1. Outsourcing has many potential advantages. Which of the following is NOT a potential advantage of outsourcing as a means to create an agile, virtual organization? Select one: A. It can lower costs incurred when the activity outsourced is done in-house. B. It can reduce the amount of capital a firm must invest in production or service capacity. C. The firm's managers and personnel can concentrate on mission-critical activities. D. Careful selection of outsource partners allows the firm to eliminate the need to learn and develop many of its abilities.

2. The _______ is one in which functional and staff personnel are assigned to both a basic functional area and to a project or product manager. Select one: A. functional structure B. ambidextrous structure C. divisional structure D. matrix structure

3. A ________ is one where there is an owner and usually a few employees where the arrangement of tasks, responsibilities, and communication is highly informal and accomplished through direct supervision. Select one: A. matrix structure B. functional structure C. strategic business unit D. simple organizational structure

4. Twenty-first-century corporations will increasingly see their structure become an elaborate network of external and internal relationships. This is known as: Select one: A. webbing. B. the agile organization. C. outsourcing. D. the virtual organization.