Question 4
(a)
(i) Explain the term feasibility study.
(ii) State four reasons for conducting feasibility study
(b)State two challenges usually faced when seeking bank loan for a business.
(c)State two important functions of an entrepreneur in managing a machine woodworking venture.
Observation
(a) (i) Feasibility study is an examination of a proposed project which enables the entrepreneur to analyse his/her strength, weaknesses, opportunities, threats and viability of the business.
(ii) To determine
- risks and obstacles
- opportunities available
- threats to business e.g. competition, funding, limitation etc.
- viability of the business
- estimated capital for the business
- location of the business
(b) CHALLENGES
- - requirement of collateral(s) by banks;
- - high interest rates on loan taken;
- - getting guarantors;
- - short duration of repayment.
-
(c) Management function of the entrepreneur
- human resource management
- funds sourcing and utilization
- leadership
- coordination
- supervision
- control
- coping with risks and uncertainty
-
-
Over 90% of the candidates who attempted these questions answered them correctly. They were able to state the reasons for feasibility studies.
-