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business
Asked a question 2 years ago

What is economic viability of a business?

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A viability or feasibility of a business means analysis or finding out how business idea  will be successfully implemented keeping in mind the factors affecting it like Technological, legal, economic, social etc. It helps to determine whether business idea is doable or not and  also supports the decision making process  about the business idea. So a business idea is economically viable or feasible  when it is economically sustainable in terms of financial resources of business. It ensures that revenue generated will be greater than expenses incurred. So in other words economic viability means the ability of business idea to generate profits for the company. A business can successfully achieve its objective when it is economically viable. Economic viability adds to the attractiveness of business. Potential investors of the company are also concerned about economic feasibility of the business and even the shareholders of the  company as economically viability also indicates the ability to give good financial returns. The most important criteria to assess the economic viability of business idea is when revenue exceeds the cost involved. So conducting economic viability of business is important as it provides clear idea about earnings and financial stability of a business.