Question

Which of the following statements regarding a virtual structure are true?

Firms can save money they would have spent on real estate.
Members are geographically apart.
Companies can tap a wider talent pool not limited by geography.
a) Only the first statement is true.
b) Only the second statement is true.
c) Only the third statement is true.
d) All of the statements are true.

Answer 1

All statements regarding a virtual structure are true: companies can save on real estate costs, team members can be geographically dispersed, and businesses can access a wider talent pool unrestricted by geographic boundaries.

Step-by-step explanation:

The concept of a virtual structure in business refers to an organizational setup where employees and processes are not confined to a physical location but are distributed across various locations, often globally.

Reviewing the provided statements:

1. Firms can save money they would have spent on real estate – True. By not having a centralized physical office, companies can reduce overhead costs associated with real estate.
2. Members are geographically apart - True. A virtual structure often means that team members are working remotely and can be located in different regions or countries.
3. Companies can tap a wider talent pool not limited by geography - True. Without the constraints of location, businesses can hire the best candidates regardless of where they are based.

Therefore, the answer is (d) All of the statements are true.