Final Answer:
A virtual organization is a small, core organization that outsources major business functions. Option B is the answer.
Step-by-step explanation:
A virtual organization is characterized by its small, centralized core that relies heavily on outsourcing for major business functions. This structure allows the organization to stay lean and flexible while leveraging external expertise and resources. In contrast, a centralized organization maintains control and decision-making within its core, whereas a bureaucratic organization is characterized by a hierarchical and rule-driven structure.
The matrix organization involves a dual reporting structure, and a simple organization typically has a flat and informal structure. Therefore, the most fitting description for an organization that outsources major functions while maintaining a small core is a virtual organization.
Option B is the answer.