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:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects its receivables or the speed of debt collection from customers.

Average Account Receivables

The average amount of money owed to a company by its customers for goods or services delivered on credit.

Allowance Method

An accounting technique that estimates uncollectible accounts receivable as an expense, reducing the accounts receivable balance.

Outstanding Accounts Receivable

The amount of money owed to a company by its customers for goods or services delivered but not yet paid for.