🧪 Project Management MCQ Quiz Hub

1. Cash Flow Statement does not fully reveal the soundness or otherwise of thefinancial position of the business.
True
False
none
none

2. When liability increases, it is _____
Source of Funds
Application of Funds
Decrease in Investments
None of above

3. Which of the below is NOT an application of funds?
Operating Profit
Purchase of Fixed Assets
Repayment of Loans or Debentures
Operating Losses

4. Which of the below financial statements is static and shows the state of Assets andLiabilities on a particular date?
Cash Flow Statement
Funds Flow Statement
Profit and Loss Statement
none of the above

5. Working Capital = ______
Total Assets- Total Liabilities
Current Assets – Current Liabilities
Assets – Long-term Bank Borrowings
Debt – Assets

6. Which statement is prepared in the process of Funds Flow Analysis?
Schedule of Changes in Working Capital
Ratio Analysis
Both a and b
none of the above

7. Funds Flow Statements are prepared so as to
Identify the changes in Working Capital
Identify reasons behind change in Working Capital
Know the item-wise inflow and outflow of funds during given period
All of the above

8. Bond, Debentures and Term Loans fall under
Current Assets
Non-current Assets
Non-current Liabilities
none of the above

9. Which of the following is NOT a Preoperative Expense?
Establishment Expense
Travelling Expense
Insurance Charges
Raw Material Expenses

10. Which of the following is NOT a mean / source of Project Finance?
Term Loan
Debentures
Overdraft
Share Capital

11. Which of the following is an example of owned capital?
Equity Shares
Preference Shares
Debentures
a and b

12. Major components of cost of production are:
Material Cost
Utilities and Labour Cost
Factory overhead Cost
All of the above

13. Which one of the following is a Working Capital Advance?
Cash Credits
Letter of Credit
Purchase / discount bills
All of the above

14. Higher Debt Service Coverage Ratio denotes
Higher Chances of getting a Loan
Lower Chances of getting a Loan
No Requirement of a Loan at all
none of the above

15. Term Loan is _____ borrowing.
Unsecured
Secured
Clean
none of the above

16. If Project is accepted for Term Loan, Bankers issue a _______
Letter of Credit
Letter of Advance
Letter of Sanction
Letter of Acceptance

17. Once the loan is disbursed the bank monitors the project by
Regular Reports furnished by the borrower
Periodic site visit
Discussion with Promoters, Suppliers, Creditors etc.
All of the above

18. Which are the warning signals of industrial unit sickness?
Continuous irregularity in Cash Credit Account
Low Capacity Utilization
Failure to pay statutory liabilities
All of the above

19. Which of the following has no role in a remedy to Industrial Unit Sickness?
Government
Financial Institution
Industry Association
Customers

20. Which is an external cause of Industrial Unit Sickness?
Non availability of skilled personnel
Lack of Finance
Bad Production Policies
Wrong Marketing Policies

21. Which is an internal cause of Industrial Unit Sickness?
Ineffective Corporate Management
Inappropriate Personnel Management
Lack of Promoter’s Experience
All of the above

22. Revival package of a sick unit includes
Provision of Additional Financial Assistance
Settlement with Creditors
Both a and b
none of the above

23. BIFR stands for
Bureau of Industrial and Financial Resources
Board of Industrial and Financial Reconstruction
Board of Investment and Financial Reconstruction
Bureau of Investment and Financial Resources

24. Industrial Reconstruction Bank of India was set up in which year?
1985
1986
1987
1988

25. Sick Industrial Companies Act was passed in which year?
1983
1984
1985
1986

26. Revival of a sick unit is necessary because,
The Project may be in a sector that is vital to economy
Many ancillary units may be dependent on the unit
Banks and Financial Institutions would have locked up their money in the unit.
All of the above

27. Industrial Sickness is a matter of serious national concern because it affects
The Owners and Employees
Creditors and Suppliers
Adversely to the National Resources and creates social unrest
All of the above

28. Industrial Reconstruction Bank of India was established with which specific objectivefrom the below?
To assist the rehabilitation of Sick Units
To assist the Government
To assist construction projects.
None of the Above

29. Which of the following can be objective of a Term Loan?
For Setting up the new Projects.
Expansion of existing Projects
Modernization or Renovation of Projects.
All of the above

30. Which is the principle objective for Project Monitoring?
To find out opportunities for further advances
To ensure timely recovery of dues
To establish good lender-borrower relationship.
none of the above

31. Strategic decisions regarding a Project are taken by
Middle level Management
Employees
Top Management
none of the above

32. Idea generation exercises for a new Project includes study of government guidelines.
True
False
none
None of the mentioned

33. For generating a new project idea which of the below is relevant for an entrepreneur?
Analyse economic and social trend
Draw clues from consumption abroad
Study new technological developments
All of the above

34. Which of the below is not a resource for a project?
Manpower
Capital
Budget
Machinery

35. Which of the factors should be considered for acceptable risk level at preliminaryscreening level?
Vulnerability to business cycles
Technological Changes
Competition from imports
All of the above

36. To judge adequacy of market during Preliminary Screening which of the following is afactor to be examined?
Total present domestic market
Price
Product features
Quality of the product

37. Which of the following is not a base for demographic segmentation of the market?
Gender
Age
Attitude
Family structure

38. Which of the below can cause a difficulty in getting license for a new project?
Lack of consistency with National Priority
Adverse Environmental Effects
Non availability of foreign exchange
All of the above

39. India Year Book is a source of
Primary Data
Secondary Data
Interim Data
Intermediate Data

40. India Year Book is an annual publication of ______
Ministry of Finance
Commerce Ministry
Ministry of Information and Broadcasting
none of the above

41. Statistical Year Book is an annual Publication of ___
United Nations
WHO
UNICEF
World Bank

42. Who publishes Economic Survey?
RBI
Ministry of Finance
Ministry of External Affairs
Ministry of Industry

43. Census provides information on
Business Cycle
Industrial Development
Agriculture Output
none of the above

44. RBI Bulletin provides information on
Exchange Rates
Prices
Balance of Payment Position
All of the above

45. Indian Textile Bulletin is published by___
Textile Commissioner
Ministry of Textile
Textile Mills Union
none of the above

46. Which of the following is not one of the driving forces behind the increasing demandfor Project Management?
Compression of Product Life Cycle
Knowledge Explosion
More Emphasis on the Product and Less on the Customer
Corporate Downsizing

47. In the initial stage of the project the probability of completing the project is____
Zero
High
Low
none of the above

48. Which one of the following is NOT one of the principle sources which causeuncertainties and error in demand forecasting?
Data about Past and Present Market
Methods of Forecasting
Environmental Changes
Government Policies

49. Which of the following are limitations of Demand Forecasting Methods?
Inability to handle unquantifiable factors
Unrealistic Assumptions
Excessive Data Requirement
All of the above

50. The choice of Product Mix is guided by
Market Requirements
Market Inputs
Employee Requirements
none of the above