What type of list is used to define a hierarchy in business object management?

Cascading LOVs (List of Values) are utilized to define hierarchies in business object management because they allow for a dependent relationship between lists. When a user selects an item from a primary list, it filters the subsequent list based on that selection. This cascading nature is essential in representing hierarchical data, as it enables the dynamic display of related items in a structured and logical manner.

In practical scenarios, this means that the first selection narrows down the choices available in the second list, effectively creating a tiered structure that reflects the defined hierarchy. For instance, if a user selects a specific category, the cascading LOVs will show only the relevant subcategories or items that belong to that category, shaping the hierarchy in an intuitive way.

This cascading functionality supports better data management and enhances user experience by minimizing errors in selection and promoting clarity in navigating hierarchical data structures. Other options, such as sequential lists, flat lists, and grouped values, do not present a systematic way to define or navigate hierarchies, as they either provide information in a non-dependent manner or group data without establishing the necessary relationships for a hierarchical organization.