Feasibility Study Quiz: Reasons to Conduct One

Study Notes

Feasibility Study: Understanding and Importance

A feasibility study is a preliminary exploration of a proposed project or undertaking to determine its merits and viability.
Feasibility studies help answer the essential question, "should we proceed with the proposed idea?"
Feasibility studies help determine if the company possesses the required resources or technologies and if the proposal offers reasonable returns vs. risk from the investment.
Farmers and others with a business idea should conduct a feasibility study to determine the viability of their idea before proceeding and incurring upfront development costs.
The most common feasibility study should include an executive summary, description of product or service, technology considerations, product or service marketplace, identification of specific market, marketing strategy, organization structure, schedule, and financial projections.
Types of feasibility studies include technical, financial, market, and organizational.
The typical steps to a feasibility study include preliminary analysis, market assessment, organizational structures, financial controls, points of vulnerability, results and conclusions, and go/no-go decision.
During the preliminary analysis, a pre-feasibility study is often conducted to efficiently evaluate alternatives.
Market assessment helps to determine the viability of a proposed product or service in the marketplace and identify demand in the market, and at what price.
Organizational structures pertain to staffing requirements, including management and labor alignment.
In financial controls, an opening day balance sheet is formalized, and first efforts at projected revenues and expenses are attempted.
Points of vulnerability represent internal factors that are a risk to the project's short-term or long-term steps and should be reviewed and analyzed.

Feasibility Study: Understanding and Importance

A feasibility study is a preliminary exploration of a proposed project or undertaking to determine its merits and viability.
Feasibility studies help answer the essential question, "should we proceed with the proposed idea?"
Feasibility studies help determine if the company possesses the required resources or technologies and if the proposal offers reasonable returns vs. risk from the investment.
Farmers and others with a business idea should conduct a feasibility study to determine the viability of their idea before proceeding and incurring upfront development costs.
The most common feasibility study should include an executive summary, description of product or service, technology considerations, product or service marketplace, identification of specific market, marketing strategy, organization structure, schedule, and financial projections.
Types of feasibility studies include technical, financial, market, and organizational.
The typical steps to a feasibility study include preliminary analysis, market assessment, organizational structures, financial controls, points of vulnerability, results and conclusions, and go/no-go decision.
During the preliminary analysis, a pre-feasibility study is often conducted to efficiently evaluate alternatives.
Market assessment helps to determine the viability of a proposed product or service in the marketplace and identify demand in the market, and at what price.
Organizational structures pertain to staffing requirements, including management and labor alignment.
In financial controls, an opening day balance sheet is formalized, and first efforts at projected revenues and expenses are attempted.
Points of vulnerability represent internal factors that are a risk to the project's short-term or long-term steps and should be reviewed and analyzed.

Description

Test your knowledge on feasibility studies with this informative quiz! From understanding the importance of feasibility studies to the different types and steps involved, this quiz covers it all. Sharpen your skills on market assessments, financial controls, organizational structures, and more. Whether you're a farmer or a business owner, this quiz will help you determine if your proposed project or idea is viable. Take the quiz now and see how much you know about feasibility studies!