Which term describes the internal structure of a business as shown by an organisational chart?

Study for the Edexcel A-Level Business Test. Dive into flashcards and multiple-choice questions, each with helpful explanations. Elevate your exam readiness today!

Multiple Choice

Which term describes the internal structure of a business as shown by an organisational chart?

Explanation:
Formal organisation describes the internal structure defined by official roles, responsibilities, and reporting lines. An organisational chart visually maps this formal structure, showing who is in charge, who reports to whom, and how departments are arranged to coordinate activities. This is distinct from informal organisation, which comes from personal relationships and unwritten ways people work. Corporate structure relates more to ownership or legal setup, not the day-to-day hierarchy shown in the chart. So the term that matches what an organisational chart depicts is formal organisation.

Formal organisation describes the internal structure defined by official roles, responsibilities, and reporting lines. An organisational chart visually maps this formal structure, showing who is in charge, who reports to whom, and how departments are arranged to coordinate activities. This is distinct from informal organisation, which comes from personal relationships and unwritten ways people work. Corporate structure relates more to ownership or legal setup, not the day-to-day hierarchy shown in the chart. So the term that matches what an organisational chart depicts is formal organisation.

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