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PRC-3 · Chapter 3 · Question 38 of 70

An online retailer has zero physical warehouses. It uses third-party manufacturers in China, an external marketing agency in the UK, and freelance customer service agents worldwide, all linked via cloud software. This is a:

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: A) Virtual organization

Explanation

Virtual organizations lack traditional physical boundaries and rely on IT networks and external independent contractors to perform core business functions.

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