The chief executive officer (CEO)of Ecos Inc., a well-established firm in the real estate industry states that the firm has the resources to outperform its competitors. In the context of reasons for vertical integration, the CEO is referring to the firm's _________.
A)control
B)priorities
C)capabilities
D)coordination

Question

Quizplus · Accepted Answer

Capabilities refer to the firm's ability to perform certain activities or tasks better than its competitors. By stating that the firm has the resources to outperform its competitors, the CEO is essentially saying that the firm has better capabilities than its competitors, which is a potential reason for vertical integration. The other options (control, priorities, coordination) are not directly related to the concept of vertical integration.

The Chief Executive Officer (CEO)of Ecos Inc