Feasibility Analysis Components
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Questions and Answers

What is the primary purpose of conducting a feasibility analysis?

  • To determine the overall financial viability of the new business idea
  • To screen new business ideas before significant resources are spent on them (correct)
  • To identify potential legal and regulatory challenges
  • To assess the readiness of the organization to launch the new venture

Which of the following is NOT a component of a properly conducted feasibility analysis?

  • Product/Service Feasibility
  • Industry/Target Market Feasibility
  • Operational Feasibility (correct)
  • Financial Feasibility

Which of the following is NOT a key element of Product/Service Feasibility?

  • Product/service desirability
  • Product/service cost structure (correct)
  • Product/service competitive advantages
  • Product/service demand

Which of the following is a key element of Industry/Target Market Feasibility?

<p>Industry attractiveness (A)</p> Signup and view all the answers

What is the primary focus of Organizational Feasibility?

<p>Evaluating the management team's capabilities (A)</p> Signup and view all the answers

Which of the following is NOT a key element of Financial Feasibility?

<p>Projected market share of the new product or service (C)</p> Signup and view all the answers

What does the concept of resource sufficiency pertain to?

<p>An assessment of whether an entrepreneur has sufficient resources to launch the proposed venture (B)</p> Signup and view all the answers

Which of the following is NOT listed as an example of a critical non-financial resource for launching a new business?

<p>Availability of venture capital funding (D)</p> Signup and view all the answers

What is the purpose of the financial feasibility analysis?

<p>To provide a preliminary financial assessment as part of the overall feasibility analysis (B)</p> Signup and view all the answers

Which of the following is NOT listed as an example of a critical non-financial resource?

<p>Access to a strong marketing budget (A)</p> Signup and view all the answers

What is the primary focus of the resource sufficiency assessment?

<p>Determining whether the entrepreneur has the necessary non-financial resources to successfully launch the business (C)</p> Signup and view all the answers

What is the primary purpose of the financial feasibility analysis?

<p>To serve as the final component of a comprehensive feasibility analysis (A)</p> Signup and view all the answers

How can the demand for a product or service be assessed through online tools?

<p>Administering surveys (A)</p> Signup and view all the answers

Which of the following is NOT mentioned as an online tool to assess product demand?

<p>Analyzing Facebook likes (C)</p> Signup and view all the answers

Where can surveys be generated and easily administered according to the text?

<p>Survey Monkey (D)</p> Signup and view all the answers

What is the purpose of utilizing Google Trends to assess product demand?

<p>To see if a search term is trending upwards or downwards (B)</p> Signup and view all the answers

Why are surveys most effective according to the text?

<p>To validate information from face-to-face interviews (D)</p> Signup and view all the answers

How can Q&A sites like Quora and Bright Journey help in assessing product demand?

<p>By posing questions to gather insights from responses (D)</p> Signup and view all the answers

What are the characteristics of attractive industries according to the text?

<p>Young rather than old, early in their life cycle, fragmented rather than concentrated, growing rather than shrinking (B)</p> Signup and view all the answers

What plays a significant role in determining the attractiveness of an industry?

<p>The degree to which environmental and business trends are moving in favor of the industry (C)</p> Signup and view all the answers

Which type of industries are not considered attractive according to the text?

<p>Industries that are crowded (D)</p> Signup and view all the answers

What distinguishes attractive industries from unattractive ones concerning the product or service sold?

<p>'Must-have' products rather than 'want-to-have' products (C)</p> Signup and view all the answers

Which of the following is a characteristic of attractive industries related to profitability?

<p>High operating margins (B)</p> Signup and view all the answers

What is a characteristic of unattractive industries related to the life cycle?

<p>Late in their life cycle (C)</p> Signup and view all the answers

According to the information provided, which of the following is NOT a financial factor associated with promising business opportunities?

<p>Inability to forecast income and expenses accurately (B)</p> Signup and view all the answers

What is the purpose of the 'First Screen' template mentioned in the text?

<p>To determine the initial feasibility of a business idea (C)</p> Signup and view all the answers

During the feasibility analysis stage, how is the extent to which a business opportunity is positive relative to each financial factor determined?

<p>Based on an estimate (B)</p> Signup and view all the answers

Which of the following is NOT mentioned as a financial factor associated with promising business opportunities?

<p>High profit margins (A)</p> Signup and view all the answers

According to the information provided, what is the purpose of a feasibility analysis?

<p>To determine the overall financial attractiveness of a proposed venture (B)</p> Signup and view all the answers

Based on the information provided, which of the following statements is TRUE?

<p>The availability of an exit opportunity for investors is a financial factor (B)</p> Signup and view all the answers

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