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Home/Practice questions/Business Studies
Business StudiesEntrepreneurship Development

Which of the following are the components of feasibility analysis? (A…

Which of the following are the components of feasibility analysis?

(A) Economic Analysis
(B) Technical Analysis
(C) Financial Analysis
(D) Personal Analysis

Choose the correct answer from the options given below:

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → (A), (B) and (C) only

Feasibility analysis means checking whether a business idea can really work before money is put into it. The idea is checked from several sides.

(A) Economic Analysis — A component (Correct). The product must be made at a cost that its price can cover. Then the idea is economically feasible.

(B) Technical Analysis — A component (Correct). It must be possible to turn the idea into a real product with the technology available. Then it is technically feasible.

(C) Financial Analysis — A component (Correct). The project cost must be within the funds available. Those who give the money must be sure of a fair return and of the safety of their money. Then the idea is financially viable.

(D) Personal Analysis — Not a component (Incorrect). There is no personal side in feasibility analysis. The other sides checked are commercial (enough sales) and administrative or legal (no legal block). The person’s own qualities are not part of this check.

Note: This question is from the chapter Entrepreneurship Development, which is not in the current NCERT book (2026-27). The chapter is in the pre-rationalised NCERT, from which the extract below is taken.

NCERT (Pre-rationalised Edition):

NCERT extract

NCERT extract

NCERT extract

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