0 like 0 dislike
asked in Computer Science by (474k points)
What is the purpose of Feasibility study?

1 Answer

0 like 0 dislike
answered by (474k points)

The purpose of a feasibility study is to analyze a business proposal to determine if the project is viable and if it should be followed through with. Determining if a business is feasible prior to establishing it prevents an investor from wasting money and time on a failed business venture.

Some concerns that are addressed through a feasibility study include:

  • Will the business generate adequate cash flow?
  • Will the business be able to encounter and withstand risks?
  • Will the business meet the goals intended by the founders?

A feasibility study is conducted in the idea stage of planning a business. It is not to be confused with a business plan. A business plan is only created after a feasibility study is conducted and a decision is made to move forward with the business.

Welcome to Free Homework Help, where you can ask questions and receive answers from other members of the community. Anybody can ask a question. Anybody can answer. The best answers are voted up and rise to the top. Join them; it only takes a minute:

10.2k questions

9.2k answers


3.2k users


Free Hit Counters