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

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

• A. Informal organisation
• B. Corporate structure
• C. Formal organisation
• D. Organisational chart

Answer: (C)

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.