Question

Project identification deals with

• A. Viable product plan
• B. Logical opportunity
• C. Effective demand
• D. None of these

Hint:

Think of the project cycle stages: 1. Identification (finding a viable idea), 2. Formulation/Appraisal (detailed analysis), 3. Implementation (execution), 4. Evaluation (review). Project identification is all about the initial viable concept.

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question asks what "Project Identification" deals with. Project Identification is the very first stage of the project cycle, where potential projects are recognized or identified.
Step 2: Analysis of Options:
Let's analyze the relationship between the options and the concept of project identification.

(A) Viable product plan: Project identification is the process of generating ideas that have the potential to become viable projects. The goal is to find a concept that is feasible and has a high chance of success. Therefore, the process is fundamentally concerned with conceiving a 'viable product plan' or a viable project idea.

(B) Logical opportunity: This is a part of the process. An entrepreneur looks for logical opportunities in the environment. However, "viable product plan" is more specific to the outcome of the identification stage.

(C) Effective demand: The existence of effective demand (demand backed by purchasing power) is a key criterion for a project to be viable, but project identification is the broader process of looking for the idea itself, of which analyzing demand is just one part.

The core task of project identification is to sift through various ideas and opportunities to arrive at a concept that seems workable and promising. This concept can be described as a preliminary or initial 'viable product plan'. Given the options, this is the most encompassing and accurate choice.
Step 3: Final Answer:
Project identification deals with formulating a viable project idea or plan. Therefore, (A) is the best fit.