Final answer:
Benchmarking is the process by which products and services of a business entity are measured and evaluated relative to the best possible levels of performance.
Step-by-step explanation:
The process by which products and services of a business entity are measured and evaluated relative to the best possible levels of performance is called benchmarking. Benchmarking involves identifying the best practices or performance levels in a particular industry and comparing one's own performance against them. It helps businesses identify areas for improvement and develop strategies to achieve better performance.