WGU D366 Financial Statement Analysis |OA| Objective
Assessment | Actual Questions and Answers |
2025/2026 (Graded A+)
/. PFF: Impact of Competitive Rivalry - Answer-✅High rivalry can lead to price wars,
reduced profitability, and increased spending on advertising.
/.PFF: Impact of Threat of New Entrants - Answer-✅High threat leads to increased
competition, lowering profitability for established firms.
/.PFF: Impact of Bargaining Power of Suppliers - Answer-✅Powerful suppliers can raise
input costs or limit quality, squeezing industry profitability.
/.PFF: Impact of Bargaining Power of Buyers - Answer-✅Strong buyer power can force
firms to lower prices, improve quality, or offer better terms.
/.PFF: Impact of Threat of Substitutes - Answer-✅The presence of substitutes limits
pricing power and increases the need for differentiation.
/.VCA: Primary Activities - Answer-✅Activities directly involved in creating and
delivering a product or service
/.VCA: Support Activities - Answer-✅Provide essential support to the primary activities
/.VCA: Examples of Primary Activities - Answer-✅Inbound Logistics, Operations,
Outbound Logistics, Marketing and Sales, Service
/.VCA: Examples of Support Activities - Answer-✅Firm Infrastructure, Human Resource
Management, Technology Development, Procurement
/.EAF: Revenue Drivers - Answer-✅Factors that directly contribute to generating
revenue.
/.EAF: Cost Drivers - Answer-✅Factors that influence the cost structure of a company.
/.EAF: Market Dynamics - Answer-✅External economic factors that impact an
organization's performance.
, /.EAF: Capital Allocation - Answer-✅How financial resources are allocated within the
company to optimize returns.
/.EAF: Risk Factors - Answer-✅Elements that create potential uncertainties or threats to
economic outcomes.
/.EAF: Efficiency and Productivity - Answer-✅How efficiently resources are used to
produce goods or services.
/.EAF: Examples of Revenue Drivers - Answer-✅Pricing strategies, sales volume,
product mix, market demand
/.EAF: Examples of Cost Drivers - Answer-✅Production costs, labor expenses, supply
chain efficiency, economies of scale
/.EAF: Examples of Market Dynamics - Answer-✅Market competition, consumer
preferences, industry trends, economic cycles
/.EAF: Examples of Capital Allocation - Answer-✅Investments in technology, marketing,
research and development, expansion
/.EAF: Examples of Risk Factors - Answer-✅Interest rate fluctuations, foreign exchange
risk, geopolitical risks, operational risks
/.EAF: Examples of Efficiency and Productivity - Answer-✅Labor productivity, process
optimization, technological advancements
/.Direct Rivals - Answer-✅A form of Horizontal Competition where Companies that
produce or sell similar products or services and target the same customer base.
/.Market Share Battles - Answer-✅A form of Horizontal Competition where Companies
aim to outperform each other by gaining a larger share of the market.
/.Product Differentiation - Answer-✅A form of Horizontal Competition where Firms
compete by offering unique features, branding, or customer service to stand out.
/.Pricing Strategies - Answer-✅A form of Horizontal Competition where Companies
often lower prices to attract customers, which can lead to price wars.
/.Supplier-Buyer Power Struggle - Answer-✅A form of Veritical Competition where
Suppliers and buyers often negotiate over prices, terms, and quality. Each party tries to
gain leverage to maximize their own profitability.
Assessment | Actual Questions and Answers |
2025/2026 (Graded A+)
/. PFF: Impact of Competitive Rivalry - Answer-✅High rivalry can lead to price wars,
reduced profitability, and increased spending on advertising.
/.PFF: Impact of Threat of New Entrants - Answer-✅High threat leads to increased
competition, lowering profitability for established firms.
/.PFF: Impact of Bargaining Power of Suppliers - Answer-✅Powerful suppliers can raise
input costs or limit quality, squeezing industry profitability.
/.PFF: Impact of Bargaining Power of Buyers - Answer-✅Strong buyer power can force
firms to lower prices, improve quality, or offer better terms.
/.PFF: Impact of Threat of Substitutes - Answer-✅The presence of substitutes limits
pricing power and increases the need for differentiation.
/.VCA: Primary Activities - Answer-✅Activities directly involved in creating and
delivering a product or service
/.VCA: Support Activities - Answer-✅Provide essential support to the primary activities
/.VCA: Examples of Primary Activities - Answer-✅Inbound Logistics, Operations,
Outbound Logistics, Marketing and Sales, Service
/.VCA: Examples of Support Activities - Answer-✅Firm Infrastructure, Human Resource
Management, Technology Development, Procurement
/.EAF: Revenue Drivers - Answer-✅Factors that directly contribute to generating
revenue.
/.EAF: Cost Drivers - Answer-✅Factors that influence the cost structure of a company.
/.EAF: Market Dynamics - Answer-✅External economic factors that impact an
organization's performance.
, /.EAF: Capital Allocation - Answer-✅How financial resources are allocated within the
company to optimize returns.
/.EAF: Risk Factors - Answer-✅Elements that create potential uncertainties or threats to
economic outcomes.
/.EAF: Efficiency and Productivity - Answer-✅How efficiently resources are used to
produce goods or services.
/.EAF: Examples of Revenue Drivers - Answer-✅Pricing strategies, sales volume,
product mix, market demand
/.EAF: Examples of Cost Drivers - Answer-✅Production costs, labor expenses, supply
chain efficiency, economies of scale
/.EAF: Examples of Market Dynamics - Answer-✅Market competition, consumer
preferences, industry trends, economic cycles
/.EAF: Examples of Capital Allocation - Answer-✅Investments in technology, marketing,
research and development, expansion
/.EAF: Examples of Risk Factors - Answer-✅Interest rate fluctuations, foreign exchange
risk, geopolitical risks, operational risks
/.EAF: Examples of Efficiency and Productivity - Answer-✅Labor productivity, process
optimization, technological advancements
/.Direct Rivals - Answer-✅A form of Horizontal Competition where Companies that
produce or sell similar products or services and target the same customer base.
/.Market Share Battles - Answer-✅A form of Horizontal Competition where Companies
aim to outperform each other by gaining a larger share of the market.
/.Product Differentiation - Answer-✅A form of Horizontal Competition where Firms
compete by offering unique features, branding, or customer service to stand out.
/.Pricing Strategies - Answer-✅A form of Horizontal Competition where Companies
often lower prices to attract customers, which can lead to price wars.
/.Supplier-Buyer Power Struggle - Answer-✅A form of Veritical Competition where
Suppliers and buyers often negotiate over prices, terms, and quality. Each party tries to
gain leverage to maximize their own profitability.
