HPC 6 - Pre-Final Examination

The following are the purpose of writing a business plan, EXCEPT

• Obtain Financing

• Create Joint Ventures, Mergers, Acquisitions

• Put the Pieces Together

• Breach of Contracts of Employees and Manager

It provides a road map for strategic planning and outlines the actions needed to take the proposal from “idea” to “reality”

After the feasibility study has been completed and presented the following course of action should be considered, EXCEPT

• Choosing the most viable business model, developing a business plan and proceeding with creating and operating a business

• Identifying additional scenarios for further study

• Deciding that a viable business opportunity is not available and moving to end the business assessment process

• Reject course of action

Arrange the following steps for an Economic Feasibility Study accordingly. Write ONLY the number

1. Identify and Estimate all Fixed Costs

2. Identify and Estimate Project Related Costs

3. Identify and Estimate all Variable Costs related to the Proposed Business Venture

4. Identify and Estimate all Capital Expenditures

Primary data can include industry and trade publications, statistics of industry associations, and government agency reports

• True

• False

Secondary data can include formal interviews and surveys

• True

• False

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

• Attract Key Managers and Employees

• Help in securing funding from lending institutions and other monetary sources

• Identify reasons NOT to proceed

• Provide quality information for decision making

Which of the following statement is the advantage of conducting a feasibility study?

• Put the Pieces Together

• Provide a thorough examination of all issues and assessment of probability of business success

• Focus Founders and/or Management Team

• All of the above

Three (3) levels of feasibility study

_______________________ is an analysis of the viability of an idea through a disciplined and documented process of thinking through the idea from its logical beginning to its logical end.