Which of the Following Is True About Virtual Organizations

question 78

Multiple Choice

Which of the following is true about virtual organizations?

• A) They create an imbalance in the employee's professional and personal life.
• B) They increase the cost of doing business.
• C) They allow flexibility in business.
• D) They require employees to be located geographically close to the organization.
• E) They are traditional organizations that depend less on information technology.

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Definitions:

Return On Assets Ratio

A financial metric measuring how efficiently a company generates profit from its assets, calculated as net income divided by total assets.

Return On Common Shareholders' Equity Ratio

A financial metric that measures the profitability attributable to shareholders by comparing net income to common equity.

Debt To Total Assets Ratio

A financial ratio that measures the percentage of a company's assets financed by creditors through debt, indicating financial leverage.

Leverage

The use of borrowed funds to increase the potential return of an investment.