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On what basis should an entrepreneur decide whether a business idea is feasible?

Answer and explanation

Correct answer: Market demand, costs, resources, and profit potential

Feasibility means assessing whether an idea can work successfully in practice. The entrepreneur should examine customer demand, expected costs, availability of finance and other resources, operational requirements, and the possibility of earning a reasonable return. Excitement, praise, or an attractive name may encourage the entrepreneur, but none of them proves that the idea is workable or profitable. Therefore, option A gives the relevant basis for feasibility analysis.

Related tags

Feasibility AnalysisEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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