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.

Question

Quizplus · Accepted Answer

By performing services and back-office functions for as wide a base as possible, an organisational structure can take advantage of economies of scale. This means that costs can be spread over a larger number of units, resulting in a lower average cost per unit.

An Organisational Structure Can Promote Economies of Scale for an Organisation