Taxonomy Best Practices
All taxonomies should be set up on a per-site basis, and often sites will have multiple taxonomies applied to them. For example, if you have a Marketing site and a separate site for your product documentation, each would likely use its own taxonomy.
Each taxonomy should start with a "Home" category, whether that's named Company ABC Home, Marketing Site Home, etc. is up to you:

Maybe your site is going to have top-level navigation items or headers, with sub-pages within each (as is the case with most web sites). If this is the case, each of those main "headings" should be their own top level entries in your site's taxonomy. As you can see in the example above, this site would have top level headers for Products, Services, and News.
Within each taxonomy category, you can add sub-categories that will represent the drilled-down pages and categories in each of your main taxonomy categories. Let's say under products, you have Product A, Product B, and Product C. The products portion of your taxonomy should look like this:

Accordingly, if the Services portion of your site is broken down into Service A, Service B, and Service C, your taxonomy should look like this:

If in your News section, you offer press releases, a blog, and a company newsletter, you'd want that section of your taxonomy to look like this:

This same logic should be followed for any categories within your site.
When creating pages with which to fill these taxonomy categories, you'll want to start with a page of Content Type "Overview Index" as the basis for each taxonomy category.
Consulting the example above again, you'd create Overview Index pages for Products, Services, and News. You'd also have Overview Index pages within each sub-category, i.e. - a Product A Overview Index page, Product B Overview Index page, and so on.
When you reach single page entries in your site, for example, if Service A is broken down only into two sub-pages: Executive Consulting and Technical Consulting, those two pages would be represented by single pages of Content Type "Wiki Page" that would be associated with the Service A taxonomy category.
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