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Project Management Mcq Question Set 3
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1. Raw material can be classified in which of the below broad categories?
Agricultural Products, Mineral Products, Live Stock & Forest Products, Marine Products
Agricultural Products, Plastic Products, Industrial Products, Forest and Marine Products
Agricultural Products, Mineral Products, Industrial Products, Marine Products
Agricultural Products, Mineral Products, Industrial Products, Live Stock and Forest Products
2. Lime Stone is which type of Raw Material?
Agricultural Products
Mineral Products
Both a and b
none of the above
3. Which of the following is NOT a mineral type of raw material?
Iron
Bauxite
Castro Seeds
Zinc
4. Which of the following is auxiliary material and factory supply?
Additives
Packaging Material
Oil and Grease
All of the above
5. Which of the following is a utility?
Water
Land
Building
Machinery
6. Which of the following is NOT an equipment required for a project?
Plant Equipment
Mechanical Equipment
Domestic Equipment
Electrical Equipment
7. Which of the below is a category of civil work for a project?
Site Preparation and Development
Building and Structures
Outdoor Works
All of the above
8. While calculating cost of imported machinery, which of the below needs to beconsidered?
FOB Value
Shipping, Freight and Insurance Cost
Import Duty
All of the above
9. Miscellaneous Fixed Assets include
Furniture
Office Machinery and Equipment
Vehicles
All of the above
10. Preliminary Expenses to start a project include
Expense on Preparing the Feasibility Report
Expense on Raw Material
Salaries
none of the above
11. The major components of Capital Issue expenses are
Underwriting Commission
Brokerage
None of the Above
a and b
12. Listing Fee is which type of expense?
Recurring Expense
Capital Issue Expense
Miscellaneous Expense
none of the above
13. Which one of the below is not a preoperative expense?
Establishment Expenses
Rent, Rates and Taxes
Selling Expense
Travelling Expense
14. Public Deposits represent _____________borrowings.
Secured
Unsecured
Deferred
none of the above
15. Factory overheads include
Rent
Taxes
Insurance on factory assets
All of the above
16. The prices of material inputs are defined in CIF? What does CIF stand for?
Cost, Investment and Fuel
Current Investment Flows
Cost, Insurance and Freight
Cost, Incentive and Freight
17. Which one of the following is a constituent of working capital requirement? Rawmaterial and components
Debtor
Operating expense
Both a and b
None of the above
18. Which of the following is NOT a source of Working Capital?
Cash Credit
Bonds
Trade Credit
Accruals and Provisions
19. Borrowing or incurring any Liability is a source of fund.
True
False
none
None of the mentioned
20. Payment of Cash Dividend represents a source of fund.
True
False
none
none
21. The analysis of funds can be called an analysis of the working capital.
True
False
none
none
22. Which one of the following is an application of funds?
Operating Losses
Operating Profit
Increase in Capital
All of the above
23. If there is any decrease in current assets…
Working capital decreases
Working capital increases
Fixed Assets decrease
none of the above
24. Increase in working capital denotes….
Source of Funds
Source of Cash
Application of Funds
none of the above
25. If we want to prepare the funds flow statement we should have…
Balance sheets of two consecutive years
Funds flow statements of two consecutive years
Budget for next financial year
All of the above
26. The liabilities side of the balance sheet shows the sources of finance employed bythe business.
True
False
none
none
27. Cash Flow statement is also known as
Statement of Changes in Financial Position on cash basis
Statement accounting for variation in cash
Both a and b
none of the above
28. The objectives of Cash Flow Statement are
Analysis of cash position
Short term Cash Planning
Evaluation of Liquidity
All of the above
29. Features of Term Loan include
Currency
Security
Interest and Principal payment
All of the above
30. Usually assets which are financed with the Term Loan provide as a prime securityagainst the Term Loan
True
False
none
none
31. As a part of Term Loan Procedure the detailed appraisal of project covers
Marketing Aspects
Technical Aspects
Financial Aspects
All of the above
32. Syndication is an arrangement for
Marketing Support
Manpower Supply
Providing Long Term Finance to Projects
none of the above
33. Once letter of sanction is issued, the borrower has to submit______ afterappropriate board resolution to avail the loan.
Copy of the Board Meeting Minutes
Letter of Advances
Letter of Acceptance
Letter of Credit
34. Current assets are financed by
Term Loan
Debentures
Working Capital Loan
Share Capital
35. A DSCR ˂ 1 indicates
There is not enough cash flow to cover loan payments
There is enough cash flow to cover loan payments
Company does not need a loan
None of the above
36. DSCR is a term most important to
Employees
Financers
Customers
none of the above
37. What is the full form of SIDBI
State Industrial Development Bank of India
Small Industrial Development Bank of India
State Insurance Development Board of India
Small Industries Debt Borrowing Institution
38. Which one of the below is not a source of Project Finance?
Debentures
Bonds
ECBs
Overdraft facility
39. Which one of the following was not set up with a motive of industrial finance?
SIDBI
IDBI
IFCI
IFFCO
40. Low capacity utilization is a signal of ______
Enough raw Material
Industrial Sickness
Inadequate production capacity
one of the Above
41. Which of the following is not a signal of industrial sickness?
Promoter being accused of a crime
Continuous irregularities in Cash Credit Account
Failure to pay Statutory Liabilities
Rapid Turnover of Key Personnel
42. Marketing Constraint is an internal source of Industrial Sickness.
True
False
none
none
43. Which one of the following is NOT a Maha-Ratna Industry?
GAIL
Coal India Limited
SAIL
Airports Authority of India
44. Ineffective corporate management leads to
Improper performance of the unit
Industrial Sickness
Both a and b
None of the above
45. Finance constraints arises because of
Credit Restrain Policy
Delay in Disbursement of Loan by Government
Unfavourable Investment
All of the above
46. Production constraints arise because of
Shortage of Raw Material
Shortage of Power
High Prices of Fuel
All of the above
47. Which one of the following can be a weakness in capital budgeting?
Poor Alignment between Strategy and Capital Budgeting
Deficiencies in Analytical Techniques
Both a and b
none of the above
48. The major deficiencies characterizing the labour markets in developing countries likeIndia are
Shortage of well trained people
Rigid labour laws
Both a and b
none of the above
49. Which of the following has marginal exposure to Term Lending?
Insurance Companies ( LIC & GIC)
Power Finance Corporation
IDFC
All of the above
50. Debt restructuring and infusion of external funds for sick units is one of the remedialmeasures to overcome Industrial Sickness.
True
False
none
none
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