Imagine that you own a small coffee shop and you are considering expanding your business through one or more options. One option is to merge with the gift shop next door. Another option is to purchase the bakery from which you buy pastries to sell to your customers along with their coffee and tea. Yet another option is to open another coffee shop in a different neighborhood.
You decide to purchase the bakery and continue to allow the current manager to run that business. However, you will order supplies and handle accounting for both the coffee shop and bakery in a central office.
What type of corporate-level decision is this?

a) Scope of business
b) Organizational design
c) Ownership

The correct answer is letter "B": Organizational design.

Explanation:

Corporate-level decisions influence the direction of the company. Such choices will decide the scope of the business or which ventures the company will invest in. Corporate decision-making also involves the organizational internal design and resource allocation.

Assigning positions and responsibilities in an firm is part of the organizational design which can be made in corporate decision-making.

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