Description : Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of ... fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk
Last Answer : A. Long-term funds are more expensive than short-term funds but also riskier
Description : If a company moves from a "conservative" working capital policy to an "aggress ive" policy, it should expect . A. liquidity to decrease, whereas expected profitability would increase B. ... decrease C. liquidity would increase, whereas risk would also increase D. risk and profitability to
Last Answer : A. liquidity to decrease, whereas expected profitability would increase
Description : In deciding the optimal level of current assets for the firm, management is confronted with . A. a trade-off between profitability and risk B. a trade-off between liquidity and risk C. a trade-off between equity and debt D. a trade-off between short-term versus long-term borrowing
Last Answer : A. a trade-off between profitability and risk
Description : Which of the following is a basic principle of finance as it relates to the management of working capital? A. Profitability varies inversely with risk. B. Liquidity moves together with risk. C. Profitability moves together with risk. D. Profitability moves together with liquidity.
Last Answer : C. Profitability moves together with risk.
Description : Which risk is connected to the circumstance outside the project that may influence the scope of work and the performance of the organization? A.Operational Risk B.Financial Risk C.Strategic Risk D.Contextual Risk
Last Answer : D.Contextual Risk
Description : All of the following statements are true regarding risk events except which one? Choose the least correct answer. A. Project risks are uncertain events. B. If risks occur, they can ... that have more perceived rewards to the organization than the consequences of the risk should be accepted.
Last Answer : C. Unknown risks are threats to the project objectives, and nothing can be done to plan for them.
Description : The payback method for the measurement of return on investment (A) Gives a correct picture of profitability (B) Underemphasises liquidity (C) Does not measure the discounted rate of return (D) Takes into account the cash inflows after the recovery of investments
Last Answer : (C) Does not measure the discounted rate of return
Description : The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as _______ a. Liquidity b. Credit c. Marketability
Last Answer : a. Liquidity
Description : What functions do financial institutions traditionally perform? A. They mobilize savings and investments. B. They expand risk. C. They spread risk. D. They offer only short-term finance.
Last Answer : They mobilize savings and investments.
Description : )The fixed price contract is advantageous to the buyer because it: 1. requires extremely well defined specifications 2. requires formal procedures for scope changes 3. contractor assumes financial and technical risk 4. has a known cost
Last Answer : 3. contractor assumes financial and technical risk
Description : Which one of the following best describes a project stakeholder? a. A party who is concerned about the project going ahead. b. A party with an interest or role in the project or is impacted by ... of the project. d. A party who has a financial stake in the organization managing the project.
Last Answer : b. A party with an interest or role in the project or is impacted by the project.
Description : Assume that a firm has accurately calculated the net cash flows relating to two mutua lly exclusive investment proposals. If the net present value of both proposals exceed zero and the firm is ... maximize shareholder wealth and, since the projects are mutually exclusive, we can only take one
Last Answer : D. accept the proposal that has the largest NPV since the goal of the firm is to maximize shareholder wealth and, since the projects are mutually exclusive, we can only take one
Description : The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are A. Large company stocks; U.S. treasury bills B. Large ... Treasury bills D. Small company stocks; preferred stock E. U.S. treasury bills; small company stocks
Last Answer : C. Small company stocks; U.S. Treasury bills
Description : Strategic planning: (a) Addresses the organization's basic mission or business, issuing broad statements of purpose or direction that have a long lead time. (b) Involves managers in each unit of ... overall plans of the organization. (d) Determines the day-to-day operations within an organization.
Last Answer : (a) Addresses the organization's basic mission or business, issuing broad statements of purpose or direction that have a long lead time.
Description : ------------ is a condition in which the decision maker chooses a course of action without complete knowledge of the consequences that will follow implementation. (a) Risk ; (b) Uncertainty ; (c) Ambiguity ; (d) Accuracy
Last Answer : (b) Uncertainty ;
Description : Which of the following best expresses the difference between programmed and non-programmed decisions? (a) Occur under certainty or risk; occur under uncertainty or ambiguity (b) Made by managers ... rules cannot be developed (d) Have computer routines developed for them; are not computerized
Last Answer : (c) Handled with decision rules; decision rules cannot be developed
Description : If a manager at Wipro wants to award a contract for printing the company's promotional literature and has obtained quotations from several printers, the manager can select a printer and know with ______ what the printing should cost. (a) Ambiguity ; (b) Risk ; (c) Uncertainty ; (d) Certainty
Last Answer : (d) Certainty
Description : “Enterprises should mandate that security investments, services, and projects in the cloud are executed to achieve established business goals” is a key objective of _____________ a) Strategic Alignment b) Value Delivery c) Risk Mitigation d) Sustained Performance
Last Answer : Strategic Alignment
Description : What is the most critical aspect in developing a project plan that meets project specifications within the timeframe and at the lowest costs? Select one: a. Assessing risk management b ... business partners e. Developing a project execution plan that matches the complexity level of the project
Last Answer : e. Developing a project execution plan that matches the complexity level of the project
Description : ___ is a financial term to describe a business or project where the sales revenue is equal to total expenses.
Last Answer : Ans. Break-even
Description : A simple way of looking at the spiral life-cycle model is as a waterfall model with each phase proceeded by a) Build-and-fix b) Freezing c) Synchronization d) Testing e) Risk analysis
Last Answer : e) Risk analysis
Description : )In a program or project plan, there are always revisions to account for new or missing data. Which one of the following provides the best reason for performing a revision of the plan? 1. ... 4. Historical data on a similar project suggests that risk events are not included in the current plan.
Last Answer : 2. Project tasks are crashed to meet their end dates
Description : Is there financial software that can both help you maintain your finances, but at the same time develop a hobby investing?
Last Answer : Yes, you can use Forex software which will help you not only budget your finances but teach you how to invest.
Description : Is a financial planner a good person to hire to help me organize my finances?
Last Answer : Whether a financial planner can help you organize your finances depends upon the problems you are facing. They can work to determine if you are using your money well, make a budget and plan for the ... /www.cfp.net/) can help you find a financial planner to help you handle your money problems.
Description : You are the project manager for a cable service provider. Your project team is researching a new service offering. They have been working together for quite some time and are in the performing ... will start all over again at the storming stage but quickly progress to the performing stage.
Last Answer : C. The team will start all over again with the forming stage.
Description : Risk, as it relates to working capital, means that there is jeopardy to the firm for not maintaining sufficient current assets to . A. meet its cash obligations as they occur and take advantage ... above industry norms E. meet its cash obligations as they occur and support the proper level of
Last Answer : D. maintain current and acid-test ratios at or above industry norms
Description : Which of the following statements is correct for a conservative financing policy for a firm relative to a former aggressive policy? A. The firm uses long-term financing to finance all fixed and current ... its risk profile. D. The firm will increase its dividends per share (DPS) this period.
Last Answer : B. The firm will see an increase in its expected profits.
Description : The cost impact of a risk event occurring as a project proceeds through its life cycle tends to A. Slowly rise B. Slowly drop C. Drop sharply and then level out D. Rise sharply and then level out
Last Answer : A. Slowly rise
Description : Consider these two investment strategies: Strategy is the dominant strategy because . A. 1, it is riskless B. 1, it has the highest reward/risk ratio C. 2, its return is at least equal ... sometimes greater D. 2, it has the highest reward/risk ratio E. both strategies are equally preferred
Last Answer : C. 2, its return is at least equal to Strategy 1 and sometimes greater
Description : What are some low-risk short term investments?
Last Answer : There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
Description : ---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage
Last Answer : d) Leverage
Description : To successfully manage a project, the PM must play both a manager and leadership role. In the manager role the PM will do all but which of the following: 1. Develop procedures 2. Align people 3. Produce results for stakeholder 4. Focus on the organization and its structure 5. Both b and d
Last Answer : 2. Align people
Description : ………………. is responsible for all aspects of data processing, operation research, organization and method, system analysis and design investments. A) Management Services Director B) Data Processing Manager C) Computer Manager D) Both B and C
Last Answer : A) Management Services Director
Description : The main aim of a project risk management process should be to: a. identify project risks and then manage them appropriately. b. identify all project risks and transfer them immediately. c ... are threats or opportunities on a project. d. satisfy the organization's project management process.
Last Answer : a. identify project risks and then manage them appropriately.
Description : Who has ultimate responsibility for project risk? a. Steering group. b. Risk owner. c. Project sponsor. d. Project manager.
Last Answer : c. Project sponsor.
Description : The main purpose of the Project Management Plan is to: a. provide justification for undertaking the project in terms of evaluating the benefit, cost and risk of alternative options. b. ensure ... the project. d. document the outcome of the risk, change and configuration management processes.
Last Answer : c. document the outcomes of the planning process and provide the reference document for managing the project.
Description : A Responsibility Assignment Matrix (RAM) can be used to: a. define the terms of reference of the project manager. b. define the limits of the project sponsor's responsibilities. c ... response activities to project personnel. d. allocate work packages to those responsible for project work.
Last Answer : d. allocate work packages to those responsible for project work.
Description : Which one of the following statements about the project risk register is false? a. It facilitates the review and monitoring of risks. b. It facilitates the risk appetite. c. It facilitates the recording of risk responses. d. It facilitates the recording of risks.
Last Answer : b. It facilitates the risk appetite.
Description : The main outcome of risk identification, in a risk management process, is to: a. identify and determine the relative importance of the project risks. b. identify and describe all risks that ... responses to the project risks. d. identify and describe risks that have occurred on previous projects.
Last Answer : b. identify and describe all risks that might occur on the project.
Description : Project risk management is best described as: a. managing responses to threats. b. identifying and acknowledging threats and opportunities. c. planning responses to threats. d. minimising threats and maximising opportunities.
Last Answer : d. minimising threats and maximising opportunities.
Description : During which stage of Risk planning are risks prioritized based on probability and impact? a. Identify Risks b. Plan Risk responses c. Perform Qualitative risk analysis d. Perform Quantitative risk analysis
Last Answer : c. Perform Qualitative risk analysis
Description : Andrew has joined as the Project Manager of a project. One of the project documents available to Andrew lists down all the risks in a hierarchical fashion. What is this document called? a. Risk Management Plan. b. List of risks. c. Monte Carlo diagram. d. Risk Breakdown Structure.
Last Answer : d. Risk Breakdown Structure.
Description : Which of the following is the most important element of Project Management Plan that is useful in HR Planning process: A. Risk Management activities B. Quality Assurance activities C. Activity Resource requirements D. Budget Control activities
Last Answer : C. Activity Resource requirements
Description : . A 66.6% risk is considered as a) very low b) low c) moderate d) high
Last Answer : d) high
Description : Which of the following is not considered as a risk in project management? a) Specification delays b) Product competition c) Testing d) Staff turnover
Last Answer : c) Testing
Description : Which of the following activity is not the part of project planning? A. project estimation B. project scheduling C. project monitoring D. risk management
Last Answer : C. project monitoring
Description : An Expected Monetary Value (EMV) of $100000 on a potential project event in the project means which of the following? Select one: a. A number that can be ignored b. An opportunity that ... Actual investment returns on the event e. A threat that must be considered to minimize the project risk
Last Answer : b. An opportunity that must be explored
Description : Which of the following statements about risk is true? Select one: a. Project risk focuses on identifying, assessing, and eliminating the risks on the project. b. Risk management is all ... are no risk-free projects. e. Risk management involves identification, evaluation, and elevation of risk
Last Answer : d. There are no risk-free projects.