ICSI Notes: Business Correspondence | Business Communication for CSEET PDF Download

 Page 1


109
Business Communication
BUSINESS  
CORRESPONDENCE
LESSON 3
Page 2


109
Business Communication
BUSINESS  
CORRESPONDENCE
LESSON 3
110
CSEET Reference Reading Material - I Business Communication
INTRODUCTION
When you speak, you can smile, and the listener can see your smile. Regardless of your choice of 
words, the listener recognises that you wish to be pleasant in conveying your message. You can also 
watch your listener and change your approach if you see any favourable reactions. A person reading 
a letter cannot see your smile, hear your voice, or observe your gestures. The message is complete 
when it leaves your hands; you can’t change your approach if the reader reacts unfavourably. Thus 
there is a need to draft a business letter very carefully.
A business letter is usually a letter from one business entity to another, or between such organizations 
and their customers or clients and other related parties. The overall style of the letter depends on the 
purpose of the letters and relationship between the parties concerned. A business letter is sometimes 
useful because it produces a permanent written record, and may be taken more seriously by the 
recipient than other forms of communication.
It is a known fact that rules exist for business letter writing, as some typically posed questions are: How 
should I end this type of letter? ,What is the rule for addressing a person you don’t know?, How should 
this offer be laid out?, and many alike. Over a period of time, the norms, or conventions, for drafting 
a business letter have been stabilized. But still, the writer of a letter has a lot of discretion at his end to 
word and style the letter. In the following chapter, we would discuss the standard form and contents of 
a business letter, style of writing it, and tips for writing good business letters.
Note that the today’s business letters with their conversational tone and the application of psychology 
are a big improvement over the letter of bygone days.
The Essentials of a Good Business Letter
In spite of the latest technological advancements, the importance of a business letter has not been 
reduced. Rather we witness that most of the softwares are available for helping and guiding for 
producing an effective business letter. In any case, they are the only tools and may be used if necessary. 
However, we must understand the mechanical details of a business letter.
Letterhead
Letterhead, along with other printed materials 
like business cards and brochures, are a visual 
representation of any business. A letterhead 
is the printed stationery, which carries the 
essential information about the company or 
the organisation. Since the first contact with a 
company is usually made through its letterhead, 
companies spend considerable time, effort and
 • Company logo
 • Tag line
 • Name and address of Registered Office, 
Corporate Office
 • Contact numbers
 • E-mail address of the company
money on getting it designed. A letterhead generally carries a company logo, tagline, the name and 
address of the registered office, corporate office of the company, Corporate Identity Number (CIN) 
and its contact numbers and website and e-mail addresses of the company. Sometimes the letterhead 
carries the addresses of the various offices of the company like in case of bank, the letterhead of 
branch office caries the branch office address and contact details.
Page 3


109
Business Communication
BUSINESS  
CORRESPONDENCE
LESSON 3
110
CSEET Reference Reading Material - I Business Communication
INTRODUCTION
When you speak, you can smile, and the listener can see your smile. Regardless of your choice of 
words, the listener recognises that you wish to be pleasant in conveying your message. You can also 
watch your listener and change your approach if you see any favourable reactions. A person reading 
a letter cannot see your smile, hear your voice, or observe your gestures. The message is complete 
when it leaves your hands; you can’t change your approach if the reader reacts unfavourably. Thus 
there is a need to draft a business letter very carefully.
A business letter is usually a letter from one business entity to another, or between such organizations 
and their customers or clients and other related parties. The overall style of the letter depends on the 
purpose of the letters and relationship between the parties concerned. A business letter is sometimes 
useful because it produces a permanent written record, and may be taken more seriously by the 
recipient than other forms of communication.
It is a known fact that rules exist for business letter writing, as some typically posed questions are: How 
should I end this type of letter? ,What is the rule for addressing a person you don’t know?, How should 
this offer be laid out?, and many alike. Over a period of time, the norms, or conventions, for drafting 
a business letter have been stabilized. But still, the writer of a letter has a lot of discretion at his end to 
word and style the letter. In the following chapter, we would discuss the standard form and contents of 
a business letter, style of writing it, and tips for writing good business letters.
Note that the today’s business letters with their conversational tone and the application of psychology 
are a big improvement over the letter of bygone days.
The Essentials of a Good Business Letter
In spite of the latest technological advancements, the importance of a business letter has not been 
reduced. Rather we witness that most of the softwares are available for helping and guiding for 
producing an effective business letter. In any case, they are the only tools and may be used if necessary. 
However, we must understand the mechanical details of a business letter.
Letterhead
Letterhead, along with other printed materials 
like business cards and brochures, are a visual 
representation of any business. A letterhead 
is the printed stationery, which carries the 
essential information about the company or 
the organisation. Since the first contact with a 
company is usually made through its letterhead, 
companies spend considerable time, effort and
 • Company logo
 • Tag line
 • Name and address of Registered Office, 
Corporate Office
 • Contact numbers
 • E-mail address of the company
money on getting it designed. A letterhead generally carries a company logo, tagline, the name and 
address of the registered office, corporate office of the company, Corporate Identity Number (CIN) 
and its contact numbers and website and e-mail addresses of the company. Sometimes the letterhead 
carries the addresses of the various offices of the company like in case of bank, the letterhead of 
branch office caries the branch office address and contact details.
111
Business Communication Lesson 3 - Business Correspondence
A Letterhead generally carries:
Reference Number
A reference number helps us in retrieving the letter at a later stage. It may contain the initials of the letter 
writer, the department from which the letter originates, and the distinctive number allotted to it. It is for 
an organisation to decide what the contents of a reference number should be. Some business letters 
show the reference numbers of both the correspondents or display printed pre- numbered stickers for 
the purpose.
Date
The date must be written in full without abbreviating the name of the month. For example, 1.6.2019 may 
preferably be written as 1 June, 2019. This removes the possibility of any misunderstanding as Americans 
are likely to read the date given in numerals as 6th of January, 2019. The date may be written either 
below the reference number or to its extreme right.
Special Markings
A few spaces below the date, one may show special markings such as Confidential, Air Mail, through 
Registered Post/Courier/Speed Post etc. When the contents of a letter are confidential, then care 
should be taken to superscribe the envelope also with the same marking.
Inside Address
The complete name and address of the recipient is written below the special markings. It must be 
ensured that the inside name and address is exactly the same as that used on the envelope.
Attention Line
If the letter is addressed to a company or one of its departments but the sender wishes it to be dealt 
with by a particular individual, then an attention line may be inserted either above or below the inside 
address. This may read like:
For the Attention of Mr. Harish Arora, Manager (Industrial Credits)
Salutation
The choice of a salutation depends on the extent of formality one wishes to observe. The following list 
shows different salutations in descending order of formality:
Sir
Dear Sir/Madam 
Dear Mr./Ms X
‘Dear Sir/Madam’ may be used as a standard salutation. When informality is aimed at, then the surname 
of the addressee is preferred for use by most correspondents. The use of first name was traditionally 
avoided in business letters but salutations in business now are becoming increasingly direct.
The use of “Respected Sir” should also be avoided, as the word respected, not being an adjective, is 
grammatically unacceptable.
Page 4


109
Business Communication
BUSINESS  
CORRESPONDENCE
LESSON 3
110
CSEET Reference Reading Material - I Business Communication
INTRODUCTION
When you speak, you can smile, and the listener can see your smile. Regardless of your choice of 
words, the listener recognises that you wish to be pleasant in conveying your message. You can also 
watch your listener and change your approach if you see any favourable reactions. A person reading 
a letter cannot see your smile, hear your voice, or observe your gestures. The message is complete 
when it leaves your hands; you can’t change your approach if the reader reacts unfavourably. Thus 
there is a need to draft a business letter very carefully.
A business letter is usually a letter from one business entity to another, or between such organizations 
and their customers or clients and other related parties. The overall style of the letter depends on the 
purpose of the letters and relationship between the parties concerned. A business letter is sometimes 
useful because it produces a permanent written record, and may be taken more seriously by the 
recipient than other forms of communication.
It is a known fact that rules exist for business letter writing, as some typically posed questions are: How 
should I end this type of letter? ,What is the rule for addressing a person you don’t know?, How should 
this offer be laid out?, and many alike. Over a period of time, the norms, or conventions, for drafting 
a business letter have been stabilized. But still, the writer of a letter has a lot of discretion at his end to 
word and style the letter. In the following chapter, we would discuss the standard form and contents of 
a business letter, style of writing it, and tips for writing good business letters.
Note that the today’s business letters with their conversational tone and the application of psychology 
are a big improvement over the letter of bygone days.
The Essentials of a Good Business Letter
In spite of the latest technological advancements, the importance of a business letter has not been 
reduced. Rather we witness that most of the softwares are available for helping and guiding for 
producing an effective business letter. In any case, they are the only tools and may be used if necessary. 
However, we must understand the mechanical details of a business letter.
Letterhead
Letterhead, along with other printed materials 
like business cards and brochures, are a visual 
representation of any business. A letterhead 
is the printed stationery, which carries the 
essential information about the company or 
the organisation. Since the first contact with a 
company is usually made through its letterhead, 
companies spend considerable time, effort and
 • Company logo
 • Tag line
 • Name and address of Registered Office, 
Corporate Office
 • Contact numbers
 • E-mail address of the company
money on getting it designed. A letterhead generally carries a company logo, tagline, the name and 
address of the registered office, corporate office of the company, Corporate Identity Number (CIN) 
and its contact numbers and website and e-mail addresses of the company. Sometimes the letterhead 
carries the addresses of the various offices of the company like in case of bank, the letterhead of 
branch office caries the branch office address and contact details.
111
Business Communication Lesson 3 - Business Correspondence
A Letterhead generally carries:
Reference Number
A reference number helps us in retrieving the letter at a later stage. It may contain the initials of the letter 
writer, the department from which the letter originates, and the distinctive number allotted to it. It is for 
an organisation to decide what the contents of a reference number should be. Some business letters 
show the reference numbers of both the correspondents or display printed pre- numbered stickers for 
the purpose.
Date
The date must be written in full without abbreviating the name of the month. For example, 1.6.2019 may 
preferably be written as 1 June, 2019. This removes the possibility of any misunderstanding as Americans 
are likely to read the date given in numerals as 6th of January, 2019. The date may be written either 
below the reference number or to its extreme right.
Special Markings
A few spaces below the date, one may show special markings such as Confidential, Air Mail, through 
Registered Post/Courier/Speed Post etc. When the contents of a letter are confidential, then care 
should be taken to superscribe the envelope also with the same marking.
Inside Address
The complete name and address of the recipient is written below the special markings. It must be 
ensured that the inside name and address is exactly the same as that used on the envelope.
Attention Line
If the letter is addressed to a company or one of its departments but the sender wishes it to be dealt 
with by a particular individual, then an attention line may be inserted either above or below the inside 
address. This may read like:
For the Attention of Mr. Harish Arora, Manager (Industrial Credits)
Salutation
The choice of a salutation depends on the extent of formality one wishes to observe. The following list 
shows different salutations in descending order of formality:
Sir
Dear Sir/Madam 
Dear Mr./Ms X
‘Dear Sir/Madam’ may be used as a standard salutation. When informality is aimed at, then the surname 
of the addressee is preferred for use by most correspondents. The use of first name was traditionally 
avoided in business letters but salutations in business now are becoming increasingly direct.
The use of “Respected Sir” should also be avoided, as the word respected, not being an adjective, is 
grammatically unacceptable.
112
CSEET Reference Reading Material - I Business Communication
Subject Heading
It is useful to provide a subject heading in longer letters. This helps the reader find out in the first instance 
what the contents of the letter are. Subject headings may be written in initial capitals with the rest in 
lower case and underscored or in capitals as shown:
Sub: Erection Work of Bikaner Project (or)
Sub: ERECTION WORK OF BIKANER PROJECT
The usual place for a subject heading is either above or below the salutation. In brief letters, a subject 
heading may be redundant, in some circumstances a subject heading may also be useful in short 
letters as it would ensure that the letter reaches the right person, at the earliest, who would be dealing 
with that subject matter. It would be of immense help especially if it is addressed to a large organisation 
which has a central department where all mails are received and sorted.
Main Body
The main body of the letter may be divided into three parts. Most business letters begin with a brief 
introduction, which states the purpose of the letter.
This is followed by a longer middle section, which presents relevant facts in a logical and coherent 
manner. This section may be divided into several paragraphs, each dealing with a separate point and 
written coherently.
The conclusion is a polite rounding off. It may mention the feedback required. Some of the expressions 
are given below:
We thank you in anticipation.
We look forward to a favourable response.
We will be glad to furnish additional information.
We expect you will continue to extend patronage to us.
We hope it is the beginning of a long business relationship.
We regret it may not be possible to deliver the goods immediately.
It is not advisable to round off every business letter with the phrase “Thanking You”. If the intention is to 
really thank the recipient, then a complete sentence may be used since a phrase beginning with an 
“ing” word is neither a complete sentence nor grammatically acceptable. This again would depend 
largely on the practice being followed in an organisation.
Complimentary Close
The complimentary close should match the salutation in terms of formality or lack of it. The following 
table may be helpful
Salutation Complimentary Close
Sir Yours truly
Dear Sir Yours Faithfully
Dear Mr. X Yours Sincerely
Page 5


109
Business Communication
BUSINESS  
CORRESPONDENCE
LESSON 3
110
CSEET Reference Reading Material - I Business Communication
INTRODUCTION
When you speak, you can smile, and the listener can see your smile. Regardless of your choice of 
words, the listener recognises that you wish to be pleasant in conveying your message. You can also 
watch your listener and change your approach if you see any favourable reactions. A person reading 
a letter cannot see your smile, hear your voice, or observe your gestures. The message is complete 
when it leaves your hands; you can’t change your approach if the reader reacts unfavourably. Thus 
there is a need to draft a business letter very carefully.
A business letter is usually a letter from one business entity to another, or between such organizations 
and their customers or clients and other related parties. The overall style of the letter depends on the 
purpose of the letters and relationship between the parties concerned. A business letter is sometimes 
useful because it produces a permanent written record, and may be taken more seriously by the 
recipient than other forms of communication.
It is a known fact that rules exist for business letter writing, as some typically posed questions are: How 
should I end this type of letter? ,What is the rule for addressing a person you don’t know?, How should 
this offer be laid out?, and many alike. Over a period of time, the norms, or conventions, for drafting 
a business letter have been stabilized. But still, the writer of a letter has a lot of discretion at his end to 
word and style the letter. In the following chapter, we would discuss the standard form and contents of 
a business letter, style of writing it, and tips for writing good business letters.
Note that the today’s business letters with their conversational tone and the application of psychology 
are a big improvement over the letter of bygone days.
The Essentials of a Good Business Letter
In spite of the latest technological advancements, the importance of a business letter has not been 
reduced. Rather we witness that most of the softwares are available for helping and guiding for 
producing an effective business letter. In any case, they are the only tools and may be used if necessary. 
However, we must understand the mechanical details of a business letter.
Letterhead
Letterhead, along with other printed materials 
like business cards and brochures, are a visual 
representation of any business. A letterhead 
is the printed stationery, which carries the 
essential information about the company or 
the organisation. Since the first contact with a 
company is usually made through its letterhead, 
companies spend considerable time, effort and
 • Company logo
 • Tag line
 • Name and address of Registered Office, 
Corporate Office
 • Contact numbers
 • E-mail address of the company
money on getting it designed. A letterhead generally carries a company logo, tagline, the name and 
address of the registered office, corporate office of the company, Corporate Identity Number (CIN) 
and its contact numbers and website and e-mail addresses of the company. Sometimes the letterhead 
carries the addresses of the various offices of the company like in case of bank, the letterhead of 
branch office caries the branch office address and contact details.
111
Business Communication Lesson 3 - Business Correspondence
A Letterhead generally carries:
Reference Number
A reference number helps us in retrieving the letter at a later stage. It may contain the initials of the letter 
writer, the department from which the letter originates, and the distinctive number allotted to it. It is for 
an organisation to decide what the contents of a reference number should be. Some business letters 
show the reference numbers of both the correspondents or display printed pre- numbered stickers for 
the purpose.
Date
The date must be written in full without abbreviating the name of the month. For example, 1.6.2019 may 
preferably be written as 1 June, 2019. This removes the possibility of any misunderstanding as Americans 
are likely to read the date given in numerals as 6th of January, 2019. The date may be written either 
below the reference number or to its extreme right.
Special Markings
A few spaces below the date, one may show special markings such as Confidential, Air Mail, through 
Registered Post/Courier/Speed Post etc. When the contents of a letter are confidential, then care 
should be taken to superscribe the envelope also with the same marking.
Inside Address
The complete name and address of the recipient is written below the special markings. It must be 
ensured that the inside name and address is exactly the same as that used on the envelope.
Attention Line
If the letter is addressed to a company or one of its departments but the sender wishes it to be dealt 
with by a particular individual, then an attention line may be inserted either above or below the inside 
address. This may read like:
For the Attention of Mr. Harish Arora, Manager (Industrial Credits)
Salutation
The choice of a salutation depends on the extent of formality one wishes to observe. The following list 
shows different salutations in descending order of formality:
Sir
Dear Sir/Madam 
Dear Mr./Ms X
‘Dear Sir/Madam’ may be used as a standard salutation. When informality is aimed at, then the surname 
of the addressee is preferred for use by most correspondents. The use of first name was traditionally 
avoided in business letters but salutations in business now are becoming increasingly direct.
The use of “Respected Sir” should also be avoided, as the word respected, not being an adjective, is 
grammatically unacceptable.
112
CSEET Reference Reading Material - I Business Communication
Subject Heading
It is useful to provide a subject heading in longer letters. This helps the reader find out in the first instance 
what the contents of the letter are. Subject headings may be written in initial capitals with the rest in 
lower case and underscored or in capitals as shown:
Sub: Erection Work of Bikaner Project (or)
Sub: ERECTION WORK OF BIKANER PROJECT
The usual place for a subject heading is either above or below the salutation. In brief letters, a subject 
heading may be redundant, in some circumstances a subject heading may also be useful in short 
letters as it would ensure that the letter reaches the right person, at the earliest, who would be dealing 
with that subject matter. It would be of immense help especially if it is addressed to a large organisation 
which has a central department where all mails are received and sorted.
Main Body
The main body of the letter may be divided into three parts. Most business letters begin with a brief 
introduction, which states the purpose of the letter.
This is followed by a longer middle section, which presents relevant facts in a logical and coherent 
manner. This section may be divided into several paragraphs, each dealing with a separate point and 
written coherently.
The conclusion is a polite rounding off. It may mention the feedback required. Some of the expressions 
are given below:
We thank you in anticipation.
We look forward to a favourable response.
We will be glad to furnish additional information.
We expect you will continue to extend patronage to us.
We hope it is the beginning of a long business relationship.
We regret it may not be possible to deliver the goods immediately.
It is not advisable to round off every business letter with the phrase “Thanking You”. If the intention is to 
really thank the recipient, then a complete sentence may be used since a phrase beginning with an 
“ing” word is neither a complete sentence nor grammatically acceptable. This again would depend 
largely on the practice being followed in an organisation.
Complimentary Close
The complimentary close should match the salutation in terms of formality or lack of it. The following 
table may be helpful
Salutation Complimentary Close
Sir Yours truly
Dear Sir Yours Faithfully
Dear Mr. X Yours Sincerely
113
Business Communication Lesson 3 - Business Correspondence
A common error is to use an apostrophe in Yours (Your’s). Care must be taken toavoid it. “Truly” and 
“sincerely” are often misspelt. It should be remembered that truly does not have an ‘e’ in it while 
“sincerely” retains both the ‘e’s.
Signatory
After leaving four to five spaces for the signature, the name of the sender may be written in capitals 
within brackets followed by the designation as shown below:
(AMBUJ CHANDNA)
Regional Sales Manager
Enclosures/Copies Circulated
List of enclosures or details of those to whom copies of the letter are being circulated may be given 
below the designation of the sender. In some cases, copies of the letter may require circulation while 
keeping the original recipient in the dark. The abbreviation in such cases is suitably changed to bcc in 
the letters being circulated alone.
Annexures
If we wish to annex some documents with the letter, then information about these may be listed at the 
end.
Type of Business Letters
Business Letters are basically of two types:
 1. Formal Business Letter –Formal business letters are the typical or standard business letters meant 
for legal or official correspondence. These include letters regarding business deals, order, 
claim,dispute settlement, agreements, information request, sales report and other official 
matters.
 2. Informal Business Letter –Informal Business Letter is used for casual correspondence but doesn’t 
necessarily has to have a casual tone of language. These letters include memorandums, 
appraisals, interview, thanks, reference letters, cover letter, customer complaint letters, e-mails 
and others which are less important or regular.
Layout of Letters
Layouts of letters are of two types-Blocked and Semi Blocked. 
Given below are examples of the two types of layout:
Blocked Format
In the blocked format of letter layout, the date of the 
letter, all references, subject, salutation, the paragraphs 
in the body of the letter, conclusion and signature, all 
commence at the left margin as is shown in the specimen 
below. Another point to note is that in this format no 
commas are used after inside address, salutation or 
complimentary close. 
Type of Layout of 
Letters 
Semi- Blocked Blocked