For a Core Competence to Be a Viable Basis for the Corporation

question 82

Multiple Choice

For a core competence to be a viable basis for the corporation strengthening a new business unit,there are three requirements.Which one of the following is not one of these requirements?

• A) The competence must help the business gain strength relative to its competition.
• B) The new business must be similar to existing businesses to benefit from a core competence.
• C) The new business must have an established large market share.
• D) The collection of competencies should be unique, so that they cannot be easily imitated.

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Definitions:

Equivalent Variation

A measure of economic welfare change, quantifying the amount of money needed to bring a consumer to a utility level before a price change.

Utility Function

In economics, a mathematical representation that quantifies an individual's preference for certain goods or services, aiming to predict choice behaviors.

Earrings

Jewelry worn on the earlobe or through another part of the ear, typically as a form of personal adornment.

Income

The monetary payment received by an individual or household from various sources like work, investments, or transfers, over a specified period.