Which internal resource can provide a business with a competitive advantage?

Correct answer: A. A skilled and innovative workforce

  • A. A skilled and innovative workforce
  • B. A rival's advertising campaign
  • C. A national change in tax policy
  • D. A fall in foreign exchange reserves

Explanation

Employees' skills and innovative ability are internal resources that the firm can develop and use. The other options arise outside the firm's own control and belong to the external environment.

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About The Business Environment

Business environment includes the internal factors and external forces that affect business decisions, performance and survival. It covers customers, competitors, suppliers, government, technology, economic conditions, society, law and ecology, including the distinction between the microenvironment and the wider PESTLE environment.

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