Disadvantages of the Virtual Network Approach Include

question 30

Multiple Choice

Disadvantages of the virtual network approach include:

• A) a lack of hands-on control.
• B) the possibility of losing an important part of the organization.
• C) weakened employee loyalty.
• D) all of these.
• E) a lack of hands-on control and weakened employee loyalty.

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Definitions:

Deficit

The amount by which expenditures exceed income or costs outstrip revenues, resulting in a negative balance.

Liquidation

The process of closing a business, selling its assets to pay off debts, and distributing the remaining assets to owners or shareholders.

Profit And Loss Percentages

Are critical figures that represent the percentage of profit or loss a business generates from its operations, relative to its revenues.

Final Cash Distribution

The last payment made to investors or shareholders, liquidating the remaining cash balance of an investment or fund.