DECA Sports and Entertainment Marketing Practice Exam

What does the concept of viability imply for a new business venture?

1. The ability to innovate continuously

2. The potential for long-term sustainability and profitability

3. The need for extensive marketing research

4. The capability to establish a strong brand

The correct answer is: The potential for long-term sustainability and profitability

The concept of viability for a new business venture primarily relates to its potential for long-term sustainability and profitability. This means that for a business to be considered viable, it must have the ability to generate consistent revenue over time, allowing it to cover costs, reinvest in operations, and contribute to overall financial health. Viability encompasses several factors, including market demand, competitive landscape, operational efficiency, and financial planning. A viable business should ideally have a clear business model that can adapt to changing market conditions while maintaining profitability. Assessing viability often involves analyzing projected cash flows, market trends, and business strategies to ensure that the venture is not just a short-term success but has the groundwork laid for enduring success in the future. Options that refer to innovation, marketing research, or brand establishment are important for a business to succeed but do not capture the entire essence of viability, which is fundamentally about sustaining and growing the business over the long term.