Deck 6: Finance and Business Operations

Question 1

The liabilities side of the balance sheet shows the sources of finance employed by the business.

Answer 1

True

Question 2

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 2

Both a and b

Question 3

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 3

All of the Above

Question 4

Features of Term Loan include

A)Currency
B)Security
C)Interest and Principal payment
D)All of the Above

Question 5

Usually assets which are financed with the Term Loan provide as a prime security against the Term Loan

Question 6

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

Question 7

Syndication is an arrangement for

A)Marketing Support
B)Manpower Supply
C)Providing Long Term Finance to Projects
D)None of the Above

Question 8

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

Question 9

Current assets are financed by

A)Term Loan
B)Debentures
C)Working Capital Loan
D)Share Capital

Question 10

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

Question 11

DSCR is a term most important to

A)Employees
B)Financers
C)Customers
D)None of the Above

Question 12

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

Question 13

Which one of the below is not a source of Project Finance?

A)Debentures
B)Bonds
C)ECBs
D)Overdraft facility

Question 14

Which one of the following was not set up with a motive of industrial finance?

A)SIDBI
B)IDBI
C)IFCI
D)IFFCO

Question 15

Low capacity utilization is a signal of ______________.

A)Enough raw Material
B)Industrial Sickness
C)Inadequate production capacity
D)None of the Above

Question 16

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

Question 17

Marketing Constraint is an internal source of Industrial Sickness.

Question 18

Which one of the following is NOT a Maha-Ratna Industry?

A)GAIL
B)Coal India Limited
C)SAIL
D)Airports Authority of India

Question 19

Ineffective corporate management leads to

A)Improper performance of the unit
B)Industrial Sickness
C)Both a and b
D)None of the Above

Question 20

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

Question 21

Production constraints arise because of

A)Shortage of Raw Material
B)Shortage of Power
C)High Prices of Fuel
D)All of the Above

Question 22

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

Question 23

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

Question 24

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

Question 25

Debt restructuring and infusion of external funds for sick units is one of the remedial measures to overcome Industrial Sickness.