The Most Important Issues to Consider in Financial Feasibility Analysis

question 8

Multiple Choice

The most important issues to consider in financial feasibility analysis are ________.

• A) resource sufficiency, industry attractiveness, and total startup cash needed
• B) total startup cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture
• C) target market attractiveness, resource sufficiency, and product/service demand
• D) total startup cash needed, management prowess, and product/service demand
• E) concept testing, total startup cash needed, and financial performance of similar businesses

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Definitions:

Trade Surplus

Trade Surplus occurs when the value of a country's exports exceeds the value of its imports.

Trade Deficit

A situation where a country's imports exceed its exports during a specific time period, indicating a net outflow of domestic currency to foreign markets.

Imports

The goods and services purchased from other countries.

Foreign Direct Investment

An investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.