Question

Why should an entrepreneur do a feasibility study for starting a new venture?

• A. To identify possible sources of funds
• B. To see if there are possible barriers to success.
• C. To estimate the expected sales.
• D. To explore potential customers.

Answer 1

The correct option is B To see if there are possible barriers to success.

Before starting any work, a preliminary study must be carried on. Before starting any business, the feasibility of the idea must be carried out. To start with there should be market study done to know the customers for the product.

To identify the possible sources of funding. To estimate the sales that can be achieved.

To check out the competitors for the products or services.

To analyse the risks that may be faced.