ITIL 4 Foundation Practice Exam

What does the term capability refer to in an organizational context?

1. The level of financial resources available

2. The ability to carry out an activity

3. The infrastructure required for IT service management

4. The number of employees in an organization

The correct answer is: The ability to carry out an activity

In an organizational context, the term capability refers specifically to the ability to carry out an activity or perform a particular function effectively. This encompasses not just the availability of resources but also the skills, processes, and knowledge required to execute tasks efficiently. Capabilities are essential for delivering services and achieving strategic goals, as they determine how well an organization can respond to changes, implement processes, and provide value to its customers. This definition captures the essence of organizational capabilities, focusing on what can be achieved through a combination of people, processes, and tools. Each organization's distinct capabilities contribute to its competitive advantage and overall performance in the marketplace.