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Say for example there is a computer services company which operates desktop division as a seperate organisation and laptop division as a seperate org so that they dont want other org data to be viewed on this org.
Then comes the multi-org setup, where in with a single apps instance. We can manage two orgs.
Say for one set of business users, when they login they will only access desktop data and not the laptop
And for other set of business users its the viceversa.
Hope this throws some pointers