Research Methodology

Research Methodology and Project Report - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer

Question The permanent requirement of working capital should be financed out of :-

Correct Answer Debentures , Cash Profits , Shares

Your Answer Debentures , Cash Profits , Shares


Question The sources of long term and medium term finance are :-

Correct Answer Equity shares , Public deposit

Your Answer Equity shares , Bridge loan , Public deposit

Multiple Choice Single Answer

Question The emphasis of the Banks and Financial institutions particularly in India has shifted from 'Sanctions', 'Disbursements' and 'Security-orientation' to 'Recovery/Recycling' and :-

Correct Answer Activity orientation

Your Answer Activity orientation


Question Technology, design, layout of the plant as well as inputs and infrastructural facilities are to be considered under :-

Correct Answer Technical appraisal

Your Answer Financial appraisal

Select The Blank

Question Detailed Project Report is generally prepared from a ________ report with additional information.

Correct Answer Feasibility

Your Answer Feasibility

True/False

Question A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners.

Correct Answer True

Your Answer True


Question The formula for Break Even Point is :-

Correct Answer Fixed cost / ( Sales Price - Variables)

Your Answer (Profit after tax +Depreciation + Interest)/ Interest


Question Receivables is categorised under :-

Correct Answer Current assets and liabilities

Your Answer Material inputs and utilities


Question Ratios relating to working capital are :-

Correct Answer Current ratio , Internal measure , Quick ratio

Your Answer Current ratio , Debt Equity ratio , Internal measure

Select The Blank

Question Longer the duration of production cycle, higher the requirement of ________.

Correct Answer Working capital

Your Answer Fixed assets


Question In the Detailed Project Report, Management aspects includes :-

Correct Answer Determination , Organisation Building , Person / system oriented

Your Answer Organisation Building , Person / system oriented , Promoter's equity / stake

True/False

Question Financial analysis based on accounting ratios will give mis-leading results if the effects of changes in price level are not taken into account.

Correct Answer True

Your Answer True


Question In the Detailed Project Report, Technical aspects includes :-

Correct Answer Plant capacity , Quality standards , Raw material requirement

Your Answer Plant capacity , Quality standards , Raw material requirement

Select The Blank

Question Inflow of funds may not necessarily result in ________.

Correct Answer Inflow of cash

Your Answer Decrease in funds


Question Building cost consists of :-

Correct Answer Factory building , Auxiliary buildings , Administrative block

Your Answer cost of development , Factory building , Auxiliary buildings

Match The Following

Question Correct Answer Your Answer

Increase in current liabilities Decreases working capital Stability of funds

Increase in liabilities Inflow of funds Inflow of funds

Decrease in liabilities Outflow of funds Increases working capital

Increase in current assets Increases working capital Outflow of funds

Select The Blank

Question Sometimes the term ________ is interpreted as cash equivalent i.e. cash and marketable securities.

Correct Answer Fund

Your Answer Fund

True/False

Question Name of the finance manager comes under the Project organisation category of the Project report.

Correct Answer True

Your Answer False

True/False

Question Change in the project concept itself may lead to cost and time overrun.

Correct Answer True

Your Answer True

True/False

Question The maximum Seed Capital assistance provided by IDBI under the project will be restricted to 50% of the required promoter's contribution or Rs. 50 lakhs whichever is lower.

Correct Answer False

Your Answer True

Match The Following


Project organisation Finance manager Completion date of the project

General category of Project report Location of factory Reasons for cost escalations

Cost aspect of the project report Consultancy fees Finance manager

Financing plan Unsecured loans Location of factory

True/False

Question Trend projection method is the important technique for forecasting demand.

Correct Answer True

Your Answer True


Question Production and sales aspect of Visit report consists of :-

Correct Answer Utilisation of installed capacity , Input availability , Sales trends

Your Answer Utilisation of installed capacity , Input availability


Question The sources of cash are :-

Correct Answer Cash from operations , Sale of machinery , Issue of new shares

Your Answer Purchase of fixed assets , Cash from operations , Sale of machinery


Question External sources of cash are as follows :-

Correct Answer Issue of new shares , Long term loans , Short term borrowings

Your Answer Issue of new shares , Long term loans , Short term borrowings

True/False

Question Production line diagrams show the organisation structure of the project along with information on location, personnel required for various departments, and their inter-relationship.

Correct Answer False

Your Answer True

Select The Blank

Question ________ is a current asset

Correct Answer Book debts

Your Answer Book debts

Select The Blank

Question The company having ________, is appropriate for the strategic posture of Defensive under the SPACE approach.

Correct Answer Lacks both competitive advantage as well as financial strength and belongs to a not so attractive industry, operating in an unstable environment

Your Answer High financial strength, high industrial strength, enjoying a competitive advantage and belonging to an attractive industry, operating in a relatively stable environmental conditions


Question Management aspect of detailed project report includes

Correct Answer Organisation structure

Your Answer Demand forecasting

Select The Blank

Question ________ profitability reduces the strain on working capital.

Correct Answer High

Your Answer High


Question The following are the sources of funds :-

Correct Answer Operating Profit , Non operating Income

Your Answer Operating Profit , Operating Loss , Non operating Income


Question The cash flow of all the years during the expected life of the project are discounted at a pre-determined cut off rate and :-

Correct Answer Net Present value is obtained

Your Answer Internal rate of return is obtained


Question The objectives of the funds flow statement is as follows :-

Correct Answer To find out the uses of loans raised by the business , To indicate the financial strength and weakness of the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement

Your Answer To find out the uses of loans raised by the business , To indicate the financial strength and weakness of the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement


Question Cost of materials include :-

Correct Answer Cost of components and consumable stores

Your Answer Cost of electricity

True/False

Question The Detailed Project report must indicate the gestation period of the project.

Correct Answer True

Your Answer True


Question Strategic Position and Action Evaluation Model :-

Correct Answer Is an approach to hammer out an appropriate strategic posture for a firm and its individual business

Your Answer Which is highly respected for the sophistication, maturity and quality in its planning systems

Select The Blank

Question Location of the factory comes under the ________ category of the Project report.

Correct Answer General

Your Answer General

Select The Blank

Question Retained earnings is a source of ________ finance.

Correct Answer Internal

Your Answer Internal


Question General category of the Project report consists of :-

Correct Answer Name of the Industrial concern , Proposed product , Location of the factory

Your Answer Name of the Industrial concern , Proposed product , Location of the factory

Select The Blank

Question Short term finance is normally for a period upto ________ year.

Correct Answer One

Your Answer Two


Question Appointments made at senior level during the half-year is categorised under :-

Correct Answer Organisation and management

Your Answer Current assets and liabilities

Select The Blank

Question Commission outstanding is ________ of funds.

Correct Answer Application

Your Answer Application


Question The statement which shows the movement of cash into and out of firm's kittie is known as :-

Correct Answer Cash flow statement

Your Answer Profit and Loss statement


Question Cost of utilities include :-

Correct Answer Cost of electricity

Your Answer Cost of components and consumable stores


Question Marketing aspect of Detailed Project report includes :-

Correct Answer Demand forecasting

Your Answer Detailed Project Engineering

True/False

Question In both the extreme situations of trade cycles i.e. Inflation and depression, requirement of working capital may be high.

Correct Answer True

Your Answer False


Question While choosing the location for a project, the following factors should be considered :-

Correct Answer Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors

Your Answer Proximity to raw materials and markets , Plant capacity , Availability of infrastructure

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Labels: Research Methodology and Project Report

Research Methodology and Project Report - 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Question ________ is a current liability.

Correct Answer Trade credit

Your Answer Trade credit


Question Marketing category of the Project report consists of :-

Correct Answer Target market , Market potential , Pricing policy

Your Answer Target market , Market potential , Pricing policy

Select The Blank

Question Under the SPACE Model, Customer loyalty is determined under the ________ dimension.

Correct Answer Company's competitive advantage

Your Answer Company's competitive advantage


Question Sources of funds include :-

Correct Answer Increase in secured borrowing

Your Answer Increase in secured borrowing

True/False

Question It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project.

Correct Answer True

Your Answer False


Question A project objective which states "What' is to be viewed" is termed as :-

Correct Answer Strategic perspective

Your Answer Strategic perspective

Select The Blank

Question ________ tries to have what the customer will want- where, when, in what form and at what price.

Correct Answer Marketing

Your Answer Marketing

True/False

Question Debt Service Coverage Ratio is one of the most important ratios calculated by the bankers or financial institutions giving long term finance to the organisation.

Correct Answer True

Your Answer True


Question Management qualities includes :-

Correct Answer Honesty , Financial resources , Initiative

Your Answer Honesty , Financial resources , Initiative


Question The second phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-

Correct Answer Problems faced during the Construction and Project implementation

Your Answer Problems faced during the Construction and Project implementation

True/False

Question A project is unique and no two projects are similar.

Correct Answer True

Your Answer True


Question Land and site development cost includes cost of :-

Correct Answer Gates

Your Answer Gates


Question A project objective which states What "achieving it " would cost is known as :-

Correct Answer Finance cost aspect

Your Answer Finance cost aspect

Select The Blank

Question ________ in assets involves outflow of funds.

Correct Answer Increase

Your Answer Increase

Match The Following


Management problems Lack of exposure Lack of exposure

Management Quality Initiative Initiative

Management Perception Aspiration level/ conservative Aspiration level/ conservative

Organisational Climate Person oriented Person oriented

Match The Following


Source of funds Depreciation Equity capital

Fixed assets Building Building

Current assets Debtors Debtors

Current liability Trade credit Trade credit


Question Disposal of fixed assets is categorised under :-

Correct Answer Miscellaneous

Your Answer Miscellaneous

True/False

Question The emphasis of a finance manager should be on taking a synergistic view of the project rather than looking at it only from the financial aspects.

Correct Answer True

Your Answer True


Question Geographic market appraisal answers to :-

Correct Answer Where do the customers live?

Your Answer Where do the customers live?


Question Every project involves financial outlay which can be referred to as :-

Correct Answer Project finance

Your Answer Project finance

Select The Blank

Question ________ occupies a unique position in the macro economic development which helps in induction of new technology and facilitates, greater efficiency as well as higher productivity.

Correct Answer Investment

Your Answer Production


Question The basic characteristic of a project is :-

Correct Answer That it involves current outlay of funds in expectation of future benefits

Your Answer That it involves current outlay of funds in expectation of future benefits


Question Pre-operative expenses include :-

Correct Answer Interest on deferred payments

Your Answer Interest on deferred payments


Question Advantages of fund flow statement are :-

Correct Answer It determines financial consequences of the business operations , It enables the firm to plan its financial resources properly , It helps as a reliable guide for the future requirement of funds

Your Answer It determines financial consequences of the business operations , It considers non-fund transactions , It enables the firm to plan its financial resources properly

True/False

Question Managerial problems in a project are the most pervasive.

Correct Answer True

Your Answer True

True/False

Question In the BCG Matrix "DOGS" indicate products which are generally during the stage of Decline of a Product Life Cycle.

Correct Answer True

Your Answer True


Question The applications of cash are :-

Correct Answer Purchase of fixed assets , Payment of long term loans

Your Answer Purchase of fixed assets , Payment of long term loans , Issue of new machinery

True/False

Question Debt Equity ratio is a 'Solvency ratio'.

Correct Answer True

Your Answer True

True/False

Question Current assets includes stock-in-process.

Correct Answer True

Your Answer True


Question A project objective can be said to have the following dimensions viz.:

Correct Answer Strategic perspective , Time span , Finance cost aspect

Your Answer Strategic perspective , Time span , Finance cost aspect


Question Liabilities side of Balance sheet includes :-

Correct Answer Unsecured loans

Your Answer Unsecured loans


Question The rate of discount which would equate the present value of investments to the present value of benefits over the life of the project is known as :-

Correct Answer Internal rate of return

Your Answer Internal rate of return

Select The Blank

Question A Project has a ________ represented by growth, maturity and decay.

Correct Answer Life cycle

Your Answer Life cycle


Question After the SPACE chart is constructed, we would normally get any one of the following basic strategic postures :-

Correct Answer Aggressive Posture , Competitive Posture , Defensive Posture

Your Answer Aggressive Posture , Competitive Posture , Defensive Posture

Select The Blank

Question ________ is the summary of cash book or Receipts and Payments statement.

Correct Answer Cash flow statement

Your Answer Cash flow statement


Question The point at which the unit neither earns profit nor incurs loss is known as :-

Correct Answer Break Even Point

Your Answer Break Even Point


Question In the Detailed Project Report, Marketing aspects includes :-

Correct Answer Demand forecasting , Promotion , Distribution

Your Answer Demand forecasting , Promotion , Distribution


Question The various aspects which need to be considered while assessing Project finance financing are :-

Correct Answer Environmental factors , Risk involved , Managerial compensation

Your Answer Environmental factors , Risk involved , Managerial compensation


Question Casual methods of Demand forecasting consists of :-

Correct Answer Consumption-level method , Econometric method

Your Answer Consumption-level method , Econometric method

Select The Blank

Question Under ________ method, the forecasts are modified in the light of observed errors.

Correct Answer Exponential smoothing

Your Answer Exponential smoothing


Question Provision for tax can be treated as :-

Correct Answer Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits

Your Answer Added back to the profit as per profit and loss account to arrive at operating profits , Item of current assets , Item of working capital

Select The Blank

Question Retained earnings indicates that whatever profits are earned by the company are not distributed by it by way of ________ but are kept aside for use in future for expansion or other purpose.

Correct Answer Dividend

Your Answer Dividend


Question Infrastructural projects include :-

Correct Answer Power Generation and Distribution

Your Answer Power Generation and Distribution


Question The ratio that roughly measures the company's potential reserve of cash is termed as :-

Correct Answer Net Working capital to total assets

Your Answer Net Working capital to total assets

Select The Blank

Question Name and designation of the chief executive comes under the ________ category.

Correct Answer General

Your Answer General


Question Miscellaneous fixed assets includes :-

Correct Answer Cables

Your Answer Cables


Question In the Cash flow statement, the sources of funds include

Correct Answer Share Issue

Your Answer Share Issue.

Fill in the blanks :

Class Limits denotes the lowest and highest value in construction the distribution for continuous data that can be included in the class.

Correct answers: Limits.

Researcher administers treatments to subjects in an artificial environment in the case of ..

Correct answers: Laboratory Experiment.

True/ false.

A Scale can be classified as judgement scale based on techniques of scale.

Correct answers: True.

Multiple choice single Response.

In the study of consumer expenditure we mainly use.

Research Methodology

Documents

answer increase

correct answer true

answer decrease

answer profit

correct answer cash

correct answer false

correct answer feasibility

correct answer debentures