Business Communication, Source of Information and Business Letter

Concept of Business Communication


Business communication can be defined as the network of information existed among the insiders and outsiders to solve the problems of business organization. Business Communication is regulated by certain rules and norms. In early times, business communication was limited to paperwork, telephone calls etc. But now with the advent of technology, we have cell phones, video conferencing, emails, and satellite communication to support business communication.

According to Raymond, Marie, Kathryn and Neerja, "Business communication can be defined as a problem-solving activity. It is an interpersonal goal oriented process".

Source of Information

Business data and information come from multiple sources. The main sources of information are:

Internal Information

Information created by the operation of an organization that includes sales, purchase, orders and transactions in inventory instead of the data being created by an independent study or database. Accounting records can be taken as a prime source of internal information. The detailed transactions of the past which may be used as the basis of planning for the future.

External Information

The information obtained from outside the business is called external information which can be used as a major source for future planning and forecasting. There are various sources of external information. They are:

  • Print information
  • Television and radio media information
  • Online information

Concept of Business letter


The letter which is drafted by one business organization to another organization or for correspondence between two such organization and their customers, clients and other external parties. The letter is an important medium of business. It is the traditional form of business messages. It is written with the purpose of buying and selling goods and carrying out other activities of business. Letters, applications, circulars, notices, memorandum, quotation, orders, complaint letter etc. are the means of correspondence.

According to S.P Arora,"Correspondence can be defined as communicating in written on the subject of mutual interest either within the organization or with an outsider".

Qualities of Good letter

The success of a business depends on a quality of a letter. Some of the essential qualities of an effective letter are:

  • Simplicity:

Simplicity is necessary while writing a letter. A business letter must be simple and short so that it is easy to understand the messages given by the sender.

  • Completeness:

Another important quality of a letter is completeness. A letter should be written shortly, clearly and should be complete. Lengthy sentences should not be used. Repetitions should be avoided and words should be carefully chosen.

  • Clarity:

The good business letter should be clear. It must be written clearly using simple words so that receiver understands. It should be eye-catching too but confusing sentences, phrases, and proverbs should be avoided.

  • Correctness:

A business letter should have correct facts, figures, and statements. The clearness of the letter depends on its correctness. The language and grammar should be correct and right words should be used.

  • Attractiveness:

It is also another quality of good letter. The letter should be clear and attractive. It must be written in a certain format showing necessary parts.

Structure of Business Letter


Letter contains various parts should be considered while designing a letter. Some common parts of letter are:

  • Heading:

The heading is used to convey positive image of the company as it includes the company’s address, phone and often email. It is not necessary to include that information again in the body of the letter. Sometimes, the writer will provide a direct phone number or personal email address if the action statement calls for direct communication.

  • Inside name and address:

This is the second part of a letter that contains the name and address of the receiver to whom the letter is written. The respectable words like Mr., Mrs., Miss, and Dr. are written before a name.

  • Subject:

It is a third part of the letter.It is greeting of honor given to receiver by the writer. The words for salutation like Respected Sir, Madam are used for honoring the receiver.

  • Body of the letter:

It is the most important part of the letter which consists of detailed information about the subject matter. Messages to be delivered must be written clearly, correctly, concisely and courteously.

  • Complimentary close:

It is the sixth part of the letter. It is concluded with some polite words like Yours Faithfully, Yours Sincerely, Yours truly etc. It is written on the relationship between the sender and receiver.

  • Signature, Name, and position:

It is the last part of the letter. It contains the signature,Name,and position of the writer. The writer has to sign and write his/her name and position.

  • Enclose:

Enclosure indicates the additional documents attached with the letter. It is written in a short form like"Encl"orEncls".

  • Carbon copy:

Carbon copy is used to copy the text of letters when we have to send to more than one authority for quick action.

Drafting of Business letter

Drafting a letter is an important part of a business. There are various types of letter used in business. They depend on the subject concern of the letter. Some of the major business letter are explained below:

  • Inquiry letter:

Inquiry letter is defined as a letter that is written for collecting information about job seekers, prices, products, and services before awarding jobs, granting credit, making contracts and giving promotions. The description is given by the buyers to protect from the possibility of getting undesirable goods. It is generally written to a third party seeking information about either a job or a company that wishes to make a business relationship.

  • Order letter:

The letter which conveys the message for the supply of goods is known as a letter of order. It plays a vital role in contract between suppliers and buyers. It is generally prepared by a buyer to a seller for the ordering of goods which contain quality, quantity, size, time, place special instruction etc.

  • Complaint letter:

Complaint letter is a letter which is written to submit complain to the authority.It is a letter that describes the damage, errors or mistakes happened during the delivery of goods. While writing a complaint letter it must be genuine,courteous,correct and complete.

  • Application letter:

The letter which is written by a candidate for getting employment in an organization for a given post is called Application letter. While writing the letter, the applicant should state his academic qualification, experience, training, age health, hobby, the reason for applying the post etc.


Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal. Business Studies. Kathmandu: Taleju Prakashan, 2067.

Pant, Prem R., et al. Business Studies. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.

  1. Business communication can be defined as a problem-solving activity.It is an interpersonal goal oriented process.
  2. The letter which is written by a candidate for getting employment in an organization in an organization for a given post is called Application letter.
  3. A business letter should be correct about facts, figures, and statements.
  4. A business letter must be simple and short so that it is easy to understand the messages given by the sender.

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