ME11 2.04

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 inexpensive to conduct.

• They are especially important for government projects.

• They are used by businesses in every industry.

• They are not useful for nonprofit organizations.

The end goal of a feasibility study is to

• determine the best marketing tactics for the venture.

• convince investors to commit money to the venture.

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

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

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

Owners/Managers should not conduct a feasibility study if they are

• considering a business expansion.

• certain the idea is feasible.

• not ready to start the venture.

• unsure about the idea.

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

• detailed.

• as short as possible.

• 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.

Which of the following is a method for gathering data from potential customers during the market analysis portion of a feasibility study:

• Research and development

• SWOT analysis

• Social media surveys

• Profitibility analysis