Because of Financial Problems in the Organization, the Top Management

question 95

Multiple Choice

Because of financial problems in the organization, the top management of an investment bank decides to lower costs and downsize the business by

• A)insourcing.
• B)restructuring.
• C)task assessment.
• D)empowerment.
• E)delegation.

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Definitions:

Average Total Costs

The total cost of production divided by the quantity of output produced; a measure of cost per unit of output.

Scale of Operations

The scope, size, or capacity at which a company or organization performs its activities, impacting costs, efficiency, and potential for growth.

Economies of Scale

Reductions in per-unit cost that organizations achieve through expanded production scales, where larger output volumes usually mean decreased costs per unit.

Long-run Average Total Cost

The average cost per unit of output when all inputs, including capital, can be varied, and economies of scale are accounted for.