Question

Which of the following is false about virtual organisations?A. Costs are lower due to lower investment in assets. B. Negotiating revenue or profit sharing agreements with all the different partner organisations is easy. C. Many functions are outsourced to other organisations. D. There is a small central core of staff.

Answer 1

The false statement about virtual organisations is that negotiating revenue or profit sharing agreements with different partner organisations is easy. It is actually a complex process due to the intricate relationships and interests involved.

Step-by-step explanation:

The statement that is false about virtual organisations is: B. Negotiating revenue or profit sharing agreements with all the different partner organisations is easy. Virtual organizations typically face challenges when it comes to revenue and profit sharing agreements due to the complexities involved in coordinating with numerous partners, each with their own interests and expectations. While these types of organisations do often have lower costs due to a reduced investment in physical assets and a small core of staff, and while they tend to outsource many functions to other organisations, the assertion that it is easy to negotiate profit sharing is misleading. The nature of these agreements can be quite intricate and require careful negotiation to ensure that all parties feel they are receiving fair compensation.