The Difference Between a Distinctive Competence and a Core Competence

question 76

Multiple Choice

The difference between a distinctive competence and a core competence is that

• A) a distinctive competence refers to a company's best-executed functional strategy and a core competence refers to a company's best-executed business strategy.
• B) a distinctive competence refers to a company's most strategically important resource whereas a core competence refers to the basis of a company's competitive advantage over rivals.
• C) a distinctive competence is a competitively relevant internal activity that a firm performs especially well relative to other internal activities,whereas a core competence is a competitively important activity performed by key strategic allies.
• D) a distinctive competence represents internal activity that is performed with a very high level of proficiency whereas a core competence is a proficiently performed internal activity that is central to a company's strategy and competitiveness.
• E) a core competence usually resides in a company's technology and physical assets (state-of-the-art plants and equipment,attractive real estate locations,and so on)whereas a distinctive competence usually resides in a company's human capital,information capital,or organizational capital.

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Definitions:

Direct Method

A cash flow statement preparation method that lists major classes of gross cash receipts and payments.

Cash Receipts

The money received by a business from transactions, including sales, debt collections, and other cash inflows.

Cash Payments

Cash payments refer to transactions in which money is exchanged immediately for goods or services, without the use of credit.

Accounts Payable

Liabilities or money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.