1Z0-900 · Question #95
Your customer is a very large organization spanning across multiple countries. Their legal requirements, Human Resource Policies, and Functional Currencies for Ledger are different for each country…
The correct answer is C. 1 Enterprise, 10 Divisions, where each division has its own legal entity and ledger. Option C is correct because a single enterprise is all that's needed to represent one organization globally - you don't need multiple enterprises just because you operate in multiple countries. Within that one enterprise, 10 divisions each with their own legal entity satisfies…
Question
Your customer is a very large organization spanning across multiple countries. Their legal requirements, Human Resource Policies, and Functional Currencies for Ledger are different for each country. Your customer wants to maintain 10 different companies in the system. Which combination meets this requirement?
Options
- A1 Enterprise, 10 Divisions, where each division has its own ledger with common legal entity across
- B10 Enterprises, 10 Divisions, where each division has its own legal entity and ledger
- C1 Enterprise, 10 Divisions, where each division has its own legal entity and ledger
- D10 Enterprises, 1 Division, where each division has 10 legal entities and 1 ledger
How the community answered
(58 responses)- A2% (1)
- B7% (4)
- C79% (46)
- D12% (7)
Explanation
Option C is correct because a single enterprise is all that's needed to represent one organization globally - you don't need multiple enterprises just because you operate in multiple countries. Within that one enterprise, 10 divisions each with their own legal entity satisfies the country-specific legal and HR policy requirements, and each division's own ledger supports a distinct functional currency per country.
Option A fails because sharing a single legal entity across all divisions means all 10 companies are legally treated as one - they cannot have separate legal requirements or HR policies under a common legal entity.
Option B fails because creating 10 separate enterprises is redundant and overly complex for one organization; enterprises are not the right structure to distinguish countries within the same company group.
Option D fails on two counts: again, 10 enterprises are unnecessary, and assigning only 1 ledger across 10 legal entities means you can only have one functional currency - directly contradicting the requirement for different currencies per country.
Memory tip: Use the mantra "One Org, One Enterprise - separate Legal Entities and Ledgers do the rest." Whenever a question involves one customer/organization (no matter how many countries), lock in 1 Enterprise, then multiply Legal Entities and Ledgers to match the country-level differences.
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