Q:

What is economic viability?

A:

Economic viability is when a project proves to be economically feasible, innovative and sustainable in terms of investing financial resources into the project. Funding for the project must be compatible with the demands and constraints that occur during the project's life span.

Economic viability means that market operation is sustainable regarding current and projected revenues. The revenues will be greater than or equal to all current and planned expenditures. In simple terms, any project or activity that can financially support itself is economically viable. Using farming as an example, economic viability refers to the ability and capacity of a farm to 'make a living' annually.

Part of the concept of economic viability is the implicit recognition that the enjoyment of ? and effort put into ? a project determines how a project or business grows and how often workers are replaced.

For economic viability to work, it must often span generations. Workers must stay on top of best practices and share that information appropriately. In the farming example, this would include sharing with other farmers in the region as well as the community.


Is this answer helpful?

Similar Questions

  • Q:

    What is economic freedom?

    A:

    Economic freedom refers to a condition in which a person living in a community, state or country has the right to purse economic opportunities. This condition is associated with capitalistic countries where individual opportunities to find work and make money are typically promoted by limited government restrictions.

    Full Answer >
    Filed Under:
  • Q:

    What is economic feasibility?

    A:

    Economic feasibility is the cost and logistical outlook for a business project or endeavor. Prior to embarking on a new venture, most businesses conduct an economic feasibility study, which is a study that analyzes data to determine whether the cost of the prospective new venture will ultimately be profitable to the company. Economic feasibility is sometimes determined within an organization, while other times companies hire an external company that specializes in conducting economic feasibility studies for them.

    Full Answer >
    Filed Under:
  • Q:

    What is an economic meltdown?

    A:

    An economic meltdown occurs when a country experiences a sudden downturn in the state of its economy. During an economic meltdown, many people will be unemployed or underemployed, companies may go out of business, wages and benefits will drop or stagnate, inflation will occur, the nation's gross domestic product (GDP) will decrease and it may be difficult for many prospective borrowers to obtain a loan.

    Full Answer >
    Filed Under:
  • Q:

    What Is economic profit?

    A:

    Economic profit is the total revenue generated by a business minus total opportunity costs. It is a more theoretical way of looking at a company's profitability that differs from the standard accounting profit reflected on the company's income statement, which simply subtracts the cost of producing goods and services from total revenue.

    Full Answer >
    Filed Under:

Explore