The Most Important Issues to Consider in Financial Feasibility Analysis

question 65

Multiple Choice

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, overall financial attractiveness of the proposed venture, and:

• A) identification of a niche market
• B) market timeliness
• C) management prowess
• D) total start-up cash needed
• E) concept testing

---

Definitions:

Short Run

A period in economics during which the quantities of at least one input or resource are fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.

Long Run

A period in which all factors of production and costs are variable, allowing for all possible adjustments in production and operations.

Break-Even

The point at which total cost and total revenue are equal, meaning the business or project is not making a loss nor profit.

Peak Efficiency

Peak Efficiency is the optimal state of operation where resources and processes produce maximum output with minimum waste or inefficiency.