WGU D366 - FINANCIAL STATEMENT
ANALYSIS. EXAM 2025 QUESTIONS AND
ANSWERS
PFF: Impact of Competitive Rivalry - ANS High rivalry can lead to price wars, reduced
profitability, and increased spending on advertising.
PFF: Impact of Threat of New Entrants - ANS High threat leads to increased competition,
lowering profitability for established firms.
PFF: Impact of Bargaining Power of Suppliers - ANS Powerful suppliers can raise input costs
or limit quality, squeezing industry profitability.
PFF: Impact of Bargaining Power of Buyers - ANS Strong buyer power can force firms to
lower prices, improve quality, or offer better terms.
PFF: Impact of Threat of Substitutes - ANS The presence of substitutes limits pricing power
and increases the need for differentiation.
VCA: Primary Activities - ANS Activities directly involved in creating and delivering a product
or service
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Page
VCA: Support Activities - ANS Provide essential support to the primary activities
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, VCA: Examples of Primary Activities - ANS Inbound Logistics, Operations, Outbound Logistics,
Marketing and Sales, Service
VCA: Examples of Support Activities - ANS Firm Infrastructure, Human Resource
Management, Technology Development, Procurement
EAF: Revenue Drivers - ANS Factors that directly contribute to generating revenue.
EAF: Cost Drivers - ANS Factors that influence the cost structure of a company.
EAF: Market Dynamics - ANS External economic factors that impact an organization's
performance.
EAF: Capital Allocation - ANS How financial resources are allocated within the company to
optimize returns.
EAF: Risk Factors - ANS Elements that create potential uncertainties or threats to economic
outcomes.
EAF: Efficiency and Productivity - ANS How efficiently resources are used to produce goods
or services.
EAF: Examples of Revenue Drivers - ANS Pricing strategies, sales volume, product mix,
market demand
EAF: Examples of Cost Drivers - ANS Production costs, labor expenses, supply chain
efficiency, economies of scale
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Page
@COPYRIGHT @THEBRIGHT 2025/2026
, EAF: Examples of Market Dynamics - ANS Market competition, consumer preferences,
industry trends, economic cycles
EAF: Examples of Capital Allocation - ANS Investments in technology, marketing, research
and development, expansion
EAF: Examples of Risk Factors - ANS Interest rate fluctuations, foreign exchange risk,
geopolitical risks, operational risks
EAF: Examples of Efficiency and Productivity - ANS Labor productivity, process optimization,
technological advancements
Direct Rivals - ANS A form of Horizontal Competition where Companies that produce or sell
similar products or services and target the same customer base.
Market Share Battles - ANS A form of Horizontal Competition where Companies aim to
outperform each other by gaining a larger share of the market.
Product Differentiation - ANS A form of Horizontal Competition where Firms compete by
offering unique features, branding, or customer service to stand out.
Pricing Strategies - ANS A form of Horizontal Competition where Companies often lower
prices to attract customers, which can lead to price wars.
Supplier-Buyer Power Struggle - ANS 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.
3
Page
@COPYRIGHT @THEBRIGHT 2025/2026
ANALYSIS. EXAM 2025 QUESTIONS AND
ANSWERS
PFF: Impact of Competitive Rivalry - ANS High rivalry can lead to price wars, reduced
profitability, and increased spending on advertising.
PFF: Impact of Threat of New Entrants - ANS High threat leads to increased competition,
lowering profitability for established firms.
PFF: Impact of Bargaining Power of Suppliers - ANS Powerful suppliers can raise input costs
or limit quality, squeezing industry profitability.
PFF: Impact of Bargaining Power of Buyers - ANS Strong buyer power can force firms to
lower prices, improve quality, or offer better terms.
PFF: Impact of Threat of Substitutes - ANS The presence of substitutes limits pricing power
and increases the need for differentiation.
VCA: Primary Activities - ANS Activities directly involved in creating and delivering a product
or service
1
Page
VCA: Support Activities - ANS Provide essential support to the primary activities
@COPYRIGHT @THEBRIGHT 2025/2026
, VCA: Examples of Primary Activities - ANS Inbound Logistics, Operations, Outbound Logistics,
Marketing and Sales, Service
VCA: Examples of Support Activities - ANS Firm Infrastructure, Human Resource
Management, Technology Development, Procurement
EAF: Revenue Drivers - ANS Factors that directly contribute to generating revenue.
EAF: Cost Drivers - ANS Factors that influence the cost structure of a company.
EAF: Market Dynamics - ANS External economic factors that impact an organization's
performance.
EAF: Capital Allocation - ANS How financial resources are allocated within the company to
optimize returns.
EAF: Risk Factors - ANS Elements that create potential uncertainties or threats to economic
outcomes.
EAF: Efficiency and Productivity - ANS How efficiently resources are used to produce goods
or services.
EAF: Examples of Revenue Drivers - ANS Pricing strategies, sales volume, product mix,
market demand
EAF: Examples of Cost Drivers - ANS Production costs, labor expenses, supply chain
efficiency, economies of scale
2
Page
@COPYRIGHT @THEBRIGHT 2025/2026
, EAF: Examples of Market Dynamics - ANS Market competition, consumer preferences,
industry trends, economic cycles
EAF: Examples of Capital Allocation - ANS Investments in technology, marketing, research
and development, expansion
EAF: Examples of Risk Factors - ANS Interest rate fluctuations, foreign exchange risk,
geopolitical risks, operational risks
EAF: Examples of Efficiency and Productivity - ANS Labor productivity, process optimization,
technological advancements
Direct Rivals - ANS A form of Horizontal Competition where Companies that produce or sell
similar products or services and target the same customer base.
Market Share Battles - ANS A form of Horizontal Competition where Companies aim to
outperform each other by gaining a larger share of the market.
Product Differentiation - ANS A form of Horizontal Competition where Firms compete by
offering unique features, branding, or customer service to stand out.
Pricing Strategies - ANS A form of Horizontal Competition where Companies often lower
prices to attract customers, which can lead to price wars.
Supplier-Buyer Power Struggle - ANS 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.
3
Page
@COPYRIGHT @THEBRIGHT 2025/2026
