The Major Advantage to the Virtual Organisation Is Its Flexibility

question 66

True/False

The major advantage to the virtual organisation is its flexibility.

---

Definitions:

Underwriting

Underwriting involves assessing the risk of insuring or financing and setting the appropriate terms and conditions for doing so. It is commonly used in insurance and banking.

Preemptive Rights

A stockholder’s right to maintain her proportionate ownership in a corporation. The stockholder has the right to buy a share of any newly issued stock that is proportionate to her fractional ownership of the company before the new issue. The right is not a matter of law but must be written into the corporation’s bylaws.

Proportionate Ownership

Ownership shares in a company or asset divided among investors in proportion to their investment.

Efficient Markets

A financial market hypothesis suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher-than-average returns.