MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
…………………………report is a document wherein all the details obtained fromtechnical analysis, financial analysis, profitability analysis etc. are put together. |
| A. | feasibility |
| B. | project |
| C. | both |
| D. | none |
| Answer» D. none | |
| 2. |
Reject a project if it’s IRR is……………….when compared to desired minimum |
| A. | higher |
| B. | lower |
| C. | negative |
| D. | positive |
| Answer» C. negative | |
| 3. |
Under Net Terminal Value Method, accept a project if it’s NTV is…………………… |
| A. | higher |
| B. | lower |
| C. | negative |
| D. | positive |
| Answer» E. | |
| 4. |
In independent projects, accept a project if it’s NPV is……………………….. |
| A. | higher |
| B. | lower |
| C. | negative |
| D. | positive |
| Answer» E. | |
| 5. |
The process of measuring the progress and performance of a project is called: |
| A. | project appraisal. |
| B. | project evaluation. |
| C. | project control. |
| D. | project audit. |
| Answer» C. project control. | |
| 6. |
In case of mutually exclusive projects, the project with ……………. PI is to beselected. |
| A. | higher |
| B. | lower |
| C. | negative |
| D. | positive |
| Answer» B. lower | |
| 7. |
The excess of the present value over the cost of the project is …………………….. |
| A. | irr |
| B. | arr |
| C. | npv |
| D. | ntv |
| Answer» E. | |
| 8. |
For discounted cash flow methods, the discount rate used is: |
| A. | fixed arbitrarily |
| B. | equivalent to bank rate. |
| C. | equivalent to firm’s average cost of capital. |
| D. | equivalent to final rate of dividend. |
| Answer» D. equivalent to final rate of dividend. | |
| 9. |
The scientific technique of evaluation of capital expenditure decisions includethe following except: |
| A. | npv. |
| B. | pi. |
| C. | irr. |
| D. | payback period. |
| Answer» E. | |
| 10. |
The difference between the total present value of a stream of cash flows of agiven rate of discount and the initial capital outlay is known as the : |
| A. | irr. |
| B. | arr. |
| C. | npv. |
| D. | net profit. |
| Answer» D. net profit. | |
| 11. |
Profitability index shows benefits from the proposal in : |
| A. | absolute terms. |
| B. | relative terms. |
| C. | both of the above. |
| D. | none of these. |
| Answer» C. both of the above. | |
| 12. |
Which one of the following is not a discounted cash flow technique: |
| A. | arr |
| B. | irr |
| C. | npv |
| D. | pi |
| Answer» B. irr | |
| 13. |
The discount rate must be determined in advance for the : |
| A. | payback period. |
| B. | time adjusted rate of return method. |
| C. | irr |
| D. | npv method. |
| Answer» E. | |
| 14. |
Which one is not an element of project appraisal: |
| A. | technical feasibility. |
| B. | network analysis. |
| C. | economical viability. |
| D. | commercial viability. |
| Answer» C. economical viability. | |
| 15. |
Project appraisal is done by: |
| A. | government. |
| B. | financial institution only. |
| C. | entrepreneur only. |
| D. | both financial institution and entrepreneur. |
| Answer» E. | |
| 16. |
Project…………………………… is done after the project is implemented. |
| A. | management |
| B. | appraisal |
| C. | evaluation |
| D. | none |
| Answer» D. none | |
| 17. |
The main object of project appraisal is: |
| A. | to find whether the project is technically feasible. |
| B. | to ascertain whether the project is financially feasible. |
| C. | to decide whether to accept or reject a project. |
| D. | to know whether the project is eco-friendly. |
| Answer» D. to know whether the project is eco-friendly. | |
| 18. |
The discount rate at which present value of cash inflows equals to the presentvalue of cash outflows is called ………………….. |
| A. | arr |
| B. | irr |
| C. | ntv |
| D. | urgency |
| Answer» C. ntv | |
| 19. |
…………………. is also called trial and error Method. |
| A. | arr |
| B. | irr |
| C. | ntv |
| D. | urgency |
| Answer» C. ntv | |
| 20. |
Original investment is divided by constant cash……………………….. to get paybackperiod. |
| A. | inflows |
| B. | outflows |
| C. | balance |
| D. | both (a)and (b) |
| Answer» B. outflows | |
| 21. |
NPV, PI and ………………………. are the three discounted cash flow techniques. |
| A. | arr |
| B. | irr |
| C. | ntv |
| D. | urgency |
| Answer» C. ntv | |
| 22. |
Payback period and ARR methods are ………………….. |
| A. | traditional |
| B. | discounting |
| C. | modern |
| D. | none |
| Answer» B. discounting | |
| 23. |
Profitability index is also known as ……………………………….ratio |
| A. | roi |
| B. | benefit- cost |
| C. | debt-equity |
| D. | none |
| Answer» C. debt-equity | |
| 24. |
Project appraisal is the process of estimating the costs and benefits of a projectto arrive at the ………………………decision. |
| A. | investment |
| B. | profitability |
| C. | liquidity |
| D. | none of these |
| Answer» B. profitability | |
| 25. |
Project appraisal is usually done by a ………………………….. Institution. |
| A. | marketing |
| B. | financial |
| C. | production |
| D. | none of these |
| Answer» C. production | |
| 26. |
..……is a contract between the owner and user of the asset to use the asset for aconsideration. |
| A. | venture capital |
| B. | layered financing |
| C. | deferred credit |
| D. | lease financing |
| Answer» E. | |
| 27. |
Arrangement where payments to suppliers are made in agreed installments over a specified period of time at some agreed rate of interest on the outstandingbalance. |
| A. | venture capital |
| B. | layered financing |
| C. | deferred credit |
| D. | lease financing |
| Answer» D. lease financing | |
| 28. |
Giving capital to enterprise that has risk and adventure is called……………………… |
| A. | venture capital |
| B. | layered financing |
| C. | deferred credit |
| D. | lease financing |
| Answer» B. layered financing | |
| 29. |
Raising capital from multiple sources is known as……………………. |
| A. | venture capital |
| B. | layered financing |
| C. | deferred credit |
| D. | lease financing |
| Answer» C. deferred credit | |
| 30. |
………………. Is also known as marginal profit ratio |
| A. | p/v |
| B. | current |
| C. | profitability |
| D. | none |
| Answer» B. current | |
| 31. |
Contribution margin ratio is better known as…………….. |
| A. | p/v |
| B. | current |
| C. | profitability |
| D. | none |
| Answer» B. current | |
| 32. |
…………………..ratio establishes relationship between contribution margin andtotal sales. |
| A. | p/v |
| B. | current |
| C. | profitability |
| D. | none |
| Answer» B. current | |
| 33. |
……………………… is described as bread earning point. |
| A. | cash flow |
| B. | fund flow |
| C. | ratio |
| D. | breakeven |
| Answer» E. | |
| 34. |
…………………… is an equilibrium point. |
| A. | cash flow |
| B. | fund flow |
| C. | ratio |
| D. | breakeven |
| Answer» E. | |
| 35. |
Mathematical relationship between two figures taken from financial statementsis called………. |
| A. | cash flow |
| B. | fund flow |
| C. | ratio |
| D. | breakeven |
| Answer» D. breakeven | |
| 36. |
Which of the following is not a technique of financial analysis: |
| A. | ratio analysis. |
| B. | risk analysis. |
| C. | cash flow analysis. |
| D. | fund flow analysis. |
| Answer» C. cash flow analysis. | |
| 37. |
……….shows movement of cash into and out of the firm and its net effect onbalance sheet. |
| A. | cash flow |
| B. | fund flow |
| C. | ratio |
| D. | breakeven |
| Answer» B. fund flow | |
| 38. |
…………shows the changes in assets, liabilities and net worth between twobalance sheet dates. |
| A. | cash flow |
| B. | fund flow |
| C. | ratio |
| D. | breakeven |
| Answer» C. ratio | |
| 39. |
Estimated time required in normal conditions complete an activity is ……………… |
| A. | pessimistic time |
| B. | optimistic time |
| C. | most likely time |
| D. | none of these |
| Answer» D. none of these | |
| 40. |
Maximum possible time to complete an activity is ……………………… |
| A. | pessimistic time |
| B. | optimistic time |
| C. | most likely time |
| D. | none of these |
| Answer» B. optimistic time | |
| 41. |
Which of the following is not a network technique : |
| A. | cpm. |
| B. | pert. |
| C. | swot. |
| D. | lob. |
| Answer» D. lob. | |
| 42. |
Shortest possible time to complete an activity is ……………………… |
| A. | pessimistic time |
| B. | optimistic time |
| C. | most likely time |
| D. | none of these |
| Answer» C. most likely time | |
| 43. |
Decision regarding factory design is part of : |
| A. | network analysis. |
| B. | financial analysis. |
| C. | technical analysis. |
| D. | social cost benefit analysis. |
| Answer» D. social cost benefit analysis. | |
| 44. |
Which of the following is a technique of project identification: |
| A. | desk research. |
| B. | sensitivity analysis. |
| C. | cvp analysis. |
| D. | none of these. |
| Answer» B. sensitivity analysis. | |
| 45. |
Which of the following is not a phase in the project life cycle: |
| A. | pre- investment phase. |
| B. | construction phase. |
| C. | normalization phase. |
| D. | growth phase. |
| Answer» E. | |
| 46. |
……………………… study is a systematic method adopted to find out the possibilityand practicability of starting a project. |
| A. | profitability |
| B. | liquidity |
| C. | feasibility |
| D. | viability |
| Answer» D. viability | |
| 47. |
………………………… is the difference between the actual sales and break even sales. |
| A. | margin of safety |
| B. | fixed cost |
| C. | contribution |
| D. | profit |
| Answer» B. fixed cost | |
| 48. |
Difference between latest finish time and estimated time to perform the projectis called……….. |
| A. | eft |
| B. | lst |
| C. | lft |
| D. | est |
| Answer» C. lft | |
| 49. |
The latest possible time an activity can finish without delaying the project is called……. |
| A. | eft |
| B. | lst |
| C. | lft |
| D. | est |
| Answer» D. est | |
| 50. |
The sum of earliest start time and estimated time to perform the project is called…….. |
| A. | eft |
| B. | lst |
| C. | lft |
| D. | est |
| Answer» B. lst | |