Feasibility Study Overview
40 Questions
0 Views

Feasibility Study Overview

Created by
@HalcyonRadon

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of a feasibility study?

  • To evaluate if a business idea is marketable
  • To create a comprehensive business plan
  • To assess the workability and profitability of a business venture (correct)
  • To develop marketing strategies for the business

    • How does a feasibility study differ from a business plan?

  • A feasibility study is used to secure funding for a business
  • A feasibility study assesses business opportunity viability prior to the business plan (correct)
  • A business plan focuses on risk assessment and profitability
  • A business plan is created before a feasibility study is conducted

    • Which reason for conducting a feasibility study helps identify financial needs?

  • Resource Estimation (correct)
  • Risk Identification
  • Market Validation
  • Profitability Assessment

    • What is one of the key benefits of performing a risk identification in a feasibility study?

    <p>It uncovers potential challenges and opportunities to mitigate risks</p> Signup and view all the answers

    What might a feasibility study demonstrate to investors?

    <p>The existence of a market and expected return on investment</p> Signup and view all the answers

    When should a business plan be developed in relation to a feasibility study?

    <p>After confirming the viability of a business opportunity</p> Signup and view all the answers

    Which of the following is NOT a focus of a feasibility study?

    <p>Strategies for business growth</p> Signup and view all the answers

    What does the profitability assessment in a feasibility study help evaluate?

    <p>If the business is worth the investment of time and resources</p> Signup and view all the answers

    What is the primary purpose of Snowball Sampling in research?

    <p>Using referrals from initial participants to locate additional participants.</p> Signup and view all the answers

    Which guideline emphasizes the need for clarity in survey questions?

    <p>Clarity</p> Signup and view all the answers

    What aspect of survey response options is critical to ensure accurate data collection?

    <p>They should include mutually exclusive and exhaustive choices.</p> Signup and view all the answers

    What is the first step in the instrument validation process?

    <p>Recruit at least 10 sample representatives.</p> Signup and view all the answers

    How should an Executive Summary be positioned in a feasibility study?

    <p>After all supporting information is developed.</p> Signup and view all the answers

    Which software is recommended for data analysis in research?

    <p>Statistical Package for the Social Sciences (SPSS) versions 20.</p> Signup and view all the answers

    What is one of the key conditions that must be met for a feasible business opportunity?

    <p>Genuine demand for the product or service</p> Signup and view all the answers

    What should be avoided in the neutrality guideline for survey questions?

    <p>Leading respondents to specific answers.</p> Signup and view all the answers

    Why is it important for a business opportunity to offer a good return on investment?

    <p>To enhance potential profitability</p> Signup and view all the answers

    Which aspect contributes significantly to the success of a business opportunity?

    <p>Skills and effectiveness of the entrepreneur and management team</p> Signup and view all the answers

    What is the primary focus of purposive sampling?

    <p>To gather data from individuals based on specific characteristics.</p> Signup and view all the answers

    What should be assessed to evaluate the profit potential of business ideas?

    <p>The existing market and its size</p> Signup and view all the answers

    What is a critical component when analyzing demand for a business idea?

    <p>Genuine customer base and need</p> Signup and view all the answers

    In ensuring that a business idea is unique, what aspect should be focused on?

    <p>Improving upon existing solutions</p> Signup and view all the answers

    What role does pricing strategy play in business planning?

    <p>It must align with customer spending habits</p> Signup and view all the answers

    Why is understanding competition important when evaluating a business idea?

    <p>It indicates the potential for revenue generation</p> Signup and view all the answers

    Which of the following is considered a primary source?

    <p>News footage</p> Signup and view all the answers

    What distinguishes secondary data from primary data?

    <p>Primary data provides firsthand evidence.</p> Signup and view all the answers

    Which of the following is NOT a type of probability sampling technique?

    <p>Judgmental Sampling</p> Signup and view all the answers

    In what type of sampling do researchers select individuals based on their availability?

    <p>Convenience Sampling</p> Signup and view all the answers

    What is the main characteristic of stratified sampling?

    <p>It divides the population into subgroups before sampling.</p> Signup and view all the answers

    What is an example of non-probability sampling?

    <p>Judgmental Sampling</p> Signup and view all the answers

    Which sampling technique involves gathering data from naturally occurring groups?

    <p>Cluster Sampling</p> Signup and view all the answers

    What distinguishes probability sampling techniques from non-probability sampling techniques?

    <p>Probability sampling allows for generalization, while non-probability sampling does not.</p> Signup and view all the answers

    What is the primary purpose of collecting data in a feasibility study?

    <p>To understand current and predicted usage and assess market impact</p> Signup and view all the answers

    Which term best describes data that is specifically gathered by a researcher to address a particular research problem?

    <p>Primary data</p> Signup and view all the answers

    Which type of data includes personal papers and oral histories?

    <p>Primary Data</p> Signup and view all the answers

    Which of the following is NOT a method for collecting primary data?

    <p>Public records</p> Signup and view all the answers

    In a feasibility study, establishing a price point should consider which of the following factors?

    <p>Market trends and target audience's spending habits</p> Signup and view all the answers

    What is the main goal of highlighting unique offerings in a business idea?

    <p>To attract attention and potential customers</p> Signup and view all the answers

    Which of the following best defines the target population in the context of research?

    <p>The specific group of individuals that the research seeks to study</p> Signup and view all the answers

    What aspect of research methodology is associated with validating whether sufficient demand exists for a startup venture?

    <p>Determining market size</p> Signup and view all the answers

    Study Notes

    Feasibility Study

    • An examination of a startup business's feasibility, including technical viability, financial cost projections, and potential profitability.
    • Conducted to help all involved make an informed judgment about the business venture's success.

    Feasibility Study vs. Business Plan

    • Feasibility Study: Evaluates the workability and profitability of a business opportunity before starting.
    • Business Plan: Developed after the feasibility study confirms a business opportunity's viability.

    Reasons to Conduct a Feasibility Study

    • Profitability Assessment: Determines if the business effort will be worthwhile, avoiding investment in unprofitable ventures.
    • Market Validation: Shows market existence, liquidity, and expected return on investment to entrepreneurs and investors.
    • Risk Identification: Highlights potential challenges, strengths, weaknesses, opportunities, threats, and unforeseen circumstances to mitigate risks.
    • Resource Estimation: Determines required financial, human, and technological resources, including workforce requirements and salary scales.
    • Capital and Budget Planning: Determines the capital needed and helps establish budget plans, working capital, and cash flow projections.

    Feasible Business Opportunity Conditions

    • Real Demand: The opportunity should address a genuine need or solve a market problem with proven demand.
    • Good Return on Investment: Offers strong profitability potential and a solid return on investment.
    • Competitiveness: The opportunity should be competitive or uniquely positioned to stand out in the market.
    • Entrepreneur's Objectives: The business aligns with the goals and objectives of the entrepreneur.
    • Competence: The entrepreneur and management team's skills and effectiveness are crucial for success.

    Evaluating Profit Potential

    • Market Demand: Ensure a real, genuine need and customer base for the product or service.
    • Market Size: Evaluate the existing market size and its potential for growth.
    • Market Type: Determine if it's a promising or mature market.
    • Category: Identify if it's in a fresh or mature category.
    • Prospective Customers: Understand who they are and their needs.
    • Competition: Evaluate the competitive landscape and identify any unique selling points.
    • Need: Examine social and economic impacts and if the idea addresses existing needs.

    Research and Methodology

    • The main objective is to understand the market and ensure sufficient demand for the startup venture's success.

    Data Collection in Feasibility Study

    • Purpose: Gather data from end-users to understand current and predicted usage and assess market impact.
    • Methods: Surveys, questionnaires, and polls to get insights.

    Data Collection for Feasibility Study

    • Primary Data: Data collected firsthand by the researcher specifically for the research problem/survey.
    • Secondary Data: Existing data, such as previous research, official statistics, mass media products, and historical information.

    Sampling Design

    • Probability Sampling: Each population element has a chance of being selected for the sample.
    • Non-probability Sampling: The sample selection process doesn't give all population individuals equal chances of being selected.

    Probability Sampling Techniques

    • Simple Random Sampling: Equal chances of selection for all elements.
    • Systematic Sampling: Elements chosen at regular intervals from the population.
    • Stratified Sampling: Dividing the population into subgroups (strata) and sampling proportionally from each stratum.
    • Cluster Sampling: Grouping population elements into clusters and randomly selecting clusters.
    • Area Sampling: Clusters are geographic areas.
    • Multistage Sampling: Sampling done consecutively in a hierarchy of units.

    Non-Probability Sampling Techniques

    • Convenience Sampling: Selecting easily accessible elements.
    • Judgmental Sampling: Selecting elements based on the researcher's judgment.
    • Quota Sampling: Ensuring sample distribution matches the population characteristics.
    • Snowball Sampling: Using referrals from existing participants to find additional participants.
    • Purposive Sampling: Selecting individuals representative of the research objective.

    Target Population

    • The group of individuals or objects the researcher aims to study.
    • Inferences are made about this population.

    Research Instruments

    • Tools used to collect data from respondents.
    • Questionnaires with standardized questions and response options.
    • Address study objectives and collect demographic information.

    Guidelines for Survey Questions

    • Clarity: Contain only one idea or question.
    • Scope: Define time period and activities relevant to the question.
    • Neutrality: Avoid leading respondents to specific answers.
    • Understandability: Use simple and easy-to-understand language.
    • Response Options: Clear, consistent, and comprehensive.
    • Categorical Responses: Mutually exclusive and exhaustive.
    • Numeric Responses: Guided responses to numeric questions.

    Instrument Validation

    • Ensure the research instrument is accurate and effective.
    • Process involves: recruiting 10+ sample representatives, having them complete the instrument, collecting feedback, refining, and explaining the validation to participants.

    Data Processing Method

    • Tabulation and processing of data retrieved from the survey questionnaire, manually or by machine.
    • Statistical Package for the Social Sciences (SPSS) software is recommended for analysis.

    Executive Summary

    • Placement: Often the first thing in the feasibility study after the Table of Contents.
    • Content: Summarizes all the supporting information and significant findings.
    • Writing Order: Written last, after all supporting information is complete.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Chapter 1: Business Feasibility PDF

    Description

    This quiz explores the essential components of a feasibility study, comparing it with a business plan. It covers reasons to conduct a feasibility study, including profitability assessment, market validation, and risk identification to ensure informed judgments on business ventures.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser