Entrepreneurship Management

181. A key aspect of the financial section of the business plan is ______________.

  1. A statement of management skills.
  2. A realistic sales forecast.
  3. Production capacity.
  4. A description of competitors.
Correct answer: (B)
A realistic sales forecast.

182. Underestimation of project cost leads to ______________.

  1. Time under run.
  2. Cost under run
  3. Time over run.
  4. Cost over run
Correct answer: (D)
Cost over run

183. Which of the following is not an aspect of appraisal of term loans by commercial banks?

  1. Financial feasibility.
  2. Technical feasibility.
  3. Economic feasibility.
  4. Societal feasibility.
Correct answer: (D)
Societal feasibility.

184. DIC is headed by General Manager in the rank of ______________.

  1. Joint Director of industries.
  2. Assistant Director of industries.
  3. Non-departmental officer.
  4. Departmental officer.
Correct answer: (A)
Joint Director of industries.

185. Which of the following leads to over-capitalization?

  1. acquiring fixed assets on excessive amounts.
  2. under-estimation of initial rate of earnings.
  3. using lower-rate of capitalization.
  4. under estimation of required funds.
Correct answer: (A)
acquiring fixed assets on excessive amounts.

186. Investment in which of the following is most risky?

  1. Equity shares.
  2. Preference shares.
  3. Debentures.
  4. Land.
Correct answer: (C)
Debentures.

187. A Company is called an artificial person because ______________.

  1. it does not have the shape of a natural person.
  2. it cannot be used in the court of law.
  3. it is invisible and intangible.
  4. it exists only in contemplation of law.
Correct answer: (C)
it is invisible and intangible.

188. ______________, which is included in the project cost, is estimated on the basis of the year when the enterprise breaks even.

  1. working capital
  2. cost of capital
  3. cost of production
  4. cost of equity
Correct answer: (A)
working capital

189. Business means ______________.

  1. Commerce.
  2. industry and commerce.
  3. trade and commerce.
  4. selling and buying of goods.
Correct answer: (B)
industry and commerce.

190. Large investment is made in fixed assets, the project will be termed as ______________.

  1. Capital Intensive.
  2. Labour Intensive.
  3. Product Intensive.
  4. Market Intensive.
Correct answer: (A)
Capital Intensive.
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