An Organisational Structure Can Promote Economies of Scale for an Organisation

question 12

Multiple Choice

An organisational structure can promote economies of scale for an organisation if:

• A) services and back-office functions are performed for as wide a base as possible.
• B) each task is specialised and can only be performed by one person.
• C) workflows encourage duplication and overlap of tasks and functions.
• D) each department or area carries out its own administrative functions.
• E) the organisation has a large number of employees.

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Definitions:

Centimeter

A metric system unit of length, totaling one hundredth or 0.01 of a meter.

Weight

The force exerted by gravity on an object, proportional to its mass.

Liters

A metric unit of volume equal to 1,000 cubic centimeters or approximately 0.264 gallons.

Gram

A mass measurement in the metric system, equivalent to 0.001 of a kilogram.