LAP EN-038 FEASIBILITY STUDY

Which of the following is a reason to conduct a feasibility study:

• Considering a new product idea

• Ordering office supplies

• Hiring a new employee

• Choosing an advertising slogan

Which of the following is a true statement about feasibility studies:

• They are especially important for government projects

• They are used by businesses in every industry.

• They are inexpensive to conduct.

• They are not useful for nonprofit organizations

The end goal of a feasibility study is to

• convince investors to commit money to the venture

• determine the best marketing tactics for the venture

• ensure that competitors cannot steal the idea for the venture.

• allow owners/managers to make a sound decision about the venture

Hiring a professional to conduct your feasibility study can

• guarantee profit

• be very inexpensive. .

• reduce bias

• create demand

The written description of your proposed venture should be

• persuasive

• completed at the end of the study

• as short as possible

• detailed.

To be feasible, your venture must

• fulfill a need for the target market

• serve the greater public good

• create a new or improved product

• be innovative

A business’s chain of command can be found in its

• project description

• market analysis

• technical needs section

• organizational chart

The organizational section of a feasibility study may include

• biographical information about owners/managers.

• a list of computer software requirements

• a recommendation of whether or not to proceed with the venture

• a brief description of the proposed project.

The technical or logistical section of the feasibility study includes information about

• potential profitability

• chain of command

• where the work will happen

• what the target market wants

At the end of a feasibility study, owners/managers may decide to

• switch industries

• pass the results along to competitors

• run the study a second time

• postpone the venture until a later time