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 Company’s financial year , Impact of Government policies on company operations , C omments on the last published accounts Your Answer Company’s 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 firm’s 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 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

Correct Answer Working capital Your Answer Working capital True/False Question Debt Equity ratio is a ‘Solvency ratio’. 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 . Govern ment policies and other factors Your Answer Proximity to raw materials and markets . Initiative Select The Blank Question . Availability of infrastructure . the following factors should be consi dered :Correct Answer Proximity to raw materials and markets . 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 . Strikes/lay-offs/lockouts etc. more accurate will be estimation of the requirement of ________. Availability of infrastructure . Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Organisation and Management Strikes/lay-offs/lockouts etc. Financial resources . Initiative Your Answer Honesty . Financial resources .Current ratio Your Answer Current ratio Multiple Choice Multiple Answer Question While choosing the location for a project. Public deposit Select The Blank Question More accurate the estimation of the level of current assets and current liabilit ies.

Trend Projection method Your Answer Trend Projection method . the forecasts are modified in the light of observed error s. Correct Answer General Your Answer General Select The Blank Question Under ________ method. 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 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 .________ in liabilities involves inflow of funds. 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’ 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.

It does not consider non-fund transactions Your Answer It does not provide any new information but only rearranges the various facts . 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 . Quality standards . Technical aspects includes :Correct Answer Plant capacity . 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 . Short term borrowings Your Answer Issue of new shares . Non operating Income Your Answer Operating Profit . Long term loans . Short term borrowings Multiple Choice Multiple Answer Question The following are the sources of funds :Correct Answer Operating Profit . Quality standards . Raw material requirement Your Answer Plant capacity . It does not consider non-fund transactions Match The Following Question Correct Answer .Correct Answer Internal rate of return Your Answer Internal rate of return Multiple Choice Multiple Answer Question In the Detailed Project Report. Long term loans .

financial. time-limited. Internal measure . Quick ratio Your Answer Current ratio . Term loans Multiple Choice Multiple Answer Question Ratios relating to working capital are :Correct Answer Current ratio . major undertaking requiring the com mitment of varied skills and resources It is one-shot. Internal measure . financial. Share capital . economic and social perspective before committing funds for investment Program It is large in scope. Quick ratio True/False Question Export Market is a technique used for forecasting under Commercial appraisal tec hnique. Sale of machinery .Your Answer Project appraisal It is the evaluation of project from technical. is activity oriented and is not necessarily time bound Project It is one-shot. goal oriented. Share capital . market. Issue of new shares Your Answer Cash from operations . goal oriented. is activity oriented and is not necessarily time bound It is large in scope. Issue of new shares Multiple Choice Single Answer Question Past trend method of Commercial appraisal technique is :- . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The sources of cash are :Correct Answer Cash from operations . time-limited. Sale of machinery . Term loans Your Answer Internal accruals . market. 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 . economic and social perspective before committing funds for investment It is the evaluation of project from technical.

Products call fo r divestment. Interest Your Answer Term loans . 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 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. Privatisation and Globalisation Your Answer Liberalisation. 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 True/False Question Miscellaneous expenditure is written on the asset side of the Balance sheet. when ________ situation prevails . 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 . Interest Multiple Choice Multiple Answer Question . Principal . Principal .

Question marks Your Answer Stars . when. Exponential Relationship . in what form an d at what price.where.The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars . Products call for Hold. Exponential Relationship . when ________ situation prevails. Polynomial Relationship Select The Blank Question Inflow of funds may not necessarily result in ________. Polynomial Relationship Your Answer Linear Relationship . 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 . 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. 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. Question marks Select The Blank Question ________ tries to have what the customer will want. 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 True/False Question Trend projection method is the important technique for forecasting demand. 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 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. Payment of long term loans Your Answer Purchase of fixed assets . Products may justify substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness . 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 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 .

Location of the factory Your Answer Name of the Industrial concern . Proposed product . 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.Ratio analysis is a technique of planning and control. Proposed product . we would normally get any one of the follo wing basic strategic postures :Correct Answer Aggressive Posture . Correct Answer Financing plan Your Answer Financing plan . Correct Answer True Your Answer True Select The Blank Question The company having ________. Competitive Posture . Correct Answer Limited competitive advantage. operating in an unstable environment Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report. Defensive Posture Your Answer Aggressive Posture . Location of the factory Multiple Choice Multiple Answer Question After the SPACE chart is constructed. 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 . is appropriate for the strategic posture of Conserv ative under the SPACE approach. 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. 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.

Broad area such as city. industrial belt etc. industrial belt etc. 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. Balance Sheet Your Answer Profit and Loss Account . Site Specific piece of land where the project would be set up Specific piece of land where the project would be set up . 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 .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 .

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. Correct Answer Share Your Answer Share Select The Blank Question Commission outstanding is ________ of funds. 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 ________. Profit after Interest and taxes are taken into account. 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 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 False Your Answer False True/False Question For computing Interest coverage ratio. the key term of Cash Cows require further commitment of funds . 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. 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 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 . Exponential Relationship . 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 . 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 . Polynomial Relationship Your Answer Linear Relationship . world-wide.

e.Select The Blank Question Sometimes the term ________ is interpreted as cash equivalent i. Moving Averages method Your Answer Trend Projection method . cash and mark etable Correct Answer securities. 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 . Payment of long term loans . Impact of Government policies on company operations . Payment of long term loans Your Answer Purchase of fixed assets . Issue of new machinery Select The Blank Question ________ tries to have what the customer will want.where. Fund Your Answer Investment Multiple Choice Multiple Answer Question The applications of cash are :Correct Answer Purchase of fixed assets . Impact of Government policies on company operations . in what form an d at what price. Consumption-level method . when. 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 . 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 . C omments on the last published accounts Your Answer Company’s financial year .

Preliminary expenses written off . Location of the factory Your Answer Proposed product . Pricing policy Multiple Choice Multiple Answer Question Sources of funds includes :Correct Answer Depreciation . Distribution Your Answer Demand forecasting . Land cost . Target market . Promotion . Proposed product . Market potential Your Answer Target market . Preliminary expenses written off .Unsecured loans Unsecured loans Multiple Choice Multiple Answer Question In the Detailed Project Report. Distribution Multiple Choice Multiple Answer Question Marketing category of the Project report consists of :Correct Answer Pricing policy . Location of the factory . Marketing aspects includes :Correct Answer Demand forecasting . 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 . Market potential . Increase in secured borrowing Your Answer Depreciation . Promotion .

True/False Question The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison. Item of current assets . Correct Answer Cost and time overrun . Correct Answer False Your Answer False Select The Blank Question In the GE’s Stop Light Matrix. 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 . Correct Answer True Your Answer True Select The Blank Question Excessive expenditures on foreign technicians leads to ________. 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 . when ________ situation prevails . 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’. Products call fo r divestment.

Salaries Select The Blank Question Retained earnings is a source of ________ finance. 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. 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. 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.Your Answer Cost and time overrun Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Share capital . 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 Internal Your Answer Internal Select The Blank Question In order to meet the cost of large project. Term loans . Correct Answer Working capital Your Answer Working capital True/False Question Ratio analysis is a technique of planning and control. Term loans . . more accurate will be estimation of the requirement of ________. Internal accruals Your Answer Share capital .

Govern ment policies and other factors Your Answer Proximity to raw materials and markets . Average Business str ength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness . 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. Availability of infrastructure . Average Business str ength and high Industry attractiveness Multiple Choice Single Answer Question The BCG product Portfolio Matrix. Availability of infrastructure . Products may justify substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness . 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’ :- . Govern ment policies and other factors Multiple Choice Single Answer Question In the Cash flow statement. Correct Answer General Your Answer Project organisation Multiple Choice Multiple Answer Question As per the GE’s Stop Light Matrix.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 .

Pricing policy Select The Blank Question Under the SPACE Model. 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. in wha t form and at what price.Correct Answer Activity orientation Your Answer Activity orientation LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is a current liability. Market potential . Customer loyalty is determined under the _______ _ dimension. Financial resources . Pricing policy Your Answer Target market . 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 Company’s competitive advantage Your Answer Company’s competitive advantage Multiple Choice Single Answer Question Sources of funds include :Correct Answer Increase in secured borrowing Your Answer Increase in secured borrowing True/False Question It is mandatory for each unit to obtain necessary clearance from Pollut ion Control Authorities before setting up any project. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Management qualities includes :Correct Answer Honesty . 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 .where. 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. Market potential . 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 . Financial resources . when. Initiative Your Answer Honesty .

It enables the firm to plan its financial resources properly . 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. 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. It . greater efficiency as well as higher productivity.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. It helps as a re liable guide for the future requirement of funds Your Answer It determines financial consequences of the business operations . 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 .

Issue of new machinery True/False Question Debt Equity ratio is a ‘Solvency ratio’. Payment of long term loans . we would normally get any one of the following basic strategic postures :Correct Answer Aggressive Posture .considers non-fund transactions . Defensive Posture Select The Blank Question ________ is the summary of cash book or Receipts and Payments statement . Payment of long term loans Your Answer Purchase of fixed assets . Correct Answer Life cycle Your Answer Life cycle Multiple Choice Multiple Answer Question After the SPACE chart is constructed. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The applications of cash are :Correct Answer Purchase of fixed assets . 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. Marketing aspects includes :Correct Answer Demand forecasting . Promotion . Competitive Posture . Distribution . Time span . 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. Promotion . Correct Answer True Your Answer True True/False Question Current assets includes stock-in-process. maturity and decay. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question A project objective can be said to have the following dimensions viz. It enables the firm to plan its financial res ources properly True/False Question Managerial problems in a project are the most pervasive. Finance cost aspect Your Answer Strategic perspective . Competitive Posture . 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. Defensive Posture Your Answer Aggressive Posture . Distribution Your Answer Demand forecasting .: Correct Answer Strategic perspective . Time span .

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 company’s 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

To help to und erstand the changes in assets as well as asset sources which are not revealed by the income statement . Correct Answer Company s competitive advantage Your Answer Company s competitive advantage True/False Question . Dividend True/False Question A project is unique and no two projects are similar. Preliminary expenses . Dividend Your Answer Increase in working capital . To find out the uses of loans raised by th e business . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Disposition of funds includes :Correct Answer Increase in working capital . Preliminary expenses . To indicate the financial strength and weakness of the business Select The Blank Question Under the SPACE Model. 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.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 The objectives of the funds flow statement is as follows :Correct Answer To indicate the financial strength and weakness of the business . 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 . Customer loyalty is determined under the ________ dimensi on.

Availability of infrastructure . more accurate will be estimation of the requirement of ________.Cost and time overrun of the project may lead to loss on account of lost market opportunities. Availability of infrastructure . Govern ment policies and other factors Your Answer Proximity to raw materials and markets . 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. 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 . Material inputs and utilities Solvency ratio . Public deposit Select The Blank Question More accurate the estimation of the level of current assets and current liabilit ies. Strikes/lay-offs/lockouts etc. Public deposit Your Answer Equity shares . 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 .

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. Initiative Your Answer Honesty . Answer Monopolistic Your Answer Monopolistic Multiple Choice Multiple Answer Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Moving Averages method . Financial resources . Financial resources . Initiative Select The Blank Question ________ in liabilities involves inflow of funds.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 . 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 :- .

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 . Quality standards . Quality standards . the forecasts are modified in the light of observed error s. Technical aspects includes :Correct Answer Plant capacity .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 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. Raw material requirement Your Answer Plant capacity . Correct Answer General Your Answer General Select The Blank Question Under ________ method.

market. 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. Non operating Income Your Answer Operating Profit . is activity oriented and is not necessarily time bound Project It is one-shot. 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. time-limited. Long term loans . goal oriented. time-limited. is activity oriented and is not necessarily time bound It is large in scope.Issue of new shares . financial. major undertaking requiring the com mitment of varied skills and resources It is one-shot. Short term borrowings Your Answer Issue of new shares . 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 . 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? . goal oriented. financial. market. It does not consider non-fund transactions Your Answer It does not provide any new information but only rearranges the various facts . economic and social perspective before committing funds for investment It is the evaluation of project from technical. Long term loans . Short term borrowings Multiple Choice Multiple Answer Question The following are the sources of funds :Correct Answer Operating Profit . economic and social perspective before committing funds for investment Program It is large in scope.

Your Answer Why they buy? at 5:00 AM 0 comments Links to this post Labels: Project Finance Project Finance . Term loans Your Answer Internal accruals . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The sources of cash are :Correct Answer Cash from operations .2 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Financing plans consists of :Correct Answer Internal accruals . 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 . Share capital . Quick ratio Your Answer Current ratio . Sale of machinery . Internal measure . Term loans Multiple Choice Multiple Answer Question Ratios relating to working capital are :Correct Answer Current ratio . Share capital . Quick ratio True/False Question Export Market is a technique used for forecasting under Commercial appraisal tec hnique. Issue of new shares Your Answer Cash from operations . Sale of machinery . Internal measure .

Privatisation and Globalisation Your Answer Liberalisation.Select The Blank Question In the GE s Stop Light Matrix. 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 . Privatisation and Globalisation True/False Question Miscellaneous expenditure is written on the asset side of the Balance sheet. Products call for divestment. Question marks Your Answer Stars . when ________ situation prevails . Interest Your Answer Term loans . Principal . 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. Interest Multiple Choice Multiple Answer Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars . 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. Question marks Select The Blank .

when ________ situation prevails. Polynomial Relationship Select The Blank Question Inflow of funds may not necessarily result in ________. Exponential Relationship . Products call f .Question ________ tries to have what the customer will want.where. Polynomial Relationship Your Answer Linear Relationship . when. 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. in what form an d at what price. 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. Exponential Relationship . 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 .

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.or Hold. 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 . Correct Answer True Your Answer True True/False Question Trend projection method is the important technique for forecasting demand. 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. Average Business str ength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness . Products may justify substantial commitment o f funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness . 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 .

is appropriate for the strategic posture of Conserv . 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. 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.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. Competitive Posture . we would normally get any one of the follo wing basic strategic postures :Correct Answer Aggressive Posture . Proposed product . Defensive Posture Your Answer Aggressive Posture . Correct Answer True Your Answer True Select The Blank Question The company having ________. Location of the factory Multiple Choice Multiple Answer Question After the SPACE chart is constructed. Location of the factory Your Answer Name of the Industrial concern . 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 . Competitive Posture .

Correct Answer Limited competitive advantage. Added back to the profit as per profit and loss ac count to arrive at operating profits Your Answer Item of current liabilities . 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. 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 . operating in an unstable environment Select The Blank Question Details regarding Internal accruals comes under the ________ category of Project report.ative under the SPACE approach. 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 . 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 . Balance Sheet Your Answer Profit and Loss Account .

industrial belt etc. Correct Answer False Your Answer False True/False Question For computing Interest coverage ratio. the key term of Cash Cows require further commitment of funds . Broad area such as city. 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. Correct Answer Share Your Answer Share .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. 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 ________.

Select The Blank Question Commission outstanding is ________ of funds.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.Variables) Your Answer Fixed cost / ( Sales Price . world-wide.Variables) True/False Question Banks and Financial Institutions. Correct Answer True Your Answer True Multiple Choice Single Answer . Correct Answer Application Your Answer Application at 4:59 AM 0 comments Links to this post Labels: Project Finance Project Finance . 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 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 . 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 Sometimes the term ________ is interpreted as cash equivalent i. Exponential Relationship . Exponential Relationship . Payment of long term loans Your Answer Purchase of fixed assets .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 . Polynomial Relationship Your Answer Linear Relationship . Payment of long term loans .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 . Issue of new machinery Select The Blank . 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 . 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.

Comments on the last published accounts Your Answer Company s financial year . when. Distribution Multiple Choice Multiple Answer . Promotion . Moving Averages method Your Answer Trend Projection method . Promotion .where. Distribution Your Answer Demand forecasting . in what form an d at what price. 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 . Marketing aspects includes :Correct Answer Demand forecasting . Consumption-level method . 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. Impact of Government policies on company operations . Impact of Government policies on company operations . 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 .Question ________ tries to have what the customer will want.

Proposed product . Pricing policy Multiple Choice Multiple Answer Question Sources of funds includes :Correct Answer Depreciation . Land cost True/False Question The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison. Increase in secured borrowing Your Answer Depreciation .Question Marketing category of the Project report consists of :Correct Answer Pricing policy . Market potential Your Answer Target market . Location of the factory . Preliminary expenses written off . Market potential . . 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 . Preliminary expenses written off . Target market . Location of the factory Your Answer Proposed product .

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 . when ________ situation prevails . Products call for divestment. . 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 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 . Item of current assets .Correct Answer False Your Answer False Select The Blank Question In the GE s Stop Light Matrix. 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 .

Term loans . 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. Term loans . Correct Answer Working capital Your Answer Working capital True/False . 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 . Correct Answer Internal Your Answer Internal Select The Blank Question In order to meet the cost of large project.Excessive expenditures on foreign technicians leads to ________. Internal accruals Your Answer Share capital . 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. Salaries Select The Blank Question Retained earnings is a source of ________ finance. more accurate will be estimation of the requirement of ________.

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

Project Appraisal .Negotiations for loa ns True/False Question Change in the project concept itself may lead to cost and time overrun.Project Appraisal . 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 . Balance Sheet Your Answer Profit and Loss Account . Auditors 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 . 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 . 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 .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.Negotiations for loans Your Answer Identification of Project .

market.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. economic and social perspective before committing funds for investmen t Program It is large in scope. time-limited. goal oriented. financial. is activity oriented and is not necessarily time bound Project It is one-shot. 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 .

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 . industrial belt etc. 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 . 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.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.Organisation and Management Strikes/lay-offs/lockouts etc.

Payment of long term loans Question In small scale organisation. requirement of working capital is q uite high due to high amount of overheads. To help t o understand the changes in assets as well as asset sources which are not reveal ed by the income statement . To indicate the financial strength and weak ness of the business Your Answer To find out the uses of loans raised by the business . Correct Answer Decreases Your Answer Decreases Question Internal sources of funds are :Correct Answer Funds from operation . the investment cost unit capacit y ________.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 . Correct Answer Working capital Your Answer Working capital Question Sanctioned bank limits is categorised under :Correct Answer Working capital Your Answer Production. Helps to prepare financial statements Question Inflow of funds may not necessarily result in ________. high buying costs and high selling co st. Payment of long term loans Your Answer Purchase of fixed assets . Go odwill written off Your Answer Funds from operation . higher the requirement of ________. 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 . Loss on sale of fixed assets . Correct Answer True Question As the plant capacity increase. To find out the us es of loans raised by the business . Sales and Profitability . 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 Your Answer True Question Longer the duration of production cycle.

Correct Answer Land and site development Your Answer Land and site development Question Trend projection method is the important technique for forecasti ng demand. in what form and at what price. 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. Internal accruals Your Answer Share capital . Term loans . Correct Answer True Question ________ in assets involves outflow of funds. Term loans . 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 ________ tries to have what the customer will want. 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 General Your Answer General Question Financing plans consists of :Correct Answer Share capital . 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 . when. 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.Question Cost of fencing comes under the ________ category of the Project report.where.

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. Aver age Business strength and high Industry attractiveness Question Management qualities includes :Correct Answer Honesty . 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.Question Nominal maximum capacity is the capacity that is technically att ainable and this corresponds to the supplier s guaranteed capacity. Financial resources . Average Business strength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness . Financial resources . Correct Answer Creditors Your Answer Creditors Question As per the GE s Stop Light Matrix. Initiative Your Answer Honesty . Correct Answer True Your Answer True Question In order to meet the cost of large project. Products may justify substant ial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractivenes s . 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 .

. Government policies and other factors Question The sources of long term and medium term finance are :Correct Answer Equity shares .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. Government policies and other factors Your Answer Proximity to raw materials and markets . 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. 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 . the following factors should be considered :Correct Answer Proximity to raw materials and markets . 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. Availability of infrast ructure . Availability of infrastructure . Proposed product .

Market potential . Market potential . Pricing policy Your Answer Target market .where. when.Correct Answer Trade credit Your Answer Trade credit Question Marketing category of the Project report consists of :Correct Answer Target market . Financial resources . Correct Answer True Question Management qualities includes :Correct Answer Honesty . Pricing policy Question Under the SPACE Model. Initiative Your Answer Honesty . 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 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. Financial resources . Correct Answer Increase . 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 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 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. Customer loyalty is determined under the ___ _____ dimension. in what form and at what price.

greater efficienc y as well as higher productivity. It helps as a reliable guide for the future requirement of funds Your Answer It determines financial consequences of the business operations . 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 .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. It enables the firm to plan its financial resources properly . 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. Payment of long term loans Your Answer Purchase of fixed assets . . 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. Payment of long term loans . Correct Answer True Solvency ratio . Issue of new machinery Question Debt Equity ratio is a Correct Answer True Question Current assets includes stock-in-process. Correct Answer True Question The applications of cash are :Correct Answer Purchase of fixed assets .

Time span . we would normally get any one of the following basic strategic postures :Correct Answer Aggressive Posture . Risk involved . Item of working capital . Competitive Posture . Promotion . Econometric method Your Answer Consumption-level method . Distribution Question The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors . Time span . Defensive Posture Your Answer Aggressive Posture . Correct Answer Exponential smoothing Your Answer Exponential smoothing Question Provision for tax can be treated as :Correct Answer Item of current liabilities . 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.Question A project objective can be said to have the following dimensions vi z.: Correct Answer Strategic perspective . Finance cost aspect Your Answer Strategic perspective . Correct Answer Life cycle Your Answer Life cycle Question After the SPACE chart is constructed. Econometric method Question Under _______ method. Managerial compensati on Your Answer Environmental factors . Item of current assets . Managerial compensation Question Casual methods of Demand forecasting consists of Correct Answer Consumption-level method . Distribution Your Answer Demand forecasting . Promotion . Competitive Posture . Defensive Posture Question ________ is the summary of cash book or Receipts and Payments state ment. 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. the forecasts are modified in the light of ob served errors. Risk involved . 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 . Marketing aspects includes :Correct Answer Demand forecasting . maturity and decay.

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 General Your Answer General Question Miscellaneous fixed assets includes :Correct Answer Cables Your Answer Cables Question In the Cash flow statement. 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 The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison. 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.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 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 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.

It does not consider non-fund transactions Your Answer It does not consider non-fund transactions . Question marks . Exponential Relationship . Auditors report . It does not provide any new informati on but only rearranges the various facts Question As the plant capacity increase. Correct Answer True Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account . Invest Question Sensitivity analysis consists of assessing the degree of risk. 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 .Correct Answer False Question Depreciation is sometimes treated as ________ funds. Chain ratio Relationship . Polynomial R elationship Your Answer Linear Relationship . the investment cost unit capacity _ _______. Balance Sheet Your Answer Profit and Loss Account . 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 . 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. It does not help in determining future requirement of funds . Correct Answer Source Question Excessive expenditures on foreign technicians leads to ________. Balance Sheet Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship . . 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.

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. Future availabili ty and supply of the product Question Having decided on the location and product. Correct Answer True Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product . Committees of th e board Your Answer Managing Director . Moving Averages method Question More accurate the estimation of the level of current assets and cur rent liabilities. the promoter takes into account the ________ that is to be adopted for producing the product. Electrical engineers . 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 . Moving Averages method Your Answer Trend Projection method . Correct Answer Working capital Your Answer Working capital Question Defaults category of the Project report may be in respect of :Correct Answer Term loans . 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 . Future availability and supply of the product Your Answer Future demand of the product . Profit after Interest and ta xes are taken into account. Proper survey of the product . Export market . 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. Principal . more accurate will be estimation of the requirement of _______ _. Interest . Institutional nominees .Correct Answer Limited recourse financing Your Answer Limited recourse financing Question For computing Interest coverage ratio.

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 . Interest Question If the organisation is a trading organisation.Your Answer Term loans . Principal . Increase in se cured borrowing . Bankers . Preliminary expenses written off Question Sources of funds includes :Correct Answer Depreciation . Dividend Your Answer Increase in working capital . P roducts call for divestment. specific for the project being appraised. Increase in secured borrowing Your Answer Depreciation . Preliminary expenses . 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. 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 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 False Your Answer False Question Profit is the result of customer satisfaction. Correct Answer Does not result Your Answer Does not result Question The secondary data is collected through market survey. Preliminary expenses written off . Financial Institutions Your Answer Shareholders . Preliminary expenses . Correct Answer Land and site development Your Answer Building cost Question Disposition of funds includes :Correct Answer Increase in working capital . Preliminary expenses written off . indeed customer deli ght under the :Correct Answer Marketing concept Your Answer Marketing concept . when ________ situation prevails . 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.

Shares Your Answer Debentures . Organisation Building . Funds from long te rm loans SET 4 Question The permanent requirement of working capital should be financed out of :Correct Answer Debentures . Loss on sale of fixed assets . Cash Profits . Goodwil l written off Your Answer Funds from operation . Internal measure Question Longer the duration of production cycle. 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.Question Internal sources of funds are :Correct Answer Funds from operation . Correct Answer True Your Answer True Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price . Debt Equity ratio . design. Public deposit Your Answer Equity shares . higher the requirement of ________. Shares Question The sources of long term and medium term finance are :Correct Answer Equity shares . Internal measure .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 . Person / system orien ted Security-orientation . Disbursements and to Recovery/Recycling and :Correct Answer Activity orientation Your Answer Activity orientation Question Technology. Management aspects includes :Correct Answer Determination . Correct Answer Working capital Your Answer Fixed assets Question In the Detailed Project Report. Bridge loan . Cash Profits . 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. Public deposit Question The emphasis of the Banks and Financial institutions particularly i n India has shifted from Sanctions . Goodwill written off . Quick ratio Your Answer Current ratio .

Correct Answer Inflow of cash Your Answer Decrease in funds Question Building cost consists of :Correct Answer Factory building . Input availability Question The sources of cash are :Correct Answer Cash from operations . Issue of new share s Your Answer Purchase of fixed assets . cash and marketable securities. Auxiliary buildings . Long term loans . Auxiliary buildings Question Sometimes the term ________ is interpreted as cash equivalent i. Correct Answer False Question Trend projection method is the important technique for forecasting demand. Short term borrowings Your Answer Issue of new shares . Long term loans . Correct Answer True Question Change in the project concept itself may lead to cost and time over run. 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.e. Sale of machinery . Cash from operations . Correct Answer Fund Question Name of the finance manager comes under the Project organisation ca tegory of the Project report. Raw material requirement Question Inflow of funds may not necessarily result in ________. Person / system oriented . 50 lakhs whichever is lower.Your Answer Organisation Building . Input availability . Correct Answer True Question Production and sales aspect of Visit report consists of :Correct Answer Utilisation of installed capacity . Raw material requirement Your Answer Plant capacity . Sale s trends Your Answer Utilisation of installed capacity . Administrative block Your Answer cost of development . Quality standards . Correct Answer True Question In the Detailed Project Report. Technical aspects includes :Correct Answer Plant capacity . 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. personnel required for various departme s eq . Sale of machin ery Question External sources of cash are as follows :Correct Answer Issue of new shares . Short term borrowings Question Production line diagrams show the organisation structure of the pro ject along with information on location. Quality standards . Factory building .

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. To indica te the financial strength and weakness of the business . enjoying a co mpetitive advantage and belonging to an attractive industry. 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. high industrial strength. 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 . To ind icate the financial strength and weakness of the business . operating in an unstable environm ent Your Answer High financial strength. Correct Answer False Question ________ is a current asset Correct Answer Book debts Question The company having ________. Correct Answer General Your Answer General . 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. 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 . Operating Loss .nts. Correct Answer Lacks both competitive advantage as well as financial strengt h and belongs to a not so attractive industry. 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 . and their inter-relationship. is appropriate for the strategic postu re of Defensive under the SPACE approach.

requirement of working capital may be high. Government policies and other factors Your Answer Proximity to raw materials and markets . 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. Location of the factory Your Answer Name of the Industrial concern . 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. Availability of infr astructure . Plant capacity . Location of the factory Question Short term finance is normally for a period upto ________ year. Proposed product .Select The Blank Question Retained earnings is a source of ________ finance.e. Correct Answer True Your Answer False Question While choosing the location for a project. 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. Correct Answer True Question A project can be regarded as the sum of the activities directed tow ards a :Correct Answer Specific result . Proposed product . Correct Answer Internal Your Answer Internal Question General category of the Project report consists of :Correct Answer Name of the Industrial concern . the following factors sh ould be considered :Correct Answer Proximity to raw materials and markets . Inflation and d epression.

Correct Answer True Question Financing plans consists of :Correct Answer Share capital . more accurate will be estimation of the requirement of _______ _. Payment of long term loans Your Answer Purchase of fixed assets . 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 :- . the promoter takes into account the ________ that is to be adopted for producing the product. Organisation Building . Management aspects includes :Correct Answer Determination .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 . 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. Correct Answer Manufacturing process and technology Question Managerial problems in a project are the most pervasive. Payment of long term loans Question In the Cash flow statement. Internal accruals Your Answer Share capital . Person / system orien ted Your Answer Determination . Internal measure . 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 . 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. Correct Answer Working capital Your Answer Working capital Question In the Detailed Project Report. Term loans . Organisation Building . 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.

Inflation and d epression. Financial resources .Correct Answer Honesty . Correct Answer Financing plan Your Answer Cost aspect . Sales t rends Question Provision for tax can be treated as :Correct Answer Item of current liabilities . Correct Answer One Question Name of the finance manager comes under the Project organisation ca tegory of the Project report. Input availability . Input availability . Correct Answer True Your Answer True Question Details regarding Bridge finance comes under the ________ category of Project report. Sale s trends Your Answer Utilisation of installed capacity . 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 . Initiative Question ________ capital represents permanent capital. Financial resources .e. 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. Correct Answer True Question Export Market is a technique used for forecasting under Commercial appraisal technique. Correct Answer True Question Short term finance is normally for a period upto ________ year. requirement of working capital may be high. Added back to the profit as per profit and loss account to arrive at operating profits Your Answer Item of current liabilities . Initiative Your Answer Honesty . 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 The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors . Risk involved .

Exponential Relationship . 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. Increase in se cured borrowing Question Position regarding requirement and training of operational staff co mes under the ________ category of Project report. 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 . Exponential Relationship .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. Preliminary expenses written off . 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 . It does not consider non-fund transactions Your Answer It does not provide any new information but only rearranges the various facts . Polynomial R elationship Your Answer Linear Relationship . Correct Answer Share Question Banks and Financial Institutions. 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 . world-wide. Increase in secured borrowing Your Answer Depreciation . Preliminary expenses written off . Correct Answer True . 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 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 ________.

Balance Sheet SET 6 Question Trend projection method is the important technique for forecasting demand. Correct Answer Sample Your Answer Primary Question ________ capital represents permanent capital. Balance Sheet Your Answer Profit and Loss Account . Committees of th e board Your Answer Managing Director .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. 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. Committees of the b oard . Institutional nominees . Correct Answer False Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account . Profit after Interest and tax es are taken into account. 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 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. Institutional nominees . Correct Answer True Your Answer True Question Management category of Visit report consists of :Correct Answer Managing Director .

Future availability and supply of the product Your Answer Future demand of the product . Distribution Your Answer Demand forecasting . Correct Answer True Your Answer True Question In the Detailed Project Report. Proper survey of the product . Future availability and supply of the product Question Details regarding Administrative / controlling office comes under t he ________ category. Risk involved . requirement of working capital may be high. greater efficienc y as well as higher productivity. Risk involved . Increase in secured borrowing Multiple Choice Single Answer Question A project objective which states What "achieving it " would cost is known as :- . Proper survey of the product . Promotion . Ex port market .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. Preliminary expenses written off . Inflation and d epression. Correct Answer General Your Answer Cost aspect Question Sources of funds includes :Correct Answer Depreciation . 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 . Promotion . Managerial compensati on Your Answer Environmental factors . Non operating Income Your Answer Operating Profit . Political issues Question The following are the sources of funds :Correct Answer Operating Profit . Correct Answer Investment Your Answer Production Question In both the extreme situations of trade cycles i. 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 . Non operating Income Question ________ occupies a unique position in the macro economic developme nt which helps in induction of new technology and facilitates. Marketing aspects includes :Correct Answer Demand forecasting .e. Increase in secured borrowing Your Answer Preliminary expenses written off .

Project Appraisal . Sales trends Question A Project has a ________ represented by growth. Correct Answer Life cycle Question Current assets includes stock-in-process. Comments on the last published accounts Your Answer Company s financial year . Government policies and other factors Your Answer Proximity to raw materials and markets . 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 . Term loans . maturity and decay. Internal accruals Your Answer Share capital .Negotiations for loans . 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. Availability of infrast ructure . Correct Answer True Your Answer True Question Financing plans consists of :Correct Answer Share capital . Term loans .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 . Impact of Government policies on comp any operations .Negotiations for loans Your Answer Identification of Project . 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 . Availability of infr astructure . Impact of Government policies on c ompany operations .Project Appraisal .

Layout of the plant . 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 . Question Investors who invest in the debentures of the company are the _____ ___ of the company. the promoter takes into account the ________ that is to be adopted for producing the product. higher the requirement of ________. Correct Answer True Question Having decided on the location and product. Design of the plant Your Answer Technology . Design of the plant Question Market potential should be determined under the Marketing aspect of the Project report. 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 . Correct Answer Creditors Your Answer Creditors Question Longer the duration of production cycle.Question Debt Equity ratio is a Correct Answer True Your Answer True Solvency ratio . 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. Layout of the plant .

Correct Answer Trade credit Question Cost of fencing comes under the ________ category of the Project report. Financial resources . Proper survey of the prod .: Correct Answer Finance cost aspect . Time span . Strategic perspective . the key term of Cash Cows require further com mitment of funds. Correct Answer Share Question The formula for Break Even Point is :Correct Answer Fixed cost / ( Sales Price . 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. Time span Your Answer Strategic perspective . Initiative Question In the BCG Matrix. Correct Answer True Question Management qualities includes :Correct Answer Honesty . Initiative Your Answer Honesty . Correct Answer Internal Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product . 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 True Question Land and site development comes under the cost aspect of the Pro ject report. T o indicate the financial strength and weakness of the business .Variables) Question ________ is a current liability. 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.a company is sub-divided is termed as ________. Financial resources . 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 . Correct Answer General Question Retained earnings is a source of ________ finance. 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 . To help to understand the changes in assets as well as asset sources which are not revealed by the income statement .

Proper survey of the product . Preliminary expenses . Debentures . Div idend Your Answer Increase in working capital . 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 . the following factors should be considered :Correct Answer Proximity to raw materials and markets . Dividend . Future availability and supply of the product Your Answer Future demand of the product . Government policies and other factors Your Answer Proximity to raw materials and markets . Commercial Papers Your Answer Shares . 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. Correct Answer Investment Your Answer Marketing Question Disposition of funds includes :Correct Answer Increase in working capital . greater effici ency as well as higher productivity. 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. 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.uct . 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. Question Every project involves financial outlay which can be referred to . Availability of infrastructure . Correct Answer False Question Debt Equity ratio is a Correct Answer True Solvency ratio .

Raw material requir ement Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method . Correct Answer False Question Building cost consists of :Correct Answer Factory building .as :Correct Answer Project finance Question Interest and Dividend are to be considered while calculating Ope rating ratio. Balance Sheet . 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 Application Your Answer Application Question Demographic market appraisal answers to Correct Answer Who they are? Question For computing Interest coverage ratio. Auxiliary buildings . 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 One Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account . Profit after Interest and taxes are taken into account. Moving Averages method Question Name and designation of the chief executive comes under the ____ ____ category. 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. Quality standards . Correct Answer False Question Commission outstanding is ________ of funds. Technical aspects includes :Correct Answer Plant capacity . Correct Answer True Question Goods purchased on credit ________ in flow of funds.

. 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. maturity and dec ay.Your Answer Balance Sheet Question In both the extreme situations of trade cycles i.e. personnel required for various depar tments. 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 . Inflation an d depression. Correct Answer True Question Production line diagrams show the organisation structure of the project along with information on location. 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. Committees of the board Question A Project has a ________ represented by growth. Issue of new shares Your Answer Cash from operations . Institutional nominees . and their inter-relationship. 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 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 . Cash from operations .

Go odwill written off Your Answer Funds from operation Question Depreciation is sometimes treated as ________ 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. 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 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 . 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. Average Business Streng th and Low Industry attractiveness Question The sources of long term and medium term finance are :- . 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 .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 Cost of utilities include :Correct Answer Cost of electricity Question Marketing category of the Project report consists of :Correct Answer Target market . Average Business strength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness . Aver age Business strength and high Industry attractiveness . Market potential .

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. 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.Correct Answer Equity shares . Competitive Posture . 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. Competitive Posture . Defensive Pos ture Your Answer Aggressive Posture . Correct Answer False Question The applications of cash are :Correct Answer Purchase of fixed assets . Public deposit Your Answer Equity shares . It help s as a reliable guide for the future requirement of funds Your Answer It determines financial consequences of the business operations .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. Payment of long term loans Your Answer Purchase of fixed assets . Correct Answer True Question A project objective which states "What is to be viewed" is term . Bridge loan . Correct Answer True Question The various aspects which need to be considered while assessing Project finance financing are :Correct Answer Environmental factors . Defensive Posture Question Details regarding Internal accruals comes under the ________ cat egory of Project report. 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.Negotiat ions for loans Your Answer Identification of Project . Payment of long term loans . It enables the firm to plan its financial resources properly . Issue of new machinery Question The Project Cycle should be in the ________ order Correct Answer Identification of Project . Risk involved .Project Appraisal . we would normally get any one of the following basic strategic postures :Correct Answer Aggressive Posture .Project Appraisal . 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 .

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 . are now financing pr ojects with strategies and terms that would have been hard to believe/imagine ju st a few years back. Exponential Relationship . Correct Answer True Question2 In small scale organisation. world-wide. 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. Correct Answer True Question External sources of cash are as follows :Correct Answer Issue of new shares . cash and marketable securities. high buying costs and high selling cost .ed as :Correct Answer Strategic perspective Question Current assets includes stock-in-process. Long term loans . 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. Polynomial R elationship Your Answer Linear Relationship . e. Exponential Relationship . Correct Answer True Question3 Banks and Financial Institutions. 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 . requirement of working capital is qui te high due to high amount of overheads.

higher the requirement o . Goodwil l written off Your Answer Funds from operation . Moving Averages method Your Answer Trend Projection method . Correct Answer True Question21 Longer the duration of production cycle. Moving Averages method Question 19 ________ is a current liability. Preliminary expenses written off . Person / system oriented Question15 Short term finance is normally for a period upto ________ year. 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 . Organisation Building . Correct Answer Trade credit Your Answer Trade credit Question20 Managerial problems in a project are the most pervasive. Management aspects includes :Correct Answer Determination . 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 . Correct Answer One Question16 Current assets includes stock-in-process. Loss on sale of fixed assets . Increase in secured borrowing Your Answer Preliminary expenses written off .Question 8 Sources of funds includes :Correct Answer Depreciation . Person / system orien ted Your Answer Determination . Organisation Building . 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 ________. Goodwill written off Question14 In the Detailed Project Report.

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

insurance compa nies and multilateral agencies to include the :Correct Answer Capital market s potential reserve . 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 False Question Detailed Project Report is generally prepared from a ________ re port with additional information. 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 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. Correct Answer Feasibility Question Under ________ method. the forecasts are modified in the light o f observed errors. 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. Competitive Posture .Question After the SPACE chart is constructed. 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. we would normally get any one of the following basic strategic postures :Correct Answer Aggressive Posture .

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. Correct Answer True Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship . Shares . 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. 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. Term loans . Government policies and other factors Question Financing plans consists of :Correct Answer Share capital . Polynom ial Relationship Question Technical appraisal is basically concerned with :Correct Answer Technology . Consumption-level method . Government policies and other factors Your Answer Proximity to raw materials and markets .Question Sensitivity analysis consists of assessing the degree of risk.: Correct Answer Strategic perspective . Correct Answer True Question While choosing the location for a project. Finance cost aspect Question Casual methods of Demand forecasting consists of :Correct Answer Consumption-level method . Availability of infrastructure . Exponential Relationship . Time span . Correct Answer True Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits . Econometric method Your Answer Trend Projection method . Internal accruals Question Ratio should be computed on the basis of inter-related figures w hich have a cause and effect relationship. Correct Answer Life cycle Question A project objective can be said to have the following dimensions viz. maturity and dec ay. the following factors should be considered :Correct Answer Proximity to raw materials and markets . Layout of the plant . Availability of infrast ructure . 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 .

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. Balance Sheet Your Answer Profit and Loss Account . enjoying competitive advantage. Balance Sheet . Helps to prepare financial statements Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account . 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 .SET 11 Question The sources of long term and medium term finance are :Correct Answer Public deposit . 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 . Div idend Your Answer Increase in working capital . Equity shares Your Answer Equity shares . Dividend . Preliminary expenses . Cash flow statement Question ________ in assets involves outflow of funds. Correct Answer Increase . 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 . the promoter takes i nto account the ________ that is to be adopted for producing the product. T o indicate the financial strength and weakness of 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 . is appropriate for the strategic po sture of Conservative under the SPACE approach. Bridge loan . Preliminary expenses wr itten off Question The company having ________. Correct Answer Limited competitive advantage. Econometric method Question Having decided on the location and product. Working capital loan Question Disposition of funds includes :Correct Answer Increase in working capital . Econometric method Your Answer Consumption-level method .

Time span . Managerial compe nsation Your Answer Environmental factors . 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. Political issues Question The advantage of secondary sources of data is that it is readily and economically available. Correct Answer True Question The sources of cash are :is to be viewed" is term . Correct Answer True Question Interest and Dividend are to be considered while calculating Ope rating ratio. 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. Finance cost aspect Your Answer Strategic perspective . 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 . more accurate will be estimation of the requirement of ____ ____.Question Technology. design. Finance cost aspect Question A project is unique and no two projects are similar.: Correct Answer Strategic perspective . Time span . 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 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. Risk involved .

indeed customer d elight under the :Correct Answer Marketing concept Question Management qualities includes :Correct Answer Honesty . Financial resources .Correct Answer Cash from operations . is highly respected for the sophistication. Issue of new shares Question Profit is the result of customer satisfaction. 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. 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. Sale of machinery . maturity and quality in its planning systems. Sale of machinery . Products may justify substant ial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractivenes s . Correct Answer Share Question As per the GE s Stop Light Matrix. Initiative Your Answer Honesty . Average Business strength and high Industry attractiveness Your Answer Average Business Strength and Medium Industry Attractiveness . Financial resources . Issue of new shares Your Answer Cash from operations . 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 . Correct Answer True Question Inflow of funds may not necessarily result in ________. A verage Business strength and high Industry attractiveness . Correct Answer Cash flow statement Question Under the SPACE Model. 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. Customer loyalty is determined under the ________ dimension. Correct Answer False Question A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________.

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. Person / system oriented Your Answer Determination . and their inter-relationship. Correct Answer True . personnel required for various depar tments. Marketing aspects includes :Correct Answer Demand forecasting .Question Sometimes the term ________ is interpreted as cash equivalent i. Correct Answer Source Question It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project. cash and marketable securities. Inflation and d epression. Management aspects includes :Correct Answer Determination . Administrative block Your Answer Factory building . Organisation Building . Organisation Building . 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. Person / system oriented Question Depreciation is sometimes treated as ________ funds. Auxiliary buildings .e. requirement of working capital may be high. Auxiliary buildings . Promotion . 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 . 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. Distribution Your Answer Demand forecasting . e. Promotion . 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.

the investment cost unit capacity _ _______. 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 . 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 . 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. It does not consider non-fund transactions . 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 Strategic perspective .Question Name of the finance manager comes under the Project organisation ca tegory of the Project report. Time span . Bankers . 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. Risk involved . 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 . 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. 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 help in determining future requirement of funds .

Correct Answer False Question Having decided on the location and product. 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 . 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.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 ________. the promoter takes into account the ________ that is to be adopted for producing the product. Comments on the last published accounts Question Sensitivity analysis consists of assessing the degree of risk. Debentures Question In the BCG Matrix "DOGS" indicate products which are generally duri ng the stage of Decline of a Product Life Cycle. Impact of Government policies on comp any operations . Correct Answer Manufacturing process and technology Question Financial and economic aspect of the Visit report consists of :Correct Answer Company s financial year . Comments on the last published accounts Your Answer Company s financial year . 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 . Correct Answer True Question Under the SPACE Model. Impact of Government policies on c ompany operations . 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. Shares . operating in an unstable environm ent Question Excessive expenditures on foreign technicians leads to ________. Correct Answer True Question The construction of National Golden Quadrilateral can be recognised as Project.

Debentures Question Cost and time overrun of the project may lead to loss on account of . 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. Shares . Technical aspects includes :Correct Answer Plant capacity . Raw material requirement Your Answer Quality standards . maturity and decay. Power / telecom f acilitie s Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship . Polynomial R elationship Question Market potential should be determined under the Marketing aspect of the Project report. Correct Answer False SET 13 Question Cost under-estimation at the project preparation and evaluation sta ge leads to cost and time over run. the requirement of w orking capital will be on the lower side.acturing. Raw material requirement . Correct Answer True Question Miscellaneous fixed assets includes :Correct Answer Cables Question In the Detailed Project Report. 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 . 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. Quality standards . Exponential Relationship . Correct Answer Life cycle Question If the organisation is a trading organisation.

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 .lost market opportunities. Availability of infr astructure . the following factors sh ould be considered :Correct Answer Proximity to raw materials and markets . 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 Name and designation of the chief executive comes under the _______ _ category. 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 . greater efficiency as well as higher productivity. Plant capacity . Correct Answer True Question Commission outstanding is ________ of funds. 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. Correct Answer True Question While choosing the location for a project. Internal accruals Question Financial aspect of Detailed Project report includes :Correct Answer Fixation of means of financial structure . To help t o understand the changes in assets as well as asset sources which are not reveal ed by the income statement . Loss on sale of fixed assets . Funds from long term loans Question Financing plans consists of :Correct Answer Share capital . Availa bility of infrastructure Question Change in the project concept itself may lead to cost and time over run. Government policies and other factors Your Answer Proximity to raw materials and markets . To ind icate the financial strength and weakness of the business . Correct Answer Investment Question Internal sources of funds are :Correct Answer Funds from operation . Term loans . Goodwil l written off Your Answer Funds from operation .

Correct Answer True Question In small scale organisation. Correct Answer Working capital Question ________ in assets involves outflow of funds. A verage Business strength and high Industry attractiveness Your Answer Strong Business Strength and high Industry attractiveness . Average Business stre ngth and high Industry attractiveness Question Longer the duration of production cycle. Correct Answer True . 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.Question ________ is that scarce input which financial resources alone canno t mobilise. Profit after Interest and ta xes are taken into account. maturity and decay. requirement of working capital is quit e high due to high amount of overheads. Correct Answer Life cycle Question The various aspects which need to be considered while assessing Pro ject finance financing are :Correct Answer Environmental factors . 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. Products may justify substantial commitment of funds where there is :Correct Answer Strong Business Strength and high Industry attractiveness . Correct Answer Increase Question For computing Interest coverage ratio. Aver age Business Strength and Medium Industry Attractiveness . higher the requirement of ________. high buying costs and high selling cost. Managerial compensati on Question As per the GE s Stop Light Matrix. Risk involved . Correct Answer One Question A Project has a ________ represented by growth.

specific for the project being appraised.Question Marketing aspect of Detailed Project report includes :Correct Answer Demand forecasting Question The secondary data is collected through market survey. 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 Fund Question The temporary requirement of working capital can be financed out of :Correct Answer Inter-corporate Deposits . Initiative Question Trend Projection method of demand forecasting consists of :- . Commercial Papers Your Answer Inter-corporate Deposits . Correct Answer True SET 14 Question The data for ratio analysis is obtained from :Correct Answer Profit and Loss Account .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 Management qualities includes :Correct Answer Honesty . Commercial Papers Question Current assets includes stock-in-process. cash and marketable securities.e. 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 . 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. Financial resources . maturity an d quality in its planning systems Your Answer Which is highly respected for the sophistication. 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.

50 la khs whichever is lower. 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 . Layout of the plant . higher the requirement of ________. 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. To indic ate the financial strength and weakness of the business . Time span . Exponential Relationship . Correct Answer True Question While choosing the location for a project. Availability of infras tructure . Correct Answer Inflow of cash Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question Details regarding Administrative / controlling office comes under the . 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. the following factors shou ld be considered :Correct Answer Proximity to raw materials and markets . 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 Linear Relationship . : Correct Answer Strategic perspective . 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 Working capital Question Inflow of funds may not necessarily result in ________. 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. 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 .

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 . 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. Increase in s ecured borrowing Question The construction of National Golden Quadrilateral can be recognised a s Project.________ category. Input availability . Correct Answer General Question Ratios relating to working capital are :Correct Answer Current ratio . Preliminary expenses written off . 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 . the promoter takes into a ccount the ________ that is to be adopted for producing the product. 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. Quick ratio Question Depreciation is sometimes treated as ________ funds. Internal measure . Correct Answer Trade credit Question Sources of funds includes :Correct Answer Depreciation . Correct Answer True Question Capital Issue expenses include :Correct Answer Brokerage fees to registrars Question Having decided on the location and product. Institutional nominees . Sales trends Question Cost of overheads include :Correct Answer Cost of repairs and maintenance .

. is appropriate for the strategic posture of Conservative under the SPACE approach. Short term borrowings Question The company having ________. Correct Answer Limited competitive advantage.Question External sources of cash are as follows :Correct Answer Issue of new shares . 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. in what form and at what price. Long term loans . the key term of Cash Cows require further commit ment of funds. 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 False Question In the GE s Stop Light Matrix.where. P roducts call for divestment. when. 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. when ________ situation prevails . 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. 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.

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 . 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. the investment cost unit capacity _ . we would normally get any one of the following basic strategic postures :Correct Answer Aggressive Posture . Correct Answer Increase Question ________ occupies a unique position in the macro economic developme nt which helps in induction of new technology and facilitates. Future availability and supply of the product Question The BCG product Portfolio Matrix.Correct Answer Equity Question Trend Projection method of demand forecasting consists of :Correct Answer Linear Relationship . 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. Exponential Relationship . Proper survey of the product . 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. Correct Answer True Question Excessive expenditures on foreign technicians leads to ________. Competitive Posture . Polynomial R elationship Question After the SPACE chart is constructed. Defensive Posture Question ________ in liabilities involves inflow of funds. greater efficienc y as well as higher productivity.

well-recog nised or structure formula/steps for management evaluation/appraisal. and their inter-relationship. personnel required for various departme nts. Correct Answer False Question Details regarding Internal accruals comes under the ________ catego ry of Project report. Correct Answer False Question Miscellaneous expenditure is written on the asset side of the Balan ce sheet. . Correct Answer Decreases Question The applications of cash are :Correct Answer Purchase of fixed assets . Correct Answer True Question Production line diagrams show the organisation structure of the pro ject along with information on location. Shares . Moving Averages method Question Unlike financial projections. Profit after Interest and ta xes are taken into account. 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 True Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits . 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 Dividend Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method . Correct Answer False Question ________ is a current asset Correct Answer Book debts Question For computing Interest coverage ratio. Debentures Question Ratio analysis is a technique of planning and control. there cannot be any fixed.

maturity and dec ay.Correct Answer Financing plan Question Management category of Visit report consists of :Correct Answer Managing Director . 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. Commercial Papers Question Current assets includes stock-in-process. Correct Answer Life cycle Question Demand technique forecasting of Commercial appraisal includes :Correct Answer Future demand of the product . 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 . Correct Answer General s potential reserve of . Initiative Question A Project has a ________ represented by growth. 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 . Institutional nominees . 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 . 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. Financial resources .

Promotion . Marketing aspects includes :Correct Answer Demand forecasting . Correct Answer Detailed Project report Question ________ is the summary of cash book or Receipts and Payments st atement. 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. Distribution Question Time Series Projection Methods of Demand forecasting consists of :Correct Answer Trend Projection method . 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. Correct Answer True Question The sources of cash are :Correct Answer Cash from operations . 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. 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 Environmental stability dimension under SPACE Model involves Demand variabili ty Demand variability Company s competitive advantage dimension under SPACE Model involves Product . Sale of machinery .Question The basic difference between the feasibility study report and __ ______ is the level of accuracy and degree of detail. 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. 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.

Risk involved . Finance cost aspect Question The Key terms used in the BCG Product Portfolio matrix are :Correct Answer Stars . Correct Answer Financing plan Question Internal sources of funds are :Correct Answer Funds from operation . Correct Answer Equity Question If the organisation is a trading organisation. Question marks Question Details regarding Bridge finance comes under the ________ catego ry of Project report. indeed customer d elight under the :- . Managerial compe nsation Question A project objective can be said to have the following dimensions viz. Quality standards . Correct Answer True Question Cost of overheads include :Correct Answer Cost of repairs and maintenance Question ________ profitability reduces the strain on working capital. Time span . the requirement o f working capital will be on the lower side. Go odwill written off Question ________ capital represents permanent capital. Raw material requir ement Question Debt Service means payment of installments and interest against an amount borrowed as per terms of loan. Loss on sale of fixed assets .: Correct Answer Strategic perspective .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 . Technical aspects includes :Correct Answer Plant capacity . 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. Correct Answer False Question In the Detailed Project Report.

Econometric method Your Answer Consumption-level method . Internal accruals Question Having decided on the location and product. 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. the promoter takes i nto account the ________ that is to be adopted for producing the product. Correct Answer General Question Infrastructural projects include :Correct Answer Power Generation and Distribution Question Goods purchased on credit ________ in flow of funds. 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 . Correct Answer Manufacturing process and technology Question Name and designation of the chief executive comes under the ____ ____ category. 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 . 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. 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. Term loans .Correct Answer Marketing concept Question Financing plans consists of :Correct Answer Share capital .

Location of the factory Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Sale of machinery .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 . we would normally get any one of the following basic strategic postures :Correct Answer Aggressive Posture . Defensive Posture . Proposed product . Competitive Posture . Issue of new shares Your Answer Cash from operations . 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 . Competitive Posture . 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. Defensive Pos ture Your Answer Aggressive Posture . Proposed product . Loca tion of the factory Your Answer Name of the Industrial concern .

To indica te the financial strength and weakness of the business . the key term of Cash Cows require further com mitment of funds. 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.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 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. Correct Answer Working capital Your Answer Working capital True/False Question In the BCG Matrix. higher the requirement of ________. more accurate will be estimation of the requirement of ____ ____. Correct Answer False Your Answer False Select The Blank Question More accurate the estimation of the level of current assets and current liabilities. Correct Answer False Your Answer False True/False Question Change in the project concept itself may lead to cost and time o verrun. 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 . 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. .

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. 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. Preliminary expenses . maturity and quality in its planning systems.Correct Answer Application Your Answer Application Multiple Choice Multiple Answer Question Disposition of funds includes :Correct Answer Increase in working capital . 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. Div idend Your Answer Increase in working capital . are now financing projects with strategies and terms that would have been hard to believe/imagine just a few years back. is highly respected for the sophistication. Correct Answer True Your Answer True . Preliminary expenses . world-wide.

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 . Initiative Select The Blank Question Location of the factory comes under the ________ category of the Project report.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 Company s competitive advantage Your Answer Company s competitive advantage is to be viewed" is term . Customer loyalty is determined under the ________ dimension. Financial resources . Correct Answer High Your Answer High Select The Blank Question Detailed Project Report is generally prepared from a ________ re port with additional information. Initiative Your Answer Honesty . Financial resources . Correct Answer General Your Answer General Select The Blank Question Under the SPACE Model.

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 . Promotion . when ________ situation prevails. is appropriate for the strategic po sture of Defensive under the SPACE approach. Distribution Your Answer Demand forecasting . Financial Institutions . Internal measure . Quick ratio Your Answer Current ratio . Internal measure . Correct Answer True Your Answer True True/False Question The construction of National Golden Quadrilateral can be recogni sed as Project. 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 . Correct Answer Lacks both competitive advantage as well as financial st rength and belongs to a not so attractive industry. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question In the Detailed Project Report. Quick ratio Select The Blank Question In the GE s Stop Light Matrix. Marketing aspects includes :Correct Answer Demand forecasting . Products call for Hold. Distribution Select The Blank Question The company having ________.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. Promotion .

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 True Your Answer True Multiple Choice Multiple Answer Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits .Your Answer Bankers . Pricing policy Your Answer Target market . Market potential . 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 . Shares . Debentures Multiple Choice Multiple Answer Question Marketing category of the Project report consists of :Correct Answer Target market . 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. Market potential . Shares . Debentures Your Answer Cash Profits .

Sale of machinery . Loca tion of the factory Your Answer Name of the Industrial concern . Sale of machinery . Defensive Pos ture Your Answer Aggressive Posture . Proposed product . 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 . 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 . To help to understand t he changes in assets as well as asset sources which are not revealed by the inco .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 . To indica te the financial strength and weakness of the business . Location of the factory Select The Blank Question Excessive expenditures on foreign technicians leads to ________. Issue of new shares Your Answer Cash from operations . we would normally get any one of the following basic strategic postures :Correct Answer Aggressive Posture . Competitive Posture . T o indicate the financial strength and weakness of the business . Proposed product . 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 . 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. Competitive Posture .

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. higher the requirement of ________. Preliminary expenses . Correct Answer Application Your Answer Application Multiple Choice Multiple Answer Question Disposition of funds includes :Correct Answer Increase in working capital . the key term of Cash Cows require further com mitment of funds. Preliminary expenses . Dividend . 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 False Your Answer False Select The Blank Question More accurate the estimation of the level of current assets and current liabilities. Correct Answer Working capital Your Answer Working capital True/False Question In the BCG Matrix. 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. more accurate will be estimation of the requirement of ____ ____.me statement Select The Blank Question Longer the duration of production cycle. Div idend Your Answer Increase in working capital .

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.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. 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 . 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. are now financing projects with strategies and terms that would have been hard to believe/imagine just a few years back. world-wide. is highly respected for the sophistication. maturity and quality in its planning systems.

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 .Your Answer Marketing True/False Question Cost under-estimation at the project preparation and evaluation stage leads to cost and time over run. Financial resources . 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 . Correct Answer Company s competitive advantage Your Answer Company s competitive advantage Multiple Choice Single Answer Question In the Cash flow statement. Correct Answer General Your Answer General Select The Blank Question Under the SPACE Model. Initiative Your Answer Honesty . Correct Answer High Your Answer High Select The Blank Question Detailed Project Report is generally prepared from a ________ re port with additional information. Financial resources . Customer loyalty is determined under the ________ dimension. Initiative Select The Blank Question Location of the factory comes under the ________ category of the Project report. Correct Answer True Your Answer True Select The Blank Question ________ profitability reduces the strain on working capital.

is appropriate for the strategic po sture of Defensive under the SPACE approach. Marketing aspects includes :Correct Answer Demand forecasting . Quick ratio Select The Blank Question In the GE s Stop Light Matrix. 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. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question In the Detailed Project Report. Internal measure . 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 . Distribution Select The Blank Question The company having ________. Financial Institutions Your Answer Bankers . Distribution Your Answer Demand forecasting . 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 True/False Question In the BCG Matrix "DOGS" indicate products which are generally d uring the stage of Decline of a Product Life Cycle.True/False Question The construction of National Golden Quadrilateral can be recogni sed as Project. Products call for Hold. when ________ situation prevails. Promotion . Promotion . Internal measure . Correct Answer Lacks both competitive advantage as well as financial st rength and belongs to a not so attractive industry. Correct Answer True Your Answer True Multiple Choice Multiple Answer . Quick ratio Your Answer Current ratio .

Market potential . Debentures Your Answer Cash Profits . Debentures Multiple Choice Multiple Answer Question Marketing category of the Project report consists of :Correct Answer Target market . Market potential . Pricing policy .Question The permanent requirement of working capital should be financed out of :Correct Answer Cash Profits . Shares . Shares . Pricing policy Your Answer Target market .

Sign up to vote on this title
UsefulNot useful