Question

You've been given an idea for a project by an executive in your organization. After writing the business-case analysis, you submit it to the executive for review. After reading the business case, he determines that the project poses a significant amount of risk to the organization. What do you recommend next?

A. Proceed to the project selection committee.

B. Reject the project based on the analysis.

C. Proceed to writing the project plan.

D. Perform a feasibility study.

Answer 1

d. Perfrom a feasibility study.

Step-by-step explanation:

A feasibility study will test the practicability of the business proposal. It will give a detail report of whether the business idea is viable is the long run. The feasibility study will help determine the following.

1. It will give estimates of potential cash inflows from the projects.
2. Will help determine if the project can withstand the financial risk associated with it.
3. It will help identify high-risk aspects of the project and make the necessary plans.
4. A feasibility study will also give reasons why the business should not implement the project.