Typically a Switch operates at layer 2 of the OSI model. However, small organizations, such as a SOHO, can purchase a switch that also interprets Layer 3 data and works much like a router. What is this device called

Layer 3 switch.

Explanation:

A layer 3 switch carrys out both the function of a switch and a router. It acts as a switch that links all the devices that are on the same subnet or virtual LAN at lightning speeds and has IP routing intelligence built into it to carry out the function of a router. It can support routing protocols, check incoming packets, and can also carry out routing decisions based on the source and the destination addresses.

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