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4 List and explain five important principles of business report


Ans. Report
A business report may be defined as, “an orderly and objective
presentation of information that helps in decision making and problem

The word “report” is derived from the Latin ‘reportare’ which means to
carry back. A report, therefore, is a description of an event carried back to
someone who was not present on the scene. Thus in a broad sense, may
memorandums, letters and items are report.

Purpose of a Report:-

Report is primarily a source of information to the management or an

individual to help in decision-making. Its purpose can be—

1) To give information about a company’s activities, progress, plans and

2) To record events for future reference in decision making.
3) To recommend specific action.
4) To justify and persuade readers about the need for action in
controversial situations.
5) To present facts to the management to help decide the direction the
business should choose.

Principles of business report writing

Report may be classified based on several criteria, including their use
(progress reports and financial report), purpose (informational, analytical and
persuasive report), and frequency of preparation, length (short and long
reports) and whether they are internal to the business, or are used outside
the business.

i. Communication:- As already given stated, every report Is meant for

communicating information to a person or group of persons. If a report
is not communicated to the person for whom it’s intended.
ii. Accuracy:- The information given in report should be accurate and
reliable. Wherever necessary the report should be supported by
adequate factual data. It should be remembered that the method
employed for data collection significantly influences the degree of
iii. Language:- The language used in the report should be
understandable to the people for whom it is intended. Simple language
should be used as far as possible. It should not include unnecessary
technical terms and phrases which may not be understood by the
users of the report.
iv. Routine Nature:- Report, particularly routine report, should be
prepared in a routine manner. It would facilitate the reader to
understand the nature of the report without looking into the detailed
contents. In this context formal reports are useful.
v. Recommendations:- If recommendations are to be made, they
should be given at the end of the report under the heading of
suggestions or recommendations. It is needless to mention that the
recommendations should be based on what has been studied,
analyzed or scrutinized. Normally, management takes decisions on the
basis of such recommendations given in the report.