Project Finance SCDL Paper Solved Exam Paper - 7

Multiple Choice Single Answer   
  Question      A project objective which states "What' is to be viewed" is termed as :-
   Answer      Strategic perspective
   
 Multiple Choice Single Answer   
  Question      Profit is the result of customer satisfaction, indeed customer delight under the :-
   Answer      Marketing concept
   
 Multiple Choice Single Answer   
  Question      The basic characteristic of a project is :-
   Answer      That it involves current outlay of funds in expectation of future benefits
   
 Select The Blank   
  Question      Under the SPACE Model, Customer loyalty is determined under the ________ dimension.
   Answer      Company's competitive advantage
   
 True/False   
  Question      The 'BCG Matrix 'analysis various products of the organisation in the terms of Business strength and Industry Attractiveness.
   Answer      FALSE
   
 True/False   
  Question      The General Electric Company incorporated in the USA, is highly respected for the sophistication, maturity and quality in its planning systems.
   Answer      TRUE
   
 True/False   
  Question      There is a need for studying Project finance both for the lenders as well as the borrowers as both of them have equal stake in making the Project a success.
   Answer      TRUE
   
 Multiple Choice Single Answer   
  Question      Every project involves financial outlay which can be referred to as :-
   Answer      Project finance
   
 True/False   
  Question      It is mandatory for each unit to obtain necessary clearance from Pollution Control Authorities before setting up any project.
   Answer      TRUE
   
 Multiple Choice Single Answer   
  Question      In BCG Matrix "QUESTION MARKS" indicate :-
   Answer      Products which have high growth potential but low market share
   
 Multiple Choice Single Answer   
  Question      In BCG Matrix " CASH COWS" indicate :-
   Answer      Products which have high market share but low growth potential
   
 Multiple Choice Multiple Answer   
  Question      Sources of funds includes :-
   Answer      Depreciation , Preliminary expenses written off , Increase in secured borrowing
   
 True/False   
  Question      Managerial problems in a project are the most pervasive.
   Answer      TRUE
   
 True/False   
  Question      Miscellaneous expenditure is written on the asset side of the Balance sheet.
   Answer      TRUE
   
 True/False   
  Question      The Detailed Project report must indicate the gestation period of the project.
   Answer      TRUE
   
 True/False   
  Question      Change in the project concept itself may lead to cost and time overrun.
   Answer      TRUE
   
 True/False   
  Question      Land and site development comes under the cost aspect of the Project report.
   Answer      TRUE
   
 Multiple Choice Multiple Answer   
  Question      Management qualities includes :-
   Answer      Honesty , Financial resources , Initiative
   
 Multiple Choice Single Answer   
  Question      It is said that a second rate project in the hands of first rate management is better than a first rate project in the hands of :-
   Answer      Second rate management
   
 Multiple Choice Multiple Answer   
  Question      Financing plans consists of :-
   Answer      Share capital , Term loans , Internal accruals
   
 Select The Blank   
  Question      Cost of fencing comes under the ________ category of the Project report.
   Answer      Land and site development
   
 Multiple Choice Multiple Answer   
  Question      In the Detailed Project Report, Technical aspects includes :-
   Answer      Plant capacity , Quality standards , Raw material requirement
   
 Multiple Choice Single Answer   
  Question      The industrial concern earned profits by increasing the sales volume under the :-
   Answer      Sales concept
   
 Multiple Choice Single Answer   
  Question      Delay in arrival of domestic/foreign machinery and technicians may lead to :-
   Answer      Cost and time overrun
   
 Multiple Choice Multiple Answer   
  Question      The sources of cash are :-
   Answer      Cash from operations , Sale of machinery , Issue of new shares
   
 Multiple Choice Single Answer   
  Question      Short supplies of materials may lead to :-
   Answer      Cost and time overrun
   
 Multiple Choice Single Answer   
  Question      Capital Issue expenses include :-
   Answer      Brokerage fees to registrars
   
 Multiple Choice Multiple Answer   
  Question      Provision for tax can be treated as :-
   Answer      Item of current liabilities , Added back to the profit as per profit and loss account to arrive at operating profits
   
 Multiple Choice Single Answer   
  Question      The Projects which are undertaken to manufacture certain products which are being used as raw material by the existing units is known as :-
   Answer      Backward Integration Projects
   
 Select The Blank   
  Question      Excessive expenditures on foreign technicians leads to ________.
   Answer      Cost and time overrun
   
 Select The Blank   
  Question      Having decided on the location and product, the promoter takes into account the ________ that is to be adopted for producing the product.
   Answer      Manufacturing process and technology
   
 Select The Blank   
  Question      Name and designation of the chief executive comes under the ________ category.
   Answer      General
 True/False   
  Question      Debt Service means payment of installments and interest against an amount borrowed as per terms of loan.
   Answer      TRUE
   
 Select The Blank   
  Question      Location of the factory comes under the ________ category of the Project report.
   Answer      General
   
 Select The Blank   
  Question      Investors who invest in the debentures of the company are the ________ of the company.
   Answer      Creditors

Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct