A Virtual Organization Is an Organization That Outsources Noncore Business

question 83

True/False

A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants.

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Definitions:

Operating Activities

The primary revenue-generating activities of a business, including the production, sales, and delivery of the company's products and services.

Investing Activities

Part of a company's cash flow statement that shows the cash spent on investments in capital assets and any cash received from the sale of those assets.

Equipment Account

A ledger account that tracks the purchase price, depreciation, and disposal of tangible assets such as machinery and equipment used in business operations.

Operating Activity

Business functions related to producing goods or services, which are reflected in the company's cash flow from operations.