Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following best describes virtual services?

1. Businesses with significant physical assets

2. Companies that operate solely in digital environments

3. Companies with a mix of physical and online presence

4. Businesses that have no physical assets but coordinate actions

The correct answer is: Businesses that have no physical assets but coordinate actions

The correct description of virtual services is that they refer to businesses that have no physical assets but coordinate actions. This definition captures the essence of virtual services, which operate in a purely digital environment, offering services or products without the need for a physical presence. These businesses leverage technology to provide offerings through platforms such as websites, apps, or other online interfaces. Virtual services are characterized by their ability to facilitate operations, customer interactions, and transactions without requiring traditional brick-and-mortar establishments. This model allows for flexibility, scalability, and often lower overhead costs compared to businesses that operate with physical assets. By coordinating actions, these companies can effectively respond to customer needs and market demands using digital tools, thereby creating value in an increasingly interconnected environment. In contrast, businesses with significant physical assets or those that rely on a mix of physical and online presence do not fit the virtual service model as closely. Similarly, while companies operating solely in digital environments might seem relevant, the emphasis on coordinating actions without physical assets distinguishes virtual services more accurately.