Casey, in comments, asked:
Should a manuscript be broken down by chapter or should it be one continuous story?
It depends on the kind of story. Gabriel García Márquez, in The Autumn of the Patriarch, wrote his novel in four "chapters" that are also four paragraphs. Every chapter is one unbroken stream of prose.
The maestro can get away with that, but we ordinary humans would be silly to try it. (You still ought to read everything he ever wrote, if only so you can feel what it's like to have a genius inhabit your brain.)
I'm going to try to answer Casey's question in a slightly strange way, so bear with me.
The basic direction of any story is from ignorance to awareness—often a very sudden awareness, the "shock of recognition" that makes you say "Aha!" or "Oh my God!" We start out knowing nothing about the characters and their predicament, but every scene—every paragraph, every sentence, every word—adds to our understanding and prepares us for the next revelation.
We know more at the end of a sentence than we did at the beginning. In effect, we say "Aha!" or "Oh my God!" after every sentence. The same with a paragraph, and with a scene. A chapter generally contains one or more scenes, and each scene tells us (and the characters) more about the situation.
Sometimes we're way ahead of the characters, because we know more about them than they know about themselves. At other times, we still haven't learned enough to make sense of what the characters are doing, so we keep reading to learn more.
A chapter is a kind of mini-novel, where we and the characters start out relatively ignorant. By the end of the chapter, we (and maybe the characters) have learned a lot—especially about the predicament the characters are in. Knowing what we've learned, we also know how much more we and the characters have to learn before they succeed or fail in their endeavours. So we plunge into the next chapter, ignorant all over again.
So chapters are convenient ways to break up a story, and to emphasize some problems over others. The problem at the end of a chapter is more serious than the problem in that chapter's first scene. When we go into the next chapter, we know the stakes have been raised, and the cost of failure will be higher.
But the length of the chapter is up to you. Kurt Vonnegut wrote bite-size chapters, maybe just a page or two long, and each chapter ends like a punch in the nose. Other writers are comfortable with much longer chapters. My novels seem to break naturally into chapters of around 5,000 words, but that's just me.
So if you want to use chapters as organizing units of your story, end them when your characters have come to some crisis in their lives—when they understand more clearly just what a jam they're in.