Olete.in – MCQs, Mock Tests & Government Job Prep | Project Management Project Management Mcq Question Set 3

Raw material can be classified in which of the below broad categories?

1. Agricultural Products, Mineral Products, Live Stock & Forest Products, Marine Products
2. Agricultural Products, Plastic Products, Industrial Products, Forest and Marine Products
3. Agricultural Products, Mineral Products, Industrial Products, Marine Products
4. Agricultural Products, Mineral Products, Industrial Products, Live Stock and Forest Products

✅ Correct Answer: 1

Lime Stone is which type of Raw Material?

1. Agricultural Products
2. Mineral Products
3. Both a and b
4. none of the above

✅ Correct Answer: 2

Which of the following is NOT a mineral type of raw material?

1. Iron
2. Bauxite
3. Castro Seeds
4. Zinc

✅ Correct Answer: 3

Which of the following is auxiliary material and factory supply?

1. Additives
2. Packaging Material
3. Oil and Grease
4. All of the above

✅ Correct Answer: 4

Which of the following is a utility?

1. Water
2. Land
3. Building
4. Machinery

✅ Correct Answer: 1

Which of the following is NOT an equipment required for a project?

1. Plant Equipment
2. Mechanical Equipment
3. Domestic Equipment
4. Electrical Equipment

✅ Correct Answer: 3

Which of the below is a category of civil work for a project?

1. Site Preparation and Development
2. Building and Structures
3. Outdoor Works
4. All of the above

✅ Correct Answer: 4

While calculating cost of imported machinery, which of the below needs to beconsidered?

1. FOB Value
2. Shipping, Freight and Insurance Cost
3. Import Duty
4. All of the above

✅ Correct Answer: 4

Miscellaneous Fixed Assets include

1. Furniture
2. Office Machinery and Equipment
3. Vehicles
4. All of the above

✅ Correct Answer: 4

Preliminary Expenses to start a project include

1. Expense on Preparing the Feasibility Report
2. Expense on Raw Material
3. Salaries
4. none of the above

✅ Correct Answer: 1

The major components of Capital Issue expenses are

1. Underwriting Commission
2. Brokerage
3. None of the Above
4. a and b

✅ Correct Answer: 4

Listing Fee is which type of expense?

1. Recurring Expense
2. Capital Issue Expense
3. Miscellaneous Expense
4. none of the above

✅ Correct Answer: 2

Which one of the below is not a preoperative expense?

1. Establishment Expenses
2. Rent, Rates and Taxes
3. Selling Expense
4. Travelling Expense

✅ Correct Answer: 3

Public Deposits represent _____________borrowings.

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

✅ Correct Answer: 2

Factory overheads include

1. Rent
2. Taxes
3. Insurance on factory assets
4. All of the above

✅ Correct Answer: 4

The prices of material inputs are defined in CIF? What does CIF stand for?

1. Cost, Investment and Fuel
2. Current Investment Flows
3. Cost, Insurance and Freight
4. Cost, Incentive and Freight

✅ Correct Answer: 3

Which one of the following is a constituent of working capital requirement? Rawmaterial and components

1. Debtor
2. Operating expense
3. Both a and b
4. None of the above

✅ Correct Answer: 3

Which of the following is NOT a source of Working Capital?

1. Cash Credit
2. Bonds
3. Trade Credit
4. Accruals and Provisions

✅ Correct Answer: 2

Borrowing or incurring any Liability is a source of fund.

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

✅ Correct Answer: 1

Payment of Cash Dividend represents a source of fund.

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

✅ Correct Answer: 2

The analysis of funds can be called an analysis of the working capital.

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

✅ Correct Answer: 1

Which one of the following is an application of funds?

1. Operating Losses
2. Operating Profit
3. Increase in Capital
4. All of the above

✅ Correct Answer: 1

If there is any decrease in current assets…

1. Working capital decreases
2. Working capital increases
3. Fixed Assets decrease
4. none of the above

✅ Correct Answer: 1

Increase in working capital denotes….

1. Source of Funds
2. Source of Cash
3. Application of Funds
4. none of the above

✅ Correct Answer: 3

If we want to prepare the funds flow statement we should have…

1. Balance sheets of two consecutive years
2. Funds flow statements of two consecutive years
3. Budget for next financial year
4. All of the above

✅ Correct Answer: 1

The liabilities side of the balance sheet shows the sources of finance employed bythe business.

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

✅ Correct Answer: 1

Cash Flow statement is also known as

1. Statement of Changes in Financial Position on cash basis
2. Statement accounting for variation in cash
3. Both a and b
4. none of the above

✅ Correct Answer: 3

The objectives of Cash Flow Statement are

1. Analysis of cash position
2. Short term Cash Planning
3. Evaluation of Liquidity
4. All of the above

✅ Correct Answer: 4

Features of Term Loan include

1. Currency
2. Security
3. Interest and Principal payment
4. All of the above

✅ Correct Answer: 4

Usually assets which are financed with the Term Loan provide as a prime securityagainst the Term Loan

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

✅ Correct Answer: 1

As a part of Term Loan Procedure the detailed appraisal of project covers

1. Marketing Aspects
2. Technical Aspects
3. Financial Aspects
4. All of the above

✅ Correct Answer: 4

Syndication is an arrangement for

1. Marketing Support
2. Manpower Supply
3. Providing Long Term Finance to Projects
4. none of the above

✅ Correct Answer: 3

Once letter of sanction is issued, the borrower has to submit______ afterappropriate board resolution to avail the loan.

1. Copy of the Board Meeting Minutes
2. Letter of Advances
3. Letter of Acceptance
4. Letter of Credit

✅ Correct Answer: 3

Current assets are financed by

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

✅ Correct Answer: 3

A DSCR ˂ 1 indicates

1. There is not enough cash flow to cover loan payments
2. There is enough cash flow to cover loan payments
3. Company does not need a loan
4. None of the above

✅ Correct Answer: 1

DSCR is a term most important to

1. Employees
2. Financers
3. Customers
4. none of the above

✅ Correct Answer: 2

What is the full form of SIDBI

1. State Industrial Development Bank of India
2. Small Industrial Development Bank of India
3. State Insurance Development Board of India
4. Small Industries Debt Borrowing Institution

✅ Correct Answer: 1

Which one of the below is not a source of Project Finance?

1. Debentures
2. Bonds
3. ECBs
4. Overdraft facility

✅ Correct Answer: 4

Which one of the following was not set up with a motive of industrial finance?

1. SIDBI
2. IDBI
3. IFCI
4. IFFCO

✅ Correct Answer: 4

Low capacity utilization is a signal of ______

1. Enough raw Material
2. Industrial Sickness
3. Inadequate production capacity
4. one of the Above

✅ Correct Answer: 2

Which of the following is not a signal of industrial sickness?

1. Promoter being accused of a crime
2. Continuous irregularities in Cash Credit Account
3. Failure to pay Statutory Liabilities
4. Rapid Turnover of Key Personnel

✅ Correct Answer: 1

Marketing Constraint is an internal source of Industrial Sickness.

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

✅ Correct Answer: 2

Which one of the following is NOT a Maha-Ratna Industry?

1. GAIL
2. Coal India Limited
3. SAIL
4. Airports Authority of India

✅ Correct Answer: 4

Ineffective corporate management leads to

1. Improper performance of the unit
2. Industrial Sickness
3. Both a and b
4. None of the above

✅ Correct Answer: 3

Finance constraints arises because of

1. Credit Restrain Policy
2. Delay in Disbursement of Loan by Government
3. Unfavourable Investment
4. All of the above

✅ Correct Answer: 4

Production constraints arise because of

1. Shortage of Raw Material
2. Shortage of Power
3. High Prices of Fuel
4. All of the above

✅ Correct Answer: 4

Which one of the following can be a weakness in capital budgeting?

1. Poor Alignment between Strategy and Capital Budgeting
2. Deficiencies in Analytical Techniques
3. Both a and b
4. none of the above

✅ Correct Answer: 3

The major deficiencies characterizing the labour markets in developing countries likeIndia are

1. Shortage of well trained people
2. Rigid labour laws
3. Both a and b
4. none of the above

✅ Correct Answer: 3

Which of the following has marginal exposure to Term Lending?

1. Insurance Companies ( LIC & GIC)
2. Power Finance Corporation
3. IDFC
4. All of the above

✅ Correct Answer: 4

Debt restructuring and infusion of external funds for sick units is one of the remedialmeasures to overcome Industrial Sickness.

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

✅ Correct Answer: 1