Enterprise Feasibility Study & SWOT Analysis MCQs With Answer

Enterprise Feasibility Study & SWOT Analysis MCQs With Answer

This set of multiple-choice questions is crafted specifically for M.Pharm students studying MIP 204T – Entrepreneurship Management. The quiz focuses on enterprise feasibility studies and SWOT analysis within the pharmaceutical industry, blending conceptual clarity with applied scenarios such as regulatory compliance, manufacturing feasibility, market access, and financial appraisal. Questions probe both theoretical understanding and practical decision-making—evaluating technical, market, financial and organizational viability, and how to use SWOT insights to shape strategy. Use these MCQs to test your readiness for project proposals, start-up evaluations, product launch planning, and to sharpen skills needed for evidence-based entrepreneurship in pharma.

Q1. What is the primary purpose of a feasibility study for a new pharmaceutical manufacturing venture?

• To outline a detailed marketing campaign for the product launch
• To determine the technical, market, financial and regulatory viability of the proposed project
• To write the final organizational recruitment plan
• To set the retail prices for all product lines

Correct Answer: To determine the technical, market, financial and regulatory viability of the proposed project

Q2. Which component of a feasibility study assesses production processes, equipment needs, facility layout and technology availability for a drug product?

• Market feasibility
• Financial feasibility
• Technical feasibility
• Commercial feasibility

Correct Answer: Technical feasibility

Q3. In pharmaceutical project appraisal, which financial metric measures the time required to recover the initial investment?

• Net present value (NPV)
• Internal rate of return (IRR)
• Payback period
• Gross margin percentage

Correct Answer: Payback period

Q4. Which of the following is an internal factor typically analyzed in a SWOT analysis for a biotech start-up?

• Patent expirations in the therapeutic area
• Strength of the company’s R&D team
• Changes in healthcare reimbursement policies
• Emerging competitor drug launches

Correct Answer: Strength of the company’s R&D team

Q5. In SWOT terminology, which element represents external forces that could enable growth for a pharmaceutical product?

• Weaknesses
• Threats
• Opportunities
• Strengths

Correct Answer: Opportunities

Q6. Which feasibility study technique assesses how sensitive project outcomes are to changes in key variables like raw material costs or sales volume?

• Market segmentation
• Sensitivity analysis
• SWOT mapping
• Stakeholder matrix

Correct Answer: Sensitivity analysis

Q7. What is the primary regulatory feasibility concern when planning manufacture of an active pharmaceutical ingredient (API)?

• Availability of retail shelf space
• Compliance with Good Manufacturing Practices (GMP) and regulatory dossier requirements
• Selection of advertising agencies
• Design of the company logo

Correct Answer: Compliance with Good Manufacturing Practices (GMP) and regulatory dossier requirements

Q8. Which SWOT-based strategic option focuses on using internal strengths to exploit external opportunities?

• WT strategy
• ST strategy
• WO strategy
• SO strategy

Correct Answer: SO strategy

Q9. For a novel drug candidate, which market feasibility activity is most important early in the feasibility study?

• Designing the manufacturing plant layout
• Estimating target patient population and unmet clinical needs
• Hiring sales representatives
• Setting retail price tags

Correct Answer: Estimating target patient population and unmet clinical needs

Q10. During a feasibility study, what are pro forma financial statements used for?

• To register patents internationally
• To project future financial performance including income, cash flow and balance sheet
• To build a product formulation
• To write standard operating procedures (SOPs)

Correct Answer: To project future financial performance including income, cash flow and balance sheet

Q11. Which risk identified in feasibility studies is best addressed through diversification or entering partnerships in the pharmaceutical sector?

• Internal staff training gaps
• Regulatory approval delay
• High raw material cost volatility and single-supplier dependency
• Minor cosmetic product packing issues

Correct Answer: High raw material cost volatility and single-supplier dependency

Q12. What is a common outcome recommendation when a feasibility study shows negative net present value and low market demand?

• Proceed immediately with full-scale manufacturing
• Rework product formulation without market data
• Halt or reconsider the project and explore alternatives
• Increase advertising spend before reassessment

Correct Answer: Halt or reconsider the project and explore alternatives

Q13. Which analytical tool complements SWOT by ranking factors according to importance and impact to support decision making?

• Balanced scorecard
• PESTEL analysis with weight-scoring
• Simple checklist without scoring
• Pharmacokinetic modeling

Correct Answer: PESTEL analysis with weight-scoring

Q14. In a SWOT matrix for a generics manufacturer, which action best represents a WO (weakness-opportunity) strategy?

• Use strong brand equity to enter new countries
• Improve manufacturing quality to capitalize on rising demand for high-quality generics
• Reduce prices to counter a major competitor
• Ignore regulatory changes and focus on sales

Correct Answer: Improve manufacturing quality to capitalize on rising demand for high-quality generics

Q15. Which primary data source is most appropriate for assessing physician prescribing behavior in a market feasibility study?

• Patent databases
• In-depth physician surveys and prescription audits
• Company internal accounting records
• Fluorescence spectroscopy results

Correct Answer: In-depth physician surveys and prescription audits

Q16. What is the role of a pilot plant in technical feasibility for a new formulation?

• To finalize the branding strategy for the product
• To validate scale-up, process reproducibility and identify critical controls before full-scale production
• To hire the marketing division
• To conduct customer satisfaction surveys

Correct Answer: To validate scale-up, process reproducibility and identify critical controls before full-scale production

Q17. Which of these best describes a “threat” in the SWOT analysis of a small pharmaceutical start-up?

• Experienced scientific advisory board
• New stringent regulatory guidelines increasing approval timelines
• Patented proprietary technology owned by the start-up
• Strong internal quality control processes

Correct Answer: New stringent regulatory guidelines increasing approval timelines

Q18. When estimating manufacturing capacity in a feasibility study, which factor is least relevant?

• Batch cycle time and yield
• Available qualified personnel and shift patterns
• Projected disease prevalence and demand forecast
• The company’s logo color palette

Correct Answer: The company’s logo color palette

Q19. Which decision-making approach is appropriate when SWOT reveals both significant opportunities and existential threats for a proposed drug launch?

• Adopt a cautious phased entry with contingency plans and resource adjustments
• Ignore threats and proceed aggressively without planning
• Immediately abandon all activities without further analysis
• Rely solely on past product performance in other therapeutic areas

Correct Answer: Adopt a cautious phased entry with contingency plans and resource adjustments

Q20. In the context of a feasibility study for an export-oriented pharmaceutical product, which external analysis element is most critical?

• Local break-room furniture choices
• International regulatory harmonization, tariff barriers and market access requirements
• Internal payroll processing software
• Number of windows in the proposed factory

Correct Answer: International regulatory harmonization, tariff barriers and market access requirements

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