Research Methodology and Project Report - 2

Research Methodology and Project Report - 2


Multiple Choice Multiple Answer
Question The permanent requirement of working capital should be financed out of :-
Correct Answer Debentures , Cash Profits , Shares


Multiple Choice Multiple Answer
Question The sources of long term and medium term finance are :-
Correct Answer Equity shares , Public deposit


Multiple Choice Single Answer
Question The emphasis of the Banks and Financial institutions particularly in India has shifted from 'Sanctions', 'Disbursements' and 'Security-orientation' to 'Recovery/Recycling' and :-
Correct Answer Activity orientation


Multiple Choice Single Answer
Question Technology, design, layout of the plant as well as inputs and infrastructural facilities are to be considered under :-
Correct Answer Technical appraisal


Select The Blank
Question Detailed Project Report is generally prepared from a ________ report with additional information.
Correct Answer Feasibility


True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners.
Correct Answer True


Multiple Choice Single Answer
Question The formula for Break Even Point is :-
Correct Answer Fixed cost / ( Sales Price - Variables)


Multiple Choice Single Answer
Question Receivables is categorised under :-
Correct Answer Current assets and liabilities


Multiple Choice Multiple Answer
Question Ratios relating to working capital are :-
Correct Answer Current ratio , Internal measure , Quick ratio


Select The Blank
Question Longer the duration of production cycle, higher the requirement of ________.
Correct Answer Working capital


Multiple Choice Multiple Answer
Question In the Detailed Project Report, Management aspects includes :-
Correct Answer Determination , Organisation Building , Person / system oriented


True/False
Question Financial analysis based on accounting ratios will give mis-leading results if the effects of changes in price level are not taken into account.
Correct Answer True


Multiple Choice Multiple Answer
Question In the Detailed Project Report, Technical aspects includes :-
Correct Answer Plant capacity , Quality standards , Raw material requirement


Select The Blank
Question Inflow of funds may not necessarily result in ________.
Correct Answer Inflow of cash


Multiple Choice Multiple Answer
Question Building cost consists of :-
Correct Answer Factory building , Auxiliary buildings , Administrative block


Match The Following
Question- Correct Answer


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


Select The Blank
Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities.
Correct Answer Fund


True/False
Question Name of the finance manager comes under the Project organisation category of the Project report.
Correct Answer True


True/False
Question Change in the project concept itself may lead to cost and time overrun.
Correct Answer True


True/False
Question The maximum Seed Capital assistance provided by IDBI under the project will be restricted to 50% of the required promoter's contribution or Rs. 50 lakhs whichever is lower.
Correct Answer False


Match The Following
Question- Correct Answer


Project organization- Finance manager


General category of Project report- Location of factory


Cost aspect of the project report -Consultancy fees


Financing plan- Unsecured loans



True/False
Question Trend projection method is the important technique for forecasting demand.
Correct Answer True


Multiple Choice Multiple Answer
Question Production and sales aspect of Visit report consists of :-
Correct Answer Utilisation of installed capacity , Input availability , Sales trends


Multiple Choice Multiple Answer
Question The sources of cash are :-
Correct Answer Cash from operations , Sale of machinery , Issue of new shares


Multiple Choice Multiple Answer
Question External sources of cash are as follows :-
Correct Answer Issue of new shares , Long term loans , Short term borrowings


True/False
Question Production line diagrams show the organisation structure of the project along with information on location, personnel required for various departments, and their inter-relationship.
Correct Answer False


Select The Blank
Question ________ is a current asset
Correct Answer Book debts


Select The Blank
Question The company having ________, is appropriate for the strategic posture of Defensive under the SPACE approach.
Correct Answer Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment


Multiple Choice Single Answer
Question Management aspect of detailed project report includes
Correct Answer Organisation structure


Select The Blank
Question ________ profitability reduces the strain on working capital.
Correct Answer High


Multiple Choice Multiple Answer
Question The following are the sources of funds :-
Correct Answer Operating Profit , Non operating Income


Multiple Choice Single Answer
Question The cash flow of all the years during the expected life of the project are discounted at a pre-determined cut off rate and :-
Correct Answer Net Present value is obtained

Multiple Choice Multiple Answer
Question The objectives of the funds flow statement is as follows :-
Correct Answer To find out the uses of loans raised by the business , To indicate the financial strength and weakness of the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement


Multiple Choice Single Answer
Question Cost of materials include :-
Correct Answer Cost of components and consumable stores


True/False
Question The Detailed Project report must indicate the gestation period of the project.
Correct Answer True


Multiple Choice Single Answer
Question Strategic Position and Action Evaluation Model :-
Correct Answer Is an approach to hammer out an appropriate strategic posture for a firm and its individual business


Select The Blank
Question Location of the factory comes under the ________ category of the Project report.
Correct Answer General


Select The Blank
Question Retained earnings is a source of ________ finance.
Correct Answer Internal


Multiple Choice Multiple Answer
Question General category of the Project report consists of :-
Correct Answer Name of the Industrial concern , Proposed product , Location of the factory



Select The Blank
Question Short term finance is normally for a period upto ________ year.
Correct Answer One


Multiple Choice Single Answer
Question Appointments made at senior level during the half-year is categorised under :-
Correct Answer Organisation and management


Select The Blank
Question Commission outstanding is ________ of funds.
Correct Answer Application


Multiple Choice Single Answer
Question The statement which shows the movement of cash into and out of firm's kittie is known as :-
Correct Answer Cash flow statement


Multiple Choice Single Answer
Question Cost of utilities include :-
Correct Answer Cost of electricity


Multiple Choice Single Answer
Question Marketing aspect of Detailed Project report includes :-
Correct Answer Demand forecasting


True/False
Question In both the extreme situations of trade cycles i.e. Inflation and depression, requirement of working capital may be high.
Correct Answer True

Multiple Choice Multiple Answer
Question While choosing the location for a project, the following factors should be considered :-
Correct Answer Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors


Research Methodology and Project Report - 1


Select The Blank
Question ________ is a current liability.
Correct Answer Trade credit


Multiple Choice Multiple Answer
Question Marketing category of the Project report consists of :-
Correct Answer Target market , Market potential , Pricing policy


Select The Blank
Question Under the SPACE Model, Customer loyalty is determined under the ________ dimension.
Correct Answer Company's competitive advantage


Multiple Choice Single Answer
Question Sources of funds include :-
Correct Answer Increase in secured borrowing


True/False
Question It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project.
Correct Answer True


Multiple Choice Single Answer
Question A project objective which states "What' is to be viewed" is termed as :-
Correct Answer Strategic perspective


Select The Blank
Question ________ tries to have what the customer will want- where, when, in what form and at what price.
Correct Answer Marketing


True/False
Question Debt Service Coverage Ratio is one of the most important ratios calculated by the bankers or financial institutions giving long term finance to the organisation.
Correct Answer True


Multiple Choice Multiple Answer
Question Management qualities includes :-
Correct Answer Honesty , Financial resources , Initiative


Multiple Choice Single Answer
Question The second phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Correct Answer Problems faced during the Construction and Project implementation


True/False
Question A project is unique and no two projects are similar.
Correct Answer True


Multiple Choice Single Answer
Question Land and site development cost includes cost of :-
Correct Answer Gates


Multiple Choice Single Answer
Question A project objective which states What "achieving it " would cost is known as :-
Correct Answer Finance cost aspect


Select The Blank
Question ________ in assets involves outflow of funds.
Correct Answer Increase


Match The Following
Question- Correct Answer

Management problems- Lack of exposure
Management Quality- Initiative


Management Perception- Aspiration level/ conservative


Organisational Climate -Person oriented



Match The Following
Question- Correct Answer


Source of funds -Depreciation


Fixed assets -Building

Current assets -Debtors

Current liability- Trade credit


Multiple Choice Single Answer
Question Disposal of fixed assets is categorised under :-
Correct Answer Miscellaneous


True/False
Question The emphasis of a finance manager should be on taking a synergistic view of the project rather than looking at it only from the financial aspects.
Correct Answer True


Multiple Choice Single Answer
Question Geographic market appraisal answers to :-
Correct 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


Select The Blank
Question ________ occupies a unique position in the macro economic development which helps in induction of new technology and facilitates, greater efficiency as well as higher productivity.
Correct Answer Investment


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


Multiple Choice Single Answer
Question Pre-operative expenses include :-
Correct Answer Interest on deferred payments


Multiple Choice Multiple Answer
Question Advantages of fund flow statement are :-
Correct Answer It determines financial consequences of the business operations , It enables the firm to plan its financial resources properly , It helps as a reliable guide for the future requirement of funds


True/False
Question Managerial problems in a project are the most pervasive.
Correct Answer True


True/False
Question In the BCG Matrix "DOGS" indicate products which are generally during the stage of Decline of a Product Life Cycle.
Correct Answer True


Multiple Choice Multiple Answer
Question The applications of cash are :-
Correct Answer Purchase of fixed assets , Payment of long term loans


True/False
Question Debt Equity ratio is a 'Solvency ratio'.
Correct Answer True


True/False
Question Current assets includes stock-in-process.
Correct Answer True


Multiple Choice Multiple Answer
Question A project objective can be said to have the following dimensions viz.:
Correct Answer Strategic perspective , Time span , Finance cost aspect


Multiple Choice Single Answer
Question Liabilities side of Balance sheet includes :-
Correct Answer Unsecured loans


Multiple Choice Single Answer
Question The rate of discount which would equate the present value of investments to the present value of benefits over the life of the project is known as :-
Correct Answer Internal rate of return


Select The Blank
Question A Project has a ________ represented by growth, maturity and decay.
Correct Answer Life cycle


Multiple Choice Multiple Answer
Question After the SPACE chart is constructed, we would normally get any one of the following basic strategic postures :-
Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture


Select The Blank
Question ________ is the summary of cash book or Receipts and Payments statement.
Correct Answer Cash flow statement


Multiple Choice Single Answer
Question The point at which the unit neither earns profit nor incurs loss is known as :-
Correct Answer Break Even Point


Multiple Choice Multiple Answer
Question In the Detailed Project Report, Marketing aspects includes :-
Correct Answer Demand forecasting , Promotion , Distribution


Multiple Choice Multiple Answer
Question The various aspects which need to be considered while assessing Project finance financing are
Correct Answer Environmental factors , Risk involved , Managerial compensation


Multiple Choice Multiple Answer
Question Casual methods of Demand forecasting consists of :-
Correct Answer Consumption-level method , Econometric method


Select The Blank
Question Under ________ method, the forecasts are modified in the light of observed errors.
Correct Answer Exponential smoothing


Multiple Choice Multiple Answer
Question Provision for tax can be treated as :-
Correct Answer Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits


Select The Blank
Question Retained earnings indicates that whatever profits are earned by the company are not distributed by it by way of ________ but are kept aside for use in future for expansion or other purpose.
Correct Answer Dividend


Multiple Choice Single Answer
Question Infrastructural projects include :-
Correct Answer Power Generation and Distribution


Multiple Choice Single Answer
Question The ratio that roughly measures the company's potential reserve of cash is termed as :-
Correct Answer Net Working capital to total assets


Select The Blank
Question Name and designation of the chief executive comes under the ________ category.
Correct Answer General


Multiple Choice Single Answer
Question Miscellaneous fixed assets includes :-
Correct Answer Cables


Multiple Choice Single Answer
Question In the Cash flow statement, the sources of funds include
Correct Answer Share Issue