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 a key feature of the Theory of Constraints? Eliminating bottlenecks to improve throughput Focusing only on cost reduction Increasing employee count Reducing inventory levels None 2. Which performance measurement technique is commonly used in Just-in-Time (JIT) manufacturing? Throughput Accounting Standard Costing Absorption Costing Cost-Volume-Profit Analysis None 3. Which of the following is NOT an element of the Value Chain Model? Inbound Logistics Customer Retention Marketing & Sales Operations None 4. Which type of benchmarking compares a company’s performance with businesses in unrelated industries? Functional Benchmarking Competitive Benchmarking Internal Benchmarking Process Benchmarking None 5. Which of the following is an example of a leading indicator? Employee training hours Net Profit Margin Return on Investment Earnings per Share None 6. What is the primary objective of Business Process Reengineering (BPR)? Radical redesign of business processes Gradual cost reduction Increasing product prices Outsourcing all operations None 7. Which performance measurement tool focuses on improving value-added and eliminating non-value-added activities? Lean Six Sigma Financial Ratio Analysis Marginal Costing Linear Programming None 8. Which factor is NOT considered in a Critical Success Factor (CSF) analysis? Industry Trends Economic Conditions Employee Social Media Activity Customer Expectations None 9. Which of the following tools is used to assess risk in strategic performance management? Monte Carlo Simulation Gantt Chart Ansoff Matrix BCG Matrix None 10. What does Kaizen focus on? Continuous improvement Short-term cost cutting High employee turnover Increasing tax liabilities None 11. Which of the following statements is TRUE about Economic Value Added (EVA)? EVA measures residual wealth after deducting cost of capital EVA ignores opportunity costs EVA is the same as net profit EVA does not consider cost of debt None 12. What is the primary purpose of Activity-Based Management (ABM)? Enhance efficiency and eliminate non-value-adding activities Increase financial leverage Focus only on traditional cost control Ignore customer satisfaction None 13. Which of the following is NOT a perspective in the Balanced Scorecard framework? Financial Customer Product Innovation Learning and Growth None 14. Which of the following is NOT a component of Enterprise Value (EV)? Market Capitalization Debt Cash & Cash Equivalents Earnings per Share None 15. Which valuation method is most suitable for companies with stable and predictable cash flows? Discounted Cash Flow (DCF) Method Market Approach Liquidation Value Method Book Value Method None 16. Which ratio is used to measure a company's operational efficiency? Asset Turnover Ratio Current Ratio Debt-to-Equity Ratio Price-to-Earnings Ratio None 17. Which of the following is a key limitation of the Price-to-Earnings (P/E) Ratio? Ignores future earnings growth potential Accounts for all financial risk factors Focuses only on historical market trends Includes only fixed assets in valuation None 18. What does the term ‘Goodwill’ represent in business valuation? The excess value of a company beyond its tangible assets The total market value of a company’s shares The total liabilities of a company The book value of a company's assets None 19. Which of the following best describes the cost of capital? The required return by investors to compensate for risk The total amount spent on new investments The accounting cost of assets The total revenue generated by a company None 20. Which of the following is used to measure the volatility of an investment? Beta Coefficient Net Present Value (NPV) Return on Assets (ROA) Acid-Test Ratio None 21. What does the Payback Period method measure? The time required to recover initial investment costs The profitability of a business over time The total cash flow of a company The discount rate used in DCF analysis None 22. Which of the following affects a company’s valuation the most? Future cash flow potential Number of employees Office rental expenses Brand logo design None 23. Which valuation method considers both tangible and intangible assets? Economic Value Added (EVA) Book Value Method Asset-Based Valuation Liquidation Value None 24. Which approach is commonly used to value technology startups? Venture Capital Method Liquidation Value Method Historical Cost Method Book Value Method None 25. What does the Free Cash Flow (FCF) method measure? The cash available for distribution to investors The net income of a business The book value of assets The revenue from sales None 26. Which of the following is the primary focus of the Total Cost Management (TCM) approach? Reducing product defects Managing all costs throughout the project lifecycle Increasing customer satisfaction Maximizing short-term profits None 27. Which of the following is true about Key Performance Indicators (KPIs)? KPIs measure activities, not outcomes KPIs can provide insights into progress towards strategic objectives KPIs only focus on financial performance KPIs should not be aligned with organizational golals None 28. The McKinsey 7S Framework focuses on which aspects of an organization? Organizational design and structure Employee performance only Company product pricing strategy Competitor analysis None 29. The Balanced Scorecard suggests that organizations should measure performance in how many areas? Two Four Six Eight None 30. Which of the following is NOT a principle of Lean Thinking? Eliminate waste Focus on customer value Build in quality Increase inventory levels to meet demand None 31. In a balanced scorecard, which perspective focuses on innovation and growth? Customer Perspective Financial Perspective Internal Business Process Perspective Learning and Growth Perspective None 32. Which of the following is NOT a typical feature of Business Process Outsourcing (BPO)? Increased efficiency Lower labor costs Improvement in strategic capabilities Retaining complete control over operations None 33. What is the primary objective of Corporate Social Responsibility (CSR) in performance management? Maximizing financial profit Building brand loyalty and enhancing reputation Reducing production costs Eliminating competitor advantages None 34. Which of the following methods does NOT use market data for valuation? Comparable Company Analysis Precedent Transaction Analysis Discounted Cash Flow (DCF) Method Market Approach None 35. The Dividend Discount Model (DDM) is primarily used for valuing: Companies with stable dividend policies Real estate properties Early-stage startups Non-profit organizations None 36. What is the main purpose of the Net Present Value (NPV) method? To calculate the current value of a company’s cash flows To estimate the book value of assets To compare two investment opportunities based on returns To measure the risk of investment portfolios None 37. Which of the following factors would NOT be considered when calculating the Weighted Average Cost of Capital (WACC)? Equity cost Debt cost Corporate tax rate Cash flow projections None 38. Which valuation method would be appropriate for valuing a company in financial distress? Net Asset Value Method Market Approach Discounted Cash Flow (DCF) Method Price-to-Earnings Ratio None 39. The concept of "synergy" in a merger or acquisition refers to: The value derived from combining two firms, greater than the sum of individual parts The tax advantages of merging two firms The increase in operational inefficiencies after a merger The reduction in competition None 40. Which of the following best describes a "market premium" in the context of business valuation? The additional value attributed to a company due to market demand The cost associated with financing acquisitions The discount rate applied to future earnings The profit margin of a business 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. 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