Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Strategic Performance Management and Business Valuation Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Which of the following is NOT a characteristic of strategic performance management? Focus on short-term results Aligning business goals with strategy Measuring key performance indicators Continuous improvement None 2. The Balanced Scorecard framework includes which of the following perspectives? Financial, Customer, Internal Process, Learning & Growth Financial, Market Share, Product, Customer Economic, Environmental, Social, Governance Profit, Sales, Market Share, Growth None 3. Benchmarking is a technique used in performance management for: Measuring historical financial performanceMeasuring historical financial performance Comparing with best industry practices Eliminating non-value-added activities Reducing operational risks None 4. Which of the following is an external performance benchmarking method? Competitive Benchmarking Internal Benchmarking Functional Benchmarking Process Benchmarking None 5. Economic Value Added (EVA) is calculated as: Net Operating Profit After Taxes – (Capital Employed × Cost of Capital) Total Assets – Total Liabilities Gross Profit – Operating Expenses Earnings Before Interest and Taxes – Interest Expenses None 6. The Six Sigma methodology is primarily used to: Reduce defects and improve process quality Increase product pricing Improve HR performance Enhance marketing strategies None 7. Which of the following is a key feature of Total Quality Management (TQM)? Employee Involvement Focus only on financial performance Ignoring customer satisfaction Adopting short-term goals None 8. Kaizen refers to: Continuous improvement Waste elimination Innovation Team management None 9. Key Performance Indicators (KPIs) are used for: Evaluating and monitoring strategic performance Measuring statutory compliance Preparing financial statements Determining tax liabilities None 10. Which of the following measures customer satisfaction in performance management? Customer Retention Rate Net Profit Margin Operating Cost Ratio Debt-to-Equity Ratio None 11. Which of the following is NOT a business valuation approach? Income Approach Cost Approach Strategic Approach Market Approach None 12. Discounted Cash Flow (DCF) valuation method is based on: Future cash flows discounted to present value Book value of assets Market price of similar companies Past earnings reports None 13. The Terminal Value in DCF analysis represents: Value of an asset at the end of its useful life The present value of all future cash flows beyond a forecast period The liquidation value of a company The total depreciation amount None 14. Which financial ratio is most commonly used in relative valuation? P/E Ratio Current Ratio Debt Coverage Ratio Quick Ratio None 15. Intrinsic value of a business is estimated using: Fundamental analysis Technical analysis Stock market trends Random selection None 16. Which of the following valuation methods is used for startups? First Chicago Method Book Value Method Historical Cost Method Market Capitalization Method None 17. The Cost Approach to business valuation is based on: The company's historical costs and asset replacement values Future projected earnings Discounting cash flows Market trends and economic conditions None 18. Market multiple valuation uses: Comparable company data Only internal financial statements A fixed percentage of revenue Government-mandated values None 19. Which of the following statements is true? Business valuation is purely based on past financial data Business valuation does not involve subjective judgment Business valuation is both an art and a science Only tangible assets are considered in business valuation None 20. The Gordon Growth Model assumes: A constant growth rate in dividends Declining profitability over time No risk in the valuation process Market fluctuations are ignored None 21. Which of the following is a key component of strategic performance management? Cost-cutting measures Alignment of corporate objectives with strategy Ignoring employee performance Short-term financial analysis None 22. Which of the following is NOT a component of a Balanced Scorecard? Customer Perspective Internal Business Process Perspective Environmental Sustainability Perspective Learning and Growth Perspective None 23. A company focusing on reducing defects in production processes is applying which quality improvement method? Six Sigma Just-in-Time (JIT) Benchmarking SWOT Analysis None 24. Which performance measurement tool focuses on achieving short, medium, and long-term strategic goals? Balanced Scorecard Profitability Index Liquidity Ratios Variance Analysis None 25. In strategic performance management, ‘lagging indicators’ refer to: Future-oriented metrics Indicators that measure past performance Employee motivation techniques Real-time data analysis None 26. Which of the following is a financial KPI? Employee Turnover Rate Return on Investment (ROI) Customer Satisfaction Score Employee Training Hours None 27. Which strategy aims to provide unique products or services to gain competitive advantage? Cost Leadership Strategy Differentiation Strategy Market Penetration Strategy Price Skimming Strategy None 28. Which performance measurement system integrates financial and non-financial performance indicators? Balanced Scorecard Cash Flow Analysis Market Capitalization Model Payback Period Calculation None 29. Which strategic management tool is used to analyze internal and external business factors? SWOT Analysis P/E Ratio NPV Method Payback Period None 30. Which technique is used to determine how efficiently a company utilizes its assets to generate profit? Return on Assets (ROA) Market Capitalization Liquidity Ratio Net Present Value (NPV) None 31. Which of the following is NOT a method of business valuation? Income Approach Cost Approach Market Approach Liquidity Approach None 32. Which valuation method is based on expected future earnings discounted to present value? DCF Method Market Multiple Method Asset-Based Valuation Book Value Method None 33. Which financial metric represents the proportion of debt and equity used to finance a business? Debt-to-Equity Ratio Quick Ratio Return on Assets Net Profit Margin None 34. Market value of a company’s stock is influenced by: Investor perception and economic conditions Only book value of assets Only past earnings Government regulations alone None 35. The concept of ‘Control Premium’ in business valuation refers to: Additional value assigned for controlling interest in a company A discount applied for minority shareholders The cost of capital adjustment An additional tax levied on business owners None 36. Which valuation method is most suitable for an asset-heavy company? Asset-Based Valuation Discounted Cash Flow (DCF) Market Multiple Method Gordon Growth Model None 37. In business valuation, 'Minority Discount' refers to: Reduction in valuation for non-controlling shareholders Higher price offered for minority shareholders Additional value assigned to a minority stake A method used in DCF calculation None 38. The Weighted Average Cost of Capital (WACC) represents: The average rate of return a company must earn to satisfy its investors The historical cost of assets Additional value assigned to a minority stake A method used in DCF calculation None 39. Which of the following valuation models assumes constant dividend growth? Gordon Growth Model CAPM Model Asset-Based Valuation Market Multiple Method None 40. Which financial metric is most commonly used in relative valuation? Price-to-Earnings (P/E) Ratio Quick Ratio Net Asset Value (NAV) Payback Period None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. 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