Which One of the Following Is Inaccurate as Concerns a Distinctive

question 22

Multiple Choice

Which one of the following is inaccurate as concerns a distinctive competence?

• A) A distinctive competence is a competitively important activity that a company performs better than its competitors.
• B) A distinctive competence is typically less difficult for rivals to copy than a core competence.
• C) A distinctive competence can be a basis for sustainable competitive advantage.
• D) A distinctive competence can underpin and add real punch to a company's strategy.
• E) A distinctive competence gives a company competitively valuable capability that is unmatched by rivals.

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Deposit Insurance

Deposit Insurance is a protection scheme for bank depositors that guarantees the safety of deposits in member banks, up to a certain limit, in the event of a bank failure.

Moral Hazard

A situation in which one party is more likely to take risks because they do not have to bear the full consequences of their actions, often seen in insurance and finance.

Risk Aversion

A preference for lower risk investments, often reflecting an investor's reluctance to accept a high likelihood of losses.