Final answer:
The correct keyboard shortcut for scaling and manipulating an embedded smart object in graphic design software like Adobe Photoshop is Ctrl + T, which activates the Free Transform tool.
Step-by-step explanation:
For designers working with Adobe Photoshop or similar graphic design software, resizing and manipulating a smart object that does not fit on the canvas can be accomplished using a keyboard shortcut. The correct shortcut is Ctr + T, which activates the Free Transform tool. This tool offers a variety of transformation options including scaling, rotating, and skewing the selected layer or object. With the Free Transform tool active, you can resize the smart object by dragging the corner handles. Hold down the Shift key while dragging to maintain the object's aspect ratio, or hold the Alt key (Option on Mac) to scale from the center.