In the Context of Interorganizational Processes, Which of the Following

question 10

Multiple Choice

In the context of interorganizational processes, which of the following is a difference between modular organizations and virtual organizations?

• A) The composition of modular organizations is constantly changing, whereas the composition of virtual organizations is permanent.
• B) In modular organizations, outside organizations to which noncore business activities are outsourced are tightly linked to one central company, whereas virtual organizations work with some companies in a network alliance, but not with all.
• C) The working relationships between modular organizations and outside companies tend to be short and often temporary, whereas the relationships found among the virtual companies in a network alliance tend to be stable and long lasting.
• D) With modular organizations, the quality of work done by outside companies can be easily controlled, whereas with virtual organizations, it can be difficult to control the quality of work done by network partners.

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Definitions:

Net Wealth

The total assets owned by individuals, businesses, or nations, minus any liabilities owed.

Consumption

The total amount of goods and services consumed by households and individuals in an economy.

Consumption Function

An economic formula that depicts the relationship between total consumption and gross national income, indicating how income affects spending.

Future Expectations

Anticipations or predictions about the economy or financial markets based on current events or trends that can influence consumer and investor behaviors.