Project Feasibility Study Module 1 Evaluation

TRUE/FALSE
1. FALSE An existing business that plans to expand, although already profitable at its present
capacity, doesn't requires a feasibility study.

2. TRUE It is a common notion that a feasibility study is solely intended for a new project.

3. FALSE In case of bankruptcy, creditors can run after the personal properties of the
shareholders in a corporation.

4. TRUE Reliability depends on the qualifications of the person preparing the study.

5. TRUE Assumptions in the study are generally based on the past year's experience of the
business.

6. TRUE The conduct of a feasibility study should have an indefinite beginning and it should end
after a definite period.

7. FALSE The liability of the investor or owners depends entirely on the type of the proposed
business.

8. FALSE A feasibility study covers a wide and different areas of specialization thus it can be
performed by only one individual.

9. FALSE A project feasibility study doesn't applies only to a business endeavor.

10. TRUE There is a standard template for a feasibility study.

11. TRUE The description of the study comes after the title page and the table of contents.

12. TRUE A single proprietorship should be registered with the SEC and BSP.

13. TRUE Assumptions should be realistic and measurable.

14. TRUE There is a definite or prescribed sections of a project summary.

15. FALSE The proponents should suggest five possible business names to choose from and make
brief explanations about the proposed trade names.

16. FALSE Once the investors commits funds for the implementation of the project, the proponent
next prepares a financial report.

17. TRUE Using unrealistic assumptions spawns an element of doubt as to the reliability of the
study among investors.

18. TRUE The proponent should first check with SEC whether the suggested names already exist
or not.

19. The decision of the investors can only be to either implement the project or no
FALSE

20.TRUE If one of the answers in the four major questions turn negative, then a conclusion on the
feasibility of the project cannot be reached.

21. A good conclusion should be long and should provide straightforward answers to the
FALSE underlying questions of the study.

22. TRUE Market segmentation is an effective tool in identifying the right consumers or users of
the product or service.

23. TRUE The demand figure is usually expressed in a monthly basis

24. TRUE Conclusion is the most tedious part in the preparation of a feasibility study

25. TRUE The last section in market study is the marketing program.

26. FALSE No forecasting tool is superior over another tool or method.

27. FALSE Market exists if there are unavailable sellers and willing buyers.

28. FALSE With the desired data, good and reliable conclusion can hardly be reached.

29. FALSE A standard part or aspect of a feasibility study have been universally accepted and
observed.

30. FALSE The objective of the management study is to determine whether there is demand or
none

31. TRUE The whole process starts with a proper evaluation of the market.

32. TRUE The instrument to be used in gathering the desired information must be carefully
reviewed

33. TRUE Evaluating the predicted supply data is the fourth step in conducting study of supply

34. FALSE Arithmetic straight line method is the most easiest to project future demand.

35. FALSE Availability of supply data is a major drawback in the study of supply.

MULTIPLE CHOICE
1. None of the above
2. Manufacturing industries
3. Mechanical engineer
It is the foremost concern of a project feasibility study.
From textile to linens, curtains, dresses, dinner wares and many
more.
He will design the manufacturing plant, machinery and other other
 equipment required for the project.
4. Must be financial in In this characteristic, it involves an exchange of monetary values with
character another party.
5. Primary industries These are logging, mining and farming operations among others
6. Must be regularly In this characteristic, it indicates that there is a continuing and
undertaken progressing economic act and not a mere single disconnected act.
7. Service industries These are airline companies, salons, spa, hotels, restaurants among
others.
8. Comprehensive On this one, the study should fully cover all the areas that need to be
scrutinized.
9. Simple The orientation and background of its prospective readers should be
taken into consideration when preparing the final output is one of the
qualities of a good feasibility study.
10. Prospective investors They are primarily interested in knowing the viability of a proposed
project taken as a whole.
11. Project summary It presents the highlights of the study.
12. Assumption It facilitates the conduct of the study and are required in some
mathematical and quantitative analysis.
13. BSP It the proposed business will engage in a banking operation, the
requirements to be met comes from?
14. DTI Where to register your business if it is a corporate entity?
15. Description of the It should provide a competitive advantage and ensure the attainment
project of maximum efficiency.
16. Project feasibility It is a business forecast on a mixture of absolute data and
professional opinion of experts in the field.
17. Summary of findings It presents the findings of every aspect of the study.
and conclusion

18. Description of the It describes the nature of the project and the product or service it will
project produce or serve.
19. Business plan It presents the step-by-step procedures on how to implement the
proposed business.
20. Project summary It should be written in simple language and in an interesting manner
 to attract investors or any interested user.
21. It could provide maximum efficiency if the business would be able to
● highlights of major produce the same amount of products at a lower cost.
assumption
● location of the project
● description of the project
● summary of findings and
conclusion

22. Proposed name of the It is a delicate process in business planning.

business

23. Competitive advantage It means that the business has gained an edge over its competitors
that can hardly be copied.
24. It is sometimes the bottleneck of the study and may become a
● highlights of major constraint if these are not reliable.
assumption
● location of the project
● description of the project
● summary of findings and
conclusion

25. Description of the It describes the industry where the business belongs.
industry

26. Past demand It refers to the share of the proposed project in the total demand
27. Demand supply analysis It is the third section of market study

28. Like buyers or consumers, they need to be properly classified or

● suppliers segmented.
● government entities
● competitors
● all of the above

29. Evaluate future demand It is the last procedural step in the study of demand.
30. Market study It appears after the project summary.
31. Study of price It addresses the question "how much is the selling price of the
product or services"?
32. Historical supply It should include local production and importation
33. Feasibility study It should also include a section on competitor analysis although it
may not be as deep .
34. It will reflect the probable result of the operating performance, the
● market study
● technological study need of investment and the level of working capital.
● management study
● financial study

35. Conclusion It is very important in a feasibility study

36. BOC It may provide information about the different trade names engaged
in the study.
37. It should not be limited to direct competitors only.
● demand supply analysis
● study of supply
● demand
● study of demand

38. Demand It is either past demand or future demand

39. Study of demand It is the first section of the market study.
40. It simply refers to the projected demand for a product for local
● historical demand consumption.
● projected demand
● demand
● past demand

41. It usually starts with the analysis of past demand.

● study of supply
● demand supply analysis
● study of demand
● historical demand

42. It dictates that if there is an increase in demand with steady growth of

● study of supply supply, prices of goods and services will increase.
● demand supply analysis
● study of demand
● law of supply and demand

43. Identify the consumer It is the first step in the study of demand
44. It is one of the modes of gathering information.
● survey
● testing
● questionnaire
● all of the above

45. This is the most costly phase of the demand study.

● gather information on total
past demand
● evaluate future demand
● forecast future demand
● identify the consumer