What dimensions does a feasibility study assess when evaluating a business idea?

• A. Market viability, technical feasibility, and financial viability.
• B. Only legal compliance.
• C. Customer satisfaction metrics.
• D. Brand recognition potential.

Answer: (A)

A feasibility study looks at whether an idea can realistically work by examining three key areas. First, market viability asks if there is real demand for the product or service, who the customers are, how big the market is, and whether pricing and competition make success likely. Second, technical feasibility checks whether the necessary technology, production methods, expertise, and supply chain exist to deliver the offering as planned. Third, financial viability evaluates whether the venture can be profitable and sustainable, considering start-up costs, operating expenses, projected revenues, cash flow, and return on investment.

Legal compliance is important, but it’s not the main measure of whether an idea can succeed; it’s a constraint that would affect feasibility but doesn’t by itself determine market, technical, and financial viability. Customer satisfaction metrics and brand recognition are more about outcomes and market perception after launch, not the core assessment of whether the idea can be pursued at all.