When an Organization Outsources Its Noncore Functions, Retains Control Over

question 36

Multiple Choice

When an organization outsources its noncore functions, retains control over its core business, and then arranges networks of specialists around that core that can be added to or subtracted from as needed, the business has adopted a:

• A) modular organizational structure.
• B) matrix organizational structure.
• C) virtual organizational structure.
• D) product organizational structure.

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Definitions:

Riskless Assets

Financial instruments that are considered to have a minimal risk of loss, often exemplified by government bonds or Treasury bills.

Risky Asset

An asset that has a significant degree of uncertainty in its future returns, including the possibility of losing some or all of the original investment.

Market Price

The actual selling price of a product or service in the marketplace at any given time, determined by supply and demand.

Tuition Bonds

Financial instruments issued by educational institutions to fund their operations and expansion, typically repaid from tuition revenues.