Final answer:
System capacity and location of facilities are examples of systems design decisions, which are strategic decisions with long-term impacts, involving investment strategies and financial assets such as early-stage investments, reinvesting profits, borrowing, or selling stock.
Step-by-step explanation:
System capacity and location of facilities are examples of systems design decisions. These are decisions that determine the physical arrangement, processes, and equipment needed for production. They involve the consideration of how and where a company's products or services are produced and what infrastructure is required to support these operations. System capacity refers to the amount of goods and services that a system can produce over a set period of time, while location of facilities involves where to place new facilities for optimal production and distribution efficiency. Both of these decisions have a long-term strategic impact on the firm's operational capabilities and financial health.
Such decisions typically encompass the firm's capital investment strategies since they involve spending money in the present to earn profits in the future. This could include purchasing a new machine, building a new plant, or initiating research and development projects. To fund these investments, firms can use various financial assets through investment strategies such as acquiring funds from early-stage investors, reinvesting profits, borrowing, or selling stock. A cost/benefit analysis often plays a crucial role in guiding these decisions by weighing the potential costs and benefits.