Final answer:
The statement is true; corporate strategy deals with determining the business domains a company will participate in and how it will allocate its resources to those domains.
Step-by-step explanation:
The key decisions and plans in corporate strategy indeed address the question: What business are we in and how will we allocate resources among these businesses? This is absolutely true.
Corporate strategy involves making choices about where to compete and determining the allocation of resources to sustain the chosen competitive position. It is critical for firms to define their scope of operations and to decide how to use their limited resources, such as capital, labor, and technology, to ensure the most effective presence in their respective markets.
Moreover, these decisions also include trade-offs, as companies must balance their actions against the backdrop of market competition and resource scarcity. The goal is to maximize shareholder value while considering the dynamics of private and public firm management, stock issuance, dividend payments, and reinvestment of profits.