320+ Project Management Solved MCQs

1.

A project is anything which is

A. implicitly expressed
B. not implicitly expressed
C. not a physical objective
D. social acceptability
Answer» A. implicitly expressed
2.

functional type of structure is divided into department based on

A. fuunctions
B. processed
C. human relations
D. planning
Answer» A. fuunctions
3.

Training requirement is a

A. financial factor
B. hr factor
C. marketing factor
D. administrative factor
Answer» B. hr factor
4.

Cultural implications of the project are examined by

A. economic feasibility
B. cultural feasibility
C. technical feasibility
D. marketing feasibility
Answer» B. cultural feasibility
5.

(NPBIT ÷ capital employed ) X 1000

A. rob
B. capital employed ratio
C. roi
D. interest coverage ratio
Answer» C. roi
6.

following is not a ficed income bearing security

A. equity share
B. preference shares
C. debentuures
D. public deposits
Answer» A. equity share
7.

financial leverage is

A. ebit/ebt
B. ebt/ebit
C. c/ebt
D. c/ebit
Answer» A. ebit/ebt
8.

Additional working capital is

A. added to cost of machine
B. deducted from cost of machine
C. ignored
D. risk to machine
Answer» A. added to cost of machine
9.

Capacity planning

A. save time
B. increase cost
C. increases waste
D. increase production
Answer» A. save time
10.

Fishbone diagram

A. identify root cauuses
B. identify economy
C. identify loaction
D. identify project
Answer» A. identify root cauuses
11.

Balance of Payment situation refers to exploiting opportunities in which environment?

A. Economic Environment
B. Technological Environment
C. Governmental Environment
D. Socio-demographic Environment
Answer» A. Economic Environment
12.

Which of the following is NOT a source of Project Idea?

A. Attending Trade Fairs
B. Analysis of Economic & Social Trends
C. Identifying unfulfilled psychological needs
D. Increase Production.
Answer» D. Increase Production.
13.

Compatibility with the promoter is a part of ____________?

A. Secondary Screening
B. Idea Generation
C. Preliminary Screening
D. None of these
Answer» C. Preliminary Screening
14.

The cost structure of proposed project must consider _________________.

A. Cost of Material Inputs
B. Labour Costs
C. Factory Overheads
D. All of these
Answer» D. All of these
15.

To judge the adequacy of market which of this is NOT relevant?

A. Total Present Domestic Market
B. Competitors and their market shares
C. Export Market
D. Labour Market
Answer» D. Labour Market
16.

Competition from Imports is a proposed risk for new project.

A. True
B. False
C. none
D. none
Answer» A. True
17.

What is to be prepared as a first step to avail finance for a new project?

A. Detailed Report
B. Project Report
C. Promoter’s bio-data
D. Summary
Answer» B. Project Report
18.

With respect to a project resources refer to :

A. Man power
B. Machinery
C. Materials
D. All of the above
Answer» D. All of the above
19.

Traditionally Indian Business had shortage of inputs like Power, Foreign Exchange, Important Raw Material, Supply of Agricultural Raw materials etc.

A. True
B. False
C. none
D. none
Answer» A. True
20.

NewProject Idea may be generated by thinking along:

A. Modification
B. Rearrangement
C. Reversal
D. All of the above
Answer» D. All of the above
21.

Projected Cash flow is mentioned in which part of the Project Report?

A. Summary
B. Financial Details
C. Production Process
D. Technical Arrangements
Answer» B. Financial Details
22.

Which of the following is NOT the facet of Project Analysis?

A. Market Analysis
B. Fundamental Analysis
C. Financial Analysis
D. Technical Analysis
Answer» B. Fundamental Analysis
23.

Which one of the following is NOT a part to study under Market Appraisal?

A. Customers
B. Government
C. Competitors
D. Middlemen
Answer» B. Government
24.

Readymade Project Reports are available with __________________.

A. GSFC
B. GIIC
C. Banks
D. All of the above
Answer» D. All of the above
25.

Questionnaire is a source of _____________ data.

A. Primary
B. Secondary
C. Detailed
D. None of the above
Answer» A. Primary
26.

A Market Researcher in India has to contend with….

A. Heterogeneity of the country
B. Multiplicity of Languages
C. Design of Questionnaire
D. All of these
Answer» D. All of these
27.

Census of India is a publication of _____________

A. RBI
B. SBI
C. Government of India
D. Supreme Court of India
Answer» C. Government of India
28.

National Sample Survey Reports are issued by _____________

A. Cabinet Secretariat
B. Trade Bodies
C. RBI
D. Trade Unions
Answer» A. Cabinet Secretariat
29.

For a Market Research only Census Survey is done and no Sample Survey is necessary.

A. True
B. False
C. none
D. none
Answer» B. False
30.

Non representativeness of the sample may …..

A. make the survey accurate
B. weaken the results of Market Survey
C. enhance the results of the Market Survey
D. None of the above
Answer» B. weaken the results of Market Survey
31.

Jute Chronicle is a source of Secondary Information for which Industry?

A. Pharmaceutical
B. Automobile
C. Infrastructure
D. Textile
Answer» D. Textile
32.

Which of the following is an Attitudinal Characteristic of a Consumer?

A. Preference
B. Habits
C. Attitude
D. All of the above
Answer» D. All of the above
33.

Which of the following is NOT a Demographic Characteristic of a Consumer?

A. Response
B. Gender
C. Income
D. Age
Answer» A. Response
34.

Which of these is not a method of Demand Forecasting?

A. Qualitative Methods
B. Time Series Projection Methods
C. Causal Methods
D. Financial Methods
Answer» D. Financial Methods
35.

Delphi Method is which type of Demand Forecasting Method?

A. Qualitative
B. Time Series Projection
C. Causal
D. None of these
Answer» A. Qualitative
36.

Which of the following is not a Causal Method for Demand Forecasting?

A. Chain Ratio Method
B. Exponential Smoothing Method
C. Leading Indicator Method
D. Econometric Method
Answer» B. Exponential Smoothing Method
37.

Which of the following is NOT considered while making choice of technology?

A. Plant Capacity
B. Mineral Product
C. Principle Inputs
D. Ease of Absorption
Answer» B. Mineral Product
38.

Coal is which type of raw material?

A. Agricultural
B. Mineral
C. Live Stock and Forest
D. Marine
Answer» B. Mineral
39.

Which of the following is NOT a Processed Industrial Material and Component?

A. Base Metals
B. Manufactured Parts
C. Spare parts
D. Jute
Answer» D. Jute
40.

Which of the following is NOT a Utility?

A. Land
B. Power
C. Water
D. Fuel
Answer» A. Land
41.

Plant Capacity is affected by………..

A. Technological Requirement
B. Input Constraints
C. Investment Cost
D. All of the above
Answer» D. All of the above
42.

Proximity to raw materials & markets is a factor that affects __________

A. Technology
B. Location & Site
C. a & b
D. None of the Above
Answer» B. Location & Site
43.

Which of the following is NOT a category of Structures and Civil Works of a Project?

A. Procurement of Machinery
B. Site Preparation and Development
C. Buildings and Structures
D. Outdoor works
Answer» A. Procurement of Machinery
44.

In a labour intensive project which are the factors to be considered?

A. Availability of Skilled, Semi-skilled and Unskilled Labour
B. Prevailing Labour Rates
C. Degree of Unionization
D. All of the above
Answer» D. All of the above
45.

Statement of Cash Flows includes

A. Financing Activities
B. Operating Activities
C. Investing Activities
D. All of the above
Answer» D. All of the above
46.

In Cash Flows, when a firm invests in fixed assets and short-term financial investments it results in

A. Increased Equity
B. Increased Liability
C. Decreased Cash
D. Increased Cash
Answer» C. Decreased Cash
47.

A firm that issues stocks and bonds to raise funds results in

A. Decreases Cash
B. Increases Cash
C. Increases Equity
D. None of Above
Answer» B. Increases Cash
48.

The basic Financial Statements include

A. Statement of Cash Flows
B. Statement of Retained Earnings
C. Statement of Fund Flows
D. None of the above
Answer» D. None of the above
49.

The statement of Cash Flow clarifies cash flows according to

A. Operating and Non-operating Flows
B. Inflow and Outflow
C. Investing and Non-operating Flows
D. Operating, Investing and Financing Activities
Answer» D. Operating, Investing and Financing Activities
50.

If there is an increase in Current Assets,….

A. Cash flow decreases
B. Cash flow increases
C. Cash flow remains unchanged
D. None of the Above
Answer» A. Cash flow decreases
51.

Cash Flow Statement does not fully reveal the soundness or otherwise of the financial position of the business.

A. True
B. False
C. none
D. none
Answer» A. True
52.

When liability increases, it is _________________

A. Source of Funds
B. Application of Funds
C. Decrease in Investments
D. None of above
Answer» A. Source of Funds
53.

Which of the below is NOT an application of funds?

A. Operating Profit
B. Purchase of Fixed Assets
C. Repayment of Loans or Debentures
D. Operating Losses
Answer» A. Operating Profit
54.

Which of the below financial statements is static and shows the state of Assets and Liabilities on a particular date?

A. Cash Flow Statement
B. Funds Flow Statement
C. Profit and Loss Statement
D. None of the Above
Answer» D. None of the Above
55.

Working Capital = ____________

A. Total Assets- Total Liabilities
B. Current Assets – Current Liabilities
C. Assets – Long-term Bank Borrowings
D. Debt – Assets
Answer» B. Current Assets – Current Liabilities
56.

Which statement is prepared in the process of Funds Flow Analysis?

A. Schedule of Changes in Working Capital
B. Ratio Analysis
C. Both a and b
D. None of the Above
Answer» A. Schedule of Changes in Working Capital
57.

Funds Flow Statements are prepared so as to

A. Identify the changes in Working Capital
B. Identify reasons behind change in Working Capital
C. Know the item-wise inflow and outflow of funds during given period
D. All of the above
Answer» D. All of the above
58.

Bond, Debentures and Term Loans fall under

A. Current Assets
B. Non-current Assets
C. Non-current Liabilities
D. None of the Above
Answer» C. Non-current Liabilities
59.

Which of the following is NOT a Preoperative Expense?

A. Establishment Expense
B. Travelling Expense
C. Insurance Charges
D. Raw Material Expenses
Answer» D. Raw Material Expenses
60.

Which of the following is NOT a mean / source of Project Finance?

A. Term Loan
B. Debentures
C. Overdraft
D. Share Capital
Answer» C. Overdraft
61.

Which of the following is an example of owned capital?

A. Equity Shares
B. Preference Shares
C. Debentures
D. a and b
Answer» D. a and b
62.

Major components of cost of production are:

A. Material Cost
B. Utilities and Labour Cost
C. Factory overhead Cost
D. All of the Above
Answer» D. All of the Above
63.

Which one of the following is a Working Capital Advance?

A. Cash Credits
B. Letter of Credit
C. Purchase / discount bills
D. All of the Above
Answer» D. All of the Above
64.

Higher Debt Service Coverage Ratio denotes

A. Higher Chances of getting a Loan
B. Lower Chances of getting a Loan
C. No Requirement of a Loan at all
D. None of the Above
Answer» A. Higher Chances of getting a Loan
65.

Term Loan is ______________ borrowing.

A. Unsecured
B. Secured
C. Clean
D. None of the Above
Answer» B. Secured
66.

If Project is accepted for Term Loan, Bankers issue a ___________

A. Letter of Credit
B. Letter of Advance
C. Letter of Sanction
D. Letter of Acceptance
Answer» C. Letter of Sanction
67.

Once the loan is disbursed the bank monitors the project by

A. Regular Reports furnished by the borrower
B. Periodic site visit
C. Discussion with Promoters, Suppliers, Creditors etc.
D. All of the above
Answer» D. All of the above
68.

Which are the warning signals of industrial unit sickness?

A. Continuous irregularity in Cash Credit Account
B. Low Capacity Utilization
C. Failure to pay statutory liabilities
D. All of the Above
Answer» D. All of the Above
69.

Which of the following has no role in a remedy to Industrial Unit Sickness?

A. Government
B. Financial Institution
C. Industry Association
D. Customers
Answer» D. Customers
70.

Which is an external cause of Industrial Unit Sickness?

A. Non availability of skilled personnel
B. Lack of Finance
C. Bad Production Policies
D. Wrong Marketing Policies
Answer» A. Non availability of skilled personnel
71.

Which is an internal cause of Industrial Unit Sickness?

A. Ineffective Corporate Management
B. Inappropriate Personnel Management
C. Lack of Promoter’s Experience
D. All of the Above
Answer» D. All of the Above
72.

Revival package of a sick unit includes

A. Provision of Additional Financial Assistance
B. Settlement with Creditors
C. Both a and b
D. None of the Above
Answer» C. Both a and b
73.

BIFR stands for

A. Bureau of Industrial and Financial Resources
B. Board of Industrial and Financial Reconstruction
C. Board of Investment and Financial Reconstruction
D. Bureau of Investment and Financial Resources
Answer» B. Board of Industrial and Financial Reconstruction
74.

Industrial Reconstruction Bank of India was set up in which year?

A. 1985
B. 1986
C. 1987
D. 1988
Answer» A. 1985
75.

Sick Industrial Companies Act was passed in which year?

A. 1983
B. 1984
C. 1985
D. 1986
Answer» C. 1985
76.

Revival of a sick unit is necessary because,

A. The Project may be in a sector that is vital to economy
B. Many ancillary units may be dependent on the unit
C. Banks and Financial Institutions would have locked up their money in the unit.
D. All of the Above
Answer» D. All of the Above
77.

Industrial Sickness is a matter of serious national concern because it affects

A. The Owners and Employees
B. Creditors and Suppliers
C. Adversely to the National Resources and creates social unrest
D. All of the Above
Answer» D. All of the Above
78.

Industrial Reconstruction Bank of India was established with which specific objective from the below?

A. To assist the rehabilitation of Sick Units
B. To assist the Government
C. To assist construction projects.
D. None of the Above
Answer» A. To assist the rehabilitation of Sick Units
79.

Which of the following can be objective of a Term Loan?

A. For Setting up the new Projects.
B. Expansion of existing Projects
C. Modernization or Renovation of Projects.
D. All of the Above
Answer» D. All of the Above
80.

Which is the principle objective for Project Monitoring?

A. To find out opportunities for further advances
B. To ensure timely recovery of dues
C. To establish good lender-borrower relationship.
D. None of the Above
Answer» B. To ensure timely recovery of dues
81.

Strategic decisions regarding a Project are taken by

A. Middle level Management
B. Employees
C. Top Management
D. None of the Above
Answer» C. Top Management
82.

Idea generation exercises for a new Project includes study of government guidelines.

A. True
B. False
C. none
D. none
Answer» A. True
83.

For generating a new project idea which of the below is relevant for an entrepreneur?

A. Analyse economic and social trend
B. Draw clues from consumption abroad
C. Study new technological developments
D. All of the Above
Answer» D. All of the Above
84.

Which of the below is not a resource for a project?

A. Manpower
B. Capital
C. Budget
D. Machinery
Answer» C. Budget
85.

Which of the factors should be considered for acceptable risk level at preliminary screening level?

A. Vulnerability to business cycles
B. Technological Changes
C. Competition from imports
D. All of the Above
Answer» D. All of the Above
86.

To judge adequacy of market during Preliminary Screening which of the following is a factor to be examined?

A. Total present domestic market
B. Price
C. Product features
D. Quality of the product
Answer» A. Total present domestic market
87.

Which of the following is not a base for demographic segmentation of the market?

A. Gender
B. Age
C. Attitude
D. Family structure
Answer» C. Attitude
88.

Which of the below can cause a difficulty in getting license for a new project?

A. Lack of consistency with National Priority
B. Adverse Environmental Effects
C. Non availability of foreign exchange
D. All of the Above
Answer» D. All of the Above
89.

India Year Book is a source of

A. Primary Data
B. Secondary Data
C. Interim Data
D. Intermediate Data
Answer» B. Secondary Data
90.

India Year Book is an annual publication of ______________

A. Ministry of Finance
B. Commerce Ministry
C. Ministry of Information and Broadcasting
D. None of the Above
Answer» C. Ministry of Information and Broadcasting
91.

Statistical Year Book is an annual Publication of ________________

A. United Nations
B. WHO
C. UNICEF
D. World Bank
Answer» A. United Nations
92.

Who publishes Economic Survey?

A. RBI
B. Ministry of Finance
C. Ministry of External Affairs
D. Ministry of Industry
Answer» B. Ministry of Finance
93.

Census provides information on

A. Business Cycle
B. Industrial Development
C. Agriculture Output
D. None of the Above
Answer» D. None of the Above
94.

RBI Bulletin provides information on

A. Exchange Rates
B. Prices
C. Balance of Payment Position
D. All of the Above
Answer» D. All of the Above
95.

Indian Textile Bulletin is published by___________

A. Textile Commissioner
B. Ministry of Textile
C. Textile Mills Union
D. None of the Above
Answer» A. Textile Commissioner
96.

Which of the following is not one of the driving forces behind the increasing demand for Project Management?

A. Compression of Product Life Cycle
B. Knowledge Explosion
C. More Emphasis on the Product and Less on the Customer
D. Corporate Downsizing
Answer» C. More Emphasis on the Product and Less on the Customer
97.

In the initial stage of the project the probability of completing the project is____

A. Zero
B. High
C. Low
D. None of the Above
Answer» C. Low
98.

Which one of the following is NOT one of the principle sources which cause uncertainties and error in demand forecasting?

A. Data about Past and Present Market
B. Methods of Forecasting
C. Environmental Changes
D. Government Policies
Answer» D. Government Policies
99.

Which of the following are limitations of Demand Forecasting Methods?

A. Inability to handle unquantifiable factors
B. Unrealistic Assumptions
C. Excessive Data Requirement
D. All of the Above
Answer» D. All of the Above
100.

The choice of Product Mix is guided by

A. Market Requirements
B. Market Inputs
C. Employee Requirements
D. None of the Above
Answer» A. Market Requirements
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