Capital Budgeting Decision:
The decision that affects the size of assets, profitability, and competitiveness is the capital budgeting decision.

Definition:
Capital budgeting is the process of evaluating and selecting long-term investment projects to allocate financial resources in order to achieve the company's goals and objectives. It involves analyzing the potential return on investment (ROI) and the risks associated with various investment opportunities.

Impact on Size of Assets:
The capital budgeting decision determines the allocation of financial resources for acquiring new assets or expanding existing ones. By evaluating investment opportunities, financial managers can identify projects that will increase the company's asset base. For example, a company may decide to invest in new production machinery or acquire additional land and buildings. These investments will increase the size of the company's assets and its production capacity.

Impact on Profitability:
The capital budgeting decision also affects profitability. By carefully evaluating investment opportunities, financial managers can select projects that are expected to generate higher revenues and lower costs. For example, investing in new technology or research and development may lead to the development of innovative products or more efficient production processes, resulting in higher sales and cost savings. These investments can positively impact the company's profitability.

Impact on Competitiveness:
The capital budgeting decision plays a crucial role in determining a company's competitiveness in the market. By investing in projects that enhance product quality, improve customer service, or increase operational efficiency, a company can gain a competitive edge over its rivals. For example, investing in marketing and advertising campaigns can help a company increase its market share and attract more customers. These strategic investments can improve the company's competitive position in the industry.

Conclusion:
In conclusion, the capital budgeting decision has a significant impact on the size of assets, profitability, and competitiveness of a company. By carefully evaluating investment opportunities and selecting projects that align with the company's goals, financial managers can drive growth and enhance the company's overall performance.