What Will Entrepreneurs Study in a Feasibility Analysis

question 78

Multiple Choice

What will entrepreneurs study in a feasibility analysis?

• A)customer demands,structure of the industry,ability to provide the new product or service
• B)ways to increase production and cut corners on costs
• C)strategic planning
• D)the likelihood of a product or service affecting the generation gap
• E)entrepreneurial alertness

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Definitions:

Resale Value

The estimated market value of an asset at the future date when it is likely to be sold, often used in reference to vehicles and property.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Tax Shields

The reduction in income taxes that results from taking allowable deductions such as depreciation, mortgage interest, and other allowances.

Leasing

An arrangement where one party, the lessor, grants another party, the lessee, the right to use an asset for a specific period in exchange for regular payments.