QN1. Project Management encampases :
a. Financial consideration only.
b. Technical consideration only.
c. Marketing consideration only.
d. All of above.
Answer: d. All of above.Answer
QN2. Project Management is the assignment to be looked after by :
a. Engineers.
b. Chartered / Cost Accountants.
c. Persons with MBA qualification.
d. The entrepreneur.
Answer: d. The entrepreneur.Answer
QN3. “Project Management” is basically necessarily for an entrepreneur who is contemplating to establish:
a. Any goods producing unit.
b. Any service rendering offices/outlets.
c. Either of above.
d. Neither of above.
Answer: c. Either of above.Answer
QN4. In the Project Management process “search for a business idea” is :
a. The first step to be taken by the entrepreneur.
b. The last step to be taken by the entrepreneur
c. No step to be taken by the entrepreneur
d. The only step to be taken by the entrepreneur
Answer: a. The first step to be taken by the entrepreneur.Answer
QN5. “Searching a business idea” means:
a. Designing the project.
b. Formulation of the project.
c. Identification of the project.
d. None of above.
Answer: c. Identification of the project.Answer
QN6. Searching the business idea is related to identification of :
a. New product only.
b. New service only.
c. May be existing product/service only.
d. None of above.
Answer: d. None of above.Answer
QN7. “Technical Aspect” of the project is concerned with:
a. Scope of area development.
b. Break-even level of operation.
c. Plant and Machinery.
d. Sources of funds.
Answer: a. Scope of area development.Answer
QN8. “Financial Aspect” of the project is concerned with :
a. Work schedule.
b. Short terms and long term finance.
c. Plant and Machinery.
d. None of above.
Answer: b. Short terms and long term finance.Answer
QN9. “Financial viability” aspect is related with:
a. Costs and benefits.
b. Social goals.
c. Employment generation.
d. None of above.
Answer: a. Costs and benefits.Answer
QN10. “Profitability” aspect is concerned with:
a. Utility to the society.
b. Break-even level of operations.
c. Sources and uses of funds.
d. Working capital.
Answer: c. Sources and uses of funds.Answer
QN11. “Marketing” aspect of a project is basically concerned with :
a. Costs of production.
b. Manufacturing process.
c. Likely share of project.
d. None of above.
Answer: d. None of above.Answer
QN12. Socio-economic aspect of a project refers to:
a. IRR.
b. Break-even level of operations.
c. Scope of area development.
d. Plant layout.
Answer: a. IRR.Answer
QN13. “Technical Analysis” of a project is concerned with :
a. Technical qualifications of personnel involved in implementation of the project.
b. Tax concession to be granted by the state.
c. Choice of a technology package to produce the goods.
d. Number of persons required with requisite technical qualifications.
Answer: c. Choice of a technology package to produce the goods.Answer
QN14. “Project Risk Analysis” is concerned with :
a. Seeking Insurance cover.
b. To analyse all related contingencies which may jeoparadise the project.
c. Appointment of a Risk Manager”.
d. None of above.
Answer: b. To analyse all related contingencies which may jeoparadise the project.Answer
QN15. “Project Designing” refers :
a. To prepare layout plans of the project.
b. To identify the flow of events which would lead to the successful implementation of the project.
c. To prepare product modules for production.
d. None of above.
Answer: a. To prepare layout plans of the project.Answer
QN16. PERT and CPM technologies are used:
a. For analyzing the technical viability of the project.
b. For analyzing the financial viability of the project.
c. For analyzing the economic viability of the project.
d. For unfolding the snags crept in the implementation of the project.
Answer: a. For analyzing the technical viability of the project.Answer
QN17. “Project Report” basically emphasizes upon :
a. financial & technical feasibility of the project.
b. Socio-economic aspect of the project.
c. Accounting procedures.
d. None of above.
Answer: a. financial & technical feasibility of the project.Answer
QN18. “Project Report” is basically needed :
a. To procure license for production.
b. To analyse the financial and technical feasibility of the project.
c. For recruitment of technical personnel.
d. To procure finance from the financial institutions.
Answer: b. To analyse the financial and technical feasibility of the project.Answer
QN19. “Project Appraisal” is primarily the concern of :
a. The customer who wish to purchase goods to be produced by the concerned unit.
b. The financial institutions and the licensing agency.
c. The entrepreneur.
d. None of above.
Answer: c. The entrepreneur.Answer
QN20. “Location” aspect of project is important from the view point of :
a. Arranging financial resources.
b. Supply of machinery.
c. Supply of raw material, labour and other sources of production.
d. None of above.
Answer: c. Supply of raw material, labour and other sources of production.Answer
QN21. Assessment of “Funds Flow” is necessary in the project management as :
a. Fund is easily available from the banks.
b. Public normally oversubscribes the equity issue.
c. Goods are easily sold on cash.
d. To have systematic and unintrupted flow of funds at least cost.
Answer: d. To have systematic and unintrupted flow of funds at least cost.Answer
QN22. In “Funds Flow” analysis we are concerned with :
a. Inflow of cash.
b. Outflow of cash.
c. Inflow and outflow of cash.
d. Inflow and outflow of cash as well as assets acquired on credit.
Answer: d. Inflow and outflow of cash as well as assets acquired on credit.Answer
QN23. “Funds Flow Analysis” refers to :
a. Short term financial sources.
b. Long term financial sources.
c. Both as above.
d. None of above.
Answer: c. Both as above.Answer
QN24. “Cost of Capital” can be measured by :
a. Gross Profit Ratio.
b. Net Profit Ratio.
c. Return on equity ratio.
d. Debt equity ratio.
Answer: c. Return on equity ratio.Answer
QN25. “Break-even Point” refers to :
a. Entry point of the factory.
b. Speed breaker point.
c. A level of production at which turnover just covers the fixed overheads.
d. A level of production at which turnover just covers the variable overheads.
Answer: c. A level of production at which turnover just covers the fixed overheads.Answer
QN26. “Social Costs” refers to :
a. The price of the product at which members of the general public purchase the goods produced in the project.
b. Maintenance expenses being paid by members of a housing society.
c. Harmful consequences and damages which the community on the whole sustains as a result of productive process.
d. None of above.
Answer: c. Harmful consequences and damages which the community on the whole sustains as a result of productive process.Answer
QN27. Out of the following one does not refer to “Social Benefits”.
a. Employment generation.
b. Availability of goods for consumption.
c. Increase in economic level of the society.
d. Monetary profit to the owner of the project.
Answer: d. Monetary profit to the owner of the project.Answer
QN28. “Budgeting” is primarily concerned with :
a. Choosing an idea to start a project.
b. Choosing the technology for production.
c. Choosing the location of the project.
d. Forecasting of sales & income and expenditure.
Answer: d. Forecasting of sales & income and expenditure.Answer
QN29. 29. ‘Planning” does not involve one of the followings:
(a) Selection of objectives
(b) Strategies and Policies to achieve the objectives.
(c) Review of objectives.
(d) Programs and procedures to achieve the desired goals.
Answer: (d) Programs and procedures to achieve the desired goals.Answer
QN30. ‘Control’:
(a) Is the first step in project management.
(b) It follows ‘Planning’.
(c) It follows implementation.
(d) None of above.
Answer: (c) It follows implementation.Answer
QN31. ‘Review’ is part of
(a) Planning process
(b) Implementation process
(c) Budgeting process
(d) Controlling process.
Answer: (d) Controlling process.Answer
QN32. ‘Project Finance’ is generated by way of:
(a) 100% Equity
(b) 100% Debt.
(c) 50% Equity or 50% Debt.
(d) As per feasibility report in this regrd.
Answer: (d) As per feasibility report in this regrd.Answer
QN33. ‘Industrial Finance is required’:
(a) For Fixed Deposits elsewhere to earn interest.
(b) To open charitable dispensary.
(c) For fixed assets, raw-material and to meet day to day expenses.
(d) None of above.
Answer: (c) For fixed assets, raw-material and to meet day to day expenses.Answer
QN34. ‘Long Term’ industrial finance is procured generally:
(a) Directly from small savings public.
(b) Private money lenders
(c) Small Finance companies
(d) State and Industrial development
Answer: (d) State and Industrial developmentAnswer
QN35. ‘Finance for working capital is generally obtained from’:
(a) The State
(b) Industrial and Development Banks
(c) LIC/GIC
(d) Co-operative and commercial banks.
Answer: (d) Co-operative and commercial banks.Answer
QN36. Fixed Assets include:
(a) Buildings sheds, plant and machinery
(b) Fixed deposits
(c) Raw material, finished goods
(d) Office equipments.
Answer: (a) Buildings sheds, plant and machineryAnswer
QN37. ‘Capital Structure’ of a company refers to:
(a) Building structure of the unit.
(b) Lay-out plan of installation of plant and machinery.
(c) Ratio of ownership capital to credit capital.
(d) None of above.
Answer: (c) Ratio of ownership capital to credit capital.Answer
QN38. One of the following is not a financial institution:
(a) LIC
(b) IDBI
(c) HUDCO
(d) NSIC
Answer: (c) HUDCOAnswer
QN39. Oddman out:
(a) IDBI
(b) ICICI
(c) IFCI
(d) RBI
Answer: (d) RBIAnswer
QN40. Debit-Equity Ratio refers to:
(a) Proportions of Debentures issued and equity shares issued by the company.
(b) Proportion of debt and equity capital
(c) Proportions of the personal debts raised by the directors and equity shares held by them to the company.
(d) None of above.
Answer: (b) Proportion of debt and equity capitalAnswer
