Which type of team operates with members in the same physical location?

The correct answer is co-located teams because this term specifically refers to teams whose members are situated in the same physical location. This arrangement facilitates direct, face-to-face communication, which can enhance collaboration and build stronger team dynamics. Co-located teams often benefit from immediate interactions, allowing for quicker decision-making and less miscommunication compared to teams that are not physically present together.

In contrast, distributed teams are composed of members who work in different locations, often relying on technology to communicate and collaborate. Virtual teams, a subset of distributed teams, operate entirely online with members who may never meet in person. Cross-functional teams include members from different departments or specializations but can exist in either co-located or distributed settings, depending on the organization's structure.

Understanding the dynamics of co-located teams helps to identify the advantages they have in terms of communication and teamwork compared to other team structures.