McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Management Studies (BMS) .
| 101. |
Raw material can be classified in which of the below broad categories? |
| A. | Agricultural Products, Mineral Products, Live Stock & Forest Products, Marine Products |
| B. | Agricultural Products, Plastic Products, Industrial Products, Forest and Marine Products |
| C. | Agricultural Products, Mineral Products, Industrial Products, Marine Products |
| D. | Agricultural Products, Mineral Products, Industrial Products, Live Stock and Forest Products |
| Answer» A. Agricultural Products, Mineral Products, Live Stock & Forest Products, Marine Products | |
| 102. |
Lime Stone is which type of Raw Material? |
| A. | Agricultural Products |
| B. | Mineral Products |
| C. | Both a and b |
| D. | None of the Above |
| Answer» B. Mineral Products | |
| 103. |
Which of the following is NOT a mineral type of raw material? |
| A. | Iron |
| B. | Bauxite |
| C. | Castro Seeds |
| D. | Zinc |
| Answer» C. Castro Seeds | |
| 104. |
Which of the following is auxiliary material and factory supply? |
| A. | Additives |
| B. | Packaging Material |
| C. | Oil and Grease |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 105. |
Which of the following is a utility? |
| A. | Water |
| B. | Land |
| C. | Building |
| D. | Machinery |
| Answer» A. Water | |
| 106. |
Which of the following is NOT an equipment required for a project? |
| A. | Plant Equipment |
| B. | Mechanical Equipment |
| C. | Domestic Equipment |
| D. | Electrical Equipment |
| Answer» C. Domestic Equipment | |
| 107. |
Which of the below is a category of civil work for a project? |
| A. | Site Preparation and Development |
| B. | Building and Structures |
| C. | Outdoor Works |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 108. |
While calculating cost of imported machinery, which of the below needs to be considered? |
| A. | FOB Value |
| B. | Shipping, Freight and Insurance Cost |
| C. | Import Duty |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 109. |
Miscellaneous Fixed Assets include |
| A. | Furniture |
| B. | Office Machinery and Equipment |
| C. | Vehicles |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 110. |
Preliminary Expenses to start a project include |
| A. | Expense on Preparing the Feasibility Report |
| B. | Expense on Raw Material |
| C. | Salaries |
| D. | None of the Above |
| Answer» A. Expense on Preparing the Feasibility Report | |
| 111. |
The major components of Capital Issue expenses are |
| A. | Underwriting Commission |
| B. | Brokerage |
| C. | None of the Above |
| D. | a and b |
| Answer» D. a and b | |
| 112. |
Listing Fee is which type of expense? |
| A. | Recurring Expense |
| B. | Capital Issue Expense |
| C. | Miscellaneous Expense |
| D. | None of the Above |
| Answer» B. Capital Issue Expense | |
| 113. |
Which one of the below is not a preoperative expense? |
| A. | Establishment Expenses |
| B. | Rent, Rates and Taxes |
| C. | Selling Expense |
| D. | Travelling Expense |
| Answer» C. Selling Expense | |
| 114. |
Public Deposits represent _____________borrowings. |
| A. | Secured |
| B. | Unsecured |
| C. | Deferred |
| D. | None of the Above |
| Answer» B. Unsecured | |
| 115. |
Factory overheads include |
| A. | Rent |
| B. | Taxes |
| C. | Insurance on factory assets |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 116. |
The prices of material inputs are defined in CIF? What does CIF stand for? |
| A. | Cost, Investment and Fuel |
| B. | Current Investment Flows |
| C. | Cost, Insurance and Freight |
| D. | Cost, Incentive and Freight |
| Answer» C. Cost, Insurance and Freight | |
| 117. |
Which one of the following is a constituent of working capital requirement? Raw material and components |
| A. | Debtor |
| B. | Operating expense |
| C. | Both a and b |
| D. | None of the Above |
| Answer» C. Both a and b | |
| 118. |
Which of the following is NOT a source of Working Capital? |
| A. | Cash Credit |
| B. | Bonds |
| C. | Trade Credit |
| D. | Accruals and Provisions |
| Answer» B. Bonds | |
| 119. |
Borrowing or incurring any Liability is a source of fund. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 120. |
Payment of Cash Dividend represents a source of fund. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 121. |
The analysis of funds can be called an analysis of the working capital. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 122. |
Which one of the following is an application of funds? |
| A. | Operating Losses |
| B. | Operating Profit |
| C. | Increase in Capital |
| D. | All of the Above |
| Answer» A. Operating Losses | |
| 123. |
If there is any decrease in current assets… |
| A. | Working capital decreases |
| B. | Working capital increases |
| C. | Fixed Assets decrease |
| D. | None of the Above |
| Answer» A. Working capital decreases | |
| 124. |
Increase in working capital denotes…. |
| A. | Source of Funds |
| B. | Source of Cash |
| C. | Application of Funds |
| D. | None of the Above |
| Answer» C. Application of Funds | |
| 125. |
If we want to prepare the funds flow statement we should have… |
| A. | Balance sheets of two consecutive years |
| B. | Funds flow statements of two consecutive years |
| C. | Budget for next financial year |
| D. | All of the Above |
| Answer» A. Balance sheets of two consecutive years | |
| 126. |
The liabilities side of the balance sheet shows the sources of finance employed by the business. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 127. |
Cash Flow statement is also known as |
| A. | Statement of Changes in Financial Position on cash basis |
| B. | Statement accounting for variation in cash |
| C. | Both a and b |
| D. | None of the Above |
| Answer» C. Both a and b | |
| 128. |
The objectives of Cash Flow Statement are |
| A. | Analysis of cash position |
| B. | Short term Cash Planning |
| C. | Evaluation of Liquidity |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 129. |
Features of Term Loan include |
| A. | Currency |
| B. | Security |
| C. | Interest and Principal payment |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 130. |
Usually assets which are financed with the Term Loan provide as a prime security against the Term Loan |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 131. |
As a part of Term Loan Procedure the detailed appraisal of project covers |
| A. | Marketing Aspects |
| B. | Technical Aspects |
| C. | Financial Aspects |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 132. |
Syndication is an arrangement for |
| A. | Marketing Support |
| B. | Manpower Supply |
| C. | Providing Long Term Finance to Projects |
| D. | None of the Above |
| Answer» C. Providing Long Term Finance to Projects | |
| 133. |
Once letter of sanction is issued, the borrower has to submit____________ after appropriate board resolution to avail the loan. |
| A. | Copy of the Board Meeting Minutes |
| B. | Letter of Advances |
| C. | Letter of Acceptance |
| D. | Letter of Credit |
| Answer» C. Letter of Acceptance | |
| 134. |
Current assets are financed by |
| A. | Term Loan |
| B. | Debentures |
| C. | Working Capital Loan |
| D. | Share Capital |
| Answer» C. Working Capital Loan | |
| 135. |
A DSCR ˂ 1 indicates |
| A. | There is not enough cash flow to cover loan payments |
| B. | There is enough cash flow to cover loan payments |
| C. | Company does not need a loan |
| D. | None of the Above |
| Answer» A. There is not enough cash flow to cover loan payments | |
| 136. |
DSCR is a term most important to |
| A. | Employees |
| B. | Financers |
| C. | Customers |
| D. | None of the Above |
| Answer» B. Financers | |
| 137. |
What is the full form of SIDBI |
| A. | State Industrial Development Bank of India |
| B. | Small Industrial Development Bank of India |
| C. | State Insurance Development Board of India |
| D. | Small Industries Debt Borrowing Institution |
| Answer» B. Small Industrial Development Bank of India | |
| 138. |
Which one of the below is not a source of Project Finance? |
| A. | Debentures |
| B. | Bonds |
| C. | ECBs |
| D. | Overdraft facility |
| Answer» D. Overdraft facility | |
| 139. |
Which one of the following was not set up with a motive of industrial finance? |
| A. | SIDBI |
| B. | IDBI |
| C. | IFCI |
| D. | IFFCO |
| Answer» D. IFFCO | |
| 140. |
Low capacity utilization is a signal of ______________. |
| A. | Enough raw Material |
| B. | Industrial Sickness |
| C. | Inadequate production capacity |
| D. | None of the Above |
| Answer» B. Industrial Sickness | |
| 141. |
Which of the following is not a signal of industrial sickness? |
| A. | Promoter being accused of a crime |
| B. | Continuous irregularities in Cash Credit Account |
| C. | Failure to pay Statutory Liabilities |
| D. | Rapid Turnover of Key Personnel |
| Answer» A. Promoter being accused of a crime | |
| 142. |
Marketing Constraint is an internal source of Industrial Sickness. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 143. |
Which one of the following is NOT a Maha-Ratna Industry? |
| A. | GAIL |
| B. | Coal India Limited |
| C. | SAIL |
| D. | Airports Authority of India |
| Answer» D. Airports Authority of India | |
| 144. |
Ineffective corporate management leads to |
| A. | Improper performance of the unit |
| B. | Industrial Sickness |
| C. | Both a and b |
| D. | None of the Above |
| Answer» C. Both a and b | |
| 145. |
Finance constraints arises because of |
| A. | Credit Restrain Policy |
| B. | Delay in Disbursement of Loan by Government |
| C. | Unfavourable Investment |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 146. |
Production constraints arise because of |
| A. | Shortage of Raw Material |
| B. | Shortage of Power |
| C. | High Prices of Fuel |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 147. |
Which one of the following can be a weakness in capital budgeting? |
| A. | Poor Alignment between Strategy and Capital Budgeting |
| B. | Deficiencies in Analytical Techniques |
| C. | Both a and b |
| D. | None of the Above |
| Answer» C. Both a and b | |
| 148. |
The major deficiencies characterizing the labour markets in developing countries like India are |
| A. | Shortage of well trained people |
| B. | Rigid labour laws |
| C. | Both a and b |
| D. | None of the Above |
| Answer» C. Both a and b | |
| 149. |
Which of the following has marginal exposure to Term Lending? |
| A. | Insurance Companies ( LIC & GIC) |
| B. | Power Finance Corporation |
| C. | IDFC |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 150. |
Debt restructuring and infusion of external funds for sick units is one of the remedial measures to overcome Industrial Sickness. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
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