Which of the following is true of virtual organizations?
A) Their operating costs are significantly higher than that of traditional organizations.
B) The outside organizations a company does its businesses with are tightly linked to the central company.
C) They develop employee capabilities throughout a company.
D) They use a broker to create and assemble the knowledge, skills, and resources from different companies for customers.

Question

Quizplus · Accepted Answer

Virtual organizations use a broker model to assemble knowledge, skills, and resources from different companies in order to provide services or products to customers. Option A is incorrect because virtual organizations tend to have lower operating costs due to the use of technology, and not needing physical office spaces. Option B is incorrect because virtual organizations can have outside organizations from all over the world, and they are not necessarily tightly linked to the central company. Option C is incorrect because virtual organizations tend to have a smaller core group of employees and rely heavily on partnerships and outsourcing.

Which of the Following Is True of Virtual Organizations