Which is an example of a core competence?

• A. IT
• B. Marketing
• C. External auditing
• D. Qualified accountants

Answer: (D)

A core competence is a unique, valuable capability that gives a company a sustained competitive advantage and is hard for others to copy. The expertise and professional capability of qualified accountants fit this idea: a team with strong accounting qualifications brings deep technical knowledge, judgment, ethical standards, and effective governance processes that underpin high-quality financial reporting and strategic advice. This combination is not easily replicated by rivals, making it a distinctive strength for the firm.

Generic functions like IT, Marketing, or external auditing are important and common across many firms, but they don’t by themselves provide a unique advantage because they’re widely available and interchangeable.