An activity that a company has learned to perform with proficiency—a capability, in other words?

• A. Dynamic capability
• B. Core competence
• C. Competence
• D. Distinctive competence

Answer: (C)

A firm’s ability to perform a specific activity with proficiency is a competence. Competence is the learned skill or capability to do that activity well. In contrast, a capability is a broader notion—the overall capacity to mobilize people, processes, and technology to undertake a set of activities. Dynamic capabilities focus on adapting and reconfiguring these abilities over time, not just doing one task well. Core or distinctive competences refer to sets of capabilities that drive sustained competitive advantage, rather than a single learned activity. So the best fit for “an activity learned to perform with proficiency” is competence.