Project Management Progression - Qp3 - Quiz, Flashcards & Trivia

1. At the end of the project, a final report will be required reporting on the project's final financial position.

True

False

The given statement is true. At the end of a project, it is common practice to prepare a final report that provides a comprehensive overview of the project's financial position. This report helps stakeholders and decision-makers assess the project's financial performance, including any deviations from the initial budget, expenses incurred, and revenues generated. It serves as a valuable tool for evaluating the project's success and identifying areas for improvement in future projects.

Explanation

The given statement is true. At the end of a project, it is common practice to prepare a final report that provides a comprehensive overview of the project's financial position. This report helps stakeholders and decision-makers assess the project's financial performance, including any deviations from the initial budget, expenses incurred, and revenues generated. It serves as a valuable tool for evaluating the project's success and identifying areas for improvement in future projects.

2. Internal finance comes from within the organisation. External finance is finance that is sources from outside the organisation.

True

False

Internal finance refers to the funds generated and used within an organization, such as profits, retained earnings, or funds from the sale of assets. On the other hand, external finance refers to the funds obtained from sources outside the organization, such as bank loans, issuing bonds, or attracting investors. Therefore, the statement that internal finance comes from within the organization and external finance is sourced from outside the organization is correct.

Explanation

Internal finance refers to the funds generated and used within an organization, such as profits, retained earnings, or funds from the sale of assets. On the other hand, external finance refers to the funds obtained from sources outside the organization, such as bank loans, issuing bonds, or attracting investors. Therefore, the statement that internal finance comes from within the organization and external finance is sourced from outside the organization is correct.

3. The project owners or sponsors will want to know during the project that the project is on target and not going over budget.

True

False

The project owners or sponsors will want to know if the project is on target and not going over budget to ensure that it is being managed effectively and efficiently. By monitoring the project's progress and budget, they can make informed decisions and take necessary actions to keep the project on track. This helps in minimizing risks, controlling costs, and ensuring that the project objectives are achieved within the allocated resources.

Explanation

The project owners or sponsors will want to know if the project is on target and not going over budget to ensure that it is being managed effectively and efficiently. By monitoring the project's progress and budget, they can make informed decisions and take necessary actions to keep the project on track. This helps in minimizing risks, controlling costs, and ensuring that the project objectives are achieved within the allocated resources.

4. Once the costs have been estimated, you need to prepare a cash flow forecast.

True

False

After estimating costs, preparing a cash flow forecast is necessary because it helps in determining the inflow and outflow of cash over a specific period. This forecast is crucial for businesses to plan their financial activities, make informed decisions, and ensure they have enough cash to cover expenses and meet financial obligations. By projecting future cash flows, businesses can identify potential cash shortages or surpluses and take appropriate actions to manage their finances effectively. Hence, the statement "Once the costs have been estimated, you need to prepare a cash flow forecast" is true.

Explanation

After estimating costs, preparing a cash flow forecast is necessary because it helps in determining the inflow and outflow of cash over a specific period. This forecast is crucial for businesses to plan their financial activities, make informed decisions, and ensure they have enough cash to cover expenses and meet financial obligations. By projecting future cash flows, businesses can identify potential cash shortages or surpluses and take appropriate actions to manage their finances effectively. Hence, the statement "Once the costs have been estimated, you need to prepare a cash flow forecast" is true.

5. Long term finance is usually finance that is needed for the day to day running of the project and for less than twelve months.

True

False

Long term finance refers to funds that are required for a period exceeding twelve months, not for the day to day operations of a project. It is typically used for capital investments, such as purchasing assets or expanding operations. Therefore, the given statement is incorrect.

Explanation

Long term finance refers to funds that are required for a period exceeding twelve months, not for the day to day operations of a project. It is typically used for capital investments, such as purchasing assets or expanding operations. Therefore, the given statement is incorrect.

6. Checks on budgets should be made at the end of the project.

True

False

Checks on budgets should be made throughout the project, not just at the end. Regular monitoring and evaluation of the budget is necessary to ensure that the project stays within its financial limits and to identify any potential issues or discrepancies early on. Waiting until the end of the project to check the budget could lead to overspending or other financial problems that may be difficult to rectify. Therefore, the statement that checks on budgets should be made at the end of the project is incorrect.

Explanation

Checks on budgets should be made throughout the project, not just at the end. Regular monitoring and evaluation of the budget is necessary to ensure that the project stays within its financial limits and to identify any potential issues or discrepancies early on. Waiting until the end of the project to check the budget could lead to overspending or other financial problems that may be difficult to rectify. Therefore, the statement that checks on budgets should be made at the end of the project is incorrect.

7. There are five main stages to negotiating with someone.

True

False

The given statement is false. There are not five main stages to negotiating with someone. The number of stages may vary depending on the negotiation model or approach being used. Some common stages in negotiation include preparation, discussion, proposal, bargaining, and agreement. However, the specific stages can differ and may include additional steps such as clarification, concession, or implementation. Therefore, it is incorrect to state that there are only five main stages to negotiating with someone.

Explanation

The given statement is false. There are not five main stages to negotiating with someone. The number of stages may vary depending on the negotiation model or approach being used. Some common stages in negotiation include preparation, discussion, proposal, bargaining, and agreement. However, the specific stages can differ and may include additional steps such as clarification, concession, or implementation. Therefore, it is incorrect to state that there are only five main stages to negotiating with someone.

8. Match the following statements:

In this stage you will collect all the information you will need to negotiate.

At this stage you would simply give the other party the details of everything that is required for the project, before you meet to negotiate with them.

It is at this stage that most problems occur.

Once you have found a solution that all parties can agree to, you reached this stage.

Submit

9. Long term financing sources may include: (Select four)

Bank overdraft

Owner's capital

Loans

Trade credit

Hire purchase or leasing

Grants

Long term financing sources refer to funding options that are available for an extended period of time. In this case, the correct answer includes owner's capital, loans, hire purchase or leasing, and grants. Owner's capital refers to the investment made by the owner(s) of the business. Loans are borrowed funds that need to be repaid over a longer period. Hire purchase or leasing involves acquiring assets through installment payments. Grants are non-repayable funds provided by organizations or governments for specific purposes. These sources provide businesses with the necessary funds for long-term investments and operations.

Explanation

Long term financing sources refer to funding options that are available for an extended period of time. In this case, the correct answer includes owner's capital, loans, hire purchase or leasing, and grants. Owner's capital refers to the investment made by the owner(s) of the business. Loans are borrowed funds that need to be repaid over a longer period. Hire purchase or leasing involves acquiring assets through installment payments. Grants are non-repayable funds provided by organizations or governments for specific purposes. These sources provide businesses with the necessary funds for long-term investments and operations.

Submit

10. To prepare the cash flow you need to draw a table or use a spreadsheet with a column for each expense of the project.

True

False

To prepare the cash flow, it is not necessary to draw a table or use a spreadsheet with a column for each expense of the project. While a table or spreadsheet can be helpful in organizing and calculating expenses, it is not the only way to prepare a cash flow. Other methods, such as using accounting software or financial management tools, can also be used to prepare a cash flow. Therefore, the statement is false.

Explanation

To prepare the cash flow, it is not necessary to draw a table or use a spreadsheet with a column for each expense of the project. While a table or spreadsheet can be helpful in organizing and calculating expenses, it is not the only way to prepare a cash flow. Other methods, such as using accounting software or financial management tools, can also be used to prepare a cash flow. Therefore, the statement is false.