Showing posts with label MODEL QUESTIONS. Show all posts
Showing posts with label MODEL QUESTIONS. Show all posts

Wednesday, 21 March 2012

Project Management Project Management


                                      Project Management

                                         Model Question Paper

                                           Section A - 1 Mark

1     Various parameters that affect the project in its planning and formulation refers to

      a)  Project cost

      b)  Process

      c) Resource

      d)  Project Scope

2      That which is responsible for changing the input and giving a desired output is a

      a)  Project cost

      b)  Process

      c) Resource

      d)  Project Scope

3      That which formalizes acceptance and brings project to an orderly end is a

      a) control process

      b) planning process

      c) executing process

      d) closing process

4     During the course of executing the project, it is seen that the ______ requirement increases

      from start to an intermediate stage of the project.

      a) equipment

      b) resource

      c) design

      d) manpower

5     The _____ the project can be estimated based upon the normal distribution curve.

      a) manpower requirement of

      b) funds requirement of

      c) probability of completion of

      d) design requirement of
6     The project during the course of its progress may be subjected to _____ because of some 

      external factors. 

      a) changes 

      b) errors 

      c) pressure 

      d) threats 

7      Responsiveness refers to ___ of response of an individual. 

      a) effect 

      b) reduction 

      c) quickness 

      d) increase 

8     ___ is the master key of today’s business. 

      a) project 

      b) risk 

      c) time 

      d) information 

9      Project mindset lays emphasis on flexible ___. 

      a) people 

      b) timings 

      c) resources 

      d) processes 

10    The communication requirement and capabilities in which managers may lack enthusiasm for 

      change and fail to collaborate or practice teamwork with their peers refers to ___. 

      a) communication frequency 

      b) response profiles 

      c) behavior pattern 

      d) barriers to communication 

11    Allow information, questions, comments and opinions to travel through the organization is an 

      essential characteristic of a typical _____ network. 

      a) communication 

      b) neural 

      c) information 
      d) organization 

12    Overcoming barriers to communication associated with differing perceptions of the recipients in 

      different divisions location or parts of a unit, is an essential characteristics of a typical _____ 

      network. 

      a) neural 

      b) communication 

      c) information 

      d) organization 

13    PR stands for _____________ . 

      a) Project  Review 

      b) Performance  Review 

      c) Planning Review 

      d) Procurement Review 

14    _____________ of the organization should be the navigator for the project. 

      a) Manager 

      b) CEO 

      c) Strategy 

      d) Policy 

15    POR helps in ___________ of resources. 

      a) allocation 

      b) minimization 

      c) maximization 

      d) optimization 

16    It is entrusted to a smaller team within a team for initiating, implementing, analyzing and 

      distributing the process. 

      a) CNC 

      b) ISO 

      c) SEI-CMM 

      d) CBPI 

17    The project manager should take the assistance of a__________ and run checks as frequently 

      as possible. 
      a) system administrator 

      b) coordinator 

      c) CEO 

      d) Project Team 

18    It is concerned with integration. 

      a) PCMM 

      b) CMMI 

      c) PMI 

      d) ISO 

19    Performance closer or beyond expectation is the degree of _________. 

      a) assurance 

      b) error 

      c) precision 

      d) quality 

20    ________helps in resetting the goals when they cannot be achieved for various reasons – 

      shortage of resources, time etc. 

      a) Plan 

      b) Guidelines 

      c) Review 

      d) Analysis 

21    _________ is the process by which employees are encouraged to take decisions pertaining to 

      their area of work. 

      a) Automation 

      b) Empowerment 

      c) Authorization 

      d) Delegation 

22    A system of internal _______ gets initiated almost automatically resulting in highly efficient 

      organization as a whole. 

      a)  Auditing 

      b)  Verification 

      c)  Validation 

      d)  Benchmarking 
23    One of the rules which would help organization to be strong in R&D is to ensure 

      _____________ for critical systems and technologies. 

      a)  Completeness 

      b)  Satisfaction 

      c)  Redundancy 

      d)  Perfection 

24    One of the rules which would help organization to be strong in R&D is to build __________ into 

      every activity. 

      a)  Concurrency 

      b)  Modules 

      c)  Redundancy 

      d)  Functions 

25    Change is achieved by making _________changes. 

      a)  Small 

      b)  Big 

      c)  Incremental 

      d) Detrimental 

26    The principle of continuous improvement is seen in _____. 

      a) PM 

      b) PMIS 

      c) ERP 

      d) TQM 

27     _________ Money has to be kept to the minimum for achieving total economy. 

      a) Public 

      b) Overall 

      c) Inventory costs 

      d) Investment 

28    ___   provides a life-cycle review process from system inception to retirement, and a correlation 

      process between the CPIC processes and Enterprise Architecture processes i.e., Departmental 

      Information Architecture, as well as other significant Departmental programs and projects. 

      a) project management information system 
      b) project management control system 

      c) project management enterprise system 

      d) project management review process 

29    ______performs day to day project management, develop project deliverables, prepare project 

      management review and senior management review presentations, present project status, 

      manage resolution of project issues. 

      a) CFO 

      b) CIO 

      c) Project managers 

      d) Program managers 

30    ______review and comment on project deliverables and work products, schedule and support 

      the review meetings, provide support to systems owners and project managers, advise the CIO 

      and associate CIO’s 

      a) CMIP program staff 

      b) Systems owners 

      c) CMIP coordinator 

      d) Program managers 

31    Risk management is ______ for projects, and can help reduce your costs and efforts when 

      trouble strikes. 

      a) helpful 

      b) essential 

      c) insurance 

      d) beneficial 

32    Projects smaller than 12 people - months take about _____ minutes. 

      a) 30-50 min 

      b) 40- 60 min 

      c) 50-70 min 

      d) 60-80min 

33    In ________ a study is done to analyze the changes in the variable values because of a change 

      in one or more of the decision criteria. 

      a) product analysis 

      b) item analysis 
       c) trend analysis 

       d) sensitivity analysis 

34     One of the supply chain management group taking care of documentation systems Is ____                       . 

       a) Odette 

       b) Darwin 

       c) Microsoft 

       d) Pilin 

35     The three levels of SMCo documentation are Work package,  ____ and sub process. 

       a) formats 

       b) procedures 

       c) process 

       d) tables 

36     The level -0 of the SCMo documentation contains _______ . 

       a) sub process 

       b) work package 

       c) process 

       d) measurement 

37     The ______ navigation is the navigation on different levels. 

       a) Horizontal 

       b) Vertical 

       c) Hierarchical 

       d) Sequential 

38     __________ is a quick project status reporting tool. 

       a) Dashboard 

       b) Pie Chart 

       c) Bar Chart 

       d) Trend 

39     One of the features of project scoping is to increase the ____ of the update process. 

       a) linkage 

       b) facility 
      c) interface 

      d) intelligence 

40    The Television Media Control System is required by a Media Solutions Company in Germany 

      who is an Intermediary between a Television Content Development Studio Company and a 

      ____ Company. 

      a)  Pharmaceutical products 

      b)  Automobile accessories 

      c)  TV Broadcasting 

      d) Channer management 

                                          Section B - 2 Marks 

1     During this phase document the lessons from the project. 

      a) Post completion analysis phase 

      b)  Inspecting, testing and delivery phase 

      c) Marketing phase 

      d)  Analysis phase 

2     During inspecting, _____ and _____ phase the project team performs quality control work. 

      a) Marketing   and testing 

      b)  Testing and delivery 

      c) Execution and selling 

      d)  Analysis  and delivery 

3     Any project is undertaken to deliver either _____ or _____. 

      a)  Item , product 

      b)  Service , product 

      c) Item , service 

      d) Report, service 

4     Developing a risk management plan, focusing on the highest prioritized risks requires a ___ of 

      the risk probability and the risk consequences. 

      a) Qualitative assessment 

      b)  Quantitative assessment 

      c) Minimal assessment 

      d) Maximum assessment 

5     A weekly status report includes the following : 

      a) Accomplishments during the period, items not completed, proposed activities, predicted 

      slippage, predicted cost. 

      b) Problems faced, items not completed, proposed activities, predicted slippage, predicted cost. 

      c) Accomplishments during the period, problems and risks, proposed activities, predicted 

      slippage, predicted cost. 

      d) Accomplishments during the period, items not completed, risks, predicted cost. 

6     The ____ and _____ of an individual or an organization are proportional to its capability of 

      evolving processes and structure for superior responsiveness time constant. 
      a) performance and utility 

       b) strength and behavior 

      c) vibrancy and liveliness 

      d) strength and weakness 

7      It is a process through which a project team passes on the details of any system as 

       recommendation for standardization. 

      a) force field analysis 

       b) information risk management 

      c) management assurance measure 

      d) continuous business process improvement 

8      It is a task performed by the project leader to balance efforts to convince management against 

      wavering with efforts to prepare team members to counter any unexpected storms in the 

       project. 

      a) force field analysis 

       b) information risk management 

      c) management assurance measure 

      d) continuous business process improvement 

9     Plan of Record should be prepared for the ______ and ______ used in the Projects. 

      a) Process, Tools 

      b) Task list, check list 

      c) Blue print, master plan 

      d) Techniques, instruments 

10    __________ and ___________ are measures in relation to zero defects and overall Team 

      Performance, the type of activities which can be performed only by the executives and 

      managers. 

      a) managerial , executive productivity 

      b) Team building , performance appraisal 

      c) Utility , performance 

      d) Creativity , Innovation 

11    What can be found out by assigning a suitable weight age to the most likely time estimate in 

      PERT analysis? 

      a) average 
      b) standard deviation 

      c) skewness 

      d) variance 

12    Data have repositories which are accessible, __________ and _________ instantly and used by all 

      concerned. 

      a) transferable and updatable 

      b) secured and convertible 

      c) modifiable and transferable 

      d) retrievable and storable 

13    Modern organizations in all fields depend on technology to improve their processes to deliver the 

      best _________ and _________ to their customers. 

      a) product and services 

      b) technology and goods 

      c) performance and results 

      d) results and satisfaction 

14    Economies are effected when the consumption of _______, ______, movement and time are 

      reduced. 

      a) Money, material 

      b) Power, material 

      c) About, money 

      d) Labor, skills 

15    The standard set of project management reporting requirements fits into the following categories: 

      a) general project overview, project status, product status, issues & risks, project unique 

      information 

      b) project status, product status, issues & risks, project unique information, product price 

      c) general project overview, project status, product status, product price,     project unique 

      information 

      d) general project overview, project status, product status, issues and risks, product price 

16    The two things to manage the risk are to take actions to _______ the likelihood of the risk 
       occurring and take action to reduce the _______ if the risk does occur. 

       a) reduce, impact 

       b) understand, effect 

       c) analyze, complications 

       d) study, damages 

17     The Process Chain describes a process based on the ________ as well as the ________. 

       a) chronological, logical interdependencies 

       b) product cycle, process cycle 

       c) product characteristics, price 

       d) supply chain, monitoring characteristics 

18     The section on operations and manufacturing deals with the customer focus, outsourcing issues, 

       primary metrics, quality , costs, delivery, core in manufacturing, and ___________ . 

       a) unique services 

       b) unique capabilities 

       c) storage 

       d) utility 

19     Key features of GDM are standardization, modularization, ________ and ________. 

       a) customization, micro structure 

       b) customization, macro structure 

       c) normalization, minimization, 

       d) generalization, globalization 

20     Vendor can recommend suitable technology wherein the prevailing back end systems are ____ 

       and ____. 

       a) Turbo, DOS 

       b) Borland, Windows 

       c) Borland, Linux 

       d) Turbo, OS2 
                                         Section C –4 Marks 

1     In the connection between various process groups , loop exists between _____ 

      a) planning process, initiating process and closing process 

      b) controlling process, executing process, planning process 

      c) executing process, closing process, initiation process 

      d) initiating process, planning process, executing process 

2     Match the following : 

      a) P-Z, Q-X, R-Y 

      b) P-X, Q-Z, R-Y 

      c) P-Y, Q-X, R-Z 

      d)P-Z, Q-Y, R-X 

3     The key issues which are documented in a project plan are : 

      a) project operating budget, project logic diagram, estimates , balanced cost 

      b) project operating budget, project logic diagram, estimates, minimized cost 

      c) project operating budget, project logic diagram, estimates, maximized cost 

      d) project operating budget, project logic diagram, estimates, updated risk log 

4     Bottom up approach in estimation consists of the following : 

      a) project manager first divides the product under development into modules, each module 

      further subdivided in to smaller units, defines a standard for manufacturing and self testing 

      b) project manager reviews each  module, each module further subdivided in to smaller units, 

      defines a standard for manufacturing and self testing 

      c)project manager   reviews each module, each module is planned,      defines a standard for 
       manufacturing and self testing 

      d) project manager reviews each module, each module is planned,                defines a standard for 

       manufacturing and self testing 

5     The key issues which are documented in a project plan are : 

      a) project operating budget, project logic diagram, estimates , balanced cost 

       b) project operating budget, project logic diagram, estimates, minimized cost 

      c) project operating budget, project logic diagram, estimates, maximized cost 

      d) project operating budget, project logic diagram, estimates, updated risk log 

6     Top down approach in estimation consists of the following : 

      a) Prepare the budget, fix the productivity level for the project, and obtain the overall effort 

      estimate from the productivity and size estimates. 

       b) get the estimate of the total size of the product in function points, fix the productivity level for 

      the project, obtain the overall effort estimate from the productivity and size estimates. 

      c) Prepare the budget, establishes the controls for the project, obtain the overall effort estimate 

      from the productivity and size estimates. 

      d) Prepare the budget, establish the controls for the project, monitor the controls set and obtain 

      the overall effort estimate from the productivity and size estimates. 

7      P) Build employee trust in the communications process so that hones feedback becomes a part 

      of the natural way of working is the only essential characteristic of a communication network. 

      Q) Quality of any product or service is defined as its conformance to the standards or the stated 

       requirements. Which of the following is correct: 

      a) Both are True 

       b) Both are False 

      c) P is True and Q is False 

      d) P is False and Q is True 

8      Match the following: 

       (p) define            (x)design of experiments, modeling 

       (q) improve          (y) control charts, time series, procedural adherence, performance mgmt. 

       (r) Standardize      (z) benchmark, customer requirement, process flow map, quality function. 

      Which of the following is correct? 

      a) p-x, q-y, r-z 

       b) p-y, q-x, r-z 

      c) p-z, q-y, r-y 
      d) p-z, q-x, r-y 

9     Consider the following statement: 

      P) An office is a small group of people which coordinates various activities responsible to an 

      enterprise for controlling at least one function. 

      Q) The PMO must create and maintain the ability of the project manager to keep focused on the 

      client’s requirements and meet them. 

      Which of the following is correct 

      a) Both are True 

      b) Both are False 

      c) P is True and Q is False 

      d) P is False and Q is True 

10    The four types of reviews conducted at different stages of the project are          : _______ , 

      _________ , ______ and _____ . 

      a) IR, PPR, PR, QAR 

      b) IR, TR, DR, QAR 

      c) AR, PR, SR, DR 

      d) DR, IR, PPR, QR 

11    Consider the following statement: 

      P) In PERT, we take into consideration the fact that the times allocated for all the activities 

      might be determinable. 

      Q) Project overruns are common and costly. 

      Which of the following is correct 

      a) Both are True 

      b) Both are False 

      c) P is True and Q is False 

      d) P is False and Q is True 

12    Match the following: 

      p) innovation           x) change in authority and task relationships of managers 

      q) e-engineering        y)  use all types of information systems to make functions efficient 

      r)  restructuring       z)  successful use of skill and resources 

      Which of the following is correct? 

      a) p-x, q-y, r-z 

      b) p-y, q-x, r-z 
      c) p-z, q-y, r-x 

      d) p-z, q-x, r-y 

13    The following statements are guidelines to help the organizations to strengthen their R & D area 

      P) The traditional way of technology development is carried out with corresponding link to the 

      product development of activities. 

      Q) Failures in the early stages of the projects are less costly and harmful than at later stages. 

      Which of the following is correct? 

      a) Both are True 

      b) Both are False 

      c) P is True and Q is False 

      d) P is False and Q is True 

14    The following statements are guidelines to help the organizations to strengthen their R & D area 

      P) Value goes on getting added along the supply chain. 

      Q) Inventory costs money has to be kept to the maximum for achieving total economy. 

      Which of the following is correct? 

      a) Both are True 

      b) Both are False 

      c) P is True and Q is False 

      d) P is False and Q is True 

15    Consider the following two statements : 

      P) Project Management Review Process for Corporate and Major Information Systems was 

      instituted to review all major information systems in development, enhancement, or production 

      of a product or a service. 

      Q) These reviews serve as a forum to raise issues and concerns that will impact the project and 

      ensure that acceptable actions or corrective plans exist for addressing any significant positive 

      impacts. 

      Which of the following is correct? 

      a) Both are true 

      b) Both are false 

      c)Statement     P is true and statement Q is false 

      d) statement P is false and statement Q is true 

16    The four steps to manage risk are: ___, ____, ____, and ____. 

      a) identification, analysis, management planning and review 
       b) identification , assessment, review, planning 

       c) planning, analysis, design, structure 

       d) planning, analysis, structuring and reviewing 

17     Consider the following statements : 

       P)The intent of this document is to define the structure of the Documentation System, its 

       content, the method of content generation and to attain common documentation of all standard 

       processes of Odette. 

       Q) The entry level of the process documentation structure is the function tree that shows the 

       hierarchic structure of the process documentations. 

       Which of the following is correct? 

       a) Both statements are True 

       b) Both statements are False 

       c) Statement P is True and Statement Q is False 

       d) Statement P Is False and Statement Q is True 

18     The main objective of SCMo are _________ . 

       a) Stock out, over supply, excess inventory, excess production, decreased supply demand ratio. 

       b) Prevention of stock out and over supply, early warning, elimination of bull whip effect, 

       optimized allocation. 

       c) Stock deterioration, losses, increased supply demand ration, minimized inventory. 

       d) Over distribution, excess production, maximimized inventory, minimizes wastages. 

19     The GDM is adopted by an Industry or Business to serve to any Customer Worldwide with 

       ________, _________, _________ and __________. 

       a) utility, productivity, serviceability, satisfiability 

       b) efficiently, satisfiably, reliability, conditionally 

       c) accountability, serviceablity, utility, productivity 

       d) speed, accuracy, economy, reliability 

20     Consider the following statements: 

       P) System Requirement covers a Remote Device Solution controlling Delivery of Media 

       Programs in Real Time Mode from the Achieves of the Media Centre to the TV Stations based 

       on a day to day program Schedule. 

       Q) Competitors offer two varieties of products – one for primary Hypertension Symptoms and 

       the other for advanced Symptoms, the latter priced at Five times the former. 

       Which of the following is correct? 
a) Both statements are True 

b) Both statements are False 

c) Statement P is True and Statement Q is False 

d) Statement P is False and Statement Q is True 

Sunday, 18 March 2012

FINANCIAL MANAGEMENT –MODEL QUESTIONS


                      FINANCIAL MANAGEMENT –MODEL QUESTIONS

                                    SUBJECT CODE: MB0029

                                       SECOND SEMESTER

                                      SECTION A     - 1 MARK

1.  Goal of financial management is ………..of economic welfare
    A.   Nationalization
    B.   Maximization
    C.   Minimization
    D.   Normalization

2.  The core of modern financial management is procurement of least cost funds and its effective
    utilization. It is more____________ in nature:
    A.  Geometrical
    B.  Analytical
    C.   Practical
    D.  Theoretical

3.  Investment decision is  also known as
    A.  Capital decision
    B.   Profit decision
    C.  Capital budgeting decision
    D.  Working capital decision

4.  Rate of return required by investor is  normally known as:
    A.   Coupon rate
    B.   Market rate
    C.   Hurdle rate
    D.   Risk-free rate

5.  Long term external borrowings are known as
    A.  Winning capital
    B.  Share capital
    C.  Working capital
    D.   Debt capital

6.  Time value of money is also known as………………..  of money
    A.  Time preference
    B.  Time difference
    C.  Time occurrence
     D.   None 

7.   Time value of money is generally expressed as: 
     A.   Dividend rate 
     B.   Profitable  rate 
     C.  Sales   rate 
     D.   Interest rate 

8.   Calculation of principal amount and compound interest is 
     A.   P (l + r)٨n 
     B.   P (I + r ) 
     C.   P (l - r) 
     D.   I + r/p 

9.   Formula to calculate future value is. 
     A.   PV I+ r 
     B.   PV( l +r ) 
     C.   PV ( l -r) 
     D.   PV ( l + r)٨n 

10.  Doubling period concept refers to. 
     A.  Time Period 
     B.  Conversion period 
     C.   Money period 
     D.  Convenient period 

11.  If the rate of interest is 5 %, the Rule 72 is applied as. 
     A.  72/5 
     B.  5/72 
     C.  72*5 
     D.   None 

12. The ……….  of PV annuity factor is called capital recovery factor 
     A.   Reciprocal 
     B.   Double 
     C.  Triple 
     D.   None 

13. A rupee received today has ………value than received a year later 
     A.  Constant 
     B.   Less 
     C.   More 
    D.   None 

14. Ordinary shares are known as: 
    A.   Equity 
    B.   Preference 
    C.   Private equity 
    D.   Preferential allotment 

15. Assets are recorded at ……….cost 
    A.   Future 
    B.   Present 
    C.   Historical 
    D.  Temporal 

16. Zero coupon bonds are issued at ……….to the face value 
    A.   Discount 
    B.   Premium 
    C.   Par 
    D.   Discount and redeemed at par 

17.  If the coupon rate is Rs. 80 and market price is Rs. 920, the current yield is 
    A.   7.8% 
    B.   8.7% 
    C.   8.8% 
    D.   8.9% 

18. Cost of capital is minimum: 
    A.   Required rate of return 
    B.   Rate of risk 
    C.   Rate of growth 
    D.   Rate of investment 

19. Cost of debenture is the………….  Rate 
    A.   Dividend 
    B.   Interest 
    C.   Discount 
    D.   Market 

 20.   Term loans have…………interest rate 

     A.   Floating 

      B.  Pre-determined fixed 
  C.   Zero 

  D.   None 

21.  Under dividend forecast approach……….  is important 

    A.   Intrinsic value 

     B.  Book value 

    C.   Par value 

     D.  None 

22. The formula for retained earnings is  ……….. 

    A.   Kr = Ke 

     B.  Kr > Ke 

    C.   Kr < Ke 

     D.  None 

23.  Capital structure is …………………………….plan 

    A.   Financial 

     B.  Operating 

    C.   Budgeting 

     D.  Costing 

24.  Proper mix of funds is referred to as……….capital structure 

    A.   Minimal 

     B.  Optimal 

    C.   Visual 

     D.  None 

25.  Capital Budgeting decisions are grouped with…………….. 

    A.   Cost reduction program 

     B.  Revenue generation 

    C.   Dismantling program 

     D.  Both A and B 

26. ___________appraisal is also known as social cost benefit analysis 

    A.   Commercial 

     B.  Technical 
    C.   Financial 

    D.   Economic 

27.  Pay back measures profitability of the project 

    A.   True 

    B.   False 

    C.   Not sure 

    D.   None 

28.  Incremental PAT is: 

    A.   EBIT 

    B.   Tax rate 

    C.   1-t 

    D.   EBIT (1-t) 

29.  Discounted cash flow method does not include: 

    A.   NPV 

    B.   IRR 

    C.   PI 

    D.   ARR 

30.  In portfolio risk, ______reflects the degree to which the returns of two 

    securities vary or change 

    A.   Cooperation 

    B.   Coordination 

    C.   Standard deviation 

    D.   Covariance 

31.  Imposing constraints on the total size of its capital budgeting is 

    capital………….. 

    A.   Positioning 

    B.   Pioneering 

    C.   Rationing 

    D.   Recovering 

32.  Under capital rationing, a firm is under the ………. of funds 

    A.   Restraint 
     B.  Constraint 

     C.  Abundant 

     D.  None 

33.  External capital rationing is due to …. of capital market 

    A.   Imperfection 

     B.  Injection 

     C.  Insulation 

     D.  Indigestion 

34.  Under capital rationing, investment proposals are ranked on……….. 

    A.   Subjective judgment 

     B.  Urgency 

     C.  Profitability 

     D.  Pressure/ Politics 

35.  Difference between purchase price and standard price is analyzed 

    through…………. analysis 

    A.   Vibrant 

     B.  Value 

     C.  Variable 

     D.  Variance 

36.  In FIFO, goods received first are used 

    A.   Last 

     B.  Least 

     C.  First 

     D.  Second 

37. When projects are not divisible …………... can be employed . 

    A.   Integrated programming 

     B.  Internal programming 

     C.  Integer programming 

     D.  Inclusive programming 

38. When goods sold on credit, finished goods get converted into……… 

    A.   Payables 
          
       B.  Stock 

        C.  Receivables 

        D.  Cash 

    39.  Receivables form part of …………assets 

        A.  Fixed 

        B.  Intangible 

        C.  Current 

        D.  Fictitious 

    40. When the customer fails to pay his dues on the expiry date the costs 

        incurred by the firm is known as 

        A.  Delinquency 

        B.  Adequacy 

        C.  Normal 

        D.  Abnormal 

                                       SECTION – B (2 marks) 

1.   Finance is the life blood of an organization. It embraces all managerial activities that aim at: 

    A.   Procurement of funds at least cost. 

     B.  Working capital management 

    C.    Effective deployment of funds 

     D.  Both A and C 

2.   Maximization of economic welfare means maximization of _________ 

    A.   Profits 

     B.  Fixed and current assets 

    C.   Shareholder’s wealth 

     D.  Both A and B 

3.  Any project which generates ………..  creates wealth 

    A.   Positive net present value 

     B.  Possessive net present value 

    C.   Preventive net present value 

     D.  Possible net present value 

4.   Financial planning deals with: 
     A.   Financial requirement 

     B.   Financial disbursement 

     C.   Financial allotment 

     D.   None 

5.    Sources of finance is grouped into: 

     A.   Debt and equity 

     B.   Debt and cash 

     C.   Debt and profit 

     D.   Profit and reserves 

6.   Zero time period refers to ………………….investment period 

     A.   Initial 

     B.   Potential 

     C.   Perennial 

     D.   None 

7.   Net worth is 

     A.   Paid-up capital 

     B.   Paid-up capital + reserves 

     C.   Paid-up capital – reserves 

     D.   Paid-up capital +reserves + debt capital 

8.   Book value of share is 

     A.   Net worth /outstanding equity shares 

     B.   Market value  / outstanding equity shares 

     C.   Market value - Net worth / outstanding equity shares 

     D.   Net worth  / all  outstanding shares 

9.   Zero coupon bonds carry : 

     A.   Coupon rate of interest 

     B.   Risk free rate of interest 

     C.   Risk free rate + risk premium rate 

     D.   No coupon rate 

10. Variable cost vary in direct ……….  to output 

     A.   Proportion 
   
     B.   Ratio 

    C.   Percentile 

    D.   None 

11.  Financial leverage is also known as trading  on 

    A.   Debt 

    B.   Equity 

    C.   Preference 

    D.   Debt and Preference 

12. Value of debt is: 

    A.   B=I/kd 

    B.   B= I 

    C.   B=I*kd 

    D.   None 

13. ________is based on accounting information 

    A.   Pay back period 

    B.   Accounting rate of return 

    C.   Discounted pay back period 

    D.   Net present value 

14. CE is expanded as………… 

    A.   Certainty efficiency 

    B.   Certainty exemption 

    C.   Certainty  elimination 

    D.   Certainty equivalent 

15.  Initial cash outlay Rs. 10 Lakhs , two years cash inflows Rs. 5 and Rs. 3 lakhs , respectively  the 

    recovery rate of initial cash outlay is……………….. 

    A.   10% 

    B.   20% 

    C.   50% 

    D.   80% 

16.  Under capital rationing, projects are……………. 

    A.   Prioritized 

    B.   Privatized 
   
 C.   Prototype 

    D.   None 

17.  Under capital rationing it is difficult to generate ………... Fund 

    A.   Additional 

    B.   Temporary 

    C.   Private equity 

    D.   Debt 

18. While ranking the projects for investment proposal, descending order is adopted for………………. 

    A.   Profitability index 

    B.   Probability index 

    C.   Proficiency index 

    D.   Possibility index 

19. Cash is a …………….asset 

    A.   Fixed 

    B.   Current 

    C.   Intangible 

    D.   Fictitious 

20.  In managing cash flow, speed up ……..and slow down………of cash 

    A.   Inflow , outflow 

    B.   Outflow, inflow 

    C.   Reserve, bad debts 

    D.   Income , Expenses 

                              SECTION –C  (4 MARKS) 

1.  Sales Rs. 1300, gross profit is Rs. 520 increase in sale is 30%, the cost is 

         A.  Rs.1014 

         B.  Rs.1041 

         C.  Rs.1004 

         D.  None 

2.   Value of fixed asset opening Rs. 100 and closing Rs. 200, the depreciation at 20% is 
         A.  Rs.20 

         B.  Rs.40 

         C.  Rs.60 

         D.  Rs.80 

3.    Mr. X found that the end of third year, he has Rs. 1157.63 in his bank account, the rate allowed 

    by the bank is 5%  compounded annually , What is the amount deposited ? 

         A.  Rs.1600 

         B.  Rs.1500 

         C.  Rs.1000 

         D.  Rs.1050 

4.    Given that rate of interest is 10% p.a  applying the Rule 69, the number of years is: 

         A.  2.7 

         B.  2.8 

         C.  7.2 

         D.  7.25 

5.  Cash flows for 3 years are Rs. 20,000 each, discount rate is 10% , the value of asset is 

         A.  Rs. 44,970 

         B.  Rs. 49,470 

         C.  Rs. 47,940 

         D.  Rs. 40,940 

6.  Face value of a bond Rs. 100, coupon rate 12% maturity period 5 years, interest rate 10% , value 

    of bond is : 

         A.  Rs.  701.59 

         B.  Rs. 105.79 

         C.  Rs. 105.90 

         D.  Rs. 107.59 

7.   Par value of debenture  Rs. 100, interest rate 15% p.a , redemption after 8 years at 8% premium 

    Corporate tax 50 % , new issue is priced at 3% discount , the cost of debenture is: 
        A.   4.8% 

         B.  5.1% 

         C.  5.2% 

         D.  8.4% 

8.   Face value of preference share is Rs.100 , dividend rate 12%, redemption after 10 years at Rs. 4 

    per share premium . The company hopes to realize Rs. 98 per share now, the         cost is: 

        A.   12.74% 

         B.  12.47% 

         C.  12.43% 

         D.  12% 

9.  Dividend per share is Rs. 2 market price of equity is Rs.32 ,growth rate    is 10% cost of capital is: 

        A.   16.52% 

         B.  16.25% 

         C.  16.00% 

         D.  16.20% 

10.  Preference shares issued in with a maturity premium of 10% and a coupon rate of 9%, face value 

    is Rs. 100 and redemption after 8 years. Issues will be made at     3 % discount . The cost of 

    preference capital is: 

        A.   10.12% 

         B.  10.75% 

         C.  10.27% 

         D.  10% 

11.  A firm sells a product for Rs. 10 per unit , variable cost Rs. 5 per unit and fixed expenses Rs. 

    5000 p.a,  find the EBIT  sale is 1000 units 

        A.   Zero 

         B.  Rs.5000 

         C.  Rs.10000 

         D.  Rs.8000 
12. Sales 1000 units , SP Rs. 300 , VC Rs. 100, the operating leverage is 

        A.   Rs.5000 

         B.  Nil 

        C.   Rs.5200 

         D.  Rs.2800 

13.  Earnings available to equity shareholders (ESH) Rs. 4050, equity shares 1000, EPS is Rs. 

        A.   4.50 

         B.  4.80 

        C.   4.05 

         D.  4.00 

14.  If an equity earnings is Rs. 80,000, cost of equity is 15%, then the market value is: 

        A.   Rs. 3,33,335 

         B.  Rs. 3,33,333 

        C.   Rs. 5,33,333 

         D.  Rs.  5,33,335 

15.  Cash outflow Rs. 4,00,000,cash inflows for 4 years  Rs. 2,00,000 , Rs. 1,75,000, Rs. 25,000 and 

    Rs. 2,00,000,  the pay back period is; 

        A.   2.67 years 

         B.  2.76 years 

        C.   2 year 

         D.  3 years 

Thursday, 15 March 2012

Operations Research MODEL PAPER


                                                     MODEL PAPER

                                            MB0032 Operations Research

                                                       (3 Credits)

  Group A: 1 Marks Questions (Question Number 1-40)

  Group B: 2 Marks Questions (Question Number 41-60)

  Group C: 4 Marks Questions (Question Number 61-75)

  Full Marks: 140


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