Question

State any two features of project report.

Hint:

A good project report should answer every possible question a potential investor might have. It should be a 'single source of truth' for the project, covering everything from the idea to the expected profits.

Answer 1

A project report is a comprehensive document that outlines the key aspects of a proposed business venture. It acts as a roadmap for the entrepreneur and a tool for evaluation by investors and financial institutions. Two key features of a good project report are:

Comprehensive and Detailed: A project report is not a brief summary; it is an exhaustive document that covers all significant aspects of the proposed project. This includes technical details (location, technology, machinery), financial projections (cost of project, sources of finance, break-even analysis, projected profitability statements), marketing analysis (target market, competition, pricing strategy), and managerial aspects (promoter details, organizational structure). This comprehensiveness ensures that all potential issues are considered beforehand.

Objective and Based on Factual Data: The information and analysis presented in the report must be objective, realistic, and supported by factual data and thorough research. The financial projections should be based on logical assumptions, and market assessments should be derived from reliable market surveys. This objectivity and factual basis are crucial for establishing the credibility and viability of the project in the eyes of potential investors, lenders, and other stakeholders.