Within the framework of QCD factorization (QCDF), we consider two different types of power correction effects in order to resolve the CP puzzles and rate deficit problems with penguin-dominated two-body decays of B mesons and color-suppressed tree-dominated π 0 π 0 and ρ 0 π 0 modes: penguin annihilation and soft corrections to the color-suppressed tree amplitude. We emphasize that the electroweak penguin solution to the B → Kπ CP puzzle via New Physics is irrelevant for solving the CP and rate puzzles related to tree-dominated decays. While some channels e.g. K − π + , K − ρ 0 , π + π − , ρ ± π ∓ need penguin annihilation to induce the correct magnitudes and signs for their CP violation, some other decays such as B − → K − π 0 , π − η, K − η andB 0 →K * 0 η, π 0 π 0 require the presence of both power corrections to account for the measured CP asymmetries. In general, QCDF predictions for the branching fractions and direct CP asymmetries ofB → PP,V P,VV decays are in good agreement with experiment. The predictions of pQCD and soft-collinear effective theory are included for comparison.