Project Finance SCDL Paper Solved Exam Paper - 10

This solved paper of Project Finance has been contributed by XYZ

 

Multiple Choice Single Answer
Question	The acronym for 'LPG' is :-
Answer	Liberalisation, Privatisation and Globalisation
True/False
Question	Market potential should be determined under the Marketing aspect of the Project report.
Answer	TRUE
Multiple Choice Single Answer
Question	General Electric Stop Light Matrix analyses products in terms of :-
Answer	Business strength and Industrial Attractiveness
Multiple Choice Multiple Answer
Question	As per the GE's Stop Light Matrix, Products may justify substantial commitment of funds where there is :-
Answer	Strong Business Strength and high Industry attractiveness , Average Business strength and high Industry attractiveness
True/False
Question	A project is unique and no two projects are similar.
Answer	TRUE
Multiple Choice Multiple Answer
Question	Demand technique forecasting of Commercial appraisal includes :-
Answer	Future demand of the product , Proper survey of the product , Future availability and supply of the product
True/False
Question	Cost under-estimation at the project preparation and evaluation stage leads to cost and time over run.
Answer	TRUE
Multiple Choice Multiple Answer
Question	A project objective can be said to have the following dimensions viz.:
Answer	Strategic perspective , Time span , Finance cost aspect
Select The Blank
Question	A smaller unit into which the overall requirement of capital of a company is sub-divided is termed as ________.
Answer	Share
Multiple Choice Single Answer
Question	The profit earned from operations of the project during life of the project is known as :-
Answer	Cash inflow
Select The Blank
Question	Details regarding Internal accruals comes under the ________ category of Project report.
Answer	Financing plan
Multiple Choice Multiple Answer
Question	Management category of Visit report consists of :-
Answer	Managing Director , Institutional nominees , Committees of the board
Multiple Choice Multiple Answer
Question	Advantages of fund flow statement are :-
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
Multiple Choice Single Answer
Question	Stock in the beginning results in :-
Answer	Application of funds
Select The Blank
Question	Longer the duration of production cycle, higher the requirement of ________.
Answer	Working capital
Multiple Choice Multiple Answer
Question	External sources of cash are as follows :-
Answer	Issue of new shares , Long term loans , Short term borrowings
Multiple Choice Single Answer
Question	Psychographic market appraisal answers to :-
Answer	Why they buy?
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.
Answer	Dividend
Multiple Choice Single Answer
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 :-
Answer	Internal rate of return
True/False
Question	Current assets includes stock-in-process.
Answer	TRUE
Multiple Choice Multiple Answer
Question	The permanent requirement of working capital should be financed out of :-
Answer	Cash Profits , Shares , Debentures
Multiple Choice Multiple Answer
Question	The sources of long term and medium term finance are :-
Answer	Equity shares , Public deposit
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.
Answer	Investment
Multiple Choice Multiple Answer
Question	The data for ratio analysis is obtained from :-
Answer	Profit and Loss Account , Balance Sheet
Multiple Choice Multiple Answer
Question	Disposition of funds includes :-
Answer	Increase in working capital , Preliminary expenses , Dividend
Multiple Choice Multiple Answer
Question	Defaults category of the Project report may be in respect of :-
Answer	Term loans , Principal , Interest
Multiple Choice Single Answer
Question	Technical aspect of detailed project report includes :-
Answer	Detailed Project Engineering
Multiple Choice Multiple Answer
Question	In the Detailed Project Report, Marketing aspects includes :-
Answer	Demand forecasting , Promotion , Distribution
Multiple Choice Multiple Answer
Question	Time Series Projection Methods of Demand forecasting consists of :-
Answer	Trend Projection method , Moving Averages method
Multiple Choice Single Answer
Question	The Cash Flow statement is also referred to as :-
Answer	Cash flow budget
Multiple Choice Single Answer
Question	Borrower's contribution towards Working capital is known as :-
Answer	Margin money
Multiple Choice Single Answer
Question	Dissentions among the promoters is a :-
Answer	Management problem
Multiple Choice Single Answer
Question	Receivables is categorised under :-
Answer	Current assets and liabilities
True/False
Question	Ratio analysis is a technique of planning and control.
Answer	FALSE
Select The Blank
Question	________ tries to have what the customer will want- where, when, in what form and at what price.
Answer	Marketing
Multiple Choice Single Answer
Question	Disposal of fixed assets is categorised under :-
Answer	Miscellaneous
Select The Blank
Question	Under ________ method, the forecasts are modified in the light of observed errors.
Answer	Exponential smoothing
True/False
Question	Cost and time overrun of the project may lead to loss on account of lost market opportunities.
Answer	TRUE
Multiple Choice Single Answer
Question	The assets held by a business which can be converted in the form of cash or used during the course of normal operations is termed as :-
Answer	Current assets
True/False
Question	If the organisation is a trading organisation, the requirement of working capital will be on the lower side.
Answer	FALSE
Multiple Choice Multiple Answer
Question	Internal sources of funds are :-
Answer	Funds from operation , Loss on sale of fixed assets , Goodwill written off
True/False
Question	The construction of National Golden Quadrilateral can be recognised as Project.
Answer	TRUE
Select The Blank
Question	More accurate the estimation of the level of current assets and current liabilities, more accurate will be estimation of the requirement of ________.
Answer	Working capital
True/False
Question	Debt service coverage ratio indicates whether cash earned is sufficient for debt service.
Answer	TRUE
Select The Blank
Question	In the GE's Stop Light Matrix, when ________ situation prevails, Products call for Hold.
Answer	Average Business Strength and Medium Industry Attractiveness
Multiple Choice Multiple Answer
Question	Financial and economic aspect of the Visit report consists of :-
Answer	Company's financial year , Impact of Government policies on company operations , Comments on the last published accounts
Select The Blank
Question	The basic difference between the feasibility study report and ________ is the level of accuracy and degree of detail.
Answer	Detailed Project report
Select The Blank
Question	Inflow of funds may not necessarily result in ________.
Answer	Inflow of cash
True/False
Question	Ratios are based only on the information which has been recorded in the financial statements.
Answer	TRUE
True/False
Question	For computing Interest coverage ratio, Profit after Interest and taxes are taken into account.
Answer	FALSE
Select The Blank
Question	In the GE's Stop Light Matrix, when ________ situation prevails , Products call for divestment.
Answer	Average Business Strength and Low Industry attractiveness
Multiple Choice Multiple Answer
Question	Trend Projection method of demand forecasting consists of :-
Answer	Linear Relationship , Exponential Relationship , Polynomial Relationship
True/False
Question	Debt Equity ratio is a 'Solvency ratio'.
Answer	TRUE
True/False
Question	In small scale organisation, requirement of working capital is quite high due to high amount of overheads, high buying costs and high selling cost.
Answer	TRUE
Multiple Choice Single Answer
Question	The third phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Answer	Problems pertaining to the period when the project is in operation

 

 

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