Which statement best defines a capability?

Which statement best defines a capability?

• A. A cash asset held to cover expenses
• B. A brand identity in the market
• C. An ability to perform a task in an integrative manner toward the fulfillment of a firm's mission
• D. A standalone product line

Answer: (C)

A capability is the organization’s sustained ability to coordinate and apply resources and processes across functions to perform a task that advances the firm’s mission. It comes from routines, skills, and interdepartmental coordination, not from a single asset or a standalone offering. This makes it distinct from a cash asset (a financial resource), a brand identity (a market-facing asset), or a standalone product line (a specific offering). Therefore, the statement describing an integrative ability to perform a task toward the firm's mission best defines a capability.

A capability is the organization’s sustained ability to coordinate and apply resources and processes across functions to perform a task that advances the firm’s mission. It comes from routines, skills, and interdepartmental coordination, not from a single asset or a standalone offering. This makes it distinct from a cash asset (a financial resource), a brand identity (a market-facing asset), or a standalone product line (a specific offering). Therefore, the statement describing an integrative ability to perform a task toward the firm's mission best defines a capability.