If Your Feasibility Study Suggests to You That Your New

question 3

Multiple Choice

If your feasibility study suggests to you that your new business venture is not viable, the next step is to:

• A) Hire someone to work on the financial aspects of your plan to make the business viable.
• B) Find investors to raise capital for the equipment and fixtures you will need when you open.
• C) Create a lean business plan to convince the bank to lend you money.
• D) Re-evaluate your concept, market, etc., with the hope of salvaging some of the viable aspects of your business prospect.

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Definitions:

Owned Subsidiary

A company whose majority of shares or voting rights are held by another company, making it a controlling entity.

Equity Method

The equity method is an accounting technique used by firms to assess the profits earned by their investments in other companies by reporting these profits in proportion to their ownership.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue. It indicates the company's financial performance over a specified period.

Owned Subsidiary

A company whose majority of shares is held by another company, making it controlled by the parent company.