Refer to the Scenario Below to Answer the Following Questions

question 2

Multiple Choice

Refer to the scenario below to answer the following questions.
Growing a Web-Development Company (Scenario)
Vincent and Alice are partners in a one-year-old web development business called Spy-der Web Execution. Vincent comes from a graphic design background and specializes in the look and feel of web projects. Alice comes from the computer gaming industry and is a highly experienced programmer and web developer-with a particular leaning toward Wordpress as a website backbone.
So far they have brought in less business than they had anticipated-about 25 percent less. As a result, they are operating at just a little below break even, and it is costing them about $500 a month to cover expenses (including rent on a small office space where they meet clients) . The situation is disappointing and was not anticipated by either Vincent or Alice.
As with many businesses like this that are easy to get into with little investment, they did not do a full feasibility study or business plan. They are unsure about how to divide up their responsibilities (who is responsible for what) , and therefore neither person is proactively going after new business, managing each project's budget, and determining even if they are making money on the work.
You are now in the role of advising the partners about a number of issues.
-You notice that the possibility of operating at a loss was not even considered a possibility by Alice and Vincent. Had they done a proper ________________ they probably would have at least been aware that this could happen.

• A) feasibility study
• B) business plan
• C) value proposition
• D) cash flow projection
• E) applied research study

---

Definitions:

UNC

A standardized thread design used for bolts, nuts, and screws, characterized by a unified coarse pitch.

Proof Load

A specific load value, often used in testing, that a component or assembly can bear without permanent deformation or failure.

Tensile Strength

A measure of the maximum amount of stress a material can withstand while being stretched or pulled before breaking.

Minimum Yield Strength

The lowest stress at which a material begins to deform permanently, important in material selection for engineering.