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I am in the process of creating a new database and moving old data into it. I would like to create Business Objects for the new system and looking at the old system, it looks like the objects are based on the tables in the old database. Is this the correct way to create business objects?
A properly normalized database will look nothing like a proper object-oriented design. The needs of a database are very different from the needs of a software application.
You should design your application according to the requirements for how it is to be used. What sorts of things is the application supposed to do? What objects will be required to support those needs? And what are the natural relationships between them?
A single business object may be stored across a dozen database tables, or a single table may store data for a dozen objects. It really depends on the specifics of the system you are working with.