When a company adapts its resources and capabilities in response to a changing environment, this is referred to as its?

The correct choice is dynamic capability. This term refers to a firm's ability to systematically adapt its resources and capabilities in response to changes in the external environment. Companies with strong dynamic capabilities can sense shifts in the market, seize opportunities, and reconfigure their resource base to maintain or improve their competitiveness.

In contrast, core competence refers to a unique strength or advantage that a company possesses relative to its competitors, often embedded in its processes and cultures. While core competencies can enhance a company's competitive position, they do not specifically address the company's adaptability to environmental changes.

Distinct competence is not a widely used term in this context. Instead, it can be seen as a combination or derivative of core competencies but lacks the nuance of adaptability.

Benchmarking is a process that involves comparing one's business processes and performance metrics to industry bests or best practices from other companies. While this might inform a company about necessary adjustments, it does not inherently involve the adaptation of resources and capabilities as a direct response to changing environmental factors.

Therefore, dynamic capability correctly captures the essence of a company's ability to respond and adapt effectively to an evolving marketplace.