---
title: "Developing a viable business case"
subject: "Entrepreneurship Development"
chapter: 2
key: "semester_7/entrepreneurship_development:viable-business-case"
source: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/viable-business-case
site: BCT Engineering
---

# Developing a viable business case

Entrepreneurship Development · Chapter 2: Identification of Viable Business Cases

- Asked in: year not given, 5 marks
- Video: [What is Feasibility Analysis? | Entrepreneurship | From A Business Professor](https://www.youtube.com/watch?v=NCw2Up8sZuQ) — Business School 101
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/viable-business-case
- Whole chapter: https://www.bctengineer.com/md/semester_7/entrepreneurship_development/chapter-2

## Question

What is a business case? Explain the factors that decide whether a business idea is viable.

## Short answer

A business case justifies an investment by presenting the problem, solution, market, costs, and benefits. The idea is viable when it is desirable, technically feasible, financially profitable, legally acceptable, and a good fit for the team.

## Answer

A **business case** is a structured argument showing that an idea is worth investing in, by stating the problem, the proposed solution, the market, the costs and the expected benefits. An idea is **viable** if it can earn enough to sustain itself and reward the investor.

#### Contents of a business case
- Problem and target customer
- Proposed product or service and its value
- Market size and competition
- Operating and technical requirements
- Investment, revenue and profit forecast
- Risks and how to reduce them

#### Viability tests
| Test | Key question |
|---|---|
| Desirability | Do customers really want it? |
| Technical feasibility | Can we build and deliver it with available technology and skills? |
| Economic viability | Does revenue exceed cost with an acceptable return and payback? |
| Market viability | Is the market big enough and reachable? |
| Legal and ethical | Are licences, safety and environmental rules satisfied? |
| Founder fit | Does the team have the skills and commitment? |

If any test fails seriously, the idea is modified or dropped before heavy money is spent. A feasibility study done early saves cost.

**Answer:** A business case justifies an idea through problem, market, solution and finance; the idea is viable when it is desirable, technically feasible, financially profitable, legal and suited to the team.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is a business case?
   A. A structured argument showing an idea is worth investing in
   B. A legal contract with a supplier
   C. A court case on a business dispute
   D. A packaging box for products
   Answer: A. It argues for the idea by stating problem, solution, market, costs and benefits. (Key point: Business case)

2. An idea is viable if it:
   A. Is technically interesting
   B. Can earn enough to sustain itself and reward the investor
   C. Has many competitors
   D. Is liked by the founder
   Answer: B. Viability means self-sustaining and rewarding to the investor. (Key point: Viability)

3. The economic viability test asks:
   A. Do customers really want it?
   B. Are licences available?
   C. Do revenues exceed cost with acceptable return and payback?
   D. Does the team have skills?
   Answer: C. Economic viability concerns revenue, cost, return and payback. (Key point: Economic viability test)

4. Which key question belongs to the desirability test?
   A. Can we build it with available technology?
   B. Are safety rules satisfied?
   C. Is the market reachable?
   D. Do customers really want it?
   Answer: D. Desirability checks genuine customer demand. (Key point: Desirability test)

## Related in other subjects

- [Case study: critical factors in process control](https://www.bctengineer.com/question.md?key=semester_5%2Finstrumentation_ii%3Acs-critical-factors) — Instrumentation II, chapter 10, asked 2×
- [Case study: workflow, factors, proposed design, benefits](https://www.bctengineer.com/question.md?key=semester_5%2Finstrumentation_ii%3Acs-2076chaitra) — Instrumentation II, chapter 10
- [Case study: revamping MBI system for CEO](https://www.bctengineer.com/question.md?key=semester_5%2Finstrumentation_ii%3Acs-ceo-revamp) — Instrumentation II, chapter 10