Feasibility Analysis Begins with

question 36

Multiple Choice

Feasibility analysis begins with

• A) devising a customer segmentation matrix.
• B) finding a strategic partner to tap into expertise and resources the entrepreneur may not have.
• C) deciding whether or not to sell the product or service directly or through an intermediary.
• D) identifying the revenue streams that will flow from the products and services being offered.
• E) developing hypotheses about the components of the business model.

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Definitions:

Cash Budget

An estimation of cash inflows and outflows for a business over a specific period, used for managing liquidity.

Cash Payments

Transactions that involve the transfer of cash from one party to another, often for goods or services.

Cash Balance

The amount of money on hand and in bank accounts, reflecting a company's liquidity.

Direct Labor Cost

The expense incurred by employing workers to produce a product or provide a service, excluding indirect costs such as supervision and administration.