The Virtual Corporation Form of Organization Can Have Disadvantages,including the Potential

question 39

Short Answer

The virtual corporation form of organization can have disadvantages,including the potential to ______ management's control over the corporation's activities and leave the corporation vulnerable to the opportunistic actions of partners,including cost increases,unintended "borrowing" of technical and other knowledge,and departure from the relationship at inappropriate times.

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Definitions:

Accounts Receivable

An asset that indicates amounts owed by customers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Payroll Payable

A liability account that represents the amount of money a company owes to its employees for wages earned but not yet paid.

Work-in-Process Inventory

Work-in-process inventory includes partially finished goods that are still in the production process at the end of an accounting period.