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? Long-term focus Emphasis on continuous improvement Short-term profit maximization Integration with corporate strategy None 2. Balanced Scorecard (BSC) includes which four key perspectives? Financial, Internal Processes, Learning & Growth, Customer Financial, Marketing, Operations, HR Financial, Production, Market Share, Customer Relations Strategic, Operational, Tactical, Growth None 3. Benchmarking is best described as: Comparing current performance to industry leaders Setting arbitrary performance targets A regulatory requirement for all companies A one-time evaluation process None 4. Which of the following is a non-financial performance measure? Return on Assets Market Share Earnings Per Share Gross Profit Margin None 5. Economic Value Added (EVA) is calculated as: Net Profit – Tax Operating Profit – Cost of Capital Revenue – Expenses Total Assets – Total Liabilities None 6. What is the primary purpose of Key Performance Indicators (KPIs)? To measure and track strategic objectives To comply with legal requirements To determine executive compensation only To replace financial statements None 7. A firm using the Six Sigma methodology primarily aims at: Reducing defects in processes Increasing advertising effectiveness Maximizing revenue Enhancing financial reporting accuracy None 8. Which performance measurement model focuses on customer satisfaction and employee satisfaction along with financials? Balanced Scorecard Total Quality Management Key Performance Indicators Economic Value Added None 9. The primary focus of strategic cost management is to: Minimize costs at any expense Align costs with business strategy Ignore indirect costs Only focus on direct costs None 10. Which of the following is NOT a tool used in strategic performance measurement? Benchmarking ABC Analysis SWOT Analysis FIFO Accounting None 11. Which of the following is NOT a method of business valuation Discounted Cash Flow (DCF) Net Asset Valuation Capitalization of Market Price Payback Period None 12. The Capital Asset Pricing Model (CAPM) is used to calculate: Cost of Debt Cost of Equity Net Profit Margin Earnings Before Tax None 13. Which valuation method considers the time value of money? Price to Earnings Ratio Book Value Method Discounted Cash Flow Market Capitalization None 14. Which factor affects the valuation of a business? Industry Trends Economic Conditions Market Competition d All of the above None 15. Enterprise Value (EV) is calculated as: Market Capitalization + Debt – Cash Total Revenue – Total Costs Assets – Liabilities Earnings Before Tax – Depreciation None 16. In a merger, the term "synergy" refers to: The cost of acquiring another company The combined value being greater than individual firms A tax advantage from the merger A new branding strategy None 17. Market-based valuation methods include: Price-to-Earnings Ratio Discounted Cash Flow Replacement Cost Method Economic Value Added None 18. Which of the following is a type of intangible asset that affects valuation? Trademarks Accounts Payable Land & Buildings Inventory None 19. The book value of a company is generally derived from: Balance Sheet Market Capitalization Shareholder Sentiment Stock Price Movements None 20. Which valuation method is best suited for a startup with unpredictable cash flows? Market Price Method Discounted Cash Flow (DCF) Asset-Based Valuation Venture Capital Method None 21. Which of the following is a key feature of the Economic Value Added (EVA) approach? Excludes cost of capital Focuses on net profit only Measures residual income after deducting cost of capital Does not consider operating profits None 22. Which strategic management tool helps an organization identify its strengths, weaknesses, opportunities, and threats? PEST Analysis SWOT Analysis BCG Matrix Balanced Scorecard None 23. A firm that follows the differentiation strategy aims to: Provide unique products or services Compete on low cost Maximize asset turnover Reduce capital investment None 24. Which of the following is NOT a performance measurement technique? Return on Investment (ROI) Activity-Based Costing (ABC) Internal Rate of Return (IRR) Profitability Index None 25. The primary objective of Business Process Reengineering (BPR) is to: Automate processes Reduce workforce Achieve dramatic improvements in performance Maintain status quo None 26. Which of the following statements about the Balanced Scorecard is FALSE? It includes both financial and non-financial measures It focuses only on short-term financial performance It aligns business activities to the vision and strategy It includes four key perspectives None 27. Which of the following best describes the Kaizen approach? Continuous improvement process One-time cost reduction strategy High-risk investment strategy Emergency response system None 28. Which performance metric evaluates profitability in relation to shareholders' equity? Return on Assets (ROA) Return on Equity (ROE) Net Profit Margin Earnings Before Interest and Taxes (EBIT) None 29. A key advantage of benchmarking is: Eliminating competition Reducing employee training costs Identifying best practices for improvement Increasing operational risks None 30. The DuPont Analysis breaks down Return on Equity (ROE) into: Profitability, asset efficiency, and financial leverage Market share, operating income, and total assets Liquidity, solvency, and revenue growth Earnings per share, market capitalization, and cash flow None 31. Which valuation method is most appropriate for a company with negative earnings but strong growth potential? Price-to-Earnings Ratio (P/E) Discounted Cash Flow (DCF) Asset-Based Valuation Market Capitalization None 32. The price-to-earnings (P/E) ratio is commonly used to value: Private equity firms Real estate investments Publicly traded companies Government bonds None 33. Which factor is considered in a Discounted Cash Flow (DCF) valuation? Past earnings Future projected cash flows Historical asset prices Dividend history only None 34. Which method is typically used to value a business during a merger or acquisition? Market Multiple Approach Net Asset Method Discounted Cash Flow (DCF) All of the above None 35. Goodwill in business valuation is defined as Total liabilities minus total assets The premium paid over net asset value Net cash inflow from operations Cost of fixed assets None 36. Which financial metric is used to measure a company's operational efficiency? Current Ratio EBITDA Margin Dividend Payout Ratio Debt-to-Equity Ratio None 37. The Gordon Growth Model is primarily used to determine: Stock price based on dividend growth Market share growth potential Asset turnover ratio Depreciation rate of fixed assets None 38. Which valuation method assumes that a business is worth the sum of its tangible and intangible assets? Net Asset Value Method Price-to-Earnings Ratio Market Capitalization Method Discounted Cash Flow Method None 39. In the Capital Asset Pricing Model (CAPM), the risk-free rate represents: The return of a zero-risk investment The average market return The expected inflation rate The company’s default risk None 40. Which of the following is a primary challenge in business valuation? Predicting future cash flows accurately Calculating total debt Measuring current assets Determining historical profits 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. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
