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Feasibility Study Questions 123
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Feasibility study MCQ and T/F questions
1-Feasibility analysis is the process of determining if a business idea is viable. It consists of four
areas of Feasibility analysis. Identify the correct combination.
a-Product/Service feasibility, Industry/target market feasibility, Organizational Feasibility,
Human resource feasibility
b-Industry/target market feasibility, organizational feasibility, Human resource feasibility,
Leadership Feasibility
c- the market feasibility, the production/technical feasibility, the organizational/management
feasibility, and the financial feasibility.
d-Industry/target market feasibility, organizational feasibility, financial feasibility, leadership
feasibility
2-What is the primary purpose of conducting a feasibility study?
A) To determine the profitability of a project
B) To identify potential risks and challenges
C) To evaluate the technical feasibility of a project
D) All of the above
3 -What is the main objective of a market feasibility study?
A) To analyze the financial implications of a project
B) To assess the potential demand for a product or service
C) To evaluate the environmental impact of a project
D) To determine the operational feasibility of a project
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4-When should a feasibility study typically be conducted in the project
lifecycle?
A) After the project has been completed
B) Before the project is initiated
C) During the project's execution phase
D) After the project has started generating revenue
5-What does a feasibility study primarily aim to determine?
A) Project timeline
B) Project scope
C) Project viability
D) Project budget
6-Feasibility studies are conducted primarily to determine if a proposed project or business
venture is viable or not. (True)
7-Feasibility studies are only necessary for large-scale projects and not for small businesses.
(False)
8-Feasibility studies help identify potential risks and challenges associated with a project. (True)
9-The feasibility study is conducted after the business plan (false)
10- The feasibility study is an evaluation or analysis of the potential impact of a proposed project
related to financial and operational impact and will include the advantages and disadvantages of
both the current situation and the proposed plan.
a-True
b-False
11- In the start-up phase, marketing risk decreases as consumer acceptance and consumer brand
loyalty increases (false)
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12 – Assertion (A): feasibility analysis is a crucial step in evaluating the
viability and potential success of a business idea or project
Assertion (B): feasibility analysis help assess the practicality, market potential, financial viability
and resource requirements of a business idea before committing significant resources
A) Assertion (A) is correct.
B) Assertion (B) is correct.
C) Neither (A) nor (B) is correct
D) Both (A) and (B) are correct.
13-The Market Study covers the following Except:
A) The on-going trends and opportunities in main and secondary markets, which the business
will target.
B) Qualified statements of markets' sizes, growth, and expected market shares.
C) The position of the competitors.
D) inventory plans for stocks, work in-progress, finish products
14- The financial study must include answers to questions like:
A) What should the future balance sheet look like at a given period?
B) How will individual responsibilities be described to encourage the people to do their best
and accomplish thebusiness objectives and purposes?
C) What types or styles of leadership, motivation, communication, and accountability will be
best to knit thepeople together to achieve the project's objectives and purposes ?
D) All of the above
15- Which of the following could be a strength?
A. Weather
B. A new international market
C. A price that is too high
D. The location of a business
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16- Which of the following could be a weakness?
A. A developing market such as the Internet
B. Competitors with access to better channels of distribution
C. Poor quality of goods and services
D. Special marketing expertise
17- To achieve these prime objectives, we have to conduct first
A) Marketing feasibility study
B) Preliminary feasibility study
C) Financial feasibility study
D) Technical and engineering feasibility study
18- Historical Data is the data that is collected from the surrounding environment through
survey, and sales representatives.
A) True
B) False
19- The business and marketing environment contains 5 major elements which may have an
effect on your business
A) True
B) False
20- In the pre-investment phase investors take the necessary procedures and actions to proceed
with the construction of the selected project idea
A) True
B) False
21-If a technology is required to convert the idea of a product offering is available, it is known as
……..Feasibility Study.
a)Economic
b)Financial
c)Commercial
d)Technical
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22) Which of the following aspects are typically included when analyzing
the environment?
A) The volume of sales within the industry
B) The rate of technological innovation in the industry
C) The threat of new entrants
D) The level of government regulations in the industry
23)Which force evaluates the influence of customers on an industry?
A) Threat of new entrants
B) Bargaining power of suppliers
C) Bargaining power of buyers
D) Intensity of competitive rivalry
24) Which factor primarily deals with the characteristics of a target market such as age, gender,
and income?
A) Economic conditions
B) Demographics
C) Social and cultural forces
D) Technology
25) The main outcome of the study is to provide the green light for an idea to be fully examined
through detailed feasibility studies, including the Marketing Feasibility Study, by supplying the
necessary information. (True)
26) Market Research is simply a means of acquiring accurate and reliable information about your
key operating areas
A) True
B) False
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27) In a market economy, there is no central authority to make decisions on
production and consumption.
A) True
B) False
28) Sources and costs of machinery and equipment to be used are considered to be:
A) Organization information
B) Production information
C) Manpower information
D) market information
29) The quantity of an item consumers seek to purchase depends only on the price of that item.
A) True
B) False
30) If the break-even point is greater than the expected demand then the project is achieving
losses
A) True
B) False
31) Which of the following is a characteristic of a perfect competition market?
a) Many buyers and sellers
b) Few large firms dominating the market
c) Product differentiation
d) Barriers to entry
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32) In which market structure do firms have the most control over the price
of their products?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Perfect competition
33) Which market structure features a small number of large firms dominating the industry?
a) Perfect competition
b) Monopoly
c) Oligopoly
d) Monopolistic competition
34) What is a characteristic of a monopoly market?
a) Many small firms
b) Identical products
c) Single seller
d) No barriers to entry
35) The supply curve is determined by the quantity supply and price only. False
36) If the Quantity Supplied is equal to the quantity demanded the investor has to accept the
project. False
37) If the Quantity Supplied is less than the quantity demanded the investor has to accept the
project. True
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38) What is the marketing gap?
A. The difference between marketing expenses and revenue
B. the difference between quantity supplied and quantity demanded
C. The gap between product development and market launch
D. The difference between brand awareness and brand loyalty
39) What is the primary purpose of a production feasibility study?
A) Assessing market demand
B) Evaluating technical requirements
C) Analyzing financial projections
D) Identifying legal regulations
40) What does a technical feasibility study primarily focus on?
A) Market trends analysis
B) Regulatory compliance
C) Equipment and technology requirements
D) Supplier evaluation
41) What does the breakeven point represent in business?
A) The point at which total revenue equals total costs
B) The point at which total revenue exceeds total costs
C) The point at which total costs exceed total revenue
D) The point at which fixed costs are fully recovered
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42) Which of the following formulas represents the breakeven point in
units?
A) Breakeven Point = Fixed Costs / Contribution Margin per Unit
B) Breakeven Point = Total Revenue / Variable Costs per Unit
C) Breakeven Point = Fixed Costs / (Selling Price per Unit - Variable Costs per Unit)
D) Both A and C
43) If a company's breakeven point is 1,000 units and it sells 1,200 units, what can be said about
its profitability?
A) It is experiencing a loss
B) It is breaking even
C) It is making a profit
D) It needs to increase prices
44) How is the contribution margin per unit calculated?
A) Total Revenue - Total Fixed Costs
B) Total Variable Costs / Total Revenue
C) Selling Price per Unit - Variable Costs per Unit
D) Fixed Costs / Total Units Sold
