Question : The basic difference between the feasibility study report and ________ is the level of accuracy and

degree of detail. Answer : Detailed Project report Question : End use method of Commercial appraisal technique is :Answer : A list of industries wherein the product is used is made and quantity and volume is arrived at Question : The advantage of secondary sources of data is that it is readily and economically available. Answer : True Question : Depreciation is sometimes treated as ________ funds. Answer : Source Question : Casual methods of Demand forecasting consists of :Answer : Consumption-level method , Econometric method Question : Financial and economic aspect of the Visit report consists of :Answer : Company's financial year , Impact of Government policies on company operations , Comments on the last published accounts Question : The statement which shows the movement of cash into and out of firm's kittie is known as :Answer : Cash flow statement Question : Name of the finance manager comes under the Project organisation category of the Project report. Answer : True Question : Cost of laying roads comes under :Answer : Land and site cost Question : Debt Service means payment of installments and interest against an amount borrowed as per terms of loan. Answer : True Question : Infrastructural projects include :Answer : Power Generation and Distribution Question : The 'BCG Matrix 'analysis various products of the organisation in the terms of Business strength and Industry Attractiveness. Answer : False Question : A Project has a ________ represented by growth, maturity and decay. Answer : Life cycle Question : Position regarding requirement and training of operational staff comes under the ________ category of Project report. Answer : Project organisation Question : Receivables is categorised under :Answer : Current assets and liabilities

Question : Managerial problems in a project are the most pervasive. Answer : True Question : Disposition of funds includes :Answer : Increase in working capital , Preliminary expenses , Dividend Question : A project is unique and no two projects are similar. Answer : True 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 manufacturing. Answer : True Question : The objectives of the funds flow statement is as follows :Answer : To indicate the financial strength and weakness of the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement , To find out the uses of loans raised by the business Question : Under the SPACE Model, Customer loyalty is determined under the ________ dimension. Answer : Company's competitive advantage Question : Cost and time overrun of the project may lead to loss on account of lost market opportunities. Answer : True Question : The ratio which indicates the ability of the company to meet current obligations is termed as :Answer : Current ratio Question : While choosing the location for a project, the following factors should be considered :Answer : Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors Question : The sources of long term and medium term finance are :Answer : Equity shares , Public deposit Question : More accurate the estimation of the level of current assets and current liabilities, more accurate will be estimation of the requirement of ________. Answer : Working capital Question : Debt Equity ratio is a 'Solvency ratio'. Answer : True Question : Organisation and Management Material inputs and utilities Working capital Marketing Question : Management qualities includes :Answer Strikes/lay-offs/lockouts etc. Stock of raw material Sanctioned bank limit Pricing policy

Answer : Honesty , Financial resources , Initiative Question : ________ in liabilities involves inflow of funds. Answer : Increase Question : The ________ market is longer the order of the day since this is an era of professionalization and specialised services are available at cost. Answer : Monopolistic Question : Time Series Projection Methods of Demand forecasting consists of :Answer : Moving Averages method , Trend Projection method Question : Borrower's contribution towards Working capital is known as :Answer : Margin money Question : A project objective which states "What' is to be viewed" is termed as :Answer : Strategic perspective Question : The basic characteristic of a project is :Answer : That it involves current outlay of funds in expectation of future benefits Question : Name and designation of the chief executive comes under the ________ category. Answer : General Question : Under ________ method, the forecasts are modified in the light of observed errors. Answer : Exponential smoothing 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 :Answer : Internal rate of return Question : In the Detailed Project Report, Technical aspects includes :Answer : Plant capacity , Quality standards , Raw material requirement Question : Delay in recruitment of staff may lead to cost and time overrun Answer : True Question : The basic document for facilitating Project financing is the :Answer : Detailed Project report Question : External sources of cash are as follows :Answer : Issue of new shares , Long term loans , Short term borrowings Question : The following are the sources of funds :Answer : Operating Profit , Non operating Income 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. Answer : Dividend

Question : Limitations of fund flow statement are :Answer : It does not provide any new information but only rearranges the various facts , It does not consider non-fund transactions Question : Project appraisal Answer It is the evaluation of project from technical, market, financial, economic and social perspective before committing funds for investment It is large in scope, is activity oriented and is not necessarily time bound It is one-shot, time-limited, goal oriented, major undertaking requiring the commitment of varied skills and resources It is a preliminary assessment of the project idea to determine whether or not the investment opportunity is promising

Program Project

Pre-feasibility study

Question : Psychographic market appraisal answers to :Answer : Why they buy? Question : Financing plans consists of :Answer : Internal accruals , Share capital , Term loans Question : Ratios relating to working capital are :Answer : Current ratio , Internal measure , Quick ratio Question : Export Market is a technique used for forecasting under Commercial appraisal technique. Answer : True Question : The sources of cash are :Answer : Cash from operations , Sale of machinery , Issue of new shares Question : Past trend method of Commercial appraisal technique is :Answer : Adopted as a guide depending on the consumption pattern of the society as a whole Question : ________ is a current asset Answer : Book debts

Question : In the GE's Stop Light Matrix, when ________ situation prevails , Products call for divestment. Answer : Average Business Strength and Low Industry attractiveness Question : Detailed Project Report is generally prepared from a ________ report with additional information. Answer : Feasibility Question : The third phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :Answer : Problems pertaining to the period when the project is in operation

Question : The acronym for 'LPG' is :Answer : Liberalisation, Privatisation and Globalisation Question : Miscellaneous expenditure is written on the asset side of the Balance sheet. Answer : True Question : Defaults category of the Project report may be in respect of :Answer : Term loans , Principal , Interest Question : The Key terms used in the BCG Product Portfolio matrix are :Answer : Stars , Question : marks Question : ________ tries to have what the customer will want- where, when, in what form and at what price. Answer : Marketing Question : Cost of the Project encompasses :Answer : The total of all items of outlay associated with a project Question : Cost of fencing comes under the ________ category of the Project report. Answer : Land and site development Question : Trend Projection method of demand forecasting consists of :Answer : Linear Relationship , Exponential Relationship , Polynomial Relationship Question : Inflow of funds may not necessarily result in ________. Answer : Inflow of cash Question : A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners. Answer : True Question : Sources of funds include :Answer : Increase in secured borrowing Question : In the GE's Stop Light Matrix, when ________ situation prevails, Products call for Hold. Answer : Average Business Strength and Medium Industry Attractiveness Question : As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where there is :Answer : Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness Question : Ratios are based only on the information which has been recorded in the financial statements. Answer : True Question : Trend projection method is the important technique for forecasting demand. Answer : True Question : "Fly by night" operator mentality is a :-

Answer : Management quality Question : The applications of cash are :Answer : Purchase of fixed assets , Payment of long term loans Question : A Project is a temporary endeavor to achieve some specific objectives within a :Answer : Predefined time Question : Delays in infrastructure Development by State Agencies may lead to :Answer : Cost and time overrun Question : Ratio analysis is a technique of planning and control. Answer : False Question : General category of the Project report consists of :Answer : Name of the Industrial concern , Proposed product , Location of the factory Question : After the SPACE chart is constructed, we would normally get any one of the following basic strategic postures :Answer : Aggressive Posture , Competitive Posture , Defensive Posture 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. Answer : True Question : BCG Product Portfolio Matrix analyses products on the basis of :Answer : Relative Market share and Industry Growth rate Question : Change in the project concept itself may lead to cost and time overrun. Answer : True Question : The company having ________, is appropriate for the strategic posture of Conservative under the SPACE approach. Answer : Limited competitive advantage, belonging to a not so attractive industry but enjoying financial strength and operating in a relatively stable environment Question : Details regarding Internal accruals comes under the ________ category of Project report. Answer : Financing plan Question : Increase in current liabilities Increase in liabilities Decrease in liabilities Increase in current assets Question : Provision for tax can be treated as :Answer : Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits Answer Decreases working capital Inflow of funds Outflow of funds Increases working capital

Question : The data for ratio analysis is obtained from :Answer : Profit and Loss Account , Balance Sheet Question : The industrial concern earned profits by increasing the sales volume under the :Answer : Sales concept Question : The entire life of the project is taken into account under :Answer : Average rate of return method Question : General functional layout Answer Present the general relationship between equipment buildings and civil works Broad area such as city, industrial belt etc. Specific piece of land where the project would be set up Physical layout of the factory

Location Site Plant layout Question : Geographic market appraisal answers to :Answer : Where do the customers live?

Question : In the BCG Matrix, the key term of Cash Cows require further commitment of funds. Answer : False Question : For computing Interest coverage ratio, Profit after Interest and taxes are taken into account. Answer : False

Question : A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________. Answer : Share Question : Commission outstanding is ________ of funds. Answer : Application Question : The basic difference between the feasibility study report and ________ is the level of accuracy and degree of detail. Answer : Detailed Project report 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 manufacturing. Answer : True Question : ________ is a current asset Answer : Book debts Question : The formula for Break Even Point is :-

Answer : Fixed cost / ( Sales Price - Variables) Question : Banks and Financial Institutions, world-wide, are now financing projects with strategies and terms that would have been hard to believe/imagine just a few years back. Answer : True Question : Liabilities side of Balance sheet includes :Answer : Unsecured loans Question : Net Working Capital means :Answer : Current assets less Current liabilities Question : Trend Projection method of demand forecasting consists of :Answer : Linear Relationship , Exponential Relationship , Polynomial Relationship Question : It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project. Answer : True 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. Answer : True Question : Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities. Answer : Fund Question : The applications of cash are :Answer : Purchase of fixed assets , Payment of long term loans Question : ________ tries to have what the customer will want- where, when, in what form and at what price. Answer : Marketing Question : Time Series Projection Methods of Demand forecasting consists of :Answer : Trend Projection method , Moving Averages method Question : Disposal of fixed assets is categorised under :Answer : Miscellaneous Question : Financial and economic aspect of the Visit report consists of :Answer : Company's financial year , Impact of Government policies on company operations , Comments on the last published accounts Question : Project organization General category of Project report Cost aspect of the project report Financing plan Answer Finance manager Location of factory Consultancy fees Unsecured loans

Question : In the Detailed Project Report, Marketing aspects includes :Answer : Demand forecasting , Promotion , Distribution Question : Marketing category of the Project report consists of :Answer : Pricing policy , Target market , Market potential Question : Sources of funds includes :Answer : Depreciation , Preliminary expenses written off , Increase in secured borrowing Question : Moving into new areas/product lines Suppliers' credit Deferred credit Setting up new units Answer Diversification Projects Short term finance Long term finance New Projects

Question : BCG Product Portfolio Matrix analyses products on the basis of :Answer : Relative Market share and Industry Growth rate Question : Sewerage and drainage cost of the project is categorised under :Answer : Building cost Question : General category of the Project report consists of :Answer : Name of the Industrial concern , Proposed product , Location of the factory

Question : The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison. Answer : False Question : In the GE's Stop Light Matrix, when ________ situation prevails , Products call for divestment. Answer : Average Business Strength and Low Industry attractiveness Question : Provision for tax can be treated as :Answer : Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits Question : The cost of Plant and Machinery may be adjusted for a possible increase known as :Answer : Escalation Question : Ratio analysis is a widely used tool of :Answer : Financial analysis Question : The advantage of secondary sources of data is that it is readily and economically available. Answer : True Question : Debt Equity ratio is a 'Solvency ratio'. Answer : True

Question : Excessive expenditures on foreign technicians leads to ________. Answer : Cost and time overrun Question : Financing plans consists of :Answer : Share capital , Term loans , Internal accruals Question : Retained earnings is a source of ________ finance. Answer : Internal Question : In order to meet the cost of large project, the technique of ________ has been developed so that the financial commitment and risks associated with a project are shared between the project sponsor and the lending institutions. Answer : Limited recourse financing Question : A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners. Answer : True Question : The third phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :Answer : Problems pertaining to the period when the project is in operation

Question : More accurate the estimation of the level of current assets and current liabilities, more accurate will be estimation of the requirement of ________. Answer : Working capital Question : Ratio analysis is a technique of planning and control. Answer : False Question : Cost and time overrun of the project may lead to loss on account of lost market opportunities. Answer : True Question : While choosing the location for a project, the following factors should be considered :Answer : Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors Question : In the Cash flow statement, the sources of funds include :Answer : Development rebate reserve Question : Name and designation of the chief executive comes under the ________ category. Answer : General Question : As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where there is :Answer : Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness Question : The BCG product Portfolio Matrix, General Electric Stop Light Matrix and Strategic Position and Action Evaluation Model are considered to be highly relevant as :-

Answer : Portfolio Planning Tools Question : Position regarding requirement and training of operational staff comes under the ________ category of Project report. Answer : Project organisation Question : The emphasis of the Banks and Financial institutions particularly in India has shifted from 'Sanctions', 'Disbursements' and 'Security-orientation' to 'Recovery/Recycling' and :Answer : Activity orientation