Feasibility Analysis

________ is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.

• A) Product/service feasibility analysis
• B) Financial feasibility analysis

• C) Organizational feasibility analysis

• D) Industry/market feasibility analysis
• E) Institutional feasibility analysis

The focus in organizational feasibility analysis is on:

• A) Financial resources for manufacturing firms and nonfinancial resources for service firms

• B) Financial resources

• C) Nonfinancial resources

• D) Nonfinancial and financial resources equally

• E) Financial resources for service firms and nonfinancial resources for manufacturing firms

Which of the following statements about target markets is incorrect?

• A) A target market is a place within a larger market segment that represents a narrower group of customers with similar needs.

• B) The challenge in identifying an attractive target market is to find a market that's large enough for the proposed business but is yet small enough to avoid attracting larger competitors.

• C) it’s generally easier to find good information about a target market than an industry as a whole.

• D) There is a distinct difference between a firm's industry and its target market.

• E) By focusing on a target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well

Talking to industry experts, obtaining feedback from prospective customers, and administering surveys are examples of:

• A) Derivative research

• B) Principal research

• C) Primary research

• D) Fundamental research

• E) Secondary research

A(n) ________ is a group of firms producing a similar product or service, such as electronic games, smartphones, or computers.

• A) Business group

• B) Trade group

• C) Conglomerate

• D) Industry

• E) Commerce group

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and:

• A) Overall attractiveness of the proposed venture

• B) Management prowess

• C) The projected borrowing power of the proposed business

• D) The projected years to an IPO or an acquisition for the proposed venture

• E) The projected internal rate of return of the proposed venture

The two components of product/service feasibility analysis are product/service demand and:

• A) Target market attractiveness

• B) Product/service desirability

• C) Financial performance of similar businesses

• D) Resource sufficiency

• E) Management prowess

________ feasibility analysis is an assessment of the overall appeal of the industry and market for the product or service being proposed.

• A) Financial

• B) Product/service

• C) Institutional

• D) Organizational

• E) Industry/target market

A(n) ________ is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years.

• A) Opening team

• B) New venture team

• C) Scout team

• D) Launch team

• E) Entrepreneurial team

Which of the following issues should be considered in industry/target market feasibility analysis?

• A) Industry attractiveness

• B) Resource sufficiency

• C) Management prowess

• D) Gaps in the marketplace

• E) Financial performance of similar businesses