Which of the following is an important decision to be made while designing a business organization?

• A. Selecting the company's advertising agency
• B. Determining the organizational structure (e.g., functional, divisional, matrix)
• C. Choosing the color scheme for the company's logo
• D. Setting the company's product pricing strategy

Answer: (B)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about an important decision in designing a business organization, which involves foundational aspects of how the organization operates and is structured.
2. Eliminate irrelevant options: Selecting the company's advertising agency and choosing the color scheme for the company's logo are not foundational decisions for designing the organization. These are more related to marketing and branding rather than organizational design.
3. Consider the role of organizational structure: Determining the organizational structure (e.g., functional, divisional, matrix) is a critical decision because it defines how tasks, responsibilities, and authority are distributed within the company. This impacts communication, efficiency, and overall operations.
4. Evaluate the remaining options: Setting the company's product pricing strategy is important but is more related to marketing and sales rather than the structural design of the organization.
5. Conclude that determining the organizational structure is the most relevant and foundational decision in designing a business organization, as it directly influences how the company operates and achieves its goals.