Farah is one of a handful of permanent employees at an e-retailing company that has little to no formal structure. Depending on the situation, temporary workers are hired and facilities are leased. Support services are outsourced to other firms. The organization that Farah works for is a:___________.

A virtual organization is a type of organization that has employees situated in several geographical locations, either on a temporary or permanent basis, who carry out its several production functions, and are usually dependent on electronic means of communication and executing production. A virtual organization really do not have any real formal structure. One of the major advantages of such organization is that it is cost saving.

Farah’s company is an example of a virtual organization.