Which method is right  for creating directory

Hi all
whenever we create directory for oracle 11g during installtion
we have two method from documents
which method is right
Create the directories in which the Oracle software will be installed:
mkdir -p /u01/app/oracle/product/11.1.0/db_1
chown -R oracle:oinstall /u01
chmod -R 775 /u01
or
Create the directories in which the Oracle software will be installed:
mkdir -p /u01/app/oracle
chown -R oracle:oinstall /u01
chmod -R 775 /u01

ORACLE_BASE is a base directory which is owned by oracle user. The software itself is installed in ORACLE_HOME. When you create ORACLE_HOME it creates you also ORACLE_BASE. That's the way to go. If you don't have ORACLE_HOME created Oracle Universal Installer might complain or fail.

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