A virtual company:
A) uses networks to link people, assets, and ideas enabling it to ally with other companies to create and distribute products and services without being limited by traditional organizational boundaries or physical locations.
B) uses Internet technology to maintain a virtual storefront.
C) uses Internet technology to maintain a networked community of users.
D) provides entirely Internet-driven services, or virtual products.
E) is an example of the law of diminishing returns.

Question

Quizplus · Accepted Answer

A virtual company uses networks to leverage resources and collaborate with other companies, which allows it to operate without traditional boundaries or physical locations. This enables it to create and distribute products and services more efficiently and effectively. Virtual companies are not necessarily limited to Internet technology, which is the focus of options B and C. Option D is too narrow as virtual companies may also provide physical products. Option E is not applicable as the law of diminishing returns does not apply to virtual companies.

A Virtual Company