Shortcoming that constitute competitive liabilities.

Shortcoming that constitute competitive liabilities.

• A. Strengths
• B. Distinctive competence
• C. Weaknesses
• D. Core competence

Answer: (C)

The idea being tested is identifying internal elements that hurt a firm’s standing—things that hold the business back relative to competitors. These are weaknesses, the internal limitations a company has in capabilities, resources, or processes that can be exploited by rivals. Strengths, distinctive competence, and core competence all describe positive, advantageous attributes or capabilities the firm can leverage to win, not deficiencies. So a shortcoming that acts as a liability in competition fits the term weaknesses best.

The idea being tested is identifying internal elements that hurt a firm’s standing—things that hold the business back relative to competitors. These are weaknesses, the internal limitations a company has in capabilities, resources, or processes that can be exploited by rivals. Strengths, distinctive competence, and core competence all describe positive, advantageous attributes or capabilities the firm can leverage to win, not deficiencies. So a shortcoming that acts as a liability in competition fits the term weaknesses best.