In entrepreneurship, what is the process of determining whether a new business idea is practical and viable before launching it called?

Correct answer: Feasibility study

Correct answer: B, feasibility study. Before starting a venture, an entrepreneur must ask whether the idea can actually work. A feasibility study systematically examines important questions: Are customers likely to want the product? Can it be produced or delivered with available technology and skills? What resources and investment are required? Are the expected income and returns reasonable? Are there legal, operational, or environmental difficulties? This study helps the entrepreneur identify risks before committing large amounts of money and time. A, market survey, collects information about customers and competitors, so it may be one part of a feasibility study, but it does not cover every issue. C, production process, describes how goods are made after planning. D, advertising campaign, promotes an offering and does not test whether the whole business is viable. Memory cue: feasibility means “can it be done successfully?”