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This set of Project Management Multiple Choice Questions & Answers (MCQs) focuses on Project Management Set 6

Q1 | The liabilities side of the balance sheet shows the sources of finance employed bythe business.
  • True
  • False
  • none
  • none
Q2 | Cash Flow statement is also known as
  • Statement of Changes in Financial Position on cash basis
  • Statement accounting for variation in cash
  • Both a and b
  • None of the Above
Q3 | The objectives of Cash Flow Statement are
  • Analysis of cash position
  • Short term Cash Planning
  • Evaluation of Liquidity
  • All of the Above
Q4 | Features of Term Loan include
  • Currency
  • Security
  • Interest and Principal payment
  • All of the Above
Q5 | Usually assets which are financed with the Term Loan provide as a prime securityagainst the Term Loan
  • True
  • False
  • none
  • none
Q6 | As a part of Term Loan Procedure the detailed appraisal of project covers
  • Marketing Aspects
  • Technical Aspects
  • Financial Aspects
  • All of the Above
Q7 | Syndication is an arrangement for
  • Marketing Support
  • Manpower Supply
  • Providing Long Term Finance to Projects
  • None of the Above
Q8 | Once letter of sanction is issued, the borrower has to submit____________ afterappropriate board resolution to avail the loan.
  • Copy of the Board Meeting Minutes
  • Letter of Advances
  • Letter of Acceptance
  • Letter of Credit
Q9 | Current assets are financed by
  • Term Loan
  • Debentures
  • Working Capital Loan
  • Share Capital
Q10 | A DSCR ˂ 1 indicates
  • There is not enough cash flow to cover loan payments
  • There is enough cash flow to cover loan payments
  • Company does not need a loan
  • None of the Above
Q11 | DSCR is a term most important to
  • Employees
  • Financers
  • Customers
  • None of the Above
Q12 | What is the full form of SIDBI
  • State Industrial Development Bank of India
  • Small Industrial Development Bank of India
  • State Insurance Development Board of India
  • Small Industries Debt Borrowing Institution
Q13 | Which one of the below is not a source of Project Finance?
  • Debentures
  • Bonds
  • ECBs
  • Overdraft facility
Q14 | Which one of the following was not set up with a motive of industrial finance?
  • SIDBI
  • IDBI
  • IFCI
  • IFFCO
Q15 | Low capacity utilization is a signal of ______________.
  • Enough raw Material
  • Industrial Sickness
  • Inadequate production capacity
  • None of the Above
Q16 | Which of the following is not a signal of industrial sickness?
  • Promoter being accused of a crime
  • Continuous irregularities in Cash Credit Account
  • Failure to pay Statutory Liabilities
  • Rapid Turnover of Key Personnel
Q17 | Marketing Constraint is an internal source of Industrial Sickness.
  • True
  • False
  • none
  • none
Q18 | Which one of the following is NOT a Maha-Ratna Industry?
  • GAIL
  • Coal India Limited
  • SAIL
  • Airports Authority of India
Q19 | Ineffective corporate management leads to
  • Improper performance of the unit
  • Industrial Sickness
  • Both a and b
  • None of the Above
Q20 | Finance constraints arises because of
  • Credit Restrain Policy
  • Delay in Disbursement of Loan by Government
  • Unfavourable Investment
  • All of the Above
Q21 | Production constraints arise because of
  • Shortage of Raw Material
  • Shortage of Power
  • High Prices of Fuel
  • All of the Above
Q22 | Which one of the following can be a weakness in capital budgeting?
  • Poor Alignment between Strategy and Capital Budgeting
  • Deficiencies in Analytical Techniques
  • Both a and b
  • None of the Above
Q23 | The major deficiencies characterizing the labour markets in developing countries likeIndia are
  • Shortage of well trained people
  • Rigid labour laws
  • Both a and b
  • None of the Above
Q24 | Which of the following has marginal exposure to Term Lending?
  • Insurance Companies ( LIC & GIC)
  • Power Finance Corporation
  • IDFC
  • All of the Above
Q25 | Debt restructuring and infusion of external funds for sick units is one of the remedialmeasures to overcome Industrial Sickness.
  • True
  • False
  • none
  • none