In the Context of the Primary Reasons for Vertical Integration

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