PMEGP EDP TRAINING MODULE IV ANSWER KEY PART ONE

 PMEGP EDP TRAINING MODULE IV ANSWER KEY PART ONE

 

ANSWER KEY

 

1  : What is the type of full service online banking that is available 24 hours a day?

1.   ATM Banking

2.   Digital Wallet

3.   Digital Cash

4.   None of these.

 

CORRECT ANSWER: ATM Banking

DESCRIPTION: ATM BANKING: • Full-service banking, 24 hours a day. • Make banking more convenient with ATMs and debit card. • Convenient Self Service

 

2  : The                      analysis helps in assessing the strengths, weaknesses, opportunities and threats related to the project.

1.   SWOT

2.   Competitive

3.   Senstivity

4.   None of these.

 

CORRECT ANSWER: SWOT

DESCRIPTION: SWOT ANALYSIS SWOT stands for Strength, Weakness, Opportunity and Threat. SWOT analysis helps in assessing the strengths, weaknesses, opportunities and threats related to the project. It gives an idea to the bankers about general viability and future of the project.

 

3  : The Market Study part of the Project Report comprises the information on                     

1.   Marketability of the product

2.   Target consumers

3.   Budget

4.   All of the above

 

CORRECT ANSWER: All of the above

DESCRIPTION: MARKET STUDY Market study and details about your product should be mentioned in the report. Product with a good and growing market means more revenue from the project. A detailed market analysis should be done in order to check the marketability and saleability of the product. Size of the market, target consumers, niche, marketing plan, budget, market trends should be covered under this head.

 

4  : What are the factors that determine creditworthiness for business?

1.   Size of company

2.   Outstanding debts of company

3.   Industry Risk

4.   All of the above

 

CORRECT ANSWER: All of the above

DESCRIPTION: Factors that determine creditworthiness for business are as follows- • Size of your company • Outstanding debts of your company • Industry risk • Payment history

 

5  : What are the industries that are applicable for Dairy Entrepreneurship Development Scheme?

1.   Agriculture

2.   Pets and animals

3.   Food and beverages

4.   All of the above

 

CORRECT ANSWER: All of the above

DESCRIPTION: Dairy Entrepreneurship Development Scheme Industry Applicable: Agriculture, pets & animals, social impact, food & beverages.

 

6  : Which part of the Project Summary gives each and every detail about the project?

1.   Executive summary

2.   Sensitivity analysis

3.   Project Details

4.   Promoters’ details

 

CORRECT ANSWER: Project Details

DESCRIPTION: PROJECT DETAILS Project details include each and every detail about the project should be mentioned under this head to make the project report meaningful and self – explanatory.

7  : What part of the Project Report includes the terms and conditions on which you are seeking a loan?

1.   SWOT

2.   Annexure

3.   Proposed Term Sheet

4.   None of these.

 

CORRECT ANSWER: Proposed Term Sheet

DESCRIPTION: PROPOSED TERM SHEET Proposed term sheet includes the terms and conditions on which you are seeking a loan. The proposed Rate of interest, tenure of the loan, collateral security offered, No. of repayments and guarantee etc are mentioned under this head.

 

8  : The Fixed Deposit Accounts or Term Deposits in India have tenures for period from                       

1.   7 days to 10 years

2.   1 year to 5 years

3.   7 days to 1 year

4.   1 month to 3 years

 

CORRECT ANSWER: 7 days to 10 years

DESCRIPTION: All Banks in India (including SBI, PNB, BoB, BoI, Canara Bank, ICICI Bank, Yes Bank etc.) offer fixed deposits schemes with a wide range of tenures for periods from 7 days to 10 years.

 

9  : What type of assets Fixed Capital include?

1.   Property

2.   Plant

3.   Equipment

4.   All of the above

 

CORRECT ANSWER: All of the above

DESCRIPTION: Fixed Capital It refers to the capital, which is invested in fixed assets such as property, plant & equipment (PP&E) – that are needed to start up and conduct business even at the initial stage.

 

10  : What does the analysis done by the banks to check the impact of changes in assumptions on the financial projections of the project called?

1.   Senstivity Analysis

2.   Financial projections and ratios

3.   Total Project Cost and Finance Structure

4.   None of these.

 

CORRECT ANSWER: Senstivity Analysis

DESCRIPTION: SENSITIVITY ANALYSIS This analysis is done by the banks to check the impact of changes in assumptions on the financial projections of the project. Thus, including sensitivity analysis in the project report helps a bank in judging the financial capabilities of the project in case of deviations.