Answer to Question #325001 in Economics of Enterprise for Gert

Question

Herman Heunis launched MXit in January 2005 as a subscription service. In which step of the entrepreneurial process would he have needed to assess whether the opportunity can be turned into a successful venture?

Select one:

a. When Herman compiled his business plan.

b. When Herman conducted a feasibility study.

c. When Herman launched and managed the new business.

d. When Herman assessed whether he had the resources or access to resources.

Answer 1

A feasibility study is an analysis that considers all of a project's relevant factors—including economic, technical, legal, and scheduling considerations—to ascertain the likelihood of completing the project successfully.

So, the correct answer is b.