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23. Which of the following is the correct sequence of creating business organizations? A. Departmental Structures → Organizational Structures → Legal Structures → Business Structures B. Organizational Structures → Departmental Structures → Business Structures → Legal Structures C. Business Structures → Departmental Structures → Legal Structures → Organizational Structures D. Legal Structures → Business Structures → Organizational Structures → Departmental Structures

User Josee
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Answer: D Legal structures – Business structure – Organizational structure – Departmental structure

Legal structure refers to the way a business will be formed - a sole proprietorship, partnership, LLP, LLC, or a C company.

Business Structure of a business is put in place once the legal structure is finalized. Once a legal structure is finalized the business structure should conform to the legal definition of a business structure. For eg. A partnership must be structured and made to operate in accordance with the laws that govern it

Organizational structures: refer to the line of hierarchy. It determines the line of command, and how roles, rights, powers and duties are established and co-ordinated. It also establishes how information flows among various levels of management.

Departmental structure : groups people into various groups according to their function – e.g. Production, Marketing, Finance, Human Resources etc.


User Ivan Vazhnov
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