Olete.in – MCQs, Mock Tests & Government Job Prep | Project Management Project Management Mcq Question Set 2

Cash Flow Statement does not fully reveal the soundness or otherwise of thefinancial position of the business.

1. True
2. False
3. none
4. none

✅ Correct Answer: 1

When liability increases, it is _____

1. Source of Funds
2. Application of Funds
3. Decrease in Investments
4. None of above

✅ Correct Answer: 1

Which of the below is NOT an application of funds?

1. Operating Profit
2. Purchase of Fixed Assets
3. Repayment of Loans or Debentures
4. Operating Losses

✅ Correct Answer: 1

Which of the below financial statements is static and shows the state of Assets andLiabilities on a particular date?

1. Cash Flow Statement
2. Funds Flow Statement
3. Profit and Loss Statement
4. none of the above

✅ Correct Answer: 4

Working Capital = ______

1. Total Assets- Total Liabilities
2. Current Assets – Current Liabilities
3. Assets – Long-term Bank Borrowings
4. Debt – Assets

✅ Correct Answer: 2

Which statement is prepared in the process of Funds Flow Analysis?

1. Schedule of Changes in Working Capital
2. Ratio Analysis
3. Both a and b
4. none of the above

✅ Correct Answer: 1

Funds Flow Statements are prepared so as to

1. Identify the changes in Working Capital
2. Identify reasons behind change in Working Capital
3. Know the item-wise inflow and outflow of funds during given period
4. All of the above

✅ Correct Answer: 4

Bond, Debentures and Term Loans fall under

1. Current Assets
2. Non-current Assets
3. Non-current Liabilities
4. none of the above

✅ Correct Answer: 3

Which of the following is NOT a Preoperative Expense?

1. Establishment Expense
2. Travelling Expense
3. Insurance Charges
4. Raw Material Expenses

✅ Correct Answer: 4

Which of the following is NOT a mean / source of Project Finance?

1. Term Loan
2. Debentures
3. Overdraft
4. Share Capital

✅ Correct Answer: 3

Which of the following is an example of owned capital?

1. Equity Shares
2. Preference Shares
3. Debentures
4. a and b

✅ Correct Answer: 4

Major components of cost of production are:

1. Material Cost
2. Utilities and Labour Cost
3. Factory overhead Cost
4. All of the above

✅ Correct Answer: 4

Which one of the following is a Working Capital Advance?

1. Cash Credits
2. Letter of Credit
3. Purchase / discount bills
4. All of the above

✅ Correct Answer: 4

Higher Debt Service Coverage Ratio denotes

1. Higher Chances of getting a Loan
2. Lower Chances of getting a Loan
3. No Requirement of a Loan at all
4. none of the above

✅ Correct Answer: 1

Term Loan is _____ borrowing.

1. Unsecured
2. Secured
3. Clean
4. none of the above

✅ Correct Answer: 2

If Project is accepted for Term Loan, Bankers issue a _______

1. Letter of Credit
2. Letter of Advance
3. Letter of Sanction
4. Letter of Acceptance

✅ Correct Answer: 3

Once the loan is disbursed the bank monitors the project by

1. Regular Reports furnished by the borrower
2. Periodic site visit
3. Discussion with Promoters, Suppliers, Creditors etc.
4. All of the above

✅ Correct Answer: 4

Which are the warning signals of industrial unit sickness?

1. Continuous irregularity in Cash Credit Account
2. Low Capacity Utilization
3. Failure to pay statutory liabilities
4. All of the above

✅ Correct Answer: 4

Which of the following has no role in a remedy to Industrial Unit Sickness?

1. Government
2. Financial Institution
3. Industry Association
4. Customers

✅ Correct Answer: 4

Which is an external cause of Industrial Unit Sickness?

1. Non availability of skilled personnel
2. Lack of Finance
3. Bad Production Policies
4. Wrong Marketing Policies

✅ Correct Answer: 1

Which is an internal cause of Industrial Unit Sickness?

1. Ineffective Corporate Management
2. Inappropriate Personnel Management
3. Lack of Promoter’s Experience
4. All of the above

✅ Correct Answer: 4

Revival package of a sick unit includes

1. Provision of Additional Financial Assistance
2. Settlement with Creditors
3. Both a and b
4. none of the above

✅ Correct Answer: 3

BIFR stands for

1. Bureau of Industrial and Financial Resources
2. Board of Industrial and Financial Reconstruction
3. Board of Investment and Financial Reconstruction
4. Bureau of Investment and Financial Resources

✅ Correct Answer: 2

Industrial Reconstruction Bank of India was set up in which year?

1. 1985
2. 1986
3. 1987
4. 1988

✅ Correct Answer: 1

Sick Industrial Companies Act was passed in which year?

1. 1983
2. 1984
3. 1985
4. 1986

✅ Correct Answer: 3

Revival of a sick unit is necessary because,

1. The Project may be in a sector that is vital to economy
2. Many ancillary units may be dependent on the unit
3. Banks and Financial Institutions would have locked up their money in the unit.
4. All of the above

✅ Correct Answer: 4

Industrial Sickness is a matter of serious national concern because it affects

1. The Owners and Employees
2. Creditors and Suppliers
3. Adversely to the National Resources and creates social unrest
4. All of the above

✅ Correct Answer: 4

Industrial Reconstruction Bank of India was established with which specific objectivefrom the below?

1. To assist the rehabilitation of Sick Units
2. To assist the Government
3. To assist construction projects.
4. None of the Above

✅ Correct Answer: 1

Which of the following can be objective of a Term Loan?

1. For Setting up the new Projects.
2. Expansion of existing Projects
3. Modernization or Renovation of Projects.
4. All of the above

✅ Correct Answer: 4

Which is the principle objective for Project Monitoring?

1. To find out opportunities for further advances
2. To ensure timely recovery of dues
3. To establish good lender-borrower relationship.
4. none of the above

✅ Correct Answer: 2

Strategic decisions regarding a Project are taken by

1. Middle level Management
2. Employees
3. Top Management
4. none of the above

✅ Correct Answer: 3

Idea generation exercises for a new Project includes study of government guidelines.

1. True
2. False
3. none
4. None of the mentioned

✅ Correct Answer: 1

For generating a new project idea which of the below is relevant for an entrepreneur?

1. Analyse economic and social trend
2. Draw clues from consumption abroad
3. Study new technological developments
4. All of the above

✅ Correct Answer: 4

Which of the below is not a resource for a project?

1. Manpower
2. Capital
3. Budget
4. Machinery

✅ Correct Answer: 3

Which of the factors should be considered for acceptable risk level at preliminaryscreening level?

1. Vulnerability to business cycles
2. Technological Changes
3. Competition from imports
4. All of the above

✅ Correct Answer: 4

To judge adequacy of market during Preliminary Screening which of the following is afactor to be examined?

1. Total present domestic market
2. Price
3. Product features
4. Quality of the product

✅ Correct Answer: 1

Which of the following is not a base for demographic segmentation of the market?

1. Gender
2. Age
3. Attitude
4. Family structure

✅ Correct Answer: 3

Which of the below can cause a difficulty in getting license for a new project?

1. Lack of consistency with National Priority
2. Adverse Environmental Effects
3. Non availability of foreign exchange
4. All of the above

✅ Correct Answer: 4

India Year Book is a source of

1. Primary Data
2. Secondary Data
3. Interim Data
4. Intermediate Data

✅ Correct Answer: 2

India Year Book is an annual publication of ______

1. Ministry of Finance
2. Commerce Ministry
3. Ministry of Information and Broadcasting
4. none of the above

✅ Correct Answer: 3

Statistical Year Book is an annual Publication of ___

1. United Nations
2. WHO
3. UNICEF
4. World Bank

✅ Correct Answer: 1

Who publishes Economic Survey?

1. RBI
2. Ministry of Finance
3. Ministry of External Affairs
4. Ministry of Industry

✅ Correct Answer: 2

Census provides information on

1. Business Cycle
2. Industrial Development
3. Agriculture Output
4. none of the above

✅ Correct Answer: 4

RBI Bulletin provides information on

1. Exchange Rates
2. Prices
3. Balance of Payment Position
4. All of the above

✅ Correct Answer: 4

Indian Textile Bulletin is published by___

1. Textile Commissioner
2. Ministry of Textile
3. Textile Mills Union
4. none of the above

✅ Correct Answer: 1

Which of the following is not one of the driving forces behind the increasing demandfor Project Management?

1. Compression of Product Life Cycle
2. Knowledge Explosion
3. More Emphasis on the Product and Less on the Customer
4. Corporate Downsizing

✅ Correct Answer: 3

In the initial stage of the project the probability of completing the project is____

1. Zero
2. High
3. Low
4. none of the above

✅ Correct Answer: 3

Which one of the following is NOT one of the principle sources which causeuncertainties and error in demand forecasting?

1. Data about Past and Present Market
2. Methods of Forecasting
3. Environmental Changes
4. Government Policies

✅ Correct Answer: 4

Which of the following are limitations of Demand Forecasting Methods?

1. Inability to handle unquantifiable factors
2. Unrealistic Assumptions
3. Excessive Data Requirement
4. All of the above

✅ Correct Answer: 4

The choice of Product Mix is guided by

1. Market Requirements
2. Market Inputs
3. Employee Requirements
4. none of the above

✅ Correct Answer: 1