In the Context of Interorganizational Processes, Which of the Following

question 79

Multiple Choice

In the context of interorganizational processes, which of the following is a disadvantage of modular organizations?

• A) They cost significantly more to run than traditional organizations because of the addition of outsourcing costs to their fixed costs.
• B) They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
• C) They are slow because members cannot combine their efforts to meet customers' needs.
• D) They are unstable and have temporary relationships in a network alliance.

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Definitions:

Variance

Variance is a measure of the dispersion of a set of data points from their mean, indicating how spread out the data points are.

Geometric Mean

A type of mean or average which indicates the central tendency of a set of numbers by using the product of their values.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Geometric Mean

A type of mean or average, which indicates the central tendency of a set of numbers by using the product of their values and is particularly useful for proportional growth rates.