Traves Inc., a transcription services company, manages all its core processes with a small team of highly skilled employees. However, it outsources five of its processes to contractors. This helps the company to lower its costs and have a high degree of flexibility. In this context, Traves Inc. is using a(n) _____ structure to carry out its functions.
A) matrix
B) bureaucratic
C) network
D) geographical
E) product

Question

Quizplus · Accepted Answer

Traves Inc. is using a network structure as it outsources five of its processes to contractors. This helps the company to lower its costs and have a high degree of flexibility, which is a characteristic of a network structure where tasks are performed by independent entities linked together through contracts and agreements.