When a firm is able to integrate its resources and complete important tasks, the firm is said to possess
A) competitive advantage
B) capabilities
C) economic incentives
D) effective performance appraisal practices

Question

Quizplus · Accepted Answer

When a firm is able to integrate its resources and complete important tasks, it is said to possess capabilities. These are the abilities of a firm to coordinate, integrate, and leverage its resources to achieve a competitive advantage. Therefore, option B is the best choice. Option A is incorrect because competitive advantage refers to the distinctive edge a firm has over its competitors. Option C is incorrect because economic incentives refer to the rewards given to induce individuals or firms to engage in a particular activity. Option D is incorrect because effective performance appraisal practices refer to the process of evaluating an individual's work performance.

When a Firm Is Able to Integrate Its Resources and Complete