Correct Answer: E
Explanation:
Option A : Since benchmarking against competitors would yield few new practices, it would be better to benchmark against non competitors.
Option B : If information about competitors is hard to obtain, benchmarking against non competitors is preferable.
Option C : Since bench marking against non competitors would yield practices useful in beating competitors,
bench marking against non competitors is preferable.
Option D : If managers are more likely to adopt new practices learned from bench marking against non competitors, then this technique is preferable.
Option E : Correct. This statement properly identifies the rationale that supports a company's bench marking against its competitors.
The correct answer is E.