In the Context of the Primary Reasons for Vertical Integration

question 64

Multiple Choice

In the context of the primary reasons for vertical integration in companies, what do capabilities refer to?

• A)Whether a company has the finances to handle and overcome organizational criticism
• B)Whether a company knows when it should establish and exercise strict rules and regulations
• C)Whether a company can economize on scarce inputs in order to reduce transaction costs
• D)Whether a company has the right resources to perform an activity better than other firms

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Definitions:

Benchmarking

The act of evaluating one's business operations and performance indicators against the industry's highest standards or the exemplary practices of other organizations.

Planning Technique

A method or approach used in the formulation of plans to achieve desired outcomes or objectives.

Verifiable Work

Tasks or projects that can be substantiated or confirmed, often relevant in contexts where proof of performance or achievement is required.