Semester 7 Fall 2024-2025

Dr. Mohamed Wahdan

Section ( 2 )

Project Feasibility Study

1
 Chapter (3)

Feasibility Analysis

2
Outline for a Comprehensive Feasibility Analysis
Multiple Choice Questions (MCQ)
1.What is the primary purpose of a feasibility analysis?
A) To finalize business strategies
B) To determine if a business idea is viable
C) To evaluate employee performance
D) To allocate resources efficiently
Answer: B) To determine if a business idea is viable
2. When is a feasibility analysis typically
conducted?
A) After launching the business
B) During the marketing phase
C) As a preliminary evaluation
D) After significant resources are spent
Answer: C) As a preliminary evaluation
3. What does a feasibility analysis help decide?
A) The marketing strategy
B) The business location
C) Whether the business idea is worth pursuing
D) The employee roles
Answer: C) Whether the business idea is worth
pursuing
4. What is one of the purposes of conducting a
feasibility analysis?
A) To allocate resources efficiently
B) To screen ideas before spending significant resources
C) To evaluate employee performance
D) To finalize business marketing strategies
Answer: B) To screen ideas before spending significant
resources
5. What does conducting a feasibility analysis early help
prevent?
A) Overthinking about potential businesses
B) Spending too much time on idea generation
C) Wasting resources on unviable ideas
D) Delaying product launch

Answer: C) Wasting resources on unviable ideas

6. What should be done if an idea is not feasible in one or more
areas?
A) Ignore the findings and continue with the plan
B) Seek additional funding sources
C) Drop or rethink the business idea
D) Launch the product immediately

Answer: C) Drop or rethink the business idea

7. Which aspect of feasibility analysis depends on moving
forward with more funds committed as time goes on?
A) Organizational Feasibility
B) Financial Feasibility
C) Industry/Market Feasibility
D) None of these options are correct

Answer: C) Industry/Market Feasibility

8. When should a firm conduct a Product/Service
Feasibility Analysis?
A) After launching the product or service
B) Before rushing into development
C) During the hiring process for new employees
D) Once they have secured funding for their project

Answer: B) Before rushing into development

9. What must firms be sure of before developing a
new product or service?
A) That they have enough resources
B) That there is no competition
C) That it is what prospective customers want
D) That they can patent their idea

Answer: C) That it is what prospective customers want

10. What is the second step in assessing product or service desirability ?
A) Conducting market research
B) Administering a concept test
C) Developing a business plan
D) Launching the product
Answer: B) Administering a concept test
11. What should a concept statement include?
A) A detailed financial analysis
B) A one-page description of the business
C) A list of potential competitors
D) A marketing strategy
Answer: B) A one-page description of the business
12. What is the purpose of distributing a concept statement?
A) To secure funding
B) To get feedback on the potential of the business idea
C) To finalize the product design
D) To hire new employees
Answer: B) To get feedback on the potential of the business idea
13. What kind of feedback should the entrepreneur expect from the concept
test?
A) Financial projections
B) Legal advice
C) Viability of the product or service idea and suggestions for improvement
D) Marketing strategies
Answer: C) Viability of the product or service idea and suggestions for improvement
14. Why is it important to talk face-to-face with potential
customers?
A) To finalize the product design
B) To get direct feedback on the product/service demand
C) To secure funding
D) To hire new employees
Answer: B) To get direct feedback on the product/service
demand
15. What is the primary purpose of conducting an
Industry/Target Market Feasibility Analysis?
A) To determine financial requirements
B) To assess the overall appeal of the industry and target
market
C) To create marketing content for existing products
D) To analyze competitors’ sales figures
Answer: B) To assess the overall appeal of the industry and
target market
16. What does Organizational Feasibility Analysis
primarily focus on?
A) Financial resources
B) Market trends
C) Management expertise and non-financial
resources D) Competitor analysis
Answer: C) Management expertise and non-
financial resources
17. Which of these is NOT listed as an important factor under ‘Management
Prowess’?
A) Passion for business idea
B) Understanding of market participation
C) Financial backing
D) Expertise in management
Answer: C) Financial backing
18. What does resource sufficiency pertain to in an entrepreneurial context?
A) The financial backing a company has
B) Whether a proposed venture has enough resources to start
C) The number of employees in a firm
D) The marketing strategies of a new business
Answer: B) Whether a proposed venture has enough resources to start
19. What is considered to be the final component of
comprehensive feasibility analysis?
A) Market Research
B) Financial Feasibility Analysis
C) Legal Compliance Review
D) Operational Planning
Answer: B) Financial Feasibility Analysis
20. What does ‘Total Start-Up Cash Needed’ refer to in a
financial feasibility analysis?
A) The amount needed for marketing
B) The funds required to cover all expenses until the business
becomes profitable
C) The cost of hiring new employees
D) The investment needed for stock market shares
Answer: B) The funds required to cover all expenses until
the business becomes profitable
21. Why is ‘Financial Performance of Similar Businesses’ an
important component in financial feasibility analysis?
A) It helps in setting up business goals.
B) It provides insight into potential market competition.
C) It serves as a benchmark for what can be achieved
financially.
D) It determines employee satisfaction.
Answer: C) It serves as a benchmark for what can be achieved
financially.
22. Which of the following is NOT a method
mentioned for estimating the financial performance
of similar businesses?
A) Looking at established firms
B) Using industry trend analysis reports
C) Observing new venture fitness drinks
D) Conducting customer satisfaction surveys
Answer: D) Conducting customer satisfaction surveys
23. What does the feasibility analysis stage primarily assess
in terms of proposed investments?
A) The legal implications
B) The extent to which each business opportunity is positive
relative to each factor
C) The marketing strategies
D) The technological requirements
Answer: B) The extent to which each business opportunity is
positive relative to each factor
True or False Questions
1. It is suggested to compare it to similar, already established businesses when estimating proposed start-up’s financial
performance. True

2. The Total Start-Up Cash Needed includes only capital purchases, not operating expenses.
False (It includes both capital purchases and operating expenses.)

3. Total Start-Up Cash Needed includes only the operational costs after launching the business.
False (It includes all expenses until profitability, not just operational costs post-launch.)

4. A firm should proceed with its business idea even if critical resources are not available.
False

5. The term ‘management prowess’ refers to both passion for a business idea and understanding of market participation.
True

6. Organizational Feasibility Analysis only considers financial aspects when evaluating the potential success of a new business.
False