PRC-3 · Chapter 3 · Question 65 of 70
A fashion brand employs only three people full-time. They use independent external companies to manufacture the clothes, handle IT, and run their marketing, connecting everyone via cloud software. This firm is a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Virtual organization
Explanation
A virtual organization lacks traditional physical boundaries and relies heavily on IT to coordinate a network of independent external contractors to perform core functions.
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