Which statement is true about a virtual organization?

• A. It uses remote working and IT-enabled communication
• B. It requires all staff to work in the same location
• C. It avoids any form of outsourcing
• D. It has no reliance on information technology

Answer: (A)

A virtual organization is defined by its use of information technology to connect people who aren’t in the same place, enabling them to work remotely. Because teams are spread across locations, coordination relies on digital tools—email, video conferencing, shared documents, cloud storage, and online project management—so work can flow as if everyone is part of one organization. That’s why the statement about remote working and IT-enabled communication is true.

Requiring everyone to work in the same location would contradict the whole idea of a virtual setup. Outsourcing isn’t a defining feature of virtual organizations—some use it, some don’t. And the organization does rely on information technology to function, so saying there is no IT is not accurate.