320+ Project Management Solved MCQs

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
151.

Which one of the following is a role of BIFR?

A. Securing the timely detection of Sick and Potentially Sick Companies
B. Speedy determination by group of experts about various measures to be taken in respect of sick company
C. Both a and b
D. None of the Above
Answer» C. Both a and b
152.

For rehabilitating a sick unit, role of Industry Associations include

A. Installed Capacity Utilisation in industry
B. Checking the growth trends
C. Checking the problems
D. All of the Above
Answer» D. All of the Above
153.

Government Policies as an external cause of sickness includes

A. Unfavourable Government Policies
B. Lack of Support from Government
C. Taxation and Licensing
D. All of the Above
Answer» D. All of the Above
154.

What does IRBI stand for?

A. Industrial Reconstruction Bank of India
B. Industrial Rehabilitation Bank of India
C. Industrial Refinance Bank of India
D. Industrial Revenue Bank of India
Answer» A. Industrial Reconstruction Bank of India
155.

When a company has been financed by consortium of banks, who has to report to BIFR about the sickness?

A. Lead Bank
B. Participating Banks
C. Company
D. None of the Above
Answer» A. Lead Bank
156.

Managers should manage their firm’s resources with the prime objective of _______

A. Employee Satisfaction
B. Fulfillment of Tax Obligations
C. Enhancing the firm’s Market Value
D. None of the Above
Answer» C. Enhancing the firm’s Market Value
157.

Cotton is an example of _____________ raw material.

A. Mineral Product
B. Industrial Product
C. Marine Product
D. None of the Above
Answer» D. None of the Above
158.

End use method of demand forecasting involves

A. Identify the possible uses of product
B. Define the consumption coefficient of the Product for various uses
C. Both a and b
D. None of the above
Answer» C. Both a and b
159.

What is the term for organisational development through a formally designed organisational structure?

A. Organic
B. Mechanistic
C. Formal
D. Structured
Answer» B. Mechanistic
160.

How can organisational structures that are characterised by democratic and inclusive styles of management be described?

A. Hierarchical
B. Bureaucratic
C. Flat
D. Functional
Answer» C. Flat
161.

Specialisation is a feature of which organisational structure?

A. Matrix
B. Divisional
C. Multi-divisional
D. Functional
Answer» D. Functional
162.

What is the term for an autonomous business entity within an overall corporate enterprise which is set apart from other areas of the business?

A. Subsidiary
B. Strategic partnership
C. Strategic alliance
D. Strategic business unit
Answer» D. Strategic business unit
163.

What is not a purpose of an organisational structure?

A. To coordinate people and resources
B. To organise lines of communication
C. To formalise authority
D. To limit workers' right
Answer» D. To limit workers' right
164.

The cost reduction technique in comparison to the worth of a product is known as

A. Reverse engineering
B. Value engineering
C. Material engineering
D. Quality engineering
Answer» B. Value engineering
165.

Value analysis examines the

A. Design of every component
B. Method of manufacturing
C. Material used
D. All of the above
Answer» D. All of the above
166.

Who is named as Father of Value Analysis?

A. Lawrence D. Miles
B. George Terborgh
C. Michael Jucius
D. Edwin B. Flippo
Answer» A. Lawrence D. Miles
167.

Constructive and destructive conflict are distinguished from each other in which of the following ways?

A. constructive conflict is We-oriented; destructive conflict is Me-oriented
B. constructive conflict is characterized by de-escalation of the conflict; destructive conflict is characterized by escalation of the conflict
C. constructive conflict is characterized by cross-complaining; destructive conflict is characterized by flexibility
D. both a and b
Answer» D. both a and b
168.

Constructive and destructive anger can be distinguished from each other by the

A. intensity of the anger
B. flexibility of the anger
C. duration of the anger
D. both a and c
Answer» D. both a and c
169.

Which of the following is not a characteristic of conflict?

A. expressed struggle
B. independent parties
C. perceived incompatible goals
D. perceived interference for outside parties
Answer» B. independent parties
170.

Which of the following can be validly concluded from research on intercultural conflict management?

A. collectivist and individualist cultures typically favor different conflict management styles
B. the key to effective intercultural conflict management is flexible use of conflict management styles
C. disagreement should be discouraged when communicating with individuals from diverse cultures
D. both a and b
Answer» D. both a and b
171.

Conflict is

A. an unavoidable fact of life
B. sometimes constructive
C. a destructive force in relationships if continually avoided
D. all of the above
Answer» D. all of the above
172.

Which of the following is a tactic of avoiding conflict?

A. competing
B. stonewalling
C. autonomy
D. compromising
Answer» B. stonewalling
173.

What are the two types of change management?

A. Real change and superficial change
B. Incremental change and circular change
C. Radical change and transformational change
D. Incremental change and tr
Answer» A. Real change and superficial change
174.

In high collectivist cultures, leaders need to emphasize:

A. Long-tem implications of the change on the wider community
B. Short- tem implications of the change on the wider community
C. Material implications of the change on the wider community
D. Personal implications of the change on the wider community
Answer» A. Long-tem implications of the change on the wider community
175.

In high power distance cultures:

A. change tends to be implemented top down.
B. change tends to be implemented bottom up.
C. leaders must consult lower level employees.
D. change tends to be implemented horizontally.
Answer» A. change tends to be implemented top down.
176.

The three stages of the change process are:

A. unfreezing, adjustment, and refreezing.
B. adjustment, unfreezing, and refreezing.
C. adjustment, unfreezing, and re-adjustment.
D. adjustment, re-adjustment, and unfreezing.
Answer» A. unfreezing, adjustment, and refreezing.
177.

The five stages of the coping cycle are (in order):

A. Denial, defence, discarding, adaptation, internalization
B. Defence, denial, discarding, adaptation, internalization
C. Denial, resistance, discarding, adaptation, internalization
D. Denial, defence, resistance, adaptation, internalization
Answer» A. Denial, defence, discarding, adaptation, internalization
178.

Dunphy and Stace (1993) identified:

A. Three styles of change management
B. Two styles of change management
C. Four styles of change management
D. Five styles of change management
Answer» C. Four styles of change management
179.

Improving quality through small, incremental improvements is a characteristic of what type of quality management system?

A. Just-in-time
B. Six Sigma
C. Total Quality Management
D. Kaizen
Answer» D. Kaizen
180.

Where was Total Quality Management first developed?

A. USA
B. UK
C. Japan
D. Korea
Answer» C. Japan
181.

Which of the following are key components of a Total Quality Management system?

A. Individual responsibility, incremental improvement, use of raw data
B. Collective responsibility, continual improvement, use of raw data
C. Group responsibility, staged improvement, knowledge
D. Involves everyone, continual improvement, use of data and knowledge
Answer» D. Involves everyone, continual improvement, use of data and knowledge
182.

What is the term for the monitoring of events both internal and external to the organisation that affects strategy?

A. Operational control
B. Strategic surveillance
C. Strategic control
D. Environmental scanning
Answer» B. Strategic surveillance
183.

When a manager monitors the work performance of workers in his department to determine if the quality of their work is 'up to standard', this manager is engaging in which function?

A. Planning
B. Controlling
C. Organising
D. Leading
Answer» B. Controlling
184.

"How will conflicts over resources/facility usage between this and other projects be settled?", is critically settled at level

A. Main program
B. Project formation
C. Project Buildup
D. Project Buildup
Answer» B. Project formation
185.

Level which includes disposition of project’s assets and personnel, is

A. First Stage
B. Second Stage
C. Third stage
D. Fourth stage
Answer» D. Fourth stage
186.

A mean for monitoring and controlling organization's strategic projects is

A. Project Monitoring process
B. Project Portfolio Process
C. Project Portfolio Plan
D. Project Portfolio Phase
Answer» B. Project Portfolio Process
187.

Projects provide an excellent growth environment for future executives and for developing

A. Sales skills
B. Manufacturing skills
C. Managerial skills
D. Execution skills
Answer» C. Managerial skills
188.

Favored technique for resolving conflict is

A. Negotiating
B. Conciliation
C. Removal of participants
D. Not entertaining them
Answer» A. Negotiating
189.

What is the critical path through the network above?

A. ABGHIF
B. ABDEF
C. ABGHIF& ABDEF
D. ABCEF
Answer» B. ABDEF
190.

What would be the critical path if the duration of activity C increased to 10?

A. ABCF
B. ABCEF
C. ABGHIF
D. ABGHIF & ABDEF
Answer» A. ABCF
191.

If the Earned Value is equal to Actual Cost, it means:

A. Project is on budget and on schedule
B. Schedule Variance Index is 1
C. There is no schedule variance
D. There is no cost variance
Answer» D. There is no cost variance
192.

A critical path network diagram does NOT:

A. Help determine the amount of float
B. Identify the particularly important activities
C. Calculate earned value
D. Calculate the duration of the whole project
Answer» C. Calculate earned value
193.

A Gantt chart is used to show a project timeline diagramatically.

A. True
B. False
C. none
D. all
Answer» A. True
194.

Changes to the project involve moving from:

A. Project control stage to project definition stage
B. Project control stage to project planning stage
C. Project control stage to understanding the project environment stage
D. None of the above
Answer» A. Project control stage to project definition stage
195.

The project life cycle consists of

A. Understanding the scope of the project
B. Objectives of the project
C. Formulation and planning various activities
D. All of the above
Answer» D. All of the above
196.

Developing a technology is an example of

A. Process
B. Project
C. Scope
D. All of the above
Answer» B. Project
197.

Resource requirement in project becomes constant while the project is in its _____ progress stage.

A. 40 to 55%
B. 55 to 70%
C. 70 to 80%
D. 80 to 95%
Answer» D. 80 to 95%
198.

Five dimensions that must be managed on a project

A. Constraint, Quality, Cost, Schedule, Staff
B. Features, Quality, Cost, Schedule, Staff
C. Features, priority, Cost, Schedule, Staff
D. Features, Quality, Cost, Schedule, customer
Answer» B. Features, Quality, Cost, Schedule, Staff
199.

Considers the total cost of ownership, or development plus support costs, for a project.

A. Learning Curve Theory
B. Life Cycle Costing
C. Parametric Modeling
D. Rate of Performance
Answer» B. Life Cycle Costing
200.

A time-phased budget that project managers use to measure and monitor cost performance.

A. Cost Baseline
B. Cost Budgeting
C. Cost Estimating
D. Cost Variance
Answer» A. Cost Baseline
Tags
Question and answers in Project Management, Project Management multiple choice questions and answers, Project Management Important MCQs, Solved MCQs for Project Management, Project Management MCQs with answers PDF download