Project Management Set 3 MCQs

Q1 | Cash Flow Statement does not fully reveal the soundness or otherwise of thefinancial position of the business.

True

False

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