2. Business
 Organization engaged in trade of goods , services or
both to consumers.
 Business relates to the state of being busy either as an
individual or society as a whole , doing commercially
viable and profitable work.

3. Sources of product for business
1. Consumers.
2. Competitors.
3. Existing products.
4. Social values.
5. Needs and wants.
6. Intermediaries.
7. Channel of distribution.
8. Debtors.
9. Government.
10. Existing companies.
11. Existing market.
12. Existing services.
13. Ideas.
14. Substitutions.
15. Middlemen.
16. Suppliers.
17. R&D

4. Methods of new product idea generation
1. Focus groups.
2. Check list
3. Inventory analysis.
4. Information from publication.
5. Seminars and conferences.
6. Discussion with projects.
7. Dreaming.
8. Fantasizing
9. Availability of materials.
10. Demand and supply.
11. Innovation.
12. Information.
13. R&D
14. Research marketing.
15. Test marketing.
16. New customer.
17. Customer based products.
18. Turnover.
19. Profitability.
20. Combination of above methods.

5. Prefeasibility study(PFS)
 “ A preliminary study undertaken to determine if it would
be worthwhile to proceed to the feasibility stage”.
Necessity and objectives of prefeasibility study:
1.Urban environmental.
2.Climate change mitigation/adaptation.
3.Urban poverty reduction.
4.Good urban governance.
Purpose of prefeasibility study
-solid base for undertaking a feasibility study and to further
defining following projects.

6. Steps or dimensions of prefeasibility analysis
i. Analysis of needs.
ii. Process work.
iii. Engineering and design.
iv. Cost estimates.
v. Financial analysis.
vi. Project impacts.
vii. Recommendations.
viii. Conclusions

7. Types of prefeasibility study
1. Technical feasibility.
2. Managerial feasibility.
3. Economic feasibility.
4. Financial feasibility.
5. Cultural feasibility.
6. Political feasibility.
7. Environment feasibility.
8. Legal feasibility

8. Ownership structures
 Proprietorship.
 Partnership firm.
 Company.
 Co operative society.
Selection of an appropriate form of ownership structure
1. Nature of business
2. Areas of operation .
3. Degree of control.
4. Capital requirement.
5. Duration of business.
6. Government regulations