An external threat to a company's future profitability does not include
A)the lack of a distinctive competence
B)new legislation that entails burdensome and costly government regulations
C)slowdowns in market growth
D)more intense competitive pressures
E)the introduction of restrictive trade policies in countries where the company does business

Question

Quizplus · Accepted Answer

An external threat refers to a factor outside of the company's control that may affect future profitability. The lack of a distinctive competence is an internal factor that the company can address and improve upon, therefore, it is not considered an external threat. Choices B, C, D, and E all represent external threats that could impact a company's profitability.

An External Threat to a Company's Future Profitability Does Not