Feasibility Studies

An organized inquiry into the possible success of an idea or venture

• operating expenses

• Feasibility study

• start-up costs

• bias

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

• Considering a new product idea

• Hiring a new employee

• Ordering office supplies

• Choosing an advertising slogan

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

• They are not expensive to conduct.

• They are especially important for government projects.

• They are used by businesses in every industry.

• They are not useful for nonprofit organizations.

Feasibility studies can help owners/managers to determine

• What their competitors will do.

• Where to find good prices on raw materials.

• The best time to start a project or venture.

• The best place to recruit new employees.

A feasibility study can form a solid foundation for which of the following business documents:

• Business plan

• Income statement

• Balance sheet

• Annual sales report

Hiring a professional to conduct your feasibility study can

• Guarantee profit.

• Reduce bias

• Create demand.

The written description of your proposed venture should be

• Be specific/detailed

• As short as possible

• Completed at the end of the study

• Persuasive

The first step in determining financials for a feasibility study is to

• Determine start-up costs.

• Estimate operating expenses

• List all sources of funding

• Estimate expected revenue

The final task in the financial section of a feasibility study is performing a(n)

• Annual review

• Organizational assessment

• Estimate of revenues

• Profitability analysis

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

• Project description section

• Market analysis section

• Organizational plan section

• Technical needs section