Business Communication | Business Correspondence and Reporting (Old Scheme) - CA Foundation PDF Download

 Page 1


Prepared By Prof. M. Aqil 
 
 1
BUSINESS COMMUNICATION    B.COM.-II 
 
Q. Define Business Communication? 
  
Ans: Communication is defined as “The flow of material information perception, understanding 
and imagination among various parties”. 
  Business includes those organizations, which are engaged in the production and distribution 
of goods and services to earn profit. Therefore Business communication means, “Flow of information, 
perception etc. either within a business organization or outside the organization among different 
parties”. 
EXPLANATION:- 
  We can extract the following points form the above definition; 
(i) Flow between two or more parties. 
  In business communication the material flow from one person to another person or from 
many persons to different people. This flow may either be inside the organization or outside the 
organization. 
 
(ii) Flow of information, perception, imagination etc. 
  Flow of information takes place when a party transfers the material to another mind. For 
example, when a news caster says, “Pakistan has conducted nuclear test on 28
th
 May 1998”. This is a 
flow of information from news caster to the listeners. 
  Flow of perception means transfer of different feelings. Finally, flow of imagination that 
occurs when a painter conveys his/her imaginations through a portrait. 
 
Q.  Discuss the role of effective business communication within and  
  outside the organization      OR 
  Why Business Communication is called, “Life blood” of an   
  organization?        OR 
   
Ans: A business Organization is a group of people associated to earn profit. Various kinds of 
activities have to be performed by the people of an organization so as to earn profit. These activities 
need an effective and systematic communication. Without efficient communication, one can not even 
imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to 
earn profit, the organization will die without profit and this death is a result of the absence of 
communication. This is why communication is called life blood of a business organization. We can 
prove this statement in the following manner. 
 
COMMUNICATION INSIDE AN ORGANIZATION: 
  Different employees and officials in an organization need to communicate to each other. 
This internal communication with its importance is shown in the following way: 
1. Setting goals and Objectives:- 
  Mostly, the organizations have a variety of formal and informal objectives to accomplish. 
These objectives may be financial results, product quality, market dominance, employees satisfaction, 
or service to customers. So the communication enables all the persons in an organization to work 
towards a common purpose. 
2. Making and Implementing decision:- 
  In order to achieve the objective, people in a business organization collect facts and 
evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These 
thoughts are put into a written form. Once a decision has been made, it has to be implemented which 
requires communication. 
 
 
 
 
 
 
Page 2


Prepared By Prof. M. Aqil 
 
 1
BUSINESS COMMUNICATION    B.COM.-II 
 
Q. Define Business Communication? 
  
Ans: Communication is defined as “The flow of material information perception, understanding 
and imagination among various parties”. 
  Business includes those organizations, which are engaged in the production and distribution 
of goods and services to earn profit. Therefore Business communication means, “Flow of information, 
perception etc. either within a business organization or outside the organization among different 
parties”. 
EXPLANATION:- 
  We can extract the following points form the above definition; 
(i) Flow between two or more parties. 
  In business communication the material flow from one person to another person or from 
many persons to different people. This flow may either be inside the organization or outside the 
organization. 
 
(ii) Flow of information, perception, imagination etc. 
  Flow of information takes place when a party transfers the material to another mind. For 
example, when a news caster says, “Pakistan has conducted nuclear test on 28
th
 May 1998”. This is a 
flow of information from news caster to the listeners. 
  Flow of perception means transfer of different feelings. Finally, flow of imagination that 
occurs when a painter conveys his/her imaginations through a portrait. 
 
Q.  Discuss the role of effective business communication within and  
  outside the organization      OR 
  Why Business Communication is called, “Life blood” of an   
  organization?        OR 
   
Ans: A business Organization is a group of people associated to earn profit. Various kinds of 
activities have to be performed by the people of an organization so as to earn profit. These activities 
need an effective and systematic communication. Without efficient communication, one can not even 
imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to 
earn profit, the organization will die without profit and this death is a result of the absence of 
communication. This is why communication is called life blood of a business organization. We can 
prove this statement in the following manner. 
 
COMMUNICATION INSIDE AN ORGANIZATION: 
  Different employees and officials in an organization need to communicate to each other. 
This internal communication with its importance is shown in the following way: 
1. Setting goals and Objectives:- 
  Mostly, the organizations have a variety of formal and informal objectives to accomplish. 
These objectives may be financial results, product quality, market dominance, employees satisfaction, 
or service to customers. So the communication enables all the persons in an organization to work 
towards a common purpose. 
2. Making and Implementing decision:- 
  In order to achieve the objective, people in a business organization collect facts and 
evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These 
thoughts are put into a written form. Once a decision has been made, it has to be implemented which 
requires communication. 
 
 
 
 
 
 
Prepared By Prof. M. Aqil 
 
 2
3. Appraisal:- 
  Having implemented the decision, management needs to determine whether the desired 
outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and 
inventory levels are compiled. This is done through computers, manual papers, memos or reports. 
4. Manufacturing the products:- 
  Getting an idea for a new product out of someone’s head, pushing it through the production 
process and finally getting the product also require communication. Designing the plan regarding 
product, introducing the workers, purchasing raw material, marketing and distributing the product all 
require effective communication. 
5. Interaction between employer & employee:- 
  Employees are informed about policies and decisions of employers through circulars, 
reports, notices etc. Employers also get in touch with employees through application, complaint etc. 
So, communication plays a vital role in the interaction of employer and employee. 
 
EXTERNAL COMMUNICATION: 
 
1. Hiring the employees:- 
  If a company wants to hire some one, it advertises the vacancy, receives applications, calls 
the candidates, takes the interview and then offers job to the successful candidates. The whole process 
requires communication. 
2. Dealing with customers:- 
  Sales letters and brochures, advertisements, personal sales calls, and formal proposals are 
all used to stimulate the customer’s interest. Communication also plays a part in such customer related 
functions as credit checking, billing, and handling complaints and questions. 
3. Negotiating with suppliers and financiers:- 
  To obtain necessary supplies and services, companies develop written specification that 
outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan 
applications. 
4. Informing the investors:- 
  Balance sheet, income statement, and ratio analysis are used to inform the investors 
regarding performance of business. 
5. Interacting with Govt.:- 
  Government agencies make certain rules to regulate the economy. These rules are 
communicated to organizations through various papers. These organizations try to fulfill, these 
requirement like filling taxation form and other documents. 
 
Q. Define communication. What is the importance of communication  
 for an individual and for an organization? 
 
COMMUNICATION:- 
Definition: “Communication is the process by which information is transmitted between 
individuals and organization, so that an understanding response results”. 
OR 
  “Communication is the process which involves transmission and accurate replication of 
ideas, ensured by feedback for the purpose of eliciting action which will accomplish organizational 
goals”. 
 
IMPORTANCE OF COMMUNICATION FOR AN INDIVIDUAL 
 
(1) Helps in getting a desired job:- 
  Getting a desired job is not an easy task. It requires a person to be excellent, especially in 
terms of communication abilities. Communication abilities can be classified into five categories that is 
reading, writing, speaking, listening and observing. If a candidate is a good reader of not only text 
books and reference books but also of newspapers and magazines, this would help him developing 
Page 3


Prepared By Prof. M. Aqil 
 
 1
BUSINESS COMMUNICATION    B.COM.-II 
 
Q. Define Business Communication? 
  
Ans: Communication is defined as “The flow of material information perception, understanding 
and imagination among various parties”. 
  Business includes those organizations, which are engaged in the production and distribution 
of goods and services to earn profit. Therefore Business communication means, “Flow of information, 
perception etc. either within a business organization or outside the organization among different 
parties”. 
EXPLANATION:- 
  We can extract the following points form the above definition; 
(i) Flow between two or more parties. 
  In business communication the material flow from one person to another person or from 
many persons to different people. This flow may either be inside the organization or outside the 
organization. 
 
(ii) Flow of information, perception, imagination etc. 
  Flow of information takes place when a party transfers the material to another mind. For 
example, when a news caster says, “Pakistan has conducted nuclear test on 28
th
 May 1998”. This is a 
flow of information from news caster to the listeners. 
  Flow of perception means transfer of different feelings. Finally, flow of imagination that 
occurs when a painter conveys his/her imaginations through a portrait. 
 
Q.  Discuss the role of effective business communication within and  
  outside the organization      OR 
  Why Business Communication is called, “Life blood” of an   
  organization?        OR 
   
Ans: A business Organization is a group of people associated to earn profit. Various kinds of 
activities have to be performed by the people of an organization so as to earn profit. These activities 
need an effective and systematic communication. Without efficient communication, one can not even 
imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to 
earn profit, the organization will die without profit and this death is a result of the absence of 
communication. This is why communication is called life blood of a business organization. We can 
prove this statement in the following manner. 
 
COMMUNICATION INSIDE AN ORGANIZATION: 
  Different employees and officials in an organization need to communicate to each other. 
This internal communication with its importance is shown in the following way: 
1. Setting goals and Objectives:- 
  Mostly, the organizations have a variety of formal and informal objectives to accomplish. 
These objectives may be financial results, product quality, market dominance, employees satisfaction, 
or service to customers. So the communication enables all the persons in an organization to work 
towards a common purpose. 
2. Making and Implementing decision:- 
  In order to achieve the objective, people in a business organization collect facts and 
evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These 
thoughts are put into a written form. Once a decision has been made, it has to be implemented which 
requires communication. 
 
 
 
 
 
 
Prepared By Prof. M. Aqil 
 
 2
3. Appraisal:- 
  Having implemented the decision, management needs to determine whether the desired 
outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and 
inventory levels are compiled. This is done through computers, manual papers, memos or reports. 
4. Manufacturing the products:- 
  Getting an idea for a new product out of someone’s head, pushing it through the production 
process and finally getting the product also require communication. Designing the plan regarding 
product, introducing the workers, purchasing raw material, marketing and distributing the product all 
require effective communication. 
5. Interaction between employer & employee:- 
  Employees are informed about policies and decisions of employers through circulars, 
reports, notices etc. Employers also get in touch with employees through application, complaint etc. 
So, communication plays a vital role in the interaction of employer and employee. 
 
EXTERNAL COMMUNICATION: 
 
1. Hiring the employees:- 
  If a company wants to hire some one, it advertises the vacancy, receives applications, calls 
the candidates, takes the interview and then offers job to the successful candidates. The whole process 
requires communication. 
2. Dealing with customers:- 
  Sales letters and brochures, advertisements, personal sales calls, and formal proposals are 
all used to stimulate the customer’s interest. Communication also plays a part in such customer related 
functions as credit checking, billing, and handling complaints and questions. 
3. Negotiating with suppliers and financiers:- 
  To obtain necessary supplies and services, companies develop written specification that 
outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan 
applications. 
4. Informing the investors:- 
  Balance sheet, income statement, and ratio analysis are used to inform the investors 
regarding performance of business. 
5. Interacting with Govt.:- 
  Government agencies make certain rules to regulate the economy. These rules are 
communicated to organizations through various papers. These organizations try to fulfill, these 
requirement like filling taxation form and other documents. 
 
Q. Define communication. What is the importance of communication  
 for an individual and for an organization? 
 
COMMUNICATION:- 
Definition: “Communication is the process by which information is transmitted between 
individuals and organization, so that an understanding response results”. 
OR 
  “Communication is the process which involves transmission and accurate replication of 
ideas, ensured by feedback for the purpose of eliciting action which will accomplish organizational 
goals”. 
 
IMPORTANCE OF COMMUNICATION FOR AN INDIVIDUAL 
 
(1) Helps in getting a desired job:- 
  Getting a desired job is not an easy task. It requires a person to be excellent, especially in 
terms of communication abilities. Communication abilities can be classified into five categories that is 
reading, writing, speaking, listening and observing. If a candidate is a good reader of not only text 
books and reference books but also of newspapers and magazines, this would help him developing 
Prepared By Prof. M. Aqil 
 
 3
confidence level at the time of interview. Writing skills are necessary for preparing an appropriate Bio-
data and covering letter, so that a better initial impression could be created. No doubt, conversational 
skill right at the time of interview is equally countable towards success of the candidate. Listening 
abilities on the other could prove to be fruitful especially when the interviewer is making a comment 
or asking a question. In short we can say that the presence of above mentioned five communication 
skills could give a better chance of being selected during an interview. 
 
(2) Help in maintaining social relationships:- 
  We as human beings live in a cobweb of relationships rather social relationship. These 
social relations compel us to act simultaneously in the capacity of father, child, husband, uncle, 
neighbour, cousin, teacher, nephew and so on. All these relationships especially near one’s could be 
maintained properly if we can communicate well to all these relations, that we are here to take care of 
them and our services are always there to help them in case of any needs. 
 
(3) Helps in getting on the job promotion:- 
  Perhaps finding a job would not be a big deal in case of if the candidate is well connected 
and belongs to a well off family. But promotion on the job requires some extra skills on the part of the 
candidate. Amongst those skills, communication abilities rank on the top. If a person can speak well 
during interactive and presentation sessions, can reports properly, he will automatically be in the eyes 
of the management and whenever a chance for promotion comes, he will be on the top of the list. 
 
(4) Helps in solving other’s problems:- 
  It is commonly observed that around us there are so many people whom we like to meet, 
their company is a source of enrichment for us. When we are with them we feel secured. The only 
reason for such types of feelings is that such type of people are not only good listeners but they also 
know it well that whenever they would speak, it would only be for the sake of encouraging, not 
discouraging others, only for solving other’s problems and not for creating problems for others. Such 
people are no doubt excellent communicators. 
 
Q.4 Differentiate between formal and informal language; 
 
Ans:  
Formal language: Informal Language: 
(1) It is the language spoken in office, 
business and other formal places. 
(2) Proper and standard words are used. 
(3) It consists of specific purpose words 
like manager, supervisor, owner, 
employer etc. 
(4) It is used comparatively less than 
informal language. 
(5) It is used when the speaker is relaxed. 
(1) It is the language spoken at home or 
with friends. 
(2) Improper words and slangs are used. 
(3) It has all purpose words like “boss” 
that stands for various personalities. 
(4) It is used in daily life. 
(5) It is used when speaker is in a hurry/ 
 
 
 
Q.  Explain the process of communication.    OR 
  “Communication is a two way process of exchanging ideas or 
information between two human beings”. Explain this statement with the 
help of a diagram. 
 
Page 4


Prepared By Prof. M. Aqil 
 
 1
BUSINESS COMMUNICATION    B.COM.-II 
 
Q. Define Business Communication? 
  
Ans: Communication is defined as “The flow of material information perception, understanding 
and imagination among various parties”. 
  Business includes those organizations, which are engaged in the production and distribution 
of goods and services to earn profit. Therefore Business communication means, “Flow of information, 
perception etc. either within a business organization or outside the organization among different 
parties”. 
EXPLANATION:- 
  We can extract the following points form the above definition; 
(i) Flow between two or more parties. 
  In business communication the material flow from one person to another person or from 
many persons to different people. This flow may either be inside the organization or outside the 
organization. 
 
(ii) Flow of information, perception, imagination etc. 
  Flow of information takes place when a party transfers the material to another mind. For 
example, when a news caster says, “Pakistan has conducted nuclear test on 28
th
 May 1998”. This is a 
flow of information from news caster to the listeners. 
  Flow of perception means transfer of different feelings. Finally, flow of imagination that 
occurs when a painter conveys his/her imaginations through a portrait. 
 
Q.  Discuss the role of effective business communication within and  
  outside the organization      OR 
  Why Business Communication is called, “Life blood” of an   
  organization?        OR 
   
Ans: A business Organization is a group of people associated to earn profit. Various kinds of 
activities have to be performed by the people of an organization so as to earn profit. These activities 
need an effective and systematic communication. Without efficient communication, one can not even 
imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to 
earn profit, the organization will die without profit and this death is a result of the absence of 
communication. This is why communication is called life blood of a business organization. We can 
prove this statement in the following manner. 
 
COMMUNICATION INSIDE AN ORGANIZATION: 
  Different employees and officials in an organization need to communicate to each other. 
This internal communication with its importance is shown in the following way: 
1. Setting goals and Objectives:- 
  Mostly, the organizations have a variety of formal and informal objectives to accomplish. 
These objectives may be financial results, product quality, market dominance, employees satisfaction, 
or service to customers. So the communication enables all the persons in an organization to work 
towards a common purpose. 
2. Making and Implementing decision:- 
  In order to achieve the objective, people in a business organization collect facts and 
evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These 
thoughts are put into a written form. Once a decision has been made, it has to be implemented which 
requires communication. 
 
 
 
 
 
 
Prepared By Prof. M. Aqil 
 
 2
3. Appraisal:- 
  Having implemented the decision, management needs to determine whether the desired 
outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and 
inventory levels are compiled. This is done through computers, manual papers, memos or reports. 
4. Manufacturing the products:- 
  Getting an idea for a new product out of someone’s head, pushing it through the production 
process and finally getting the product also require communication. Designing the plan regarding 
product, introducing the workers, purchasing raw material, marketing and distributing the product all 
require effective communication. 
5. Interaction between employer & employee:- 
  Employees are informed about policies and decisions of employers through circulars, 
reports, notices etc. Employers also get in touch with employees through application, complaint etc. 
So, communication plays a vital role in the interaction of employer and employee. 
 
EXTERNAL COMMUNICATION: 
 
1. Hiring the employees:- 
  If a company wants to hire some one, it advertises the vacancy, receives applications, calls 
the candidates, takes the interview and then offers job to the successful candidates. The whole process 
requires communication. 
2. Dealing with customers:- 
  Sales letters and brochures, advertisements, personal sales calls, and formal proposals are 
all used to stimulate the customer’s interest. Communication also plays a part in such customer related 
functions as credit checking, billing, and handling complaints and questions. 
3. Negotiating with suppliers and financiers:- 
  To obtain necessary supplies and services, companies develop written specification that 
outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan 
applications. 
4. Informing the investors:- 
  Balance sheet, income statement, and ratio analysis are used to inform the investors 
regarding performance of business. 
5. Interacting with Govt.:- 
  Government agencies make certain rules to regulate the economy. These rules are 
communicated to organizations through various papers. These organizations try to fulfill, these 
requirement like filling taxation form and other documents. 
 
Q. Define communication. What is the importance of communication  
 for an individual and for an organization? 
 
COMMUNICATION:- 
Definition: “Communication is the process by which information is transmitted between 
individuals and organization, so that an understanding response results”. 
OR 
  “Communication is the process which involves transmission and accurate replication of 
ideas, ensured by feedback for the purpose of eliciting action which will accomplish organizational 
goals”. 
 
IMPORTANCE OF COMMUNICATION FOR AN INDIVIDUAL 
 
(1) Helps in getting a desired job:- 
  Getting a desired job is not an easy task. It requires a person to be excellent, especially in 
terms of communication abilities. Communication abilities can be classified into five categories that is 
reading, writing, speaking, listening and observing. If a candidate is a good reader of not only text 
books and reference books but also of newspapers and magazines, this would help him developing 
Prepared By Prof. M. Aqil 
 
 3
confidence level at the time of interview. Writing skills are necessary for preparing an appropriate Bio-
data and covering letter, so that a better initial impression could be created. No doubt, conversational 
skill right at the time of interview is equally countable towards success of the candidate. Listening 
abilities on the other could prove to be fruitful especially when the interviewer is making a comment 
or asking a question. In short we can say that the presence of above mentioned five communication 
skills could give a better chance of being selected during an interview. 
 
(2) Help in maintaining social relationships:- 
  We as human beings live in a cobweb of relationships rather social relationship. These 
social relations compel us to act simultaneously in the capacity of father, child, husband, uncle, 
neighbour, cousin, teacher, nephew and so on. All these relationships especially near one’s could be 
maintained properly if we can communicate well to all these relations, that we are here to take care of 
them and our services are always there to help them in case of any needs. 
 
(3) Helps in getting on the job promotion:- 
  Perhaps finding a job would not be a big deal in case of if the candidate is well connected 
and belongs to a well off family. But promotion on the job requires some extra skills on the part of the 
candidate. Amongst those skills, communication abilities rank on the top. If a person can speak well 
during interactive and presentation sessions, can reports properly, he will automatically be in the eyes 
of the management and whenever a chance for promotion comes, he will be on the top of the list. 
 
(4) Helps in solving other’s problems:- 
  It is commonly observed that around us there are so many people whom we like to meet, 
their company is a source of enrichment for us. When we are with them we feel secured. The only 
reason for such types of feelings is that such type of people are not only good listeners but they also 
know it well that whenever they would speak, it would only be for the sake of encouraging, not 
discouraging others, only for solving other’s problems and not for creating problems for others. Such 
people are no doubt excellent communicators. 
 
Q.4 Differentiate between formal and informal language; 
 
Ans:  
Formal language: Informal Language: 
(1) It is the language spoken in office, 
business and other formal places. 
(2) Proper and standard words are used. 
(3) It consists of specific purpose words 
like manager, supervisor, owner, 
employer etc. 
(4) It is used comparatively less than 
informal language. 
(5) It is used when the speaker is relaxed. 
(1) It is the language spoken at home or 
with friends. 
(2) Improper words and slangs are used. 
(3) It has all purpose words like “boss” 
that stands for various personalities. 
(4) It is used in daily life. 
(5) It is used when speaker is in a hurry/ 
 
 
 
Q.  Explain the process of communication.    OR 
  “Communication is a two way process of exchanging ideas or 
information between two human beings”. Explain this statement with the 
help of a diagram. 
 
Prepared By Prof. M. Aqil 
 
 4
Ans: Communication simply means exchange of ideas & information between two persons. A 
person sends a message to another person and gets the response from the receiver on the message. This 
whole phenomenon can be explained as under. 
 
1. Sender’s thoughts:- 
  The very first step in the process of communication is generation of thought in the sender’s 
mind. These thoughts may be about a request, order, inquiry production or any other such activity. 
2. Encoding / Message:- 
  The thought generated in the mind of sender is ambiguous and unable to be communicated 
unless it is put into a receivable form. This step is known as encoding where the sender converts his 
thought into a message by means of a language. For example, a sender thinks about having a job. Now, 
he will put his thought on a paper. That is called job application. In his way, his thought becomes a 
message. 
3. Transmission through media:- 
  Once a thought is converted into message, it should be transmitted to the receiver through a 
suitable medium. This media might be electronic media as T.V., E-mail, radio etc. or it may be print 
media like newspaper, magazines, letters or merely sound that is transmitted through the medium of 
air. 
4. Noise and Barriers:- 
  While transmitting the information to the receiver, the sender faces lots of barriers. These 
noise and barriers are explained as under: 
(i) On sender’s side:- Noise and barriers may take place during the process of encoding. 
Some of them may be caused by distraction, lack of concentration, typing mistake, poor 
language etc. 
(ii) In the medium:- Some barriers are caused by medium such as poor transmission on 
T.V. and radio misprinting in newspapers etc. 
(iii) On receiver’s side:- The receiver can also create certain barriers to the receiving of 
message such as poor reading ability, emotions, lack of concentration etc. 
5. Decoding by Receiver:- 
  Having received the message form the sender, the receiver attempts to understand and 
interpret the message. This process of converting the language of message into thoughts is known as 
decoding. For instance, the receiver, having received job application, reads the application and 
understands the message conveyed by the applicant. 
6. Idea Received:- 
  As soon as the process of decoding is finished, the idea given by the sender is received by 
the receiver. It means the thought that was generated in the mind of sender has been transmitted to the 
mind of receiver. In our example, the sender wanted to inform the receiver about his thought of having 
a job. Now the sender has got this idea. 
 
7. Feed back:- 
  Process of communication is incomplete until the receiver responds to the sender. This 
response may be negative, positive, or for further enquiry. It means when the receiver of job 
application welcomes or regrets the sender, the process of communication is deemed to be complete. 
  This whole process can be depicted through the following diagram. 
 
 
 
 
 
 
 
 
 
Page 5


Prepared By Prof. M. Aqil 
 
 1
BUSINESS COMMUNICATION    B.COM.-II 
 
Q. Define Business Communication? 
  
Ans: Communication is defined as “The flow of material information perception, understanding 
and imagination among various parties”. 
  Business includes those organizations, which are engaged in the production and distribution 
of goods and services to earn profit. Therefore Business communication means, “Flow of information, 
perception etc. either within a business organization or outside the organization among different 
parties”. 
EXPLANATION:- 
  We can extract the following points form the above definition; 
(i) Flow between two or more parties. 
  In business communication the material flow from one person to another person or from 
many persons to different people. This flow may either be inside the organization or outside the 
organization. 
 
(ii) Flow of information, perception, imagination etc. 
  Flow of information takes place when a party transfers the material to another mind. For 
example, when a news caster says, “Pakistan has conducted nuclear test on 28
th
 May 1998”. This is a 
flow of information from news caster to the listeners. 
  Flow of perception means transfer of different feelings. Finally, flow of imagination that 
occurs when a painter conveys his/her imaginations through a portrait. 
 
Q.  Discuss the role of effective business communication within and  
  outside the organization      OR 
  Why Business Communication is called, “Life blood” of an   
  organization?        OR 
   
Ans: A business Organization is a group of people associated to earn profit. Various kinds of 
activities have to be performed by the people of an organization so as to earn profit. These activities 
need an effective and systematic communication. Without efficient communication, one can not even 
imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to 
earn profit, the organization will die without profit and this death is a result of the absence of 
communication. This is why communication is called life blood of a business organization. We can 
prove this statement in the following manner. 
 
COMMUNICATION INSIDE AN ORGANIZATION: 
  Different employees and officials in an organization need to communicate to each other. 
This internal communication with its importance is shown in the following way: 
1. Setting goals and Objectives:- 
  Mostly, the organizations have a variety of formal and informal objectives to accomplish. 
These objectives may be financial results, product quality, market dominance, employees satisfaction, 
or service to customers. So the communication enables all the persons in an organization to work 
towards a common purpose. 
2. Making and Implementing decision:- 
  In order to achieve the objective, people in a business organization collect facts and 
evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These 
thoughts are put into a written form. Once a decision has been made, it has to be implemented which 
requires communication. 
 
 
 
 
 
 
Prepared By Prof. M. Aqil 
 
 2
3. Appraisal:- 
  Having implemented the decision, management needs to determine whether the desired 
outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and 
inventory levels are compiled. This is done through computers, manual papers, memos or reports. 
4. Manufacturing the products:- 
  Getting an idea for a new product out of someone’s head, pushing it through the production 
process and finally getting the product also require communication. Designing the plan regarding 
product, introducing the workers, purchasing raw material, marketing and distributing the product all 
require effective communication. 
5. Interaction between employer & employee:- 
  Employees are informed about policies and decisions of employers through circulars, 
reports, notices etc. Employers also get in touch with employees through application, complaint etc. 
So, communication plays a vital role in the interaction of employer and employee. 
 
EXTERNAL COMMUNICATION: 
 
1. Hiring the employees:- 
  If a company wants to hire some one, it advertises the vacancy, receives applications, calls 
the candidates, takes the interview and then offers job to the successful candidates. The whole process 
requires communication. 
2. Dealing with customers:- 
  Sales letters and brochures, advertisements, personal sales calls, and formal proposals are 
all used to stimulate the customer’s interest. Communication also plays a part in such customer related 
functions as credit checking, billing, and handling complaints and questions. 
3. Negotiating with suppliers and financiers:- 
  To obtain necessary supplies and services, companies develop written specification that 
outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan 
applications. 
4. Informing the investors:- 
  Balance sheet, income statement, and ratio analysis are used to inform the investors 
regarding performance of business. 
5. Interacting with Govt.:- 
  Government agencies make certain rules to regulate the economy. These rules are 
communicated to organizations through various papers. These organizations try to fulfill, these 
requirement like filling taxation form and other documents. 
 
Q. Define communication. What is the importance of communication  
 for an individual and for an organization? 
 
COMMUNICATION:- 
Definition: “Communication is the process by which information is transmitted between 
individuals and organization, so that an understanding response results”. 
OR 
  “Communication is the process which involves transmission and accurate replication of 
ideas, ensured by feedback for the purpose of eliciting action which will accomplish organizational 
goals”. 
 
IMPORTANCE OF COMMUNICATION FOR AN INDIVIDUAL 
 
(1) Helps in getting a desired job:- 
  Getting a desired job is not an easy task. It requires a person to be excellent, especially in 
terms of communication abilities. Communication abilities can be classified into five categories that is 
reading, writing, speaking, listening and observing. If a candidate is a good reader of not only text 
books and reference books but also of newspapers and magazines, this would help him developing 
Prepared By Prof. M. Aqil 
 
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confidence level at the time of interview. Writing skills are necessary for preparing an appropriate Bio-
data and covering letter, so that a better initial impression could be created. No doubt, conversational 
skill right at the time of interview is equally countable towards success of the candidate. Listening 
abilities on the other could prove to be fruitful especially when the interviewer is making a comment 
or asking a question. In short we can say that the presence of above mentioned five communication 
skills could give a better chance of being selected during an interview. 
 
(2) Help in maintaining social relationships:- 
  We as human beings live in a cobweb of relationships rather social relationship. These 
social relations compel us to act simultaneously in the capacity of father, child, husband, uncle, 
neighbour, cousin, teacher, nephew and so on. All these relationships especially near one’s could be 
maintained properly if we can communicate well to all these relations, that we are here to take care of 
them and our services are always there to help them in case of any needs. 
 
(3) Helps in getting on the job promotion:- 
  Perhaps finding a job would not be a big deal in case of if the candidate is well connected 
and belongs to a well off family. But promotion on the job requires some extra skills on the part of the 
candidate. Amongst those skills, communication abilities rank on the top. If a person can speak well 
during interactive and presentation sessions, can reports properly, he will automatically be in the eyes 
of the management and whenever a chance for promotion comes, he will be on the top of the list. 
 
(4) Helps in solving other’s problems:- 
  It is commonly observed that around us there are so many people whom we like to meet, 
their company is a source of enrichment for us. When we are with them we feel secured. The only 
reason for such types of feelings is that such type of people are not only good listeners but they also 
know it well that whenever they would speak, it would only be for the sake of encouraging, not 
discouraging others, only for solving other’s problems and not for creating problems for others. Such 
people are no doubt excellent communicators. 
 
Q.4 Differentiate between formal and informal language; 
 
Ans:  
Formal language: Informal Language: 
(1) It is the language spoken in office, 
business and other formal places. 
(2) Proper and standard words are used. 
(3) It consists of specific purpose words 
like manager, supervisor, owner, 
employer etc. 
(4) It is used comparatively less than 
informal language. 
(5) It is used when the speaker is relaxed. 
(1) It is the language spoken at home or 
with friends. 
(2) Improper words and slangs are used. 
(3) It has all purpose words like “boss” 
that stands for various personalities. 
(4) It is used in daily life. 
(5) It is used when speaker is in a hurry/ 
 
 
 
Q.  Explain the process of communication.    OR 
  “Communication is a two way process of exchanging ideas or 
information between two human beings”. Explain this statement with the 
help of a diagram. 
 
Prepared By Prof. M. Aqil 
 
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Ans: Communication simply means exchange of ideas & information between two persons. A 
person sends a message to another person and gets the response from the receiver on the message. This 
whole phenomenon can be explained as under. 
 
1. Sender’s thoughts:- 
  The very first step in the process of communication is generation of thought in the sender’s 
mind. These thoughts may be about a request, order, inquiry production or any other such activity. 
2. Encoding / Message:- 
  The thought generated in the mind of sender is ambiguous and unable to be communicated 
unless it is put into a receivable form. This step is known as encoding where the sender converts his 
thought into a message by means of a language. For example, a sender thinks about having a job. Now, 
he will put his thought on a paper. That is called job application. In his way, his thought becomes a 
message. 
3. Transmission through media:- 
  Once a thought is converted into message, it should be transmitted to the receiver through a 
suitable medium. This media might be electronic media as T.V., E-mail, radio etc. or it may be print 
media like newspaper, magazines, letters or merely sound that is transmitted through the medium of 
air. 
4. Noise and Barriers:- 
  While transmitting the information to the receiver, the sender faces lots of barriers. These 
noise and barriers are explained as under: 
(i) On sender’s side:- Noise and barriers may take place during the process of encoding. 
Some of them may be caused by distraction, lack of concentration, typing mistake, poor 
language etc. 
(ii) In the medium:- Some barriers are caused by medium such as poor transmission on 
T.V. and radio misprinting in newspapers etc. 
(iii) On receiver’s side:- The receiver can also create certain barriers to the receiving of 
message such as poor reading ability, emotions, lack of concentration etc. 
5. Decoding by Receiver:- 
  Having received the message form the sender, the receiver attempts to understand and 
interpret the message. This process of converting the language of message into thoughts is known as 
decoding. For instance, the receiver, having received job application, reads the application and 
understands the message conveyed by the applicant. 
6. Idea Received:- 
  As soon as the process of decoding is finished, the idea given by the sender is received by 
the receiver. It means the thought that was generated in the mind of sender has been transmitted to the 
mind of receiver. In our example, the sender wanted to inform the receiver about his thought of having 
a job. Now the sender has got this idea. 
 
7. Feed back:- 
  Process of communication is incomplete until the receiver responds to the sender. This 
response may be negative, positive, or for further enquiry. It means when the receiver of job 
application welcomes or regrets the sender, the process of communication is deemed to be complete. 
  This whole process can be depicted through the following diagram. 
 
 
 
 
 
 
 
 
 
Prepared By Prof. M. Aqil 
 
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  Sender’s   Encoding   Transmission 
  Thoughts       through media 
 
 
           Noise & Barriers 
 
 
              Decoding 
 
 
 
 
    Feed Back      Idea Received 
 
 
Q. Discuss five elements (Factors) of the process of communication; 
 
Ans: Communication is the exchange of ideas between two minds. This process of exchanging 
idea is based on following five factors. 
1. Sender:- 
  Sender is the person who initiates the process of communication. He generates an idea in 
his mind regarding production invention, innovation, request, order, enquiry etc. So, he is the first 
factor of communication process and his function is to generate an idea. Therefore, it is necessary that 
the idea should be clear, and convertible into message. For this purpose, the sender needs to apply his 
knowledge and imaginative power. 
2. Message:- 
  The idea in the mind of sender is transformed into words that is called message. The sender 
decides on the length, style, organization and tone of the message. The message may be presented in 
many ways, depending on the subject, purpose, audience, personal style, mood and cultural 
background. 
3. Media:- 
  The media of transmission of message are electronic media as T.V., radio, computer and 
print media as newspapers, letter, magazine etc. media play a very important role in helping the 
receiver’s understand the message. A wrongly chosen medium can interrupt the process of 
communication, Selection of medium depends upon message, audience, urgency and situation. 
4. Receiver:- 
  Receiver is the person who gets the message from the sender, decodes it, understands it and 
interprets it. 
5. Feed Back:- 
  Having understood the message, the receiver responds to the sender in yes or no or asks 
further questions. This process is called feedback. 
 
 
Q.  Explain in detail verbal and non verbal communication? 
 
Ans: VERBAL COMMUNICATION: Verbal communication means such a communication 
that takes place by means of a language or words”. It includes the following contents. 
a. Oral communication (Speaking & listening) 
b. Written communication (writing & reading)