Unit 2.04 Review Questions

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

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

• as short as possible.

• detailed.

• completed at the end of the study.

• persuasive.

To be feasible, your venture must

• serve the greater public good.

• fulfill a need for the target market.

• create a new or improved product.

• be innovative.

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

• create a budget for startup costs.

• estimate operating expenses.

• list all sources of funding.

• estimate expected revenue.

The financial section of a feasibility study must include sources of

• technology.

• materials.

• staffing.

• funding.

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.

• market analysis.

• organizational chart.

• technical needs section.

A well-executed feasibility study

• doesn’t exceed three pages.

• is rigid in its scope.

• tells owners/managers what decision to make.

• is articulate.

The final step in the process of conducting a feasibility study is

• writing a brief description of the project.

• presenting the study to the appropriate audience.

• reviewing your work carefully.

• assessing technical needs.