Entrepreneurship Development Set 5
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This set of Entrepreneurship Development (ED) Multiple Choice Questions & Answers (MCQs) focuses on Entrepreneurship Development Set 5
Q1 | Profitability index is also known as ……………………………….ratio
- roi
- benefit- cost
- debt-equity
- none
Q2 | Payback period and ARR methods are …………………..
- traditional
- discounting
- modern
- none
Q3 | NPV, PI and ………………………. are the three discounted cash flow techniques.
- arr
- irr
- ntv
- urgency
Q4 | Original investment is divided by constant cash……………………….. to get paybackperiod.
- inflows
- outflows
- balance
- both (a)and (b)
Q5 | …………………. is also called trial and error Method.
- arr
- irr
- ntv
- urgency
Q6 | The discount rate at which present value of cash inflows equals to the presentvalue of cash outflows is called …………………..
- arr
- irr
- ntv
- urgency
Q7 | Project…………………………… is done after the project is implemented.
- management
- appraisal
- evaluation
- none
Q8 | The main object of project appraisal is:
- to find whether the project is technically feasible.
- to ascertain whether the project is financially feasible.
- to decide whether to accept or reject a project.
- to know whether the project is eco-friendly.
Q9 | Project appraisal is done by:
- government.
- financial institution only.
- entrepreneur only.
- both financial institution and entrepreneur.
Q10 | Which one is not an element of project appraisal:
- technical feasibility.
- network analysis.
- economical viability.
- commercial viability.
Q11 | The discount rate must be determined in advance for the :
- payback period.
- time adjusted rate of return method.
- irr
- npv method.
Q12 | Which one of the following is not a discounted cash flow technique:
- arr
- irr
- npv
- pi
Q13 | The difference between the total present value of a stream of cash flows of agiven rate of discount and the initial capital outlay is known as the :
- irr.
- arr.
- npv.
- net profit.
Q14 | The scientific technique of evaluation of capital expenditure decisions includethe following except:
- npv.
- pi.
- irr.
- payback period.
Q15 | Profitability index shows benefits from the proposal in :
- absolute terms.
- relative terms.
- both of the above.
- none of these.
Q16 | For discounted cash flow methods, the discount rate used is:
- fixed arbitrarily
- equivalent to bank rate.
- equivalent to firm’s average cost of capital.
- equivalent to final rate of dividend.
Q17 | The process of measuring the progress and performance of a project is called:
- project appraisal.
- project evaluation.
- project control.
- project audit.
Q18 | The excess of the present value over the cost of the project is ……………………..
- irr
- arr
- npv
- ntv
Q19 | In case of mutually exclusive projects, the project with ……………. PI is to beselected.
- higher
- lower
- negative
- positive
Q20 | In independent projects, accept a project if it’s NPV is………………………..
- higher
- lower
- negative
- positive
Q21 | Under Net Terminal Value Method, accept a project if it’s NTV is……………………
- higher
- lower
- negative
- positive
Q22 | Under Net Terminal Value Method, reject a project if it’s NTV is……………….. (a)higher (b)lower (c)negative (d)positive125) Accept a project if it’s IRR is……………….when compared to desired minimum
- higher
- lower
- negative
- positive
Q23 | Reject a project if it’s IRR is……………….when compared to desired minimum
- higher
- lower
- negative
- positive
Q24 | …………………………report is a document wherein all the details obtained fromtechnical analysis, financial analysis, profitability analysis etc. are put together.
- feasibility
- project
- both
- none
Q25 | …………………………. Is an essential document for procuring assistance fromfinancial institutions and for fulfilling other formalities for the implementation of the project.
- feasibility
- project
- progress
- none