Online MBA Degree Basics : Are online MBA degrees respectable?
This question deserves a qualified “yes.” There are two main factors in determining a business school’s respectability: accreditation and reputation. Online MBA programs that are accredited by the proper agencies should be respected by your future employers and colleagues. However, there are many unaccredited or “diploma mill” programs that give out worthless degrees. Avoid them at all costs.
A school with a good reputation can also add respectability to an online MBA degree. Much like law schools, business schools receive rankings from organizations such as Business Week (off-site link) that can affect future employment. Online students may not be offered the same high-paying, big corporation jobs that graduates from top-ranked schools such as Wharton are. However, there are plenty of companies willing to hire MBA grads with degrees from other institutions.
Source: http://distancelearn.about.com/od/onlinecourses/a/OnlineMBA.htm
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