WGU C201 BUSINESS ACUMEN OA
EXAM 2025/2026 – 400 VERIFIED
QUESTIONS & ANSWERS
What is the primary benefit of conducting a SWOT analysis for a business? -
ANSWERD) To evaluate internal strengths and weaknesses alongside external
opportunities and threats
RATIONALE:: A SWOT analysis provides a comprehensive view by assessing internal
strengths and weaknesses in conjunction with external opportunities and threats, which
helps in strategic planning.
In the context of pricing strategies, what does "price elasticity of demand" measure? -
ANSWERD) The sensitivity of consumers to price changes
RATIONALE:: The break-even point is the sales volume at which total revenues equal
total costs, indicating no profit or loss. It is crucial for understanding the minimum sales
required to avoid losses.
In a competitive market, what is likely to happen if a company raises its prices
significantly? - ANSWERB) Loss of customers to competitors
RATIONALE:: In a competitive market, significant price increases may lead customers
to switch to competitors offering similar products at lower prices, resulting in a loss of
market share.
What is the purpose of conducting a feasibility study before launching a new product? -
ANSWERC) To assess the viability of the project in terms of market demand, technical
requirements, and financial implications
RATIONALE:: A feasibility study assesses whether a project is viable by analyzing
market demand, technical requirements, and financial implications, helping to determine
the likelihood of success.
What factor is most critical in determining a company's competitive advantage? -
ANSWERC) Unique value proposition
RATIONALE:: A unique value proposition differentiates a company from its competitors,
providing a clear reason for customers to choose its products or services over others.
What is the primary function of a cash flow statement? - ANSWERB) To track cash
inflows and outflows
EXAM 2025/2026 – 400 VERIFIED
QUESTIONS & ANSWERS
What is the primary benefit of conducting a SWOT analysis for a business? -
ANSWERD) To evaluate internal strengths and weaknesses alongside external
opportunities and threats
RATIONALE:: A SWOT analysis provides a comprehensive view by assessing internal
strengths and weaknesses in conjunction with external opportunities and threats, which
helps in strategic planning.
In the context of pricing strategies, what does "price elasticity of demand" measure? -
ANSWERD) The sensitivity of consumers to price changes
RATIONALE:: The break-even point is the sales volume at which total revenues equal
total costs, indicating no profit or loss. It is crucial for understanding the minimum sales
required to avoid losses.
In a competitive market, what is likely to happen if a company raises its prices
significantly? - ANSWERB) Loss of customers to competitors
RATIONALE:: In a competitive market, significant price increases may lead customers
to switch to competitors offering similar products at lower prices, resulting in a loss of
market share.
What is the purpose of conducting a feasibility study before launching a new product? -
ANSWERC) To assess the viability of the project in terms of market demand, technical
requirements, and financial implications
RATIONALE:: A feasibility study assesses whether a project is viable by analyzing
market demand, technical requirements, and financial implications, helping to determine
the likelihood of success.
What factor is most critical in determining a company's competitive advantage? -
ANSWERC) Unique value proposition
RATIONALE:: A unique value proposition differentiates a company from its competitors,
providing a clear reason for customers to choose its products or services over others.
What is the primary function of a cash flow statement? - ANSWERB) To track cash
inflows and outflows
