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Question

One of the internal constraint in implementation of a project is:

The correct answer is
Improper feasibility report

Identifying Internal Project Implementation Constraints

Projects face various constraints, which can be either internal (originating from within the project or organization) or external (originating from the outside environment). Understanding this distinction is key to successful project management.

Constraint Analysis

  • Internal Constraints: These arise from the project's own planning, resources, or management.
  • External Constraints: These come from outside the project's direct control, such as regulations, market conditions, or stakeholders external to the project team.

Option Evaluation

  • Improper feasibility report: A feasibility study is part of the project's internal planning and assessment process. An error or deficiency in this report is an issue originating within the project's scope and execution. This is an internal constraint.
  • Government policy: Policies set by the government are external regulations that affect the project. This is an external constraint.
  • Documents desired by financial institutions: Financial institutions are external entities, and their requirements are dictated by external factors and relationships. This is an external constraint.
  • Licencing: While licensing is necessary for project operation, the requirements and processes are typically mandated by external regulatory bodies (government). This is generally considered an external constraint.

Conclusion

Based on the analysis, an improper feasibility report stems from the project's internal planning phase, making it an internal constraint.

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Important Questions from Financial Management

  1. The indicator which shows how much a company managed to get out of the capital they had put in the business.
  2. Arrange the following steps in making a budget in a sequence :
    I. Estimate the cost of desired items.
    II. List down the commodities and services needed by the family.
    III. Check plans to see that they have a reasonable chance of success.
    IV. Estimate total expected income.
    V. Bring expected income and expenditure into balance.

    Codes :
  3. Which one of the following is NOT a method of handling income ?
  4. Operating Leverage and Financial Leverage of a firm are 3 and 2, respectively. If sales increase by 6%, then earnings before tax will rise by :
  5. Match the items of List - I with those of List - II and indicate the correct code :

    List - IList - II
    (a) Net Income Approach (i) Working Capital Management
    (b) Profitability Index(ii) Over-capitalisation
    (c) Concentration Banking(iii) Capital Structure Planning
    (d) Lower Rate of Return(iv) Capital Budgeting Decision
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