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:

Quantity-fixing Agreements

Arrangements among competitors to limit the amount of goods or services produced or supplied, in order to influence market prices or conditions.

Explicitly Colludes

A situation where companies or individuals openly agree to work together, often illegally, to manipulate prices or markets.

Price-and-quantity-fixing

Practices by which firms set the price and output levels to control market conditions, often regarded as anti-competitive.

Collusion

A secret or illegal cooperation or conspiracy, especially between firms, to deceive or gain an unfair advantage.