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This set of Project Management Multiple Choice Questions & Answers (MCQs) focuses on Project Management Set 3

Q1 | Cash Flow Statement does not fully reveal the soundness or otherwise of thefinancial position of the business.
  • True
  • False
  • none
  • none
Q2 | When liability increases, it is _________________
  • Source of Funds
  • Application of Funds
  • Decrease in Investments
  • None of above
Q3 | Which of the below is NOT an application of funds?
  • Operating Profit
  • Purchase of Fixed Assets
  • Repayment of Loans or Debentures
  • Operating Losses
Q4 | 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
Q5 | Working Capital = ____________
  • Total Assets- Total Liabilities
  • Current Assets – Current Liabilities
  • Assets – Long-term Bank Borrowings
  • Debt – Assets
Q6 | 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
Q7 | 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
Q8 | Bond, Debentures and Term Loans fall under
  • Current Assets
  • Non-current Assets
  • Non-current Liabilities
  • None of the Above
Q9 | Which of the following is NOT a Preoperative Expense?
  • Establishment Expense
  • Travelling Expense
  • Insurance Charges
  • Raw Material Expenses
Q10 | Which of the following is NOT a mean / source of Project Finance?
  • Term Loan
  • Debentures
  • Overdraft
  • Share Capital
Q11 | Which of the following is an example of owned capital?
  • Equity Shares
  • Preference Shares
  • Debentures
  • a and b
Q12 | Major components of cost of production are:
  • Material Cost
  • Utilities and Labour Cost
  • Factory overhead Cost
  • All of the Above
Q13 | Which one of the following is a Working Capital Advance?
  • Cash Credits
  • Letter of Credit
  • Purchase / discount bills
  • All of the Above
Q14 | 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
Q15 | Term Loan is ______________ borrowing.
  • Unsecured
  • Secured
  • Clean
  • None of the Above
Q16 | If Project is accepted for Term Loan, Bankers issue a ___________
  • Letter of Credit
  • Letter of Advance
  • Letter of Sanction
  • Letter of Acceptance
Q17 | 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
Q18 | 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
Q19 | Which of the following has no role in a remedy to Industrial Unit Sickness?
  • Government
  • Financial Institution
  • Industry Association
  • Customers
Q20 | Which is an external cause of Industrial Unit Sickness?
  • Non availability of skilled personnel
  • Lack of Finance
  • Bad Production Policies
  • Wrong Marketing Policies
Q21 | Which is an internal cause of Industrial Unit Sickness?
  • Ineffective Corporate Management
  • Inappropriate Personnel Management
  • Lack of Promoter’s Experience
  • All of the Above
Q22 | Revival package of a sick unit includes
  • Provision of Additional Financial Assistance
  • Settlement with Creditors
  • Both a and b
  • None of the Above
Q23 | 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
Q24 | Industrial Reconstruction Bank of India was set up in which year?
  • 1985
  • 1986
  • 1987
  • 1988
Q25 | Sick Industrial Companies Act was passed in which year?
  • 1983
  • 1984
  • 1985
  • 1986