Answer the following:

1. Which of the following is NOT part of a macroenvironmental analysis?

A. Demographic trends

B. Technological advancements

C. Local pricing regulations

D. Company strengths and

weaknesses

2. Which of the following is NOT part of a micro-environment of the firm?

A. Department heads C. Management.

B. Employees.D. Labor Union

3. What type of industry do banks, hotels, airlines, law firms and insurance

companies belong?

A. Business sector C. Manufacturing sector

B. Government sector D. Private non-profit sector

4. One of the forms of business organization is Partnership. Which is an example

of a partnership among the business name given?

A. ABC Company, Ltd.

C. Fernando Morsolo Co. Inc.

B. Albert's Merchandising D. San Esteban Dev't. Cooperative.

5. Which of the following statements connotes rejection of the feasibility study?

A. Market has an unfilled up demand equivalent to 60%.

B. Financial statement projections show a negative trend.

C. Raw materials are estimated to lasts fifteen years (15) years.

D. Poll of applicants show qualifications in accordance with job specifications.

6. Which finding statement could be a basis of approving the viability of proposed

business as to financial aspect?

A. The Statement of Financial Condition shows an increasing cash balance.

B. The Statement of Comprehensive Income shows an increasing trend in

expenses.

C. The Statement of Cash Flow shows an increasing Net Cash Outflow from

operation.

D. The Statement of Comprehensive Income shows an increasing trend in the

cost of sales.

7. Which could be a ground for approval of a feasibility study of a proposed business

of Dina, Donna and Dana as to management aspect?

A. The form of business organization can be registered as cooperative.

B. The form of business organization can be registered as partnership.

C. The form of business organization can be registered as sole proprietorship.

D. The form of business organization can be registered as a single person

corporation.

8. The Socio-economic aspect of the feasibility study shows the business impact of the proposed business to the people and the community. Which statement below

can be considered as a positive sign of the business to be viable?

A. The business proposal is tax exempt.

B. The business proposal will pollute the environment.

C. The business proposal can only pay the minimum wage.

D. The business proposal cannot afford to extend legal benefits of its

workforce.

9. Evaluate the correctness of the given general statements in relation to the

Financial aspect of the Feasibility Study?

A. The Statement of Cash Flow is the accrual basis income statement.

B. The Statement of Financial Condition is prepared as of a certain date.

C. The Statement of Comprehensive Income is a cash basis financial

statement.

D. The Statement of Comprehensive Income shows the difference of the cash

balance beginning and cash balance ending.

10. Lito Jose wants to establish a computer shop business. What is the most ideal

form of business organization that you will chose and which aspect of the

feasibility study it must be included?

A. Corporation - Technical Aspect

B. Partnership - Marketing Aspect

C. Sole Proprietorship - Financial Aspect

D. Sole Proprietorship - Management Aspect

11. Juan dela Cruz wants to make a feasibility study of its new product named

"Product X". What part of the feasibility can you see the detailed specification of

the product?

A. Management Aspect C. Socio-Economic Aspect

B. Marketing Aspect D. Technical Aspect

12. Evaluate the given statement then chose the correct answer.

I.Prepare monthly financial statement is an example of job specification.

II. Accountant is considered as job description.

A. Statement I is true; statement II is false.

B. Statement I is false; statement II is true.

C. Both statements are true.

D. Both statements are false.

13. What could be included in the statement of the problem?

A. What is the market of the proposed product?

B. What is the demand of the proposed product?

C. What is the rate of return of the proposed business?

D. What is the form of business organization that will be used?

14. The following findings of the different aspects of the feasibility study are presented

as follows:

Marketing Aspect - Feasible

Management Aspect - Feasible

Technical Aspect - Feasible

Financial Aspect - Feasible

Socio-Economic Aspect - Not feasible

What is your recommendation?

A. Accept with reservation.

B. Accept the business proposal

C. Reject the business proposal.

D. Reject today but accept tomorrow.