WGU C201 BUSINESS ACUMEN OBJECTIVE
ASSESSMENT VERSION 1 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED RATIONALES
ANSWERS 2025(NEWEST) ALREADY GRADED A+
Question 1:
Which of the following is the primary function of management in an organization?
A) To create new products
B) To organize resources to achieve organizational goals
C) To maintain financial stability
D) To establish customer relationships
Answer: B) To organize resources to achieve organizational goals
Rationale: Management’s primary function is to organize resources efficiently and
effectively to achieve organizational goals. This includes planning, organizing,
leading, and controlling business activities.
Question 2:
A company’s gross profit margin can be improved by:
,A) Decreasing the cost of goods sold
B) Increasing operating expenses
C) Reducing the company’s revenue
D) Increasing the debt ratio
Answer: A) Decreasing the cost of goods sold
Rationale: Gross profit margin is calculated as (Revenue - Cost of Goods Sold) /
Revenue. Reducing the cost of goods sold directly increases the gross profit
margin.
Question 3:
Which of the following is a characteristic of a strategic decision?
A) It is short-term and operational
B) It impacts the organization as a whole
C) It is made frequently
D) It focuses on day-to-day activities
Answer: B) It impacts the organization as a whole
Rationale: Strategic decisions are long-term, affect the entire organization, and
are focused on achieving competitive advantages and overarching goals.
Question 4:
Which of the following is an example of a business's external environment?
,A) Employee satisfaction
B) Organizational culture
C) Competitive landscape
D) Internal communications
Answer: C) Competitive landscape
Rationale: External factors such as the competitive landscape, market conditions,
and regulatory environment affect business operations and strategy.
Question 5:
A SWOT analysis includes all of the following except:
A) Strengths
B) Weaknesses
C) Opportunities
D) Trends
Answer: D) Trends
Rationale: SWOT analysis focuses on identifying internal strengths and
weaknesses and external opportunities and threats. Trends are not part of this
analysis.
Question 6:
Which financial statement provides information about a company’s profitability
over a specific period?
, A) Balance Sheet
B) Income Statement
C) Cash Flow Statement
D) Statement of Retained Earnings
Answer: B) Income Statement
Rationale: The income statement shows a company’s revenues, expenses, and
profits or losses over a specific period.
Question 7:
What does the term “liquidity” refer to in business finance?
A) The company’s profitability
B) The company’s ability to pay short-term obligations
C) The company’s overall debt levels
D) The company’s market share
Answer: B) The company’s ability to pay short-term obligations
Rationale: Liquidity refers to the ability of a company to meet its short-term
financial obligations using its current assets.
Question 8:
Which of the following strategies is typically used to enter international markets?
A) Divestiture
ASSESSMENT VERSION 1 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED RATIONALES
ANSWERS 2025(NEWEST) ALREADY GRADED A+
Question 1:
Which of the following is the primary function of management in an organization?
A) To create new products
B) To organize resources to achieve organizational goals
C) To maintain financial stability
D) To establish customer relationships
Answer: B) To organize resources to achieve organizational goals
Rationale: Management’s primary function is to organize resources efficiently and
effectively to achieve organizational goals. This includes planning, organizing,
leading, and controlling business activities.
Question 2:
A company’s gross profit margin can be improved by:
,A) Decreasing the cost of goods sold
B) Increasing operating expenses
C) Reducing the company’s revenue
D) Increasing the debt ratio
Answer: A) Decreasing the cost of goods sold
Rationale: Gross profit margin is calculated as (Revenue - Cost of Goods Sold) /
Revenue. Reducing the cost of goods sold directly increases the gross profit
margin.
Question 3:
Which of the following is a characteristic of a strategic decision?
A) It is short-term and operational
B) It impacts the organization as a whole
C) It is made frequently
D) It focuses on day-to-day activities
Answer: B) It impacts the organization as a whole
Rationale: Strategic decisions are long-term, affect the entire organization, and
are focused on achieving competitive advantages and overarching goals.
Question 4:
Which of the following is an example of a business's external environment?
,A) Employee satisfaction
B) Organizational culture
C) Competitive landscape
D) Internal communications
Answer: C) Competitive landscape
Rationale: External factors such as the competitive landscape, market conditions,
and regulatory environment affect business operations and strategy.
Question 5:
A SWOT analysis includes all of the following except:
A) Strengths
B) Weaknesses
C) Opportunities
D) Trends
Answer: D) Trends
Rationale: SWOT analysis focuses on identifying internal strengths and
weaknesses and external opportunities and threats. Trends are not part of this
analysis.
Question 6:
Which financial statement provides information about a company’s profitability
over a specific period?
, A) Balance Sheet
B) Income Statement
C) Cash Flow Statement
D) Statement of Retained Earnings
Answer: B) Income Statement
Rationale: The income statement shows a company’s revenues, expenses, and
profits or losses over a specific period.
Question 7:
What does the term “liquidity” refer to in business finance?
A) The company’s profitability
B) The company’s ability to pay short-term obligations
C) The company’s overall debt levels
D) The company’s market share
Answer: B) The company’s ability to pay short-term obligations
Rationale: Liquidity refers to the ability of a company to meet its short-term
financial obligations using its current assets.
Question 8:
Which of the following strategies is typically used to enter international markets?
A) Divestiture
