Machine WoodWorking2, WASSCE (SC), 2016

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.