Which statement characterizes an extranet?

An extranet is best defined as a private network that connects a company with its external partners, such as suppliers, vendors, and customers. This type of network extends the company’s intranet to trusted individuals or organizations outside of its internal environment, allowing them to access specific resources or information.

This characteristic fosters collaboration and communication beyond the company’s internal structure while maintaining a level of security and control over the information shared. By using an extranet, businesses can streamline processes, facilitate project management, and strengthen relationships with partners, all while protecting sensitive data from unauthorized access.

Other options describe network types that do not align with how an extranet functions. For instance, a network limited to internal users refers solely to an intranet, while a public network accessible to all describes the internet. A network solely for employee use also pertains to an intranet, not to any form of external collaboration. Thus, the definition provided in the correct answer aligns perfectly with the fundamental purpose of an extranet.