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

---

Definitions:

Return on Total Assets

A financial ratio that measures the profitability of a company in relation to its total assets.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement as a non-operating expense.

Net Profit Margin Percentage

A financial metric expressing the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.