PROJECT MANAGEMENT & ENTREPRENEURSHIP DEVELOPMENT

M B- 40 1
10 x1 =1 0
i. Which of the following statements is not true about a project?
(a) Every project must be completed in a specified time
(b) Every project delivers a unique output
( c ) Every project has a set of interrelated activities
(d) Every project has a single objective
ii. The project life cycle:
(a) Determines whether the project should continue to the next phase
(b) Defines the beginning and end of a project
(c) Is a collection of project phases
(d) (b) and (c)
iii. Which of the following is not one of the five phases of a project?
(a) Planning (b) Implementing
(c) Auditing (d) Closing
iv. Identify the project activity which is not a: part of project planning.
(a) Identifying project activities (b) Estimating time and cost
(c) Preparing status reports (d) Writing project proposal
v. Which of the following is defined as a set of coherent actions and decisions that are
used to meet the objectives of the firm?
(a) Project (b) Plan
(c) Strategy (d) Program
vi. Which of the following decisions is function specific?
(a) Strategic decision (b) Tactical decision
(c) Operational decision (d) Project decision
vii. The term ‘Intrapreneurship’ stands for
(a) synonym of entrepreneurship
(b) a manager who leaves the company to start his venture
(c) entrepreneurs within a corporate
(d) an entrepreneur who fails in his venture
viii. Small Industries Service Unit (SISI) was established in
(a) 1956 (b) 1952
(c) 1982 (d) 1990
ix. EXIM started its operation from the year
(a) March 1982 (b) May 1990
(c) July 1996 (d) May 1993
x. Small scale industry is usually
(a) Labour intensive (b) Capital intensive
(c) Technology intensive (d) None of these
xi. The theory of religious belief is given by
(a) Karl Marx (b) Max Weber
(c) Peter Drucker (d) Walker
xii. Beliefs generate a drive for entrepreneurial growth as per theory developed by
(a) Schumpeter (b) Weber
(c) McClelland (d) Hoselitz

3x5=15
2. Construct a network for each of the activities and their precedence relationships are
given below:

Activity Predecessor
A —
B —
 C A
D A
E I, J, K
F B, D
G B, D
H F
I A
J G, H
K F

3. State the role of Project Auditor.

4. Discuss the role of Government in promoting entrepreneurship.
5. Define entrepreneurship and discuss its importance for a developing country like
India.
6. What types of decisions are to be taken by the entrepreneur at the top level and
why?

3x15=45
7. Calculate weighted average cost of capital of a project from the following
information:
(i) Capital structure of AB Ltd.: (Rs., thousand)
Equity capital: Shares of Rs. 10 each fully paid 100
Reserves (general) 50
Long-term debt 100
250
(ii) Market price per share of AB Ltd. is Rs. 60 and earnings per share is Rs.6. The
expected growth rate of earnings is 5% per annum.
(iii) Cost of debt (before tax) 12% per annum.
(iv) Applicable corporate tax 40%.
(v) Use market values as weights and show your workings.
8. A company has an investment opportunity costing Rs.40,000 in a project with the
following expected net cash flow (i.e., after taxes and before depreciation):
Year Net Cash Flow (Rs.)
1 7,000
2 7,000
3 7,000
4 7,000
5 7,000
6 8,000
7 10,000
8 15,000
9 10,000
10 4,000

Using 10% as the cost of capital determine the following:

a) Pay back period
b) Net present value at 10% Discount Factor.
c) Profitability index at 10% discount Factor.
d) Internal rate of return with the help of 10% discounting Factor and 15% Discount
Factor.
9. Explain the psychological and social factors of entrepreneurship.
10. State the role of Government in facilitating entrepreneurship. What are the laws
that are to be kept in mind before starting a new business?
11. Draw a network diagram for the following project. Find critical path and critical
activities and project duration.
Duration
Activity Predecessor
(day)
A — 6
B A 4
C B 7
D A 2
E D 4
F E 10
G — 2
H G 10
I J, H 6
J — 13
K A 9
L C, K 3
M I, L 5

10x 1= 10
i. Which of the following refers to a project suggested by a powerful, senior official in
the organization?
(a) Sacred cow (b) Pampered child
(c) White elephant (d) None of the above
ii. The basic types of project selection models are
(a) Quantitative and qualitative (b) Numeric and non-numeric
(c) Single factor and multiple factor (d) Optimal and descriptive
iii. Which of the following is a useful evaluation and selection technique` for preparing
a list of priority projects?
(a) Project sorting technique (b) Q-sort technique
(c) Scoring technique (d) Non-scoring technique
iv. Request, clarification, response and agreement are the steps involved in the
development of
(a) The list of project team members (b) The list of project deliverables
(c) The list of project resources (d) Project schedules
v. Which part of the project overview statement mentions the contingency plans for
reducing the impact of risks faced by a project?
(a) Project problems / opportunity (b) Project goal
(c) Project success criteria (d) Project assumptions, risks and obstacles
vi. Which of the following is normally attached to the project overview statement?
(a) Project risk analysis (b) Project investment analysis
(c) Project resource analysis (d) Project team description
vii. Which attachment to the project overview statement shows that the proposed
project is financially viable?
(a) Return on investment (b) Break-even analysis
(c) Risk analysis (d) Feasibility analysis
viii. Which of the following topics is not covered in a final project report?
(a) Project performance (b) Organizational structure
(c) Project management techniques (d) Team building process
ix. National Institute for Entrepreneurship and Small Business Development provides
(a) seed capital for entrepreneurs (b) start up finance for entrepreneurs
(c) training to entrepreneurs (d) all of these
x. National Small Industries Corporation (NSIC) was set up in
(a) 1950 (b) 1956
(b) 1945 (d) 1955
xi. Entrepreneurs who takes business as an integral part of their life is called
(a) Challengers (b) Solo operators
(c) Life timers (d) Drone entrepreneur
xii. Venture capital should fulfill which of the following objects?
(a) Maximization of profits (b) Diversification
(c) Sales promotion (d) All of these
xiii. The document prepared by the project manager after consulting his team members
on the basis of project overview statement is called the
(a) Project definition statement (b) Project processing document
(c) Project execution statement (d) Project proposal document
3x5=15
2. Discuss five qualities of a prospective entrepreneur.
3. What do you mean by ROI? How is it calculated?
4. What do you mean by Gantt chart? Discuss in brief.
5. What do you mean by LOB? Discuss in brief.
6. What are the factors to be taken into consideration while calculating project cost?
3x15=45
7. The time estimates (in hours) for the activities of a PERT network are given below:
Activity (i — j) 1-2 1-3 1-4 2-5 3-5 4-6 5-6
Optimistic Time 1 1 2 1 2 2 3
Most Likely Time 1 4 2 1 5 5 6
Pessimistic Time 7 7 8 1 14 8 15
where to is the optimistic time, tp is the pessimistic time and tm is the most likely time
(i) Draw the project network.
(ii) Identify all paths through it and write critical path.
(iii) Determine the expected project length.
(iv) Calculate standard deviation and variance of the project length.
(v) What is the percentage of confidence that the project will complete
(a) at least 4 week earlier than expected time?
(b) no more than 4 week later than the expected time?
(vi) What should be the scheduled completion time for which the probability of
completion are 90% confidence and 100% confidence? Given data P(Z ≤1.33) =
0.9082, P(Z ≤1.28) = 0.9, P(Z ≤ 5) = 0.99999.
8. A project has the following time schedule:

Activity 1-2 2-3 2-4 3-5 4-6 5-6 5-7 6-7

Pessimistic
3 9 6 8 8 0 5 8
Time (week)
Most likely
3 6 4 6 6 0 4 5
Time (week)
Optimistic 3 3 2 4 4 0 3 2
Time (week)
(i) Draw the network diagram, (ii) Calculate (a) variance of each activity, (b) critical
path and expected project length, (c) the probability that the project will be completed
in 23 week.
9. Discuss the qualities of a prospective entrepreneur. Do a self-assessment and
identify the strength and weakness in this regard.
10. As an entrepreneur, explain the different stages you need to pass through to launch
a new product in the market.
11. Discuss about Value Engineering & Inspection and TQM.
12. Discuss the scope of Project Audit and also discuss the objectives of Project Audit.
10x 1= 10
i. Which of the following is not a part of the project audit life cycle?
(a) Audit initiation
(b) Setting up an audit database
(c) Limitations and assumptions of the audit
(d) Preliminary analysis of the project
ii. The aim of formally closing a project is to
(a) End external contracts with vendors, clients and other
parties who expect early termination of services.
(b) Suspend the assignments of team members.
(c) Seek the client's acceptance on the project.
(d) All the above
iii. Which of the following leads to project termination?
(a) Lack of executive support
(b) Changing requirements
(c) Lack of IT management
(d) All of the above
iv. Extinction, Addition, Integration and______are the ways of closing a project.
(a) Starvation
(b) Political interference
(c) Trade union interference
(d) None of the above
v. Which of the following is a process of closing a project using drastic measures?
(a) Killing a project
(b) Accidental closing
(c) Influential closing
(d) Integrational closing
vi. At the time of closing a project by integration, who is responsible for integrating
the product into the operating system of the parent or client organization?
(a) The top management
(b) The project team
(c) The project manager
(d) The functional manager
vii. When a project comes to an end as a result of declining budgets, what kind of
closing method should be adopted?
(a) Closing by Extinction
(b) Closing by Addition
(c) Closing by Integration
(d) Closing by Starvation
viii. If a project fails to meet its objectives like time, budget and performance
standards, it is ____________ .
(a) A successful project
(b) An obsolete project
(c) An unsuccessful project
(d) A feasible project.
ix. A project can be terminated when:
(a) The probability of meeting technical objectives is very low
(b) The return on investment is not significant
(c) The cost involved in running it as an individual project is high
(d) All the above
x. Feasibility study is conducted by identifying the
(a) Investment opportunities
(b) Pre-investment phase
(c) Effectiveness of the project
(d) None of these
xi. Self-efficacy denotes
(a) self-achievement
(b) self-confidence
(c) self-advertisement
(d) own pride
xii. Project management uses a matrix organization because:
(a) With functional organizations, the burden of managing projects falls on top
management
(b) Project needs overlap functional boundaries
(c) It prevents problems within functional departments
(d) a and b but not c

3x5=15
2. Construct a network for each of the activities and their precedence relationships
are given below:
Activities A B C D E F G
Predecessor A A B C D, E
3. State the difference between PERT and CPM.
4. What are the features of creativity?
5. What are the functions of SIDBI?
6. Describe Life-cycle costing in short.
3x15=45
7. Discuss McClelland’s N-Ach theory. Is it necessary for an entrepreneur to posses
this trait? Why? Give your argument. 7+8
8. Define risk taking. Why should an entrepreneur be a calculated risk-taker?
Discuss risk taking behaviour. Give example. 2+5+8
9. Write short notes on any three of the following:
Entrepreneurial Decision making, MIS and Project management, Gantt chart and
Line of Balance, Leadership quality of an entrepreneur, Different methods of
Project Appraisal.
10. Discuss in detail the different sections of a project report.
11. A small project consists of eight activities for which the relevant data are
given:
Activity Immediate Time (day)
A Predecessor
— 3
B — 4
C A 5
D A 6
E C 7
F D 8
G B 9
H E, F, G 3
(i) Draw the network diagram.
(ii) Indicate the critical path and calculate the total float and free float for the
activity?