ASSIGNMENT I
PGDM (supported by e learning) (Module III)
Subject Code :eOM03
Subject Name :Project Management
Time : 2 hrs Maximum Marks :100
Attempt all questions. All questions are compulsory and each question carries 2 marks. No negative marking is there.
Assignment I (50 Questions)
1. The means, techniques, and concepts used to run a project and achieve its objective is called
a. Payback period
b. Project Management
c. Project Report
d. None of the above
2. ______for a project is the initial investment in the project divided by the estimated annual cash inflows from the project
a. Payback period
b. Average rate of return
c. IRR
d. None
3. Like organic entities, project also have
a. Peaks and decline
b. Life cycle
c. Life span
d. None
4. The ratio of the average annual profit to the initial or average investment in the project is called
a. Payback period
b. Average rate of return
c. IRR
d. None
5. The phases of project management are
a. planning, scheduling, and controlling
b. planning, programming, and budgeting
c. planning, organizing, staffing, leading, and controlling
d. different for manufacturing projects than for service projects
6. A project organization
a. is effective for companies with multiple large projects
b. is appropriate only in construction firms
c. often fails when the project cuts across organizational lines
d. is formed to ensure that programs (projects) get proper
management and attention
e. a and d are both true
7. Which of the following statements regarding project management is false?
a. Gantt charts give a timeline for each of a project's activities, but do not adequately show the interrelationships of activities.
b. A project organization works best for a project that is temporary but critical to the organization.
c. Project organization works well when the work contains simple, independent tasks.
d. Gantt charts and PERT/CPM are never used together.
e. None of the above is true.
8. A code of ethics especially for project managers
a. has been established by the Project Management Institute
b. has been formulated by the Federal government
c. has been formulated by the World Trade Organization
d. is inappropriate, since everyone should use the same guidance on
ethical issue does not exist at this time
9. Divulging information to some bidders on a project to give them an unfair advantage
a. is the same thing as altering a status report
b. is bribery
c. is permitted by NAFTA
d. is known as bid rigging
e. is acceptable for private corporations but not for government agencies.
10. Ethical issues that may arise in projects large and small include
a. bid rigging
b. expense account padding
c. compromised safety or health standards
d. bribery
e. All of the above are true.
11. Which of the following statements regarding Gantt charts is true?
a. Gantt charts give a timeline and precedence relationships for each activity of a project.
b. Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.
c. Gantt charts are visual devices that show the duration of activities in a project.
d. Gantt charts are expensive.
e. All of the above are true
12. Which of the following statements regarding critical paths is true
a. The shortest of all paths through the network is the critical path.
b. Some activities on the critical path may have slack.
c. Every network has exactly one critical path.
d. On a specific project, there can be multiple critical paths, all with exactly the same duration.
e. The duration of the critical path is the average duration of all paths in the project network
13. Which of the following statements regarding CPM is true?
a. The critical path is the shortest of all paths through the network.
b. The critical path is that set of activities that has positive slack.
c. Some networks have no critical path.
d. All activities on the critical path have their LS equal their predecessor's EF.
e. All of the above are false.
14. A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8.
a. The critical path is A-B-C, duration 15.
b. The critical path is A-C, duration 12.
c. The critical path is A-B-C, duration 13.5
d. The critical path cannot be determined without knowing PERT expected activity times.
e. The network has no critical path.
15. A method of organizing that maintains both functional supervisors as well as project supervisors is
a. Matrix organization
b. Mixed organization
c. Functional organization
d. None of the above
16. In the matrix organization structure, the ______is the intermediary between the company and the customer
a. PRO
b. Project Manager
c. CEO
d. None of the above
17. The structure which are typically used in businesses that primarily sell and produce standard products and seldom conduct external projects
a. Matrix organization
b. Mixed organization
c. Functional organization
d. None of the above
18. The matrix type organization is kind of a hybrid of
a. a mix of both the functional and project organization structure
b. a mix of both pure and project organization structure
c. both a and b
d. None of the above
19. The search for promising project ideas is the first step towards establishing a
a. New Business
b. Brand
c. Successful venture
d. None
20. The important aspects studied in monitoring the key sectors of the environment is / are
a. Economic Sector, Socio-demographic Sector
b. Governmental Sector, Competition Sector
c. Technological Sector, Supplier Sector
d. All the above
21. If the rivalry between the firms in an industry is strong, competitive moves and countermoves dampen the average ______of the industry.
a. Performance
b. Profitability
c. Image
d. None of the above
22. The first step in project analysis is to estimate the ______for the product
a. Market
b. Customer
c. Potential size of the market
d. None
23. Firms in an industry compete on the basis of
a. Price, service
b. Quality, promotion
c. Warranties
d. All the above
24. The main entry barriers that result in positive NPV projects are
a. Economies of sales and product differentiation
b. Cost advantage and marketing reach
c. Technological edge and Government policy
d. All the above
25. When a firm evaluates a large number of project ideas regularly, it may be helpful to streamline the process of preliminary screening, a preliminary evaluation may be translated into
a. NPV
b. PRI
c. Both a and b
d. None of the above
26. An audit of a project after it has been commissioned is referred to as a
a. Audit Report
b. Post audit or Post Completion audit
c. Project Report
d. Project audit
27. The ______will come to surface when conditions become conducive to it.
a. Risk Factor
b. Risk analysis
c. Critical Analysis
d. Factor Analysis
28. The following is an important aspect for any product / service that the project is going to
Produce.
a. Project Analysis
b. Demand Forecasting
c. Demand Planning
d. Both a & b
29. A project is always aimed at ______for the overall development of the organization /
economy.
a. Brand Value
b. Profit Maximization
c. Optimum utilization of resources
d. All the above
30. Which is the first step in providing the means of satisfying the requirements of the project
owners or sponsors.
a. Synopsis
b. Project Report
c. Plan of Action
d. Plan
31. Project Finance is both for
a. Short term and Mid term
b. Mid term and Long term
c. Short term and Long term
d. None
32. The ______of a company is defined as the make up of its capitalization
a. Financial Statement
b. Capital Structure
c. Paid up Capital
d. Equity Capital
33. Which of the following represents ownership capital as equity shareholders collectively own
the company.
a. IPO
b. Equity Capital
c. Issued Capital
d. Paid up Capital
34. ______is the price at which the equity share is issued.
a. IPO
b. Issue price
c. Market Price
d. Selling price
35. The internal accruals of a firm consists of
a. depreciation charges, retained earnings
b. Unsecured loans, deposits
c. Eurocurrency loans, Eurocurrency Bonds
d. None
36. ______is defined as the length of time required to recover the original investment on the
project.
a. NPV
b. Payback period
c. Term Loans
d. None of the above.
37. The ______is arrived at by discounting the future cash inflows at an interest rate equal to
the cost of capital.
a. Past Value
b. Present Value of future Cash inflows
c. Total project Cost
d. Loan amount
38. The following is the rate of discount which would equate the present value of cash out flows
to the present value of cash inflows.
a. Benefit cost ratio
b. Internal rate of return
c. Tax rates
d. Level of Interest rates
39. Social Cost benefit Analysis is also called
a. Economic Analysis
b. Physical Analysis
c. Market risk premium
d. All the above
40. Basic cost of land includes
a. Leasing and Hiring cost
b. Cost of Levelling and development
c. Conveyance and allied charges
d. Lease hold and Conveyance charges
41. Cost of Imported Machinery is
a. FOB and Import duty
b. Clearing, loading and transportation charges
c. Shipping, freight and Insurance Cost
d. Sum of a, b and c
42. Pre operative expenses are directly related to the
a. Project Implementation Schedule
b. Traveling expenses
c. Insurance Charges
d. None
43. The margin money for working capital is sometimes utilized for meeting
a. Term loans
b. Cash losses
c. Over runs in capital cost
d. Miscellaneous sources
44. Equity capital represents the contribution made by ______, ______who enjoys the
reward and bear the risk of ownership.
a. the owners of business, the equity share holders
b. CEO, Board members
c. Board members, share holders
d. None of the above.
45. The term used to represents the contribution made by the owner of the business
a. Preference Capital
b. Equity Capital
c. Debenture Capital
d. None of the above
46. A small portion of the project finance may come from miscellaneous sources like unsecured
loans, public deposits, and leasing and
a. hire purchase finance
b. capital subsidy
c. deferred credit
d. none of the above
47. The term refers to the variability of earnings before interest and taxes and arises mainly from
fluctuations in demand and variability of prices and costs
a. Preference Capital
b. Business risk
c. Equity capital
d. None of the above
48. The cost of project represents the sum of all the items of outlay associated with a project
which are supported by
a. deferred credit
b. incentive sources
c. long term funds
d. all the above
49. The cash flow statement shows the movement of cash into and out of the firm and its net
impact on the ______with the firm
a. income statement
b. cash balance
c. retained profit
d. None of the above
50. The sum of cost of materials, labour, utilities, and factory overheads is called
a. The selling expenses
b. Cost of production
c. Sales revenue
d. None of the above