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What is the main purpose of a feasibility study in entrepreneurship?

Answer and explanation

Correct answer: To examine the technical, financial and market viability of an idea

A feasibility study evaluates whether a business idea is practical before major resources are committed. It may examine technical requirements, customer demand, competition, costs, expected revenue and financial sustainability. Choosing a name or logo can be part of branding, and leave planning is an administrative task; neither tests whether the idea is viable.

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Feasibility-StudyBusiness-ViabilityIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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