Entrepreneurship Management
181. A key aspect of the financial section of the business plan is ______________.
- A statement of management skills.
- A realistic sales forecast.
- Production capacity.
- A description of competitors.
Correct answer: (B)
A realistic sales forecast.
182. Underestimation of project cost leads to ______________.
- Time under run.
- Cost under run
- Time over run.
- 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?
- Financial feasibility.
- Technical feasibility.
- Economic feasibility.
- Societal feasibility.
Correct answer: (D)
Societal feasibility.
184. DIC is headed by General Manager in the rank of ______________.
- Joint Director of industries.
- Assistant Director of industries.
- Non-departmental officer.
- Departmental officer.
Correct answer: (A)
Joint Director of industries.
185. Which of the following leads to over-capitalization?
- acquiring fixed assets on excessive amounts.
- under-estimation of initial rate of earnings.
- using lower-rate of capitalization.
- under estimation of required funds.
Correct answer: (A)
acquiring fixed assets on excessive amounts.
186. Investment in which of the following is most risky?
- Equity shares.
- Preference shares.
- Debentures.
- Land.
Correct answer: (C)
Debentures.
187. A Company is called an artificial person because ______________.
- it does not have the shape of a natural person.
- it cannot be used in the court of law.
- it is invisible and intangible.
- 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.
- working capital
- cost of capital
- cost of production
- cost of equity
Correct answer: (A)
working capital
189. Business means ______________.
- Commerce.
- industry and commerce.
- trade and commerce.
- 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 ______________.
- Capital Intensive.
- Labour Intensive.
- Product Intensive.
- Market Intensive.
Correct answer: (A)
Capital Intensive.