with a project Select The Blank Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Your Answer Land and site development Multiple Choice Multiple Answer Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Select The Blank Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer Inflow of cash True/False Question A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners. Correct Answer True Your Answer True Multiple Choice Single Answer Question Sources of funds include :Correct Answer Increase in secured borrowing Your Answer Increase in secured borrowing Select The Blank Question In the GE s Stop Light Matrix, when ________ situation prevails, Products call f

or Hold. Correct Answer Average Business Strength and Medium Industry Attractiveness Your Answer Average Business Strength and Medium Industry Attractiveness Multiple Choice Multiple Answer Question As per the GE s Stop Light Matrix, Products may justify substantial commitment o f funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness True/False Question Ratios are based only on the information which has been recorded in the financia l statements. Correct Answer True Your Answer True True/False Question Trend projection method is the important technique for forecasting demand. Correct Answer True Your Answer True Multiple Choice Single Answer Question "Fly by night" operator mentality is a :Correct Answer Management quality Your Answer Management quality Multiple Choice Multiple Answer Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans Your Answer Purchase of fixed assets , Payment of long term loans Multiple Choice Single Answer Question A Project is a temporary endeavor to achieve some specific objectives within a : Correct Answer Predefined time Your Answer Predefined time Multiple Choice Single Answer

Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun True/False Question Ratio analysis is a technique of planning and control. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the factory Your Answer Name of the Industrial concern , Proposed product , Location of the factory Multiple Choice Multiple Answer Question After the SPACE chart is constructed, we would normally get any one of the follo wing basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture Your Answer Aggressive Posture , Competitive Posture , Defensive Posture True/False Question The emphasis of a finance manager should be on taking a synergistic view of the project rather than looking at it only from the financial aspects. Correct Answer True Your Answer True Multiple Choice Single Answer Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate Your Answer Relative Market share and Industry Growth rate True/False Question Change in the project concept itself may lead to cost and time overrun. Correct Answer True Your Answer True Select The Blank Question The company having ________, is appropriate for the strategic posture of Conserv

ative under the SPACE approach. Correct Answer Limited competitive advantage, belonging to a not so attractive industry but enj oying financial strength and operating in a relatively stable environment Your Answer Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Correct Answer Financing plan Your Answer Financing plan Match The Following Question Correct Answer Your Answer Increase in current Decreases liabilities working capital Decreases working capital Increase in Inflow of funds liabilities Inflow of funds Decrease in Outflow liabilitiesof funds Outflow of funds Increase in current Increases working capital assets Increases working capital Multiple Choice Multiple Answer Question Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit and loss ac count to arrive at operating profits Your Answer Item of current liabilities , Added back to the profit as per profit and loss ac count to arrive at operating profits Multiple Choice Multiple Answer Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet Your Answer Profit and Loss Account , Balance Sheet Multiple Choice Single Answer Question The industrial concern earned profits by increasing the sales volume under the : Correct Answer Sales concept Your Answer Sales concept

Multiple Choice Single Answer Question The entire life of the project is taken into account under :Correct Answer Average rate of return method Your Answer Average rate of return method Match The Following Question Correct Answer Your Answer General functional layout Present the general relationship between equipment buildings and civil works Present the general relationship between equipment buildings and civil works Location Broad area such as city, industrial belt etc. Broad area such as city, industrial belt etc. Site Specific piece of land where the project would be set up Specific piece of land where the project would be set up Plant layout Physical layout of the factory Physical layout of the factory Multiple Choice Single Answer Question Geographic market appraisal answers to :Correct Answer Where do the customers live? Your Answer Where do the customers live? True/False Question In the BCG Matrix, the key term of Cash Cows require further commitment of funds . Correct Answer False Your Answer False True/False Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Your Answer False Select The Blank Question A smaller unit into which the overall requirement of capital of a company is sub -divided is termed as ________. Correct Answer Share Your Answer Share

Select The Blank Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer Application at 4:59 AM 0 comments Links to this post Labels: Project Finance Project Finance - 1 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank Question The basic difference between the feasibility study report and ________ is the le vel of accuracy and degree of detail. Correct Answer Detailed Project report Your Answer Audit report True/False Question The cost factors of the product mixed is also taken into account to arrive at co st at various levels of production and its cost impact of the manufacturing. Correct Answer True Your Answer True Select The Blank Question ________ is a current asset Correct Answer Book debts Your Answer Trade credit Multiple Choice Single Answer Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price - Variables) Your Answer Fixed cost / ( Sales Price - Variables) True/False Question Banks and Financial Institutions, world-wide, are now financing projects with st rategies and terms that would have been hard to believe/imagine just a few years back. Correct Answer True Your Answer True Multiple Choice Single Answer

Question Liabilities side of Balance sheet includes :Correct Answer Unsecured loans Your Answer Unsecured loans Multiple Choice Single Answer Question Net Working Capital means :Correct Answer Current assets less Current Your Answer liabilities Current assets less Current liabilities Multiple Choice Multiple Answer Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial Relationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Relationship True/False Question It is mandatory for each unit to obtain necessary clearance from Pollution Contr ol Authorities before setting up any project. Correct Answer True Your Answer True True/False Question Debt Service Coverage Ratio is one of the most important ratios calculated by th e bankers or financial institutions giving long term finance to the organisation . Correct Answer True Your Answer True Select The Blank Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and mark etable Correct Answer securities. Fund Your Answer Investment Multiple Choice Multiple Answer Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans Your Answer Purchase of fixed assets , Payment of long term loans , Issue of new machinery Select The Blank

Question ________ tries to have what the customer will want- where, when, in what form an d at what price. Correct Answer Marketing Your Answer Marketing Multiple Choice Multiple Answer Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Your Answer Trend Projection method , Consumption-level method , Moving Averages method Multiple Choice Single Answer Question Disposal of fixed assets is categorised under :Correct Answer Miscellaneous Your Answer Land and site cost Multiple Choice Multiple Answer Question Financial and economic aspect of the Visit report consists of :Correct Answer Company s financial year , Impact of Government policies on company operations , Comments on the last published accounts Your Answer Company s financial year , Impact of Government policies on company operations , Comments on the last published accounts Match The Following Question Correct Answer Your Answer Project organisation Finance manager Finance manager General category of Project report Location of factory Consultancy fees Cost aspect of the project report Consultancy fees Location of factory Financing plan Unsecured loans Unsecured loans Multiple Choice Multiple Answer Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution Your Answer Demand forecasting , Promotion , Distribution Multiple Choice Multiple Answer

Question Marketing category of the Project report consists of :Correct Answer Pricing policy , Target market , Market potential Your Answer Target market , Market potential , Pricing policy Multiple Choice Multiple Answer Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Your Answer Depreciation , Preliminary expenses written off , Increase in secured borrowing Match The Following Question Correct Answer Your Answer Moving into new areas/product lines Diversification Projects Modernisation Projects Suppliers credit Short term finance Short term finance Deferred credit Long term finance Long term finance Setting up new units New Projects New Projects Multiple Choice Single Answer Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate Your Answer Relative Market share and Industry Growth rate Multiple Choice Single Answer Question Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Your Answer Building cost Multiple Choice Multiple Answer Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Location of the factory Your Answer Proposed product , Location of the factory , Land cost True/False Question The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison.

Correct Answer False Your Answer False Select The Blank Question In the GE s Stop Light Matrix, when ________ situation prevails , Products call for divestment. Correct Answer Average Business Strength and Low Industry attractiveness Your Answer Weak Business strength and high Industry attractiveness Multiple Choice Multiple Answer Question Provision for tax can be treated as :Correct Answer Item of current liabilities , Added back to the profit as per profit and loss ac count to arrive at operating profits Your Answer Added back to the profit as per profit and loss account to arrive at operating p rofits , Item of current assets , Item of working capital Multiple Choice Single Answer Question The cost of Plant and Machinery may be adjusted for a possible increase known as :Correct Answer Escalation Your Answer Escalation Multiple Choice Single Answer Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Your Answer Financial analysis True/False Question The advantage of secondary sources of data is that it is readily and economicall y available. Correct Answer True Your Answer True True/False Question Debt Equity ratio is a Correct Answer True Your Answer True Select The Blank Question

Solvency ratio

Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Salaries Select The Blank Question Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Internal Select The Blank Question In order to meet the cost of large project, the technique of ________ has been d eveloped so that the financial commitment and risks associated with a project ar e shared between the project sponsor and the lending institutions. Correct Answer Limited recourse financing Your Answer Unlimited recourse financing True/False Question A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners. Correct Answer True Your Answer True Multiple Choice Single Answer Question The third phase of the technical appraisal which focuses upon appraising the lik ely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation Your Answer Problems pertaining to the period when the project is in operation Select The Blank Question More accurate the estimation of the level of current assets and current liabilit ies, more accurate will be estimation of the requirement of ________. Correct Answer Working capital Your Answer Working capital True/False

Question Ratio analysis is a technique of planning and control. Correct Answer False Your Answer True True/False Question Cost and time overrun of the project may lead to loss on account of lost market opportunities. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question While choosing the location for a project, the following factors should be consi dered :Correct Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment policies and other factors Your Answer Proximity to raw materials and markets , Availability of infrastructure , Govern ment policies and other factors Multiple Choice Single Answer Question In the Cash flow statement, the sources of funds include :Correct Answer Development rebate reserve Your Answer Development rebate reserve Select The Blank Question Name and designation of the chief executive comes under the ________ category. Correct Answer General Your Answer Project organisation Multiple Choice Multiple Answer Question As per the GE s Stop Light Matrix, Products may justify substantial commitment o f funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness , Average Business str ength and high Industry attractiveness Multiple Choice Single Answer Question The BCG product Portfolio Matrix, General Electric Stop Light Matrix and Strateg ic Position and Action Evaluation Model are considered to be highly relevant as :Correct Answer

Portfolio Planning Tools Your Answer Portfolio Planning Tools Select The Blank Question Position regarding requirement and training of operational staff comes under the ________ category of Project report. Correct Answer Project organisation Your Answer General category Multiple Choice Single Answer Question The emphasis of the Banks and Financial institutions particularly in India has s hifted from Sanctions , Disbursements and Security-orientation /Recycling and :Correct Answer Activity orientation Your Answer Activity orientation 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 loa ns 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 un der the :Correct Answer Sales concept Your Answer Marketing concept Total SET 16 MATCH 1 Project organization Finance manager

to

Recovery

General category of Project report Location of factory Cost aspect of the project report Consultancy fees Financing plan Unsecured loans 2 Private investment Power generation Project Time -bound Programme Not necessarily time bound Foreign direct investment Machine tools 3 Management problems lack of exposure Management Quality Initiative Management Perception Aspiration level/ conservative Organisational Climate Person oriented 4 Source of funds Depreciation Fixed assets Building Current assets Debtors Current liability Trade credit 5 Project appraisal It is the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investmen t Program 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 r equiring the commitment of varied skills and resources Pre-feasibility study It is a preliminary assessment of the project idea to de termine whether or not the investment opportunity is promising

6 Increase in current liabilities Decreases working capital Increase in liabilities Inflow of funds Decrease in liabilities Outflow of funds Increase in current assets Increases working capital 7 Permanent Working Capital finance Shares Capital budgeting Acquire fixed Working capital Invest in current asset Inflationary conditions Working capital requirement high 8 Export market technique of Commercial appraisal Government provides ampl e encouragement Demand Technique forecasting of Commercial appraisal Future demand of the pro duct Past trend method of Commercial appraisal 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 9

Organisation and Management Strikes/lay-offs/lockouts etc. Material inputs and utilities Stock of raw material Working capital Sanctioned bank limit Marketing Pricing policy 10 Technical aspect of detailed project report Detailed Project EngineeringFinancial aspect of Detailed Project report Profitability Marketing aspect of Detailed Project report Distribution Management aspect of detailed project report ;Conservativeness 11 Econometric method Mathematical representation of economic relation ship Primary source of data Market survey Secondary source of data Collected in some other context Leading indicators Variables that change faster than others 12 General functional layout Present the general relationship between equipm ent buildings and civil works Location Broad area such as city, industrial belt etc. Site Specific piece of land where the project would be set up Plant layout Physical layout of the factory 13 Moving into new areas/product lines Diversification Projects Suppliers credit Short term finance Deferred credit Long term finance Setting up new units New Projects 14 Project Financing Help improving Corporate Return on Equity Finance in international financial markets Issue of Euro International financial institutions World Bank Policy of Liberalisation, Privatisation and Globalisation Increasing empha sis on the Private initiative 15 Environmental stability dimension under SPACE Model involves Demand variabili ty Company s competitive advantage dimension under SPACE Model involves Product life cycle Company s financial strength dimension under SPACE Model involves Leverage liquidity Industry strength dimension under SPACE Model involves Profit potential Match The Following Question Correct Answer Your Answer Plant and machinery cost Foundation and erection charges Cost of factory building Preliminary and capital issue expenses Brokerage and commission Brokerag e and commission Land and site development cost Cost of laying roads Cost of laying roads

Building cost Cost of factory building Foundation and erection charges SET 1 Question The objectives of the funds flow statement is as follows :Correct Answer To help to understand the changes in assets as well as a sset sources which are not revealed by the income statement , To find out the us es of loans raised by the business , To indicate the financial strength and weak ness of the business Your Answer To find out the uses of loans raised by the business , To help t o understand the changes in assets as well as asset sources which are not reveal ed by the income statement , Helps to prepare financial statements Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer Inflow of cash Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Question The Detailed Project report spells out the modus operandi for th e implementation of the Project and the realization of the Project objectives. Correct Answer True Question As the plant capacity increase, the investment cost unit capacit y ________. Correct Answer Decreases Your Answer Decreases Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Go odwill written off Your Answer Funds from operation , Loss on sale of fixed assets 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 qua ntity and volume is arrived at 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 Question In small scale organisation, requirement of working capital is q uite high due to high amount of overheads, high buying costs and high selling co st. Correct Answer True Your Answer True Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Question Sanctioned bank limits is categorised under :Correct Answer Working capital Your Answer 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 Question Trend projection method is the important technique for forecasti ng demand. Correct Answer True Question The emphasis of a finance manager should be on taking a synergis tic view of the project rather than looking at it only from the financial aspect s. Correct Answer True Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer Increase 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 Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Question Location of the factory comes under the ________ category of the Project report. Correct Answer General Your Answer General Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Internal accruals Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Question Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Question ________ tries to have what the customer will want- where, when, in what form and at what price. Correct Answer Marketing Your Answer Marketing Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Strategic perspective Question A project objective which states "What ed as :Correct Answer Strategic perspective Your Answer Social aspect is to be viewed" is term

Question Nominal maximum capacity is the capacity that is technically att ainable and this corresponds to the supplier s guaranteed capacity. Correct Answer True Your Answer True Question In order to meet the cost of large project, the technique of ___ _____ has been developed so that the financial commitment and risks associated w ith a project are shared between the project sponsor and the lending institution s. Correct Answer Limited recourse financing Your Answer Long term financing 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 futur e benefits 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 s ociety as a whole 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 Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Question Investors who invest in the debentures of the company are the __ ______ of the company. Correct Answer Creditors Your Answer Creditors Question As per the GE s Stop Light Matrix, Products may justify substant ial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractivenes s , Average Business strength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness , Aver age Business strength and high Industry attractiveness Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative Question The industrial concern earned profits by increasing the sales vo lume under the :Correct Answer Sales concept Your Answer Sales concept Question The BCG Matrix analysis various products of the organisation i n the terms of Business strength and Industry Attractiveness. Correct Answer False

Question Detailed Project Report is generally prepared from a ________ re port with additional information. Correct Answer Feasibility Your Answer Feasibility Question Delay in arrival of domestic/foreign machinery and technicians m ay lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Question Miscellaneous expenditure is written on the asset side of the Ba lance sheet. Correct Answer True Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Loca tion of the factory Your Answer Name of the Industrial concern , Proposed product , Location of the factory Question A Project is a temporary endeavor to achieve some specific objec tives within a :Correct Answer Predefined time Your Answer Predefined time 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 infrast ructure , Government policies and other factors Question The sources of long term and medium term finance are :Correct Answer Equity shares , Public deposit Your Answer Equity shares , Public deposit 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 Question The second phase of the technical appraisal which focuses upon a ppraising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project imple mentation Your Answer Problems faced during the Construction and Project implementatio n Question The third phase of the technical appraisal which focuses upon ap praising 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 operati on SET 2 Question ________ is a current liability.

Correct Answer Trade credit Your Answer Trade credit 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 Question Under the SPACE Model, Customer loyalty is determined under the ___ _____ dimension. Correct Answer Company s competitive advantage Your Answer Company s competitive advantage Question Sources of funds include :Correct Answer Increase in secured borrowing Your Answer Increase in secured borrowing Question It is mandatory for each unit to obtain necessary clearance from Po llution Control Authorities before setting up any project. Correct Answer True Your Answer False Question A project objective which states "What as :Correct Answer Strategic perspective Your Answer Strategic perspective is to be viewed" is termed

Question ________ tries to have what the customer will want- where, when, in what form and at what price. Correct Answer Marketing Your Answer Marketing Question Debt Service Coverage Ratio is one of the most important ratios cal culated by the bankers or financial institutions giving long term finance to the organisation. Correct Answer True Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative Question The second phase of the technical appraisal which focuses upon appr aising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project implementa tion Your Answer Problems faced during the Construction and Project implementatio n Question A project is unique and no two projects are similar. Correct Answer True Question Land and site development cost includes cost of :Correct Answer Gates Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Your Answer Finance cost aspect Question ________ in assets involves outflow of funds. Correct Answer Increase

Question Disposal of fixed assets is categorised under :Correct Answer Miscellaneous Your Answer Miscellaneous 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 Question Geographic market appraisal answers to :Correct Answer Where do the customers live? Your Answer Where do the customers live? Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance Question ________ occupies a unique position in the macro economic developme nt which helps in induction of new technology and facilitates, greater efficienc y as well as higher productivity. Correct Answer Investment Your Answer Production Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of fu ture benefits Your Answer That it involves current outlay of funds in expectation of futur e benefits Question Pre-operative expenses include :Correct Answer Interest on deferred payments Your Answer Interest on deferred payments Question Advantages of fund flow statement are :Correct Answer It determines financial consequences of the business operatio ns , 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 Question Managerial problems in a project are the most pervasive. Correct Answer True Your Answer True Question In the BCG Matrix "DOGS" indicate products which are generally duri ng the stage of Decline of a Product Life Cycle. Correct Answer True 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 Question Debt Equity ratio is a Correct Answer True Question Current assets includes stock-in-process. Correct Answer True Solvency ratio .

Question A project objective can be said to have the following dimensions vi z.: Correct Answer Strategic perspective , Time span , Finance cost aspect Your Answer Strategic perspective , Time span , Finance cost aspect Question Liabilities side of Balance sheet includes :Correct Answer Unsecured loans Question The rate of discount which would equate the present value of invest ments to the present value of benefits over the life of the project is known as :Correct Answer Internal rate of return Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Your Answer Life cycle 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 Question ________ is the summary of cash book or Receipts and Payments state ment. Correct Answer Cash flow statement Your Answer Cash flow statement 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 Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution Your Answer Demand forecasting , Promotion , Distribution Question The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensati on Your Answer Environmental factors , Risk involved , Managerial compensation Question Casual methods of Demand forecasting consists of Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Question Under _______ method, the forecasts are modified in the light of ob served errors. Correct Answer Exponential smoothing Your Answer Exponential smoothing 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 arriv e at operating profits , Item of current assets , Item of working capital

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 Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Question The ratio that roughly measures the company cash is termed as :Correct Answer Net Working capital to total assets Your Answer Net Working capital to total assets s potential reserve of

Question Name and designation of the chief executive comes under the _______ _ category. Correct Answer General Your Answer General Question Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Question In the Cash flow statement, the sources of funds include Correct Answer Share Issue Your Answer Share Issue SET 3 Question Land and site development comes under the cost aspect of the Projec t report. Correct Answer True Question Location of the factory comes under the :Correct Answer General category Your Answer General category Question The sources of funding have expanded from banks, insurance companie s and multilateral agencies to include the :Correct Answer Capital market Your Answer Debt market Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Your Answer Cost of electricity Question The Detailed Project report spells out the modus operandi for the i mplementation of the Project and the realization of the Project objectives. Correct Answer True Your Answer True Question Debt Service means payment of installments and interest against an amount borrowed as per terms of loan. Correct Answer True Your Answer True Question The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison.

Correct Answer False Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Management problems Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks Your Answer Stars , Question marks , Invest Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True 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 Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial R elationship Your Answer Linear Relationship , Chain ratio Relationship , Exponential Rel ationship Question Delay in arrival of domestic/foreign machinery and technicians may lead to :Correct Answer Cost and time overrun Your Answer Profit maximisation Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of th e society as a whole Your Answer Adopted as a guide depending on the consumption pattern of the s ociety as a whole Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges t he 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 informati on but only rearranges the various facts Question As the plant capacity increase, the investment cost unit capacity _ _______. Correct Answer Decreases Your Answer Increases Question Preoperative expenses includes :Correct Answer Bank guarantees Your Answer Brokerage on capital issue Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun 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 Question For computing Interest coverage ratio, Profit after Interest and ta xes are taken into account. Correct Answer False Question The ratio which covers those assets which can be converted into cas h immediately is known as :Correct Answer Quick ratio Your Answer Current ratio Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of th e board Your Answer Managing Director , Electrical engineers , Institutional nominee s 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 Question The basic document for facilitating Project financing is the :Correct Answer Detailed Project report Your Answer Detailed Project report 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 Question Ratio should be computed on the basis of inter-related figures whic h have a cause and effect relationship. Correct Answer True 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 availabili ty and supply of the product 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 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 Question More accurate the estimation of the level of current assets and cur rent liabilities, more accurate will be estimation of the requirement of _______ _. Correct Answer Working capital Your Answer Working capital Question Defaults category of the Project report may be in respect of :Correct Answer Term loans , Principal , Interest

Your Answer Term loans , Principal , Interest Question If the organisation is a trading organisation, the requirement of w orking capital will be on the lower side. Correct Answer False Question Cost of fencing comes under the ________ category of the Project re port. Correct Answer Land and site development Your Answer Building cost 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 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 se cured borrowing , Preliminary expenses Question The Projects which are undertaken to manufacture certain products w hich are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Your Answer Backward Integration Projects Question In the GE s Stop Light Matrix, when ________ situation prevails , P roducts call for divestment. Correct Answer Average Business Strength and Low Industry attractiveness Your Answer Weak Business strength and high Industry attractiveness Question Investors who invest in the debentures of the company are the _____ ___ of the company. Correct Answer Creditors Your Answer Creditors 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 Question Dissentions among the promoters is a :Correct Answer Management problem Your Answer Management perception Question Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Does not result Question The secondary data is collected through market survey, specific for the project being appraised. Correct Answer False Your Answer False Question Profit is the result of customer satisfaction, indeed customer deli ght under the :Correct Answer Marketing concept Your Answer Marketing concept

Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwil l written off Your Answer Funds from operation , Goodwill written off , Funds from long te rm loans SET 4 Question The permanent requirement of working capital should be financed out of :Correct Answer Debentures , Cash Profits , Shares Your Answer Debentures , Cash Profits , Shares 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 Question The emphasis of the Banks and Financial institutions particularly i n India has shifted from Sanctions , Disbursements and to Recovery/Recycling and :Correct Answer Activity orientation Your Answer Activity orientation Question Technology, design, layout of the plant as well as inputs and infra structural facilities are to be considered under :Correct Answer Technical appraisal Your Answer Financial appraisal Question Detailed Project Report is generally prepared from a ________ repor t with additional information. Correct Answer Feasibility Your Answer Feasibility Question A high debt equity ratio may indicate that the financial stake of t he creditors is more than that of the owners. Correct Answer True Your Answer True Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price - Variables) Your Answer (Profit after tax +Depreciation + Interest)/ Interest Question Receivables is categorised under :Correct Answer Current assets and liabilities Your Answer Material inputs and utilities Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Debt Equity ratio , Internal measure Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Fixed assets Question In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system orien ted Security-orientation

Your Answer Organisation Building , Person / system oriented , Promoter uity / stake 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 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 Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Your Answer Decrease in funds Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block Your Answer cost of development , Factory building , Auxiliary buildings Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities. Correct Answer Fund Question Name of the finance manager comes under the Project organisation ca tegory of the Project report. Correct Answer True Question Change in the project concept itself may lead to cost and time over run. Correct Answer True Question The maximum Seed Capital assistance provided by IDBI under the proj ect will be restricted to 50% of the required promoter s contribution or Rs. 50 lakhs whichever is lower. Correct Answer False Question Trend projection method is the important technique for forecasting demand. Correct Answer True Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sale s trends Your Answer Utilisation of installed capacity , Input availability Question The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new share s Your Answer Purchase of fixed assets , Cash from operations , Sale of machin ery 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 Question Production line diagrams show the organisation structure of the pro ject along with information on location, personnel required for various departme

s eq

nts, and their inter-relationship. Correct Answer False Question ________ is a current asset Correct Answer Book debts Question The company having ________, is appropriate for the strategic postu re of Defensive under the SPACE approach. Correct Answer Lacks both competitive advantage as well as financial strengt h and belongs to a not so attractive industry, operating in an unstable environm ent Your Answer High financial strength, high industrial strength, enjoying a co mpetitive advantage and belonging to an attractive industry, operating in a rela tively stable environmental conditions Question Management aspect of detailed project report includes Correct Answer Organisation structure Your Answer Demand forecasting Question ________ profitability reduces the strain on working capital. Correct Answer High Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income Your Answer Operating Profit , Operating Loss , Non operating Income Question The cash flow of all the years during the expected life of the proj ect 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 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 ind icate the financial strength and weakness of the business , To help to understan d the changes in assets as well as asset sources which are not revealed by the i ncome statement Your Answer To find out the uses of loans raised by the business , To indica te the financial strength and weakness of the business , To help to understand t he changes in assets as well as asset sources which are not revealed by the inco me statement Question Cost of materials include :Correct Answer Cost of components and consumable stores Your Answer Cost of electricity Question The Detailed Project report must indicate the gestation period of t he project. Correct Answer True 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 q uality in its planning systems Select The Blank Question Location of the factory comes under the ________ category of the Pr oject report. Correct Answer General Your Answer General

Select The Blank Question Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Internal 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 Question Short term finance is normally for a period upto ________ year. Correct Answer One Question Appointments made at senior level during the half-year is categoris ed under :Correct Answer Organisation and management Your Answer Current assets and liabilities Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer Application 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 Question Cost of utilities include :Correct Answer Cost of electricity Your Answer Cost of components and consumable stores Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Your Answer Detailed Project Engineering Question In both the extreme situations of trade cycles i.e. Inflation and d epression, requirement of working capital may be high. Correct Answer True Your Answer False Question While choosing the location for a project, the following factors sh ould be considered :Correct Answer Proximity to raw materials and markets , Availability of infr astructure , Government policies and other factors Your Answer Proximity to raw materials and markets , Plant capacity , Availa bility of infrastructure SET 5 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 Question A project can be regarded as the sum of the activities directed tow ards a :Correct Answer Specific result

Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Question There is a need for studying Project finance both for the lenders a s well as the borrowers as both of them have equal stake in making the Project a success. Correct Answer True Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans Question The cash flow of all the years during the expected life of the proj ect are discounted at a pre-determined cut off rate and :Correct Answer Net Present value is obtained 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 Question Managerial problems in a project are the most pervasive. Correct Answer True Question Past trend method of Commercial appraisal technique is :Correct Answer Adopted as a guide depending on the consumption pattern of th e society as a whole Question Demographic market appraisal answers to Correct Answer Who they are? Your Answer Where do the customers live? 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 Question In the Cash flow statement, the sources of funds include :Correct Answer Development rebate reserve Your Answer Development rebate reserve Question More accurate the estimation of the level of current assets and cur rent liabilities, more accurate will be estimation of the requirement of _______ _. Correct Answer Working capital Your Answer Working capital Question In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system orien ted Your Answer Determination , Organisation Building , Person / system oriented Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Question Management qualities includes :-

Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative Question ________ capital represents permanent capital. Correct Answer Equity Your Answer Preference Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Your Answer Portfolio analysis Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sale s trends Your Answer Utilisation of installed capacity , Input availability , Sales t rends 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 pr ofit and loss account to arrive at operating profits Question In both the extreme situations of trade cycles i.e. Inflation and d epression, requirement of working capital may be high. Correct Answer True Question Export Market is a technique used for forecasting under Commercial appraisal technique. Correct Answer True Question The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensati on Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution Question Debt Service means payment of installments and interest against an amount borrowed as per terms of loan. Correct Answer True Question Short term finance is normally for a period upto ________ year. Correct Answer One Question Name of the finance manager comes under the Project organisation ca tegory of the Project report. Correct Answer True Your Answer True Question Details regarding Bridge finance comes under the ________ category of Project report. Correct Answer Financing plan Your Answer Cost aspect

Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance Question Net Working Capital means :Correct Answer Current assets less Current liabilities Your Answer Capital Budgeting Question ________ in liabilities involves inflow of funds. Correct Answer Increase Your Answer Decrease Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of fu ture benefits Your Answer That it involves current outlay of funds in expectation of futur e benefits Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial R elationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Rela tionship Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges t he 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 Question Bilateral aid is form of external aid from one government to another government which is usually project specific. Correct Answer True 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 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 se cured borrowing Question Position regarding requirement and training of operational staff co mes under the ________ category of Project report. Correct Answer Project organisation Your Answer Project organisation Question A smaller unit into which the overall requirement of capital of a c ompany is sub-divided is termed as ________. Correct Answer Share Question Banks and Financial Institutions, world-wide, are now financing pro jects with strategies and terms that would have been hard to believe/imagine jus t a few years back. Correct Answer True

Question A project objective which states "What as :Correct Answer Strategic perspective Your Answer Strategic perspective

is to be viewed" is termed

Question For computing Interest coverage ratio, Profit after Interest and tax es are taken into account. Correct Answer False 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 SET 6 Question Trend projection method is the important technique for forecasting demand. Correct Answer True Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource all ocation Your Answer Is a tool for strategic ( product ) planning and resource alloca tion Question A market survey generally is a ________ survey. Correct Answer Sample Your Answer Primary Question ________ capital represents permanent capital. Correct Answer Equity Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of fu ture benefits Your Answer That it involves current outlay of funds in expectation of futur e benefits Question Nominal maximum capacity is the capacity that is technically attain able and this corresponds to the supplier s guaranteed capacity. Correct Answer True 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 Question There is a need for studying Project finance both for the lenders a s well as the borrowers as both of them have equal stake in making the Project a success. Correct Answer True Your Answer True Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of th e board Your Answer Managing Director , Institutional nominees , Committees of the b oard

Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Financial arrangement Question Debt service coverage ratio indicates whether cash earned is suffic ient for debt service. Correct Answer True Your Answer False Question The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensati on Your Answer Environmental factors , Risk involved , Political issues Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income Your Answer Operating Profit , Non operating Income Question ________ occupies a unique position in the macro economic developme nt which helps in induction of new technology and facilitates, greater efficienc y as well as higher productivity. Correct Answer Investment Your Answer Production Question In both the extreme situations of trade cycles i.e. Inflation and d epression, requirement of working capital may be high. Correct Answer True Your Answer True Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution Your Answer Demand forecasting , Promotion , Distribution Question The Projects which are undertaken to manufacture certain products w hich require the products of existing units as raw material is known as :Correct Answer Forward Integration Projects Your Answer Backward Integration Projects 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 , Ex port market , Future availability and supply of the product Question Details regarding Administrative / controlling office comes under t he ________ category. Correct Answer General Your Answer Cost aspect 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 Question While choosing the location for a project, the following factors sh ould be considered :Correct Answer Proximity to raw materials and markets , Availability of infr astructure , Government policies and other factors Your Answer Proximity to raw materials and markets , Availability of infrast ructure , Government policies and other factors 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 Question Financial and economic aspect of the Visit report consists of :Correct Answer Company s financial year , Impact of Government policies on c ompany operations , Comments on the last published accounts Your Answer Company s financial year , Impact of Government policies on comp any operations , Sales trends Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Question Current assets includes stock-in-process. Correct Answer True Question A project objective which states "What as :Correct Answer Strategic perspective Your Answer Strategic perspective is to be viewed" is termed

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 Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Your Answer Share capital , Term loans , Internal accruals Question Disposition of funds includes :Correct Answer Interest on term loans Your Answer Increase in secured borrowing Question Gross Working Capital means :Correct Answer Current assets Your Answer Current assets less Current liabilities Question ________ in assets involves outflow of funds. Correct Answer Increase Your Answer Increase 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

Question Debt Equity ratio is a Correct Answer True Your Answer True

Solvency ratio

Question Investors who invest in the debentures of the company are the _____ ___ of the company. Correct Answer Creditors Your Answer Creditors Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Your Answer Working capital Question Cost and time overrun of the project may lead to loss on account of lost market opportunities. Correct Answer True Your Answer True Question The ratio which indicates the ability of the company to meet curren t obligations is termed as :Correct Answer Current ratio Your Answer Current ratio Question The third phase of the technical appraisal which focuses upon appra ising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in oper ation Your Answer Problems pertaining to the period when the project is in operati on 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 Question Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True 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 Question Infrastructural projects include :Correct Answer Power Generation and Distribution Your Answer Power Generation and Distribution 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 Question Preliminary expenses include :Correct Answer Drafting of Memorandum expenses Your Answer Drafting of Memorandum expenses SET 7 Question A smaller unit into which the overall requirement of capital of

a company is sub-divided is termed as ________. Correct Answer Share Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price - Variables) Question ________ is a current liability. Correct Answer Trade credit Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Your Answer Financing plan Question Cost and time overrun of the project may lead to loss on account of lost market opportunities. Correct Answer True Question Land and site development comes under the cost aspect of the Pro ject report. Correct Answer True Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative Question In the BCG Matrix, the key term of Cash Cows require further com mitment of funds. Correct Answer False Question The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , T o indicate the financial strength and weakness of the business , To help to unde rstand 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 Question Depreciation method may be :Correct Answer Straight line method Question A project objective can be said to have the following dimensions viz.: Correct Answer Finance cost aspect , Strategic perspective , Time span Your Answer Strategic perspective , Time span , Finance cost aspect Question A project can be regarded as the sum of the activities directed towards a :Correct Answer Specific result Question Details regarding Administrative / controlling office comes unde r the ________ category. Correct Answer General Question Retained earnings is a source of ________ finance. Correct Answer Internal Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the prod

uct , Future availability and supply of the product Your Answer Future demand of the product , Proper survey of the product , Fu ture availability and supply of the product Question The temporary requirement of working capital can be financed out of :Correct Answer Inter-corporate Deposits , Commercial Papers Your Answer Shares , Debentures , Commercial Papers Question Distribution channels for the product is categorised under :Correct Answer Marketing Question ________ occupies a unique position in the macro economic develo pment which helps in induction of new technology and facilitates, greater effici ency as well as higher productivity. Correct Answer Investment Your Answer Marketing Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Div idend Your Answer Increase in working capital , Dividend , Preliminary expenses wr itten off Question Delay in recruitment of staff may lead to cost and time overrun Correct Answer True Question Cost of overheads include :Correct Answer Cost of repairs and maintenance 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 futur e benefits 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 infrast ructure Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure Question ________ in assets involves outflow of funds. Correct Answer Increase Question The sources of funding have expanded from banks, insurance compa nies and multilateral agencies to include the :Correct Answer Capital market Question Ratio analysis is a technique of planning and control. Correct Answer False Question Debt Equity ratio is a Correct Answer True Solvency ratio .

Question Every project involves financial outlay which can be referred to

as :Correct Answer Project finance Question Interest and Dividend are to be considered while calculating Ope rating ratio. Correct Answer False Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer Application Question Demographic market appraisal answers to Correct Answer Who they are? Question For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Correct Answer False Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requir ement Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Question Name and designation of the chief executive comes under the ____ ____ category. Correct Answer General Question Delay in arrival of domestic/foreign machinery and technicians m ay lead to :Correct Answer Cost and time overrun Question The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Question Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Decreases Question Gross Working Capital means :Correct Answer Current assets Your Answer Current assets less Current liabilities Question Short term finance is normally for a period upto ________ year. Correct Answer One Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet

Your Answer Balance Sheet Question In both the extreme situations of trade cycles i.e. Inflation an d depression, requirement of working capital may be high. Correct Answer True SET 8 Question The Detailed Project report spells out the modus operandi for th e implementation of the Project and the realization of the Project objectives. Correct Answer True Question Production line diagrams show the organisation structure of the project along with information on location, personnel required for various depar tments, and their inter-relationship. Correct Answer False Question The second phase of the technical appraisal which focuses upon a ppraising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project imple mentation Question In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a hi gh growth rate Your Answer Products which enjoy a high market share as well as a high growt h rate Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Question A Project has a ________ represented by growth, maturity and dec ay. Correct Answer Life cycle Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting 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 Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question ________ is the summary of cash book or Receipts and Payments st atement.

Correct Answer Cash flow statement Your Answer Trial balance Question Receivables is categorised under :Correct Answer Current assets and liabilities Question A project is unique and no two projects are similar. Correct Answer True Question A Project is a temporary endeavor to achieve some specific objec tives within a :Correct Answer Predefined time Question ________ in liabilities involves inflow of funds. Correct Answer Increase Question The emphasis of a finance manager should be on taking a synergis tic view of the project rather than looking at it only from the financial aspect s. Correct Answer True Question Cost of utilities include :Correct Answer Cost of electricity Question Marketing category of the Project report consists of :Correct Answer Target market , Market potential , Pricing policy Question In BCG Matrix "QUESTION MARKS" indicate :Correct Answer Products which have high growth potential but low market share Question Location of the factory comes under the ________ category of the Project report. Correct Answer General Question It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project. Correct Answer True Question Disposition of funds includes :Correct Answer Interest on term loans Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Go odwill written off Your Answer Funds from operation Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Your Answer Application Question As per the GE s Stop Light Matrix, Products may justify substant ial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractivenes s , Average Business strength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness , Aver age Business strength and high Industry attractiveness , Average Business Streng th and Low Industry attractiveness Question The sources of long term and medium term finance are :-

Correct Answer Equity shares , Public deposit Your Answer Equity shares , Bridge loan , Working capital loan 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 ma nufacturing. Correct Answer True Question The various aspects which need to be considered while assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compe nsation Question Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering Question Advantages of fund flow statement are :Correct Answer It determines financial consequences of the business ope rations , It enables the firm to plan its financial resources properly , It help s as a reliable guide for the future requirement of funds Your Answer It determines financial consequences of the business operations , It enables the firm to plan its financial resources properly , It helps as a r eliable guide for the future requirement of funds 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 Pos ture Your Answer Aggressive Posture , Competitive Posture , Defensive Posture Question Details regarding Internal accruals comes under the ________ cat egory of Project report. Correct Answer Financing plan Your Answer General category Question The BCG Matrix analysis various products of the organisation i n the terms of Business strength and Industry Attractiveness. Correct Answer False 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 Question The Project Cycle should be in the ________ order Correct Answer Identification of Project - Project Appraisal - Negotiat ions for loans Your Answer Identification of Project - Project Appraisal - Negotiations for loans Question Financial analysis based on accounting ratios will give mis-lead ing results if the effects of changes in price level are not taken into account. Correct Answer True Question There is a need for studying Project finance both for the lender s as well as the borrowers as both of them have equal stake in making the Projec t a success. Correct Answer True Question A project objective which states "What is to be viewed" is term

ed as :Correct Answer Strategic perspective Question Current assets includes stock-in-process. Correct Answer True Question External sources of cash are as follows :Correct Answer Issue of new shares , Long term loans , Short term borro wings 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 qua ntity and volume is arrived at Question The Projects which are undertaken for further enhancing/augmenti ng the existing capacity is known as :Correct Answer Expansion Projects Question Sometimes the term ________ is interpreted as cash equivalent i. e. cash and marketable securities. Correct Answer Fund Your Answer Investment SET 9 Question 1 The advantage of secondary sources of data is that it is readily an d economically available. Correct Answer True Question2 In small scale organisation, requirement of working capital is qui te high due to high amount of overheads, high buying costs and high selling cost . Correct Answer True Question3 Banks and Financial Institutions, world-wide, are now financing pr ojects with strategies and terms that would have been hard to believe/imagine ju st a few years back. Correct Answer True Question 4 ________ is a current asset Correct Answer Book debts Your Answer Furniture Question 5 Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial R elationship Your Answer Linear Relationship , Exponential Relationship , Polynomial Rela tionship Question 6 Delays in infrastructure Development by State Agencies may lead t o :Correct Answer Cost and time overrun Your Answer Management problems Question 7 Technical aspect of detailed project report includes :Correct Answer Detailed Project Engineering Your Answer Detailed Project Engineering

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 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 Question 10 A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________. Correct Answer Share Question11 A project objective which states "What d as :Correct Answer Strategic perspective is to be viewed" is terme

Question 12 Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Question13 Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwil l written off Your Answer Funds from operation , Goodwill written off Question14 In the Detailed Project Report, Management aspects includes :Correct Answer Determination , Organisation Building , Person / system orien ted Your Answer Determination , Organisation Building , Person / system oriented Question15 Short term finance is normally for a period upto ________ year. Correct Answer One Question16 Current assets includes stock-in-process. Correct Answer True Question17 The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of fu ture benefits Your Answer That it involves current outlay of funds in expectation of futur e benefits 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 Question 19 ________ is a current liability. Correct Answer Trade credit Your Answer Trade credit Question20 Managerial problems in a project are the most pervasive. Correct Answer True Question21 Longer the duration of production cycle, higher the requirement o

f ________. Correct Answer Working capital Question22 Retained earnings is a source of ________ finance. Correct Answer Internal Your Answer Short term Question23 ________ is the summary of cash book or Receipts and Payments sta tement. Correct Answer Cash flow statement Your Answer Trial balance Question24 In the BCG Matrix, the key term of Cash Cows require further comm itment of funds. Correct Answer False Question25 Cost and time overrun of the project may lead to loss on account of lost market opportunities. Correct Answer True Question26 A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Question27 Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Question 28 In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high gr owth rate Your Answer Products which enjoy a high market share as well as a high growt h rate Question 29 Psychographic market appraisal answers to :Correct Answer Why they buy? Question30 Production line diagrams show the organisation structure of the p roject along with information on location, personnel required for various depart ments, and their inter-relationship. Correct Answer False Question31 While choosing the location for a project, the following factors should be considered :Correct Answer Proximity to raw materials and markets , Availability of infr astructure , Government policies and other factors Your Answer Proximity to raw materials and markets , Availability of infrast ructure , Government policies and other factors Question32 The cost which change in the same proportion in which the level o f production changes is known as :Correct Answer Variable cost Question33 Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Your Answer Decreases Question34 Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Debt Equity ratio , Quick ratio

Question35 Appointments made at senior level during the half-year is categor ised under :Correct Answer Organisation and management 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 Question37 Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sale s trends Question39 Every project involves financial outlay which can be referred to as :Correct Answer Project finance Your Answer Project finance 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 Question 41 The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet Question42 Short supplies of materials may lead to :Correct Answer Cost and time overrun Question43 After the SPACE chart is constructed, we would normally get any o ne of the following basic strategic postures :Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture Your Answer Aggressive Posture , Competitive Posture , Defensive Posture Question 44 ________ occupies a unique position in the macro economic develop ment which helps in induction of new technology and facilitates, greater efficie ncy as well as higher productivity. Correct Answer Investment Your Answer Marketing Question45 Infrastructural projects include :Correct Answer Power Generation and Distribution Question46 Name and designation of the chief executive comes under the _____ ___ category. Correct Answer General SET 10 Question Details regarding Internal accruals comes under the ________ cat egory of Project report. Correct Answer Financing plan Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requir ement

Question A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________. Correct Answer Share Question In order to meet the cost of large project, the technique of ___ _____ has been developed so that the financial commitment and risks associated w ith a project are shared between the project sponsor and the lending institution s. Correct Answer Limited recourse financing Question ________ is a current liability. Correct Answer Trade credit Question ________ is a current asset Correct Answer Book debts Question Debt Service coverage ratio may be considered to be one of the m ost important ratios calculated by the :Correct Answer Bankers , Financial Institutions Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Question Cost of laying roads comes under :Correct Answer Land and site cost Question Pre-operative expenses include :Correct Answer Interest on deferred payments Your Answer 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 ma nufacturing. Correct Answer True 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 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 uity / stake Question The Detailed Project report spells out the modus operandi for th e implementation of the Project and the realization of the Project objectives. Correct Answer True 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 Question The emphasis of a finance manager should be on taking a synergis tic view of the project rather than looking at it only from the financial aspect s. Correct Answer True

s eq

s financial strength

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 Pos ture Question The ratios of one organisation compared with the ratios of the s ame organisation is termed as inter-firm comparison. Correct Answer False Question Detailed Project Report is generally prepared from a ________ re port with additional information. Correct Answer Feasibility Question Under ________ method, the forecasts are modified in the light o f observed errors. Correct Answer Exponential smoothing Your Answer Cobb Douglas Relationship Question The Detailed Project report must indicate the gestation period o f the project. Correct Answer True Question Delay in recruitment of staff may lead to cost and time overrun Correct Answer True Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question The method for evaluating the profitability of industrial projec ts whose object is to ascertain the period required for recovering the entire in vestment 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 Question The rate of discount which would equate the present value of inv estments to the present value of benefits over the life of the project is known as :Correct Answer Internal rate of return Question Cost of fencing comes under the ________ category of the Project report. Correct Answer Land and site development Question The ratio that roughly measures the company of cash is termed as :Correct Answer Net Working capital to total assets Your Answer Quick ratio Question The sources of funding have expanded from banks, insurance compa nies and multilateral agencies to include the :Correct Answer Capital market s potential reserve

Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Question Sources of funds include :Correct Answer Increase in secured borrowing Question Nominal maximum capacity is the capacity that is technically att ainable and this corresponds to the supplier s guaranteed capacity. Correct Answer True 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 infrast ructure , Government policies and other factors Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Question Ratio should be computed on the basis of inter-related figures w hich have a cause and effect relationship. Correct Answer True Question In the BCG Matrix "DOGS" indicate products which are generally d uring the stage of Decline of a Product Life Cycle. Correct Answer True Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynom ial Relationship Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Question Demographic market appraisal answers to Correct Answer Who they are? Your Answer Where do the customers live? Question A Project has a ________ represented by growth, maturity and dec ay. Correct Answer Life cycle Question A project objective can be said to have the following dimensions viz.: Correct Answer Strategic perspective , Time span , Finance cost aspect Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer Trend Projection method , Consumption-level method , Moving Aver ages method Question The statement which shows the movement of cash into and out of f irm s kittie is known as :Correct Answer Cash flow statement

SET 11 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 Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Div idend Your Answer Increase in working capital , Dividend , Preliminary expenses wr itten off Question The company having ________, is appropriate for the strategic po sture of Conservative under the SPACE approach. Correct Answer Limited competitive advantage, belonging to a not so att ractive industry but enjoying financial strength and operating in a relatively s table environment Your Answer Limited financial strength, enjoying competitive advantage, belo nging to attractive industry and operating in a relatively volatile environment Question A market survey generally is a ________ survey. Correct Answer Sample Question The ratio which covers those assets which can be converted into cash immediately is known as :Correct Answer Quick ratio Question Delay in arrival of domestic/foreign machinery and technicians m ay lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method , Econometric method Your Answer Consumption-level method , Econometric method Question Having decided on the location and product, the promoter takes i nto account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Your Answer Manufacturing process and technology Question The objectives of the funds flow statement is as follows :Correct Answer To find out the uses of loans raised by the business , T o indicate the financial strength and weakness of the business , To help to unde rstand 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 t o understand the changes in assets as well as asset sources which are not reveal ed by the income statement , Helps to prepare financial statements 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 Question ________ in assets involves outflow of funds. Correct Answer Increase

Question Technology, design, layout of the plant as well as inputs and in frastructural facilities are to be considered under :Correct Answer Technical appraisal Question The Detailed Project report must indicate the gestation period o f the project. Correct Answer True Question Interest and Dividend are to be considered while calculating Ope rating ratio. Correct Answer False Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Your Answer Cost and time overrun Question Ratio should be computed on the basis of inter-related figures w hich have a cause and effect relationship. Correct Answer True Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect 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 Question The rate of discount which would equate the present value of inv estments 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 Question The various aspects which need to be considered while assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compe nsation Your Answer Environmental factors , Risk involved , Political issues Question The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Question A project objective which states "What ed as :Correct Answer Strategic perspective 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 Question A project is unique and no two projects are similar. Correct Answer True Question The sources of cash are :is to be viewed" is term

Correct Answer Cash from operations , Sale of machinery , Issue of new shares Your Answer Cash from operations , Sale of machinery , Issue of new shares Question Profit is the result of customer satisfaction, indeed customer d elight under the :Correct Answer Marketing concept Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative 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 futur e benefits Question ________ is the summary of cash book or Receipts and Payments st atement. Correct Answer Cash flow statement Question Under the SPACE Model, Customer loyalty is determined under the ________ dimension. Correct Answer Company s competitive advantage Your Answer Company s competitive advantage Question The BCG Matrix analysis various products of the organisation i n the terms of Business strength and Industry Attractiveness. Correct Answer False Question A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________. Correct Answer Share Question As per the GE s Stop Light Matrix, Products may justify substant ial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractivenes s , Average Business strength and high Industry attractiveness Your Answer Average Business Strength and Medium Industry Attractiveness , A verage Business strength and high Industry attractiveness , Average Business Str ength and Low Industry attractiveness Question The ratio which indicates the ability of the company to meet cur rent obligations is termed as :Correct Answer Current ratio 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 Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Question There is a need for studying Project finance both for the lender s as well as the borrowers as both of them have equal stake in making the Projec t a success. Correct Answer True

Question Sometimes the term ________ is interpreted as cash equivalent i. e. cash and marketable securities. Correct Answer Fund Your Answer Investment Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance 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 Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Question It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project. Correct Answer True 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 Question Production line diagrams show the organisation structure of the project along with information on location, personnel required for various depar tments, and their inter-relationship. Correct Answer False Set 12 Question Borrower s contribution towards Working capital is known as :Correct Answer Margin money Question Building cost consists of :Correct Answer Factory building , Auxiliary buildings , Administrative block Your Answer Factory building , Auxiliary buildings , Administrative block Question In BCG Matrix " CASH COWS" indicate :Correct Answer Products which have high market share but low growth potentia l Your Answer Products which have high market share but low growth potential Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution Your Answer Demand forecasting , Promotion , Distribution Question Cost of the Project encompasses :Correct Answer The total of all items of outlay associated with a project Question In both the extreme situations of trade cycles i.e. Inflation and d epression, requirement of working capital may be high. Correct Answer True

Question Name of the finance manager comes under the Project organisation ca tegory of the Project report. Correct Answer True Question It is mandatory for each unit to obtain necessary clearance from Po llution Control Authorities before setting up any project. Correct Answer True Question A project objective can be said to have the following dimensions vi z.: Correct Answer Strategic perspective , Time span , Finance cost aspect Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question BCG Product Portfolio Matrix analyses products on the basis of :Correct Answer Relative Market share and Industry Growth rate Question ________ profitability reduces the strain on working capital. Correct Answer High Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of fu ture benefits Question The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensati on Question "Fly by night" operator mentality is a :Correct Answer Management quality Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Question As the plant capacity increase, the investment cost unit capacity _ _______. Correct Answer Decreases 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 Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Question A project is unique and no two projects are similar. Correct Answer True Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearranges t he 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

Question The third phase of the technical appraisal which focuses upon appra ising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in oper ation Question Receivables is categorised under :Correct Answer Current assets and liabilities Question It is said that a second rate project in the hands of first rate ma nagement is better than a first rate project in the hands of :Correct Answer Second rate management Question The company having ________, is appropriate for the strategic postu re of Defensive under the SPACE approach. Correct Answer Lacks both competitive advantage as well as financial strengt h and belongs to a not so attractive industry, operating in an unstable environm ent Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Question The BCG Matrix analysis various products of the organisation in t he terms of Business strength and Industry Attractiveness. Correct Answer False 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 Question Financial and economic aspect of the Visit report consists of :Correct Answer Company s financial year , Impact of Government policies on c ompany operations , Comments on the last published accounts Your Answer Company s financial year , Impact of Government policies on comp any operations , Comments on the last published accounts Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Question A project objective which states "What as :Correct Answer Strategic perspective is to be viewed" is termed

Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Question In the BCG Matrix "DOGS" indicate products which are generally duri ng the stage of Decline of a Product Life Cycle. Correct Answer True Question The construction of National Golden Quadrilateral can be recognised as Project. Correct Answer True Question Under the SPACE Model, Customer loyalty is determined under the ___ _____ dimension. Correct Answer Company s competitive advantage 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 manuf

acturing. Correct Answer 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 Question Miscellaneous fixed assets includes :Correct Answer Cables 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 f acilitie s Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial R elationship Question Market potential should be determined under the Marketing aspect of the Project report. Correct Answer True Question Ratio analysis is a widely used tool of :Correct Answer Financial analysis Question Preoperative expenses includes :Correct Answer Bank guarantees Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Question If the organisation is a trading organisation, the requirement of w orking capital will be on the lower side. Correct Answer False SET 13 Question Cost under-estimation at the project preparation and evaluation sta ge leads to cost and time over run. Correct Answer True Question Short supplies of materials may lead to :Correct Answer Cost and time overrun Question ________ is a current asset Correct Answer Book debts Question Disposition of funds includes :Correct Answer Interest on term loans Your Answer Increase in secured borrowing Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Question Cost and time overrun of the project may lead to loss on account of

lost market opportunities. Correct Answer True Question Commission outstanding is ________ of funds. Correct Answer Application Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance 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 ind icate the financial strength and weakness of the business , To help to understan d the changes in assets as well as asset sources which are not revealed by the i ncome statement Your Answer To find out the uses of loans raised by the business , To help t o understand the changes in assets as well as asset sources which are not reveal ed by the income statement , Helps to prepare financial statements Question The second phase of the technical appraisal which focuses upon appr aising the likely technical gaps consists of :Correct Answer Problems faced during the Construction and Project implementa tion Question The Detailed Project report spells out the modus operandi for the i mplementation of the Project and the realization of the Project objectives. Correct Answer True Question While choosing the location for a project, the following factors sh ould be considered :Correct Answer Proximity to raw materials and markets , Availability of infr astructure , Government policies and other factors Your Answer Proximity to raw materials and markets , Plant capacity , Availa bility of infrastructure Question Change in the project concept itself may lead to cost and time over run. Correct Answer True Question Name and designation of the chief executive comes under the _______ _ category. Correct Answer General Your Answer Project organisation Question ________ occupies a unique position in the macro economic developmen t which helps in induction of new technology and facilitates, greater efficiency as well as higher productivity. Correct Answer Investment Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Goodwil l written off Your Answer Funds from operation , Funds from long term loans Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure

Question ________ is that scarce input which financial resources alone canno t mobilise. Correct Answer Management Question A project can be regarded as the sum of the activities directed tow ards a :Correct Answer Specific result Question A project objective which states "What as :Correct Answer Strategic perspective is to be viewed" is termed

Question Short term finance is normally for a period upto ________ year. Correct Answer One Question A Project has a ________ represented by growth, maturity and decay. Correct Answer Life cycle Question The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compensati on 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 , A verage Business strength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness , Aver age Business Strength and Medium Industry Attractiveness , Average Business stre ngth and high Industry attractiveness Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Question ________ in assets involves outflow of funds. Correct Answer Increase Question For computing Interest coverage ratio, Profit after Interest and ta xes are taken into account. Correct Answer False Question The cash flow of all the years during the expected life of the proj ect 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 Question The ratio which indicates the ability of the company to meet curren t obligations is termed as :Correct Answer Current ratio Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Question In small scale organisation, requirement of working capital is quit e high due to high amount of overheads, high buying costs and high selling cost. Correct Answer True

Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Question The secondary data is collected through market survey, specific for the project being appraised. Correct Answer False Your Answer Net Working capital to total assets Question General Electric Stop Light Matrix :Correct Answer Which is highly respected for the sophistication, maturity an d quality in its planning systems Your Answer Which is highly respected for the sophistication, maturity and q uality in its planning systems Question Geographic market appraisal answers to :Correct Answer Where do the customers live? Your Answer Where do the customers live? Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities. Correct Answer Fund 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 Question Current assets includes stock-in-process. Correct Answer True

SET 14 Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account , Balance Sheet Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun Question The Project Cycle should be in the ________ order Correct Answer Identification of Project - Project Appraisal - Negotiations fo r loans Question Change in the project concept itself may lead to cost and time overru n. Correct Answer True Question The industrial concern earned profits by increasing the sales volume under the Correct Answer Sales concept Question Cost and time overrun of the project may lead to loss on account of l ost market opportunities. Correct Answer True Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Question Trend Projection method of demand forecasting consists of :-

Correct Answer Linear Relationship , Exponential Relationship , Polynomial Rel ationship Question Financial analysis based on accounting ratios will give mis-leading r esults if the effects of changes in price level are not taken into account. Correct Answer True 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 indic ate 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 inc ome statement Question The maximum Seed Capital assistance provided by IDBI under the projec t will be restricted to 50% of the required promoter s contribution or Rs. 50 la khs whichever is lower. Correct Answer False Question Every project involves financial outlay which can be referred to as : Correct Answer Project finance Question A project objective can be said to have the following dimensions viz. : Correct Answer Strategic perspective , Time span , Finance cost aspect Question Strategic Position and Action Evaluation Model :Correct Answer Is an approach to hammer out an appropriate strategic posture f or a firm and its individual business Question The Projects which are undertaken to manufacture certain products whi ch are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects Question Technical appraisal is basically concerned with :Correct Answer Technology , Layout of the plant , Design of the plant Question It is mandatory for each unit to obtain necessary clearance from Poll ution Control Authorities before setting up any project. Correct Answer True Question While choosing the location for a project, the following factors shou ld be considered :Correct Answer Proximity to raw materials and markets , Availability of infras tructure , Government policies and other factors Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of futu re benefits Question Longer the duration of production cycle, higher the requirement of ________. Correct Answer Working capital Question Inflow of funds may not necessarily result in ________. Correct Answer Inflow of cash Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question Details regarding Administrative / controlling office comes under the

________ category. Correct Answer General Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Question Depreciation is sometimes treated as ________ funds. Correct Answer Source Question Miscellaneous fixed assets includes :Correct Answer Cables Question In BCG Matrix "STARS" indicate :Correct Answer Products which enjoy a high market share as well as a high grow th rate Question ________ is a current liability. Correct Answer Trade credit Question Sources of funds includes :Correct Answer Depreciation , Preliminary expenses written off , Increase in s ecured borrowing Question The construction of National Golden Quadrilateral can be recognised a s Project. Correct Answer True Question The cost factors of the product mixed is also taken into account to a rrive at cost at various levels of production and its cost impact of the manufac turing. Correct Answer True Question Capital Issue expenses include :Correct Answer Brokerage fees to registrars Question Having decided on the location and product, the promoter takes into a ccount the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology 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 Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of the board Question Sanctioned bank limits is categorised under :Correct Answer Working capital Question General Electric Stop Light Matrix analyses products in terms of :Correct Answer Business strength and Industrial Attractiveness Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity , Input availability , Sales trends Question Cost of overheads include :Correct Answer Cost of repairs and maintenance

Question External sources of cash are as follows :Correct Answer Issue of new shares , Long term loans , Short term borrowings 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 e nvironment Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True 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 Question The cost of Plant and Machinery includes :Correct Answer Cost of stores and spares Question The basic difference between the feasibility study report and _______ _ is the level of accuracy and degree of detail. Correct Answer Detailed Project report Set 15 Question In the BCG Matrix, the key term of Cash Cows require further commit ment of funds. Correct Answer False Question In the GE s Stop Light Matrix, when ________ situation prevails , P roducts call for divestment. Correct Answer Average Business Strength and Low Industry attractiveness Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of fu ture benefits Question ________ tries to have what the customer will want- where, when, in what form and at what price. Correct Answer Marketing Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure Question A project can be regarded as the sum of the activities directed tow ards a :Correct Answer Specific result Question Sewerage and drainage cost of the project is categorised under :Correct Answer Building cost Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resource all ocation 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 Question ________ capital represents permanent capital.

Correct Answer Equity Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship , Exponential Relationship , Polynomial R elationship 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 Question ________ in liabilities involves inflow of funds. Correct Answer Increase Question ________ occupies a unique position in the macro economic developme nt which helps in induction of new technology and facilitates, greater efficienc y as well as higher productivity. Correct Answer Investment Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance 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 Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Question Appointments made at senior level during the half-year is categoris ed under :Correct Answer Organisation and management Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question Delays in infrastructure Development by State Agencies may lead to :Correct Answer Cost and time overrun 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 , A verage Business strength and high Industry attractiveness Question The cost of Plant and Machinery may be adjusted for a possible incr ease known as :Correct Answer Escalation 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 Question The BCG product Portfolio Matrix, General Electric Stop Light Matri x and Strategic Position and Action Evaluation Model are considered to be highly relevant as :Correct Answer Portfolio Planning Tools Question As the plant capacity increase, the investment cost unit capacity _

_______. Correct Answer Decreases Question The applications of cash are :Correct Answer Purchase of fixed assets , Payment of long term loans Question A high debt equity ratio may indicate that the financial stake of t he creditors is more than that of the owners. Correct Answer True Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits , Shares , Debentures Question Ratio analysis is a technique of planning and control. Correct Answer False Question Miscellaneous expenditure is written on the asset side of the Balan ce sheet. Correct Answer True Question Cost of fencing comes under the ________ category of the Project re port. Correct Answer Land and site development Question The ratio which covers those assets which can be converted into cas h immediately is known as :Correct Answer Quick ratio Question The Projects which are undertaken to manufacture certain products w hich are being used as raw material by the existing units is known as :Correct Answer Backward Integration Projects 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 Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Question Unlike financial projections, there cannot be any fixed, well-recog nised or structure formula/steps for management evaluation/appraisal. Correct Answer True Question Production line diagrams show the organisation structure of the pro ject along with information on location, personnel required for various departme nts, and their inter-relationship. Correct Answer False Question ________ is a current asset Correct Answer Book debts Question For computing Interest coverage ratio, Profit after Interest and ta xes are taken into account. Correct Answer False Question Details regarding Internal accruals comes under the ________ catego ry of Project report.

Correct Answer Financing plan Question Management category of Visit report consists of :Correct Answer Managing Director , Institutional nominees , Committees of th e board Question Nominal maximum capacity is the capacity that is technically attain able and this corresponds to the supplier s guaranteed capacity. Correct Answer True Question The ratio that roughly measures the company cash is termed as :Correct Answer Net Working capital to total assets Question The following are the sources of funds :Correct Answer Operating Profit , Non operating Income Question Change in the project concept itself may lead to cost and time over run. Correct Answer True Set 16 Question ________ is a current asset Correct Answer Book debts Question The temporary requirement of working capital can be financed out of :Correct Answer Inter-corporate Deposits , Commercial Papers Question Current assets includes stock-in-process. Correct Answer True Question A project objective which states What "achieving it " would cost is known as :Correct Answer Finance cost aspect Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Question A Project has a ________ represented by growth, maturity and dec ay. Correct Answer Life cycle Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product , Proper survey of the prod uct , Future availability and supply of the product Question The basic characteristic of a project is :Correct Answer That it involves current outlay of funds in expectation of future benefits Question Limitations of fund flow statement are :Correct Answer It does not provide any new information but only rearran ges the various facts , It does not consider non-fund transactions Question Location of the factory comes under the ________ category of the Project report. Correct Answer General s potential reserve of

Question The basic difference between the feasibility study report and __ ______ is the level of accuracy and degree of detail. Correct Answer Detailed Project report Question ________ is the summary of cash book or Receipts and Payments st atement. Correct Answer Cash flow statement Question The BCG Product Portfolio Matrix :Correct Answer Is a tool for strategic ( product ) planning and resourc e allocation Question Land and site development comes under the cost aspect of the Pro ject report. Correct Answer True Question The sources of cash are :Correct Answer Cash from operations , Sale of machinery , Issue of new shares Question The third phase of the technical appraisal which focuses upon ap praising the likely technical gaps consists of :Correct Answer Problems pertaining to the period when the project is in operation Organisation and Management Strikes/lay-offs/lockouts etc. Receivables Material inputs and utilities Stock of raw material Finished goods Working capital Sanctioned bank limit Stock of raw material Marketing Pricing policy Pricing policy Question In the Detailed Project Report, Marketing aspects includes :Correct Answer Demand forecasting , Promotion , Distribution Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method , Moving Averages method Question Financial analysis based on accounting ratios will give mis-lead ing results if the effects of changes in price level are not taken into account. Correct Answer True Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Question The BCG Matrix analysis various products of the organisation i n the terms of Business strength and Industry Attractiveness. Correct Answer 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 ma nufacturing. Correct Answer True

Environmental stability dimension under SPACE Model involves Demand variabili ty Demand variability Company s competitive advantage dimension under SPACE Model involves Product

life cycle Product life cycle Company s financial strength dimension under SPACE Model involves Leverage liquidity Leverage liquidity Industry strength dimension under SPACE Model involves Profit potential Profit potential Question The various aspects which need to be considered while assessing Project finance financing are :Correct Answer Environmental factors , Risk involved , Managerial compe nsation Question A project objective can be said to have the following dimensions viz.: Correct Answer Strategic perspective , Time span , Finance cost aspect Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars , Question marks Question Details regarding Bridge finance comes under the ________ catego ry of Project report. Correct Answer Financing plan Question Internal sources of funds are :Correct Answer Funds from operation , Loss on sale of fixed assets , Go odwill written off Question ________ capital represents permanent capital. Correct Answer Equity Question If the organisation is a trading organisation, the requirement o f working capital will be on the lower side. Correct Answer False Question In the Detailed Project Report, Technical aspects includes :Correct Answer Plant capacity , Quality standards , Raw material requir ement Question Debt Service means payment of installments and interest against an amount borrowed as per terms of loan. Correct Answer True Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Question ________ profitability reduces the strain on working capital. Correct Answer High Question The profit earned from operations of the project during life of the project is known as :Correct Answer Cash inflow Question The Cash Flow statement is also referred to as :Correct Answer Cash flow budget Question Disposition of funds includes :Correct Answer Interest on term loans Question Profit is the result of customer satisfaction, indeed customer d elight under the :-

Correct Answer Marketing concept Question Financing plans consists of :Correct Answer Share capital , Term loans , Internal accruals Question Having decided on the location and product, the promoter takes i nto account the ________ that is to be adopted for producing the product. Correct Answer Manufacturing process and technology Question Name and designation of the chief executive comes under the ____ ____ category. Correct Answer General Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question Goods purchased on credit ________ in flow of funds. Correct Answer Does not result Question Every project involves financial outlay which can be referred to as :Correct Answer Project finance Question A project is unique and no two projects are similar. Correct Answer True Question Demographic market appraisal answers to Correct Answer Who they are? Question Stock in the beginning results in :Correct Answer Application of funds Question A business enterprise which has adopted the marketing concept as an essential ingredient of its corporate policy, is basically :Correct Answer Customer market-oriented LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 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 statement which shows the movement of cash into and out of f irm s kittie is known as :Correct Answer Cash flow statement Your Answer Cash flow statement

Match The Following Question Correct Answer Your Answer Moving into new areas/product lines Diversification Projects Diversif ication Projects Suppliers credit Short term finance Short term finance

Deferred credit Long term finance Long term finance Setting up new units New Projects New Projects

Multiple Choice Single Answer Question Dissentions among the promoters is a :Correct Answer Management problem Your Answer Management problem 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 Location of the factory comes under the :Correct Answer General category Your Answer General category Multiple Choice Multiple Answer Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Loca tion of the factory Your Answer Name of the Industrial concern , Proposed product , Location of the factory Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice 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 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 Pos ture Your Answer Aggressive Posture , Competitive Posture , Defensive Posture

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 , T o indicate the financial strength and weakness of the business , To help to unde rstand 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 indica te the financial strength and weakness of the business , To help to understand t he changes in assets as well as asset sources which are not revealed by the inco me statement 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 In the BCG Matrix, the key term of Cash Cows require further com mitment of funds. Correct Answer False Your Answer False Select The Blank Question More accurate the estimation of the level of current assets and current liabilities, more accurate will be estimation of the requirement of ____ ____. Correct Answer Working capital Your Answer Working capital True/False Question The BCG Matrix analysis various products of the organisation i n the terms of Business strength and Industry Attractiveness. Correct Answer False Your Answer False True/False Question Change in the project concept itself may lead to cost and time o verrun. Correct Answer True Your Answer True 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 qua ntity and volume is arrived at Select The Blank Question Commission outstanding is ________ of funds.

Correct Answer Application Your Answer Application Multiple Choice Multiple Answer Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Div idend Your Answer Increase in working capital , Preliminary expenses , Dividend Match The Following Question Correct Answer Your Answer Preliminary and capital issue expenses Brokerage and commission Brokerag e and commission Land and site development cost Cost of laying roads Cost of laying roads Building cost Cost of factory building Cost of factory building Plant and machinery cost Foundation and erection charges Foundation and e rection charges

True/False Question Banks and Financial Institutions, world-wide, are now financing projects with strategies and terms that would have been hard to believe/imagine just a few years back. Correct Answer True Your Answer True Multiple Choice Single Answer Question The ratio which indicates the ability of the company to meet cur rent obligations is termed as :Correct Answer Current ratio Your Answer Current ratio 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 profit earned from operations of the project during life of the project is known as :Correct Answer Cash inflow Your Answer Cash inflow 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 True

Multiple Choice Single Answer Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Your Answer Demand forecasting Multiple Choice Single Answer Question Distribution channels for the product is categorised under :Correct Answer Marketing Your Answer Marketing 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 Select The Blank Question ________ profitability reduces the strain on working capital. Correct Answer High Your Answer High Select The Blank Question Detailed Project Report is generally prepared from a ________ re port with additional information. Correct Answer Feasibility Your Answer Feasibility Multiple Choice Single Answer Question A project objective which states "What ed as :Correct Answer Strategic perspective Your Answer Strategic perspective Multiple Choice Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative 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 Under the SPACE Model, Customer loyalty is determined under the ________ dimension. Correct Answer Company s competitive advantage Your Answer Company s competitive advantage

is to be viewed" is term

Multiple Choice Single Answer Question In the Cash flow statement, the sources of funds include :Correct Answer Development rebate reserve Your Answer Development rebate reserve True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True True/False Question The construction of National Golden Quadrilateral can be recogni sed as Project. 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 Select The Blank Question The company having ________, is appropriate for the strategic po sture of Defensive under the SPACE approach. Correct Answer Lacks both competitive advantage as well as financial st rength and belongs to a not so attractive industry, operating in an unstable env ironment Your Answer Lacks both competitive advantage as well as financial strength a nd belongs to a not so attractive industry, operating in an unstable environment Multiple Choice Single Answer Question "Fly by night" operator mentality is a :Correct Answer Management quality Your Answer Management quality Multiple Choice Multiple Answer Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Internal measure , Quick ratio Select The Blank Question In the GE s Stop Light Matrix, when ________ situation prevails, Products call for Hold. Correct Answer Average Business Strength and Medium Industry Attractive ness Your Answer Average Business Strength and Medium Industry Attractiveness Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the m ost important ratios calculated by the :Correct Answer Bankers , Financial Institutions

Your Answer Bankers , Financial Institutions True/False Question In the BCG Matrix "DOGS" indicate products which are generally d uring the stage of Decline of a Product Life Cycle. 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 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

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 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 statement which shows the movement of cash into and out of f irm s kittie is known as :Correct Answer Cash flow statement Your Answer Cash flow statement Match The Following Question Correct Answer Your Answer Moving into new areas/product lines Diversification Projects Diversif ication Projects Suppliers credit Short term finance Short term finance

Deferred credit Long term finance Long term finance Setting up new units New Projects New Projects

Multiple Choice Single Answer Question Dissentions among the promoters is a :Correct Answer Management problem Your Answer Management problem 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 Location of the factory comes under the :Correct Answer General category Your Answer General category Multiple Choice Multiple Answer Question General category of the Project report consists of :Correct Answer Name of the Industrial concern , Proposed product , Loca tion of the factory Your Answer Name of the Industrial concern , Proposed product , Location of the factory Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Correct Answer Cost and time overrun Your Answer Cost and time overrun Multiple Choice 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 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 Pos ture Your Answer Aggressive Posture , Competitive Posture , Defensive Posture 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 , T o indicate the financial strength and weakness of the business , To help to unde rstand 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 indica te the financial strength and weakness of the business , To help to understand t he changes in assets as well as asset sources which are not revealed by the inco

me statement 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 In the BCG Matrix, the key term of Cash Cows require further com mitment of funds. Correct Answer False Your Answer False Select The Blank Question More accurate the estimation of the level of current assets and current liabilities, more accurate will be estimation of the requirement of ____ ____. Correct Answer Working capital Your Answer Working capital True/False Question The BCG Matrix analysis various products of the organisation i n the terms of Business strength and Industry Attractiveness. Correct Answer False Your Answer False True/False Question Change in the project concept itself may lead to cost and time o verrun. Correct Answer True Your Answer True 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 qua ntity and volume is arrived at Select The Blank Question Commission outstanding is ________ of funds. Correct Answer Application Your Answer Application Multiple Choice Multiple Answer Question Disposition of funds includes :Correct Answer Increase in working capital , Preliminary expenses , Div idend Your Answer Increase in working capital , Preliminary expenses , Dividend

Match The Following Question Correct Answer Your Answer Preliminary and capital issue expenses Brokerage and commission Brokerag e and commission Land and site development cost Cost of laying roads Cost of laying roads Building cost Cost of factory building Cost of factory building Plant and machinery cost Foundation and erection charges Foundation and e rection charges

True/False Question Banks and Financial Institutions, world-wide, are now financing projects with strategies and terms that would have been hard to believe/imagine just a few years back. Correct Answer True Your Answer True Multiple Choice Single Answer Question The ratio which indicates the ability of the company to meet cur rent obligations is termed as :Correct Answer Current ratio Your Answer Current ratio 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 profit earned from operations of the project during life of the project is known as :Correct Answer Cash inflow Your Answer Cash inflow 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 True Multiple Choice Single Answer Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Your Answer Demand forecasting Multiple Choice Single Answer Question Distribution channels for the product is categorised under :Correct Answer Marketing

Your Answer Marketing 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 Select The Blank Question ________ profitability reduces the strain on working capital. Correct Answer High Your Answer High Select The Blank Question Detailed Project Report is generally prepared from a ________ re port with additional information. Correct Answer Feasibility Your Answer Feasibility Multiple Choice Single Answer Question A project objective which states "What ed as :Correct Answer Strategic perspective Your Answer Strategic perspective Multiple Choice Multiple Answer Question Management qualities includes :Correct Answer Honesty , Financial resources , Initiative Your Answer Honesty , Financial resources , Initiative 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 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 In the Cash flow statement, the sources of funds include :Correct Answer Development rebate reserve Your Answer Development rebate reserve True/False Question Sensitivity analysis consists of assessing the degree of risk. Correct Answer True Your Answer True

is to be viewed" is term

True/False Question The construction of National Golden Quadrilateral can be recogni sed as Project. 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 Select The Blank Question The company having ________, is appropriate for the strategic po sture of Defensive under the SPACE approach. Correct Answer Lacks both competitive advantage as well as financial st rength and belongs to a not so attractive industry, operating in an unstable env ironment Your Answer Lacks both competitive advantage as well as financial strength a nd belongs to a not so attractive industry, operating in an unstable environment Multiple Choice Single Answer Question "Fly by night" operator mentality is a :Correct Answer Management quality Your Answer Management quality Multiple Choice Multiple Answer Question Ratios relating to working capital are :Correct Answer Current ratio , Internal measure , Quick ratio Your Answer Current ratio , Internal measure , Quick ratio Select The Blank Question In the GE s Stop Light Matrix, when ________ situation prevails, Products call for Hold. Correct Answer Average Business Strength and Medium Industry Attractive ness Your Answer Average Business Strength and Medium Industry Attractiveness Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the m ost important ratios calculated by the :Correct Answer Bankers , Financial Institutions Your Answer Bankers , Financial Institutions True/False Question In the BCG Matrix "DOGS" indicate products which are generally d uring the stage of Decline of a Product Life Cycle. 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 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