Business Communication - SUCM102

SUCM 102
UNDERGRADUATE COURSE
BCOM - GENERAL COMMERCE
FIRST YEAR
FIRST SEMESTER
PAPER - II
BUSINESS COMMUNICATION
INSTITUTE OF DISTANCE EDUCATION

UNIVERSITY OF MADRAS
BCOM - GENERAL COMMERCE PAPER - II
FIRST YEAR BUSINESS COMMUNICATION
FIRST SEMESTER
WELCOME
Warm Greetings.
It is with a great pleasure to welcome you as a student of Institute of Distance Education,

University of Madras. It is a proud moment for the Institute of Distance education as you are
entering into a cafeteria system of learning process as envisaged by the University Grants
Commission. Yes, we have framed and introduced Choice Based Credit System(CBCS) in
Semester pattern from the academic year 2018-19. You are free to choose courses, as per the
Regulations, to attain the target of total number of credits set for each course and also each
degree programme. What is a credit? To earn one credit in a semester you have to spend 30
hours of learning process. Each course has a weightage in terms of credits. Credits are assigned
by taking into account of its level of subject content. For instance, if one particular course or
paper has 4 credits then you have to spend 120 hours of self-learning in a semester. You are
advised to plan the strategy to devote hours of self-study in the learning process. You will be
assessed periodically by means of tests, assignments and quizzes either in class room or
laboratory or field work. In the case of PG (UG), Continuous Internal Assessment for 20(25)
percentage and End Semester University Examination for 80 (75) percentage of the maximum
score for a course / paper. The theory paper in the end semester examination will bring out your
various skills: namely basic knowledge about subject, memory recall, application, analysis,
comprehension and descriptive writing. We will always have in mind while training you in
conducting experiments, analyzing the performance during laboratory work, and observing the
outcomes to bring out the truth from the experiment, and we measure these skills in the end
semester examination. You will be guided by well experienced faculty.
I invite you to join the CBCS in Semester System to gain rich knowledge leisurely at
your will and wish. Choose the right courses at right times so as to erect your flag of success.
We always encourage and enlighten to excel and empower. We are the cross bearers to make
you a torch bearer to have a bright future.
With best wishes from mind and heart,
DIRECTOR
(i)
BCOM - GENERAL COMMERCE PAPER - II
FIRST YEAR BUSINESS COMMUNICATION
FIRST SEMESTER
COURSE WRITER
Dr. B. DHANALAKSHMI
Post Doctorate Research Fellow (ICSSR)
Department of Commerce
Institute of Distance Education
University of Madras
Chennai - 600 005.
EDITING
Dr. R. Panchalan
Professor in Commerce
Institute of Distance Education
University of Madras,
Chennai - 600 005.
© UNIVERSITY OF MADRAS, CHENNAI 600 005.
(ii)
BCOM., DEGREE COURSE
FIRST YEAR
FIRST SEMESTER
Paper - II
SYLLABUS
UNIT I
Communication- Definition - Methods - Types - Principles of Effective Communication -

Barriers to Communication - Business letters - lay out.
UNIT II
Business Letters- Meaning - Kinds of Business Letters - Application for a situation - Interview
- Appointment letter - Acknowledgement - Promotion - Enquiries - Reply Letter to Enquiries -
Orders - Sales Letter - Circular Letter - Complaints Letter.
UNIT III
Bank Correspondence - Insurance Correspondence - Agency Correspondence -

Correspondence with Share Holders & Directors.
UNIT IV
Reports - Meaning - Writing of Reports - Meetings - Agenda - Minutes - Memorandum -

Office order - Circular Notes.
UNIT V
Modern forms of communication - Fax - email - video conference - internet - websites -

uses of the various forms of communication.
(iii)
SUGGESTED READINGS
1. Rajendra Paul & Korlahalli, J.S. Essentials of Business Communication, Sultan Chand &
Sons, New Delhi.
2. Shirley Taylor, Communication for Business, Pearson Publications, New Delhi.
3. Bovee, Thill, Schatzman, Business Communication Today - Peason Education Private

Ltd - New Delhi.
4. Penrose, Rasbery, Myers, Advanced Business Communication, Bangalore.
5. Simon Collin, Doing Business on the Internet, Kogan Page Ltd, London.
6. Mary Ellen Guffey, usiness Communication - Process and Product, International Thomson
Publishing, Ohio.
7. Sundar, K. A, Business Communication, Vijay Nicole Imprints Pvt. Ltd., Chennai.
(iv)
B.Com., DEGREE COURSE
FIRST YEAR
FIRST SEMESTER
Paper - II
SCHEME OF LESSONS
Sl.No. Title Page
1. Business communication – An introduction 001
2. Letter of Enquiry 019
3. Quotations 037
4. Orders, Execution and Cancellation 046
5. Complaints, Adjustments and Settlement of Accounts 056
6. Circular and status Enquiries 066
7. Collection Letters 076
8. Application for a Situation 085
9. Company Correspondence 094
10. Report Writing 112
11. Role of Computers in Business Correspondence 125
(v)
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UNIT - 1
BUSINESS COMMUNICATION –
AN INTRODUCTION
Learning Objectives
After studying this unit, you should be able to:
 define communication
 describe the types of communication
 explain the challenges and issues in communication
 enumerate the tools of effective communication
 disucss the importance of communication
Structure
1.0 Introduction
1.1 Meaning and Definition
1.2 Objectives of Communication
1.3 Essentials of Good Communication
1.4 Types of Communication
1.5 Levels of Communication
1.6 Process of Communication
1.7 Importance of Communication
1.8 Barriers in communication
1.9 Tools of Effective Communication
1.10 Summary
1.11 Review Questions
1.0 Introduction
Transferring information from one to another is called communication. Communication is
the heart of every business. For an effective and successful business, an effective communication
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should be needed. The management functions are done effectively by the all level of management
only through an effective communication. In this regard, studying about the communication and
the importance and functions of communication in the modern business world is very much
important. In this unit, you are going to study about the overview of business communication
and the levels, process, importance and the barriers in communication. It helps you to understand,
the vital role played by the communication in this techno based world.
1.1 Meaning and Definition

The word communication is derived from the Latin word “Communicare” which means “to
share”. Communication is the act of conveying message from one person or group to another
through the use of commonly known signs and semiotic rules. It is the process of exchanging
information, ideas, thoughts, feelings and emotions through speech, signals, writing and
behaviour.
In Oxford English Dictionary is defined the term “communication” as “the imparting or

interchange of thoughts, opinion, or information by speech, writing or signs”.
Peter little defines communication as “the process by which information is transmitted

between individuals or organisation so that an understanding response results”.
W.H. Newman and C.F.SummerJr define “Communication is an exchange of facts, ideas,

opinions, or emotions by two or more persons”.
1.2 Objectives of Communication

Various objectives of communication are:
1. Information: one of the most important objectives of communication is passing or receiving
information about a particular fact or circumstance.
2. Advice: Advice is an important objective of communication as it involves personal opinions
and is likely to be subjective. Advice is given to influence his/her opinion or behaviour.
3. Order: Order is authoritative communication. The downward flow of information is
dominated by orders. Orders may be written or oral, general or specific, procedural or
operational, mandatory or discretionary.
4. Suggestion: Suggestion enjoys great advantage over other means of communication
like advice or order. Suggestion is supposed to be very mild and subtle form of
communication.
5. Persuasion: it is an importance objective of communication. In the office or the factory,
the lazy. The incompetent and the disgruntled workers have to be persuaded to do their
work.
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6. Education: Education is a very conscious process of communication. The main purpose

of education is to widen knowledge as well as to improve skills.
7. Warning: Warning is a forceful means of communication as it demands immediate action.
If employees do not abide by the norms of the organization or violate the rules and
regulations, it may become necessary to warn them.
8. Raising Morale: Morale boosting is only possible through communication. High morale
results in better performance.
9. Motivation: Motivation energizes and activates a person and channelizes his behaviour
towards the attainment of desired goals.
Thus, motivation as a form of communication is very crucial handling human behaviour.
1.3 Essentials of Good Communication
A healthy relationship in any quarter begins with good communication. In business, it is

necessary to have an effective communication in every interactions, like communication with
the boss, colleagues or even to the family members and the friends. The followings are the
essentials for an effective communication;
1. Listen:Always start by emptying out all the pre-conceptions of known things. Have an
open mind about what the other party has to say. It may be hard at first but this will help
build trust ad understanding in the relationship.
2. Do not interrupt: Allow the person to fully express their concerns. Suppress any urge to
cut in with own thoughts. It is possible to understand the situation if let the person to finish
and not “jump the gun” with a wrong or misunderstood response.
3. Avoid Pointing Fingers: Placing blame always comes across as an excuse and will
quickly alienate the other person. This in turn could create a wall which may potentially
block further communication.
4. Be Clear and Concise: Beating about the bush or sticking to generalities can confuse
those people are interacting with. Be as specific as you can and leave no room for doubt.
5. Repeat the other person’s Views: Always repeat what the other person has expressed
to ensure the communicator fully understand their point of view.
6. Provide Feedback: Without interrupting the speaker, inject some neutral statements,
such as “oh” or “I see” to show that they have the communicator’s undivided attention and
that the communicator follow their train of thought.
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7. Show Empathy: Empathy is the ability to understand the emotion behind the other party’s
arguments especially when the topic is a sensitive one. By doing so, it tells the other
speaker that communicator can connect with them at an emotional level.
8. Pay attention to non-verbal sings: The body language of the other party will give you
important additional information about what they are expressing. Sometimes these cues
may even reveal a more truthful view of the situation.
The above discussed factors are important for oral communication. For Easy and effective
conveying of information is possible through letters. The business letters acts as a
messenger. Effective business letters are the lifeblood of modern business. Letter writing
is an art and is capable of attracting the attention of the reader. Defects in letter will
endanger the chances of winning the attention of the reader. The general appearance of
the letter will govern the impression created in the mind of the reader. Hence it is necessary
to remember the following while drafting a letter;
9. Clarity: Clear thinking and simple expression are the two important virtues of effective
writing. A good letter should show its idea directly and clearly. Each sentence should be
as simple as possible, the reader should have no difficulty in understanding what the
writer means to say. When the reader gets the same meaning from the message as what
the sender intended, it is a good letter.
10. Conciseness: Transmission of maximum information by using minimum words should

be the aim of letter-writing. Unnecessary details and roundabout expressions should be
avoided. People are busy and they receive a number of letters daily. Unless one says
quickly what one wishes to say, he will not be able to get the attention of the reader and
focus it on the message. Therefore, a letter should be simple and brief.
11. Completeness: The letter should contain all the essential points a reader is expected to
know. For example, a sales letter should include the description of the goods, price,
quality, how and where to buy, the date of delivery, discounts etc. If it gives only partial
information, it is not a complete letter.
12. Correctness: The correctness demands no error at all in grammar, idiom, spelling, and
punctuation. Besides, the information given in the letter must be accurate; otherwise it will
shake the confidence of the reader. The message should not be transmitted unless the
sender is sure of its correctness.
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13. Courtesy: Courtesy means politeness. It always pays to be courteous in business. It

softens the sting of an unpleasant piece of information, creates goodwill and produces a
favourable response. Goodwill is a great asset for an organisation and courtesy in
correspondence is one the most natural and economical means of building it.
14. Cheerfulness: There should be no negative approach in a letter. It must begin with a
positive and optimistic note. The approach should be friendly and convincing.
15. Promptness: Promptness in replying a letter is absolutely necessary. The general practice
is to reply a letter the same day it is received. When it is known that a reply to a letter
requires time it is necessary to acknowledge the letter received and intimate the probable
time required sending full reply.
16. Appropriateness: Appropriateness refers to writing or replying letters keeping in mind

the relation and psychology of the reader as well as the need of the occasion. The tone,
style and language should be changed according to the occasion.
17. The ‘You’ attitude: In business letters, the reader’s interest must be emphasised and not
the sender’s interest. To make letters effective, avoid words such as I and ‘We’ and use
as many as ‘you’ possible. The ‘you attitude’ can be used effectively in all kinds of business
letters.
18. Integral: The purpose of business communication is to create understanding, bring about
cooperation and initiate constructive action. Therefore, all communication should be in
conformity with the general objectives of the organisation.
Check Your Progress - A

1. Define Communication.
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2. State any two objectives of Communication.
3. What is Empathy?
1.4 Types of Communication

People communicate with each other in a number of ways that depend upon the message
and its context in which it is being sent. Therefore, there are different types of communication.
Fig.1.1 exhibits the types of communication.
The types of communication based on the organisational structure, expression and the
direction, are discussed in the following pages;
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1.4.1. Based on Organisational Structure

First we will discuss the classification of communication on the basis of organisation
structure.
1. Formal Communication
Communications which are associated with a formal organisation structure and which are
to be sent through the formal or officially recognised channels are called formal communications.
Generally, orders, instructions, decisions of the superior officer, etc., are communicated through
this channel.
2. Informal communication
This is also known as ‘grapevine’ communications. In the case of informal communication,

the formal channels of communication are not used. In this channel, very often, a person can
obtain information which would take a few days for him to receive through the officially recognised
organisational channel. Informal communication may be conveyed by a gesture, nod, smile
etc.
1.4.2. Based on Expression
It refers to the form of communication in which message is transmitted verbally, which

means communication is done by word of mouth and a piece of writing. In verbal communication
must consider the sloga called “Keep it Short and Simple”.
This verbal communication can be divided into two namely oral communications and
written communication.
1. Oral Communication
In oral communication, spoken words are used. It includes face to face conversations,
speech, telephonic conversation, video, radio, television, voice over internet. It influenced by
pitch, volume, speed and clarity of speaking.
Advantages
 It brings quick feedback
 In a face-to-face conversation, by reading facial expression and body language one can
guess whether he/she should trust what’s being said or not.
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Disadvantages
 In face-to-face discussion, user is unable to deeply think about what he/she is delivering,
so this can be counted as a fault.
2. Written Communication
In written communication, written signs or symbols are used to communicate, and that
communication can be transmitted via e-mail, letter, report, memo and the like.
Written communication is most common form of communication being used in business.
Advantages
 Messages can be edited and revised.
 Written communication provide record and back-up.
 A written message enables receiver to fully understand it and send appropriate feedback.
Disadvantages
 Written communication doesn’t bring instant feedback.
 It take more time in composing a written messages as compared to word-or-mouth and

number of people struggles for writing ability.
1.4.3. Nonverbal Communication
Nonverbal communication is the sending or receiving of wordless messages. Such as

gesture, body language, posture, tone of voice or facial expressions, is called nonverbal
communication. In simple words, nonverbal communication is all about the body language of
speaker.
Nonverbal communication have the following three elements:
Appearance
Speaker: clothing, hairstyle, neatness, use of cosmetics
Surrounding: room size, lighting, decorations, furnishings.

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Body Language: facial expressions, gestures, postures
Sounds: Voice Tone, Volume, Speech Rate.
1.4.4. Based on Directions of Communication
On the basis of direction, communication is either vertical or horizontal. Vertical

communication moves both downwards and upwards. Horizontal communication takes place
between tow subordinates under the same superior, or between two departmental managers. It
is also known as sideward communication.
1. Downward Communication
If the communication flows from the superiors to the subordinates, it is called as downward
communication. Generally in an organisation, information from the top level management such
as orders, instructions, circulars and manuals are instances of this type of communication.
Downward communication is best suited to the line organization.
2. Upward Communication
It is the flow of communication from the subordinates to the superior positions. Reports,
suggestions, complaints and grievances are instances of this type of communication.
3. Horizontal or Lateral Communication
It means communication among the subordinates who are working at the same level of
organisation. For example, communication among foremen or superintendents, or functional
managers or supervisors is horizontal communication.
4. Diagonal Communication
It means communication between people who are neither in the same department nor at
the same level of organisational hierarchy. In this type, communication cuts across departmental
lines.
1.5 Levels of Communication

1. Intrapersonal Communication: it is the communication that occurs in your own mind. It
is the basis of your feelings, biases, prejudices and beliefs.For example, if you make any
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kind of decision- what to eat or wear. When you think about something – what you want to
do on the weekend or when you think about another person.
2. Interpersonal Communication: The communication between two people but can involve
more in informal conversations.For example: talking to your friend, a teacher and student
discussing an assignment, a patient and a doctor discussing a treatment, a manager and
a potential employee during an interview.
3. Small Group Communication: The communication within formal or informal groups or

teams is called small group communication. It is group interaction that results in decision
making, problem solving and discussion within an organization.For example: group planning
a surprise birthday party for someone. A team working together on a project.
4. One-to-Group Communication: It involves a speaker who seeks to inform, persuade or

motivate an audience.For example: a teacher and a class of students, a preacher and a
congregation, a speaker and an assembly of people in the auditorium.
5. Mass Communication: The electronic or print transmission of messages to the general

public is called mass communication. Outlets called mass media include things like radio,
television, film and printed materials designed to reach large audiences.
1.6. Processof Communication
Figure 1.2: Process of Communication
1. Source / Sender: One who delivering the message.
2. Receiver: One who is receiving the message is called receiver.

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3. Encoding: The process of converting data into a format required for a number of
information processing needs is called encoding. In simple words we can say that convert
(information or an instruction into a particular form.
4. Decoding: It is the process of converting code into plain text or any format that is useful
for subsequent processes. Decoding is the reverse of encoding. It converts encoded data
communication transmissions and files to their original states. In other words, convert
into a different or usable form.
5. Feedback: Confirmation that the message has been received.
6. Channel: It is a separate path through which signal can flow.
1.7. Importance of Communication

Communications plays an important role in the success of the organisation. If the
organisation have an effective communication have an effective communication, it facilities the
smooth functioning of the organisation.
1. Necessary for planning:Effective communication is important for the development of an

organization. It is something which helps the managers to perform the basic functions of
management – planning, organizing. Motivating and controlling..... Thus, it can be said
that effective communication is the building block of an organization.
2. Understanding each other:Managers spend between 70 to 90 percent of their time

communicating with employees and other internal and external customers.
3. Increases efficiency:An employee cannot do anything constructive in a work unit unless

he or she knows what is to be done, when the task it to be accomplished, and who else is
involved. The staff members who have this information become centres of power.
4. Basis of Decision-Making:Decisions are often dependent upon the quality and quantity
of the information received. If the information on which a decision is based on poor or
incomplete, the decision will often be incorrect.
5. Smooth working of Enterprise:Through communication, people exchange and share

information with one another and influence one another’s attitudes, behaviours, and
understandings.
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6. Motivation: A leader is expected to represent his/her followers and motivate them to

reach heights of success through individual and collective effort. Communication is the
best equipment a leader can employ to achieve the goal. Even ideals resting upon strong
principles can fall flat and fail to motivate due to lack of effective communication skills.
7. Co-ordination:Communication allows managers to establish and maintain interpersonal

relationships, listen to others, and otherwise gain the information needed to create an
inspirational workplace. No manager can handle conflict, negotiate successfully, and
succeed at leadership without being a good communicator.
1.8 Barriers to Communication

These barriers to communication are specific items that can distort or prevent
communication within an organization. The ability for a company to recogniz3 the communication
issues and come to a resolution can drastically improve working conditions, sales and
organizational culture. In simple term, obstacles in a workplace that prevent effective exchange
of ideas or thoughts are called barriers. Such barriers include (1) status differences (2) gender
differences (3) cultural differences (4) prejudices and (5) the organizational environment.
There are three levels at which communication takes place:
 Noticing is done with the senses, and is at the physical level
 Understanding is a the level of intelligence
 Acceptance is at the emotional level
Anything that hinders the process of communication at any of these levels is a barrier to
communication.
Barriers to communication can be defined as the aspects or conditions that interfere with
effective exchange of ideas or thoughts.
1.8.1. Classification of Barriers

1. Physical Barriers:Faulty Organizational Structure: Large working area, closed office doors,
separate areas for people of different status and it forbids team member from effective
interaction with each other.
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2. Noise:Physical Noise (Outside Disturbance), Psychological Noise (Inattentiveness),

Written Noise (Bad Handwriting/ Typing), Visual Noise (Late Arrival of Employees)
3. Time and Distance:Improper Time, Defects in Medium of communication, Network

Facilities, Mechanical Breakdowns.
4. Information Overload: Piling up of tasks due to improper time management, excess

number of people assigned for same task, work overload/information duplication.
5. Semantic and Language Barriers: Semantics or code noise, occurs when the meaning
of a message to the sender differs from its meaning to the recipient. Too often, this may
be the result of “jargon”, involving pretentious terminology or language specific to a
particular profession or group. Unclear message, faulty translation, specialists’ language
and un-classified assumptions are classified under the semantics barriers.
6. Socio-Psychological Barriers:The psychological state of the receiver will influence how

the message is received. For example, if someone has personal worries and is stressed,
they may be preoccupied by personal concerns and not as receptive to the message as
if they were not stressed. Stress management is an important personal skill that affects
our interpersonal relationships. Anger is another example of a psychological barrier to
communication. When we are angry it is easy to say things that we may later regret and
also to misinterpret what others are saying. More generally, people with low self-esteem
may be less assertive and therefore may not feel comfortable communicating – they may
feel shy.
7. Systematic Barriers:Systematic barriers to communication may exist in structures and

organisations where there are inefficient or inappropriate information systems and
communication channels, or where there is a lack of understanding of the roles and
responsibilities for communication. In such organisations, people may be unclear of their
role in the communication process and therefore not know what is expected of them.
8. Cross-Cultural Barriers:The norms of social interaction vary greatly in different cultures,

as do the way in which emotions are expressed. For example, the concept of personal
space varies between cultures and between different social settings.
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1.9 Tools of Effective Communication
Businesses across the world have awoken to the fact that times are changing. They have
realized that retention of competitiveness calls for adaptability by investing in efficient business
communication tools. These tools are particularly useful to businesses that would like to increase
their efficiency, motivate their personnel for increased productivity, make IT management simple
and stress-free, and provide solutions that are user friendly.
Entrepreneurs and managers have a vital role in determining the right business
communication tools to be used by the company. They need to examine both the internal and
external communication needs of their business, and determine the right tools to employ to
meet those needs. Here is a look at 7 communication tools for business that managers would
want to consider:
1. ezTalksMeetings
EzTalks Meetings is one of the most effective tools of business communication. It’s free
and quite easy to use. Its high-definition videos and very clear audio features makes using it
almost as good as having a face to face meeting. It is designed to allow for the use of eraser,
pencil and texts on its interactive whiteboard as you host online meeting. Its other innovative
features include;
 Free HD Video and audio call for up to 100 participants
 Group chat and private chat can be held in/off the meeting
 An online meeting scheduler – to prepare scheduled events
 Screen sharing and whiteboard – better express what you’re saying
 A recording and playback feature – for future reference
 Control and management feature – to ensure that meetings are orderly
 It is compatible with a wide range of devices, including, Android, Mac, Windows and iOS.
2. Social Intranet Software
All companies, large and small, have to undergo a transition crisis that is usually
characterized by poor internal communication mechanisms. Oftentimes, managers react to
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this by laying more emphasis on the use of emerging technology, without really getting into the
merits of doing so. They fail to evaluate the indicators of the problem that would guide them to
arrive at a concrete solution. These indicators are a good guide as to the actual communication
tools in business required. Keen manager should be on the lookout for the following indicators
of breaking communication:
 Overburdening paperwork
 Outdated company news, bulletins and announcements
 Lack of a clear orientation policy for new recruits
 Frequent communication breakdowns between section heads and their employees
 Lack of a clear appraisal policy
 Poorly laid out channels of communication
The organization can circumvent the above problems by investing in Social Intranet
Software. This software provides a common portal from which all the employees can easily
access communication documents and information that are necessary for them to carry out
their duties effectively. This ensures that everyone in the organization is moving in the same
direction, and the inevitable result of this is better returns for the company.
3. Whats App
A key thing that a competitive business must strive to do is to offer real-time customer
service. Seasoned entrepreneurs know that this is no mean feat. It is even more daunting for
small and medium businesses that may not have the budget to accomplish this. However, with
this online communication tool for business- WhatsApp, a business of any size can actively
engage their customers in real-time. The app has the advantage o being able to support a
variety of media: audio, video and text.
4. Internal Videos and Blogs
Great tools of communication in business are meant to engage employees with a view to
get their feedbacks. Employee motivation starts by listening to their opinions, comments,
complaints and compliments. To achieve this, the company must design content that is attractive
and appealing enough to capture and sustain their interest. The manager should be keen to
note the kind of attention that the company posts are receiving from the employees, and should
it happen that there are few who are active, then they need to change the mode of delivery.
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The human brain acts like a super computer – it has the ability to process visual images
at an amazingly fast speed. When the company decides to use videos, images and info graphics,
it is guaranteed to arouse the interest and engagement of the employees. Almost any
communication can be delivered in this way; from company news, bulletins, departmental
information, training videos to marketing demonstrations. The company will save on time as a
result of the speedy way with which the information will be received and acted upon.
5. Discussion Forums
Sharing information in the workplace has been credited for enhanced skills acquisition
and increased staff morale. It is through this that new employees are inducted into the
organization. This practice also allows for workers to ask questions, give opinions and discuss
the best way of tackling on-going projects. A business devoid of healthy internal business
communication tools has no space for information sharing.
Such a company is characterized by employee apathy that has the following indicators:
 The workers queries are not responded to
 Knowledge is a preserve of a few
 Management is divided on who handles what issues
Discussion forums are effective communication tools for business. They bond employees
and the management. Creating such a forum ensures that knowledge is shared, and that
everybody is made to feel that have a stake in the organization.
6. Hangouts
Hangouts has been essentially one of the communication tools in business that are focused
more on the texting feature. However, Google’s Cloud Next unveiled two other products that
are offshoots of the original Hangouts: Meet and Chat.
i. Hangouts Meet
This is a fairly new video meeting and video chatting app that is very appropriate for
businesses. It is fairly easy to get into and use, considering that it is reputed to be ultra-light,
ultra-easy and ultra-fast. It has the ability to accommodate about 30 people at a go, making it
ideal for business meetings. Hangouts Meet can also be conveniently accommodated in your
calendar.
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ii. Hangouts Chat
This is more of a messaging tool appropriate for business communications than anything
else. It has become a favourite of journalists, but more and more businesses are taking it up for
its convenience and innovativeness. It is poised to allow users to create groups and run projects.
7. Issue Tracking Software
The modern-day techno-savvy client would want to use a variety of channels to connect
to your business. Unfortunately, technology has not developed nay one single gadget that can
offer an all-round approach t this matter. Businesses have the option of investing in Issue
Tracking Software, to achieve an almost near effect of this.
This business communication tool allows clients to issue a ticket on a complaint or problem.
This ticket gets assigned to a dedicated employee who will ensure that it is resolved in time.
This software is a tool designed to track open issues and queries, get customer feedback and
track personnel productivity.
Check Your Progress – B

1. What is lateral communication?
2. What do you understand by Semantic Barriers?

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3. What do you mean by Grapevine?
1.10 Summary
Effective communication requires good planning. Audio and visual signs can substitute
verbal messages in limited situation. Body language is also important in oral communication. It
enhances communication level. Listening is important to effective communication. In order to
enhance the recent business communication there are more developments in communication
tools such as ezTalks, SIS, WhatsApp, IVB, Discussion Forums, Hangouts and the like. It
reveals that in modern era of business even the traditional way of communication or in the
modern forms of communication is enhances the effective communication.
1.11 Key Words

 Communication
 Verbal and Non-verbal Communication
 Process of Communication
1. Define communication.
2. Explain the process of communication.
3. What do you mean by communication and explain the importance of communication in

an organization?
4. What are all the objectives of communication?
5. List out the types of communication and explain it.
6. Describe the tools of an effective communication.

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UNIT 2
LETTER OF ENQUIRY
Learning Objectives
After completing this unit, you must be able to:
 explain the importance of letter for business
 list out the different types of letter of enquiry
 draft a letter based on different situations
Structure
2.1 Introduction
2.2 Types of Business Letters
2.3 Importance of Business Letters
2.4 Functions of a Business Letter
2.5 Business Letter – Lay out
2.6 Summary
2.7 Key Words
2.1. Introduction
Inquiry letter is written by the Employer or Management group of a section of a large

cooperate firm inquiring certain issues, the reason behind it. This kind of letters is written in
order to clear up a dispute. The person who is inquired need to revert back to the certain
clarification asked for. The reason behind writing an inquiry letter can be anything like an inquiry
for a product which is new in the market, an inquiry for a dispute in the organization, inquiry for
a job position in an organization to check the variety of product they are having and the price list
of the products for future business purposes, an enquiry letter can be written for an advertisement
like if an organization is in a need of an advertisement them what are their needs for the
advertisement.
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An enquiry letter is a formal way of requesting to get information about anything from
anyone formally. When an inquiry letter is written to an organization or a person he has to give
a reply for the letter by giving the correct information for the request of inquiry.
2.2 Types of Business Letters
The term “business letters” refers to any written communication that begins with a salutation,
ends with a signature and whose contents are professional in nature. Historically, business
letters were sent via postal mail or courier, although the internet is rapidly changing the way
businesses communicate. There are many standard types of business letters, and each of
them has a specific focus.
1. Sales Letters
Typical sales letters start off with a very strong statement to capture the interest of the
reader. Since the purpose is to get the reader to do something, these letters include strong calls
to actions, detail the benefit to the reader of taking the action and include information to help the
reader to act, such as including a telephone number or website link.
2. Order Letters
Order letters are sent by consumers or businesses to a manufacturer, retailer or wholesaler

to order goods or services. These letters must contain specific information such as model
number, name of the product, the quantity desired and expected price. Payment is sometimes
included with the letter.
3. Complaint Letters
The words and tone you choose to use in a letter complaining to a business may be the
deciding factor on whether your complaint is satisfied. Be direct but tactful and always use a
professional tone if you want the company to listen to you.
4. Adjustment Letters
An adjustment letter is normally sent in response to a claim or complaint. If the adjustment

is in the customer’s favour, begin the letter with that new. If not, keep you tone factual and let
the customer know that you understand the complaint.
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5. Inquiry Letters
Inquiry letters ask a question or elicit information from the recipient. When composing
this type of letter, keep it clear and succinct and list exactly what information you need. Be sure
to include your contact information so that it is easy for the reader to respond.
6. Follow-up Letters
Follow –up letters are usually sent after some type of initial communication. This could be
a sales department thanking a customer for an order, a businessman reviewing the outcome of
a meeting or a job seeker inquiring about the status of his application. In many cases, these
letters are a combination thank-you note and sales letter.
7. Letters of Recommendation
Prospective employers often ask job applicants for letters of recommendation before
they hire them. This type of letter is usually from a previous employer or professor, and it
describes the sender’s relationship with and opinion of the job seeker.
8. Acknowledgement Letters
Acknowledgement letters act as simple receipts. Businesses send them to let others
know that they have received a prior communication, but action may or may not have taken
place.
9. Cover Letters
Cover letters usually accompany a package, report or other merchandise. They are used
to describe what is enclosed, why it is being sent and what the recipient should do with it, if
there is any action that needs to be taken. These types of letters are generally very short and
succinct.
10. Letters of Resignation
When an employee plans to leave his job, a letter of resignation is usually sent to his
immediate manager giving him notice and letting him know when the last day of employment
will be. In many cases, the employee also will detail his reason for leaving the company.
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2.3 Importance of Business Letters
Businessmen must establish contact with the people and then only they can develop their
organisations. Importance of communication is very great in business life. There was a time
when the size of business was normally small and varied means of communication were not
available, direct meetings or fact-to-face communication was practised by the businessmen.
Later on, the policy of sending representatives for direct contact was introduced. All these
methods have their limitations.
1. Exchanging business information: Letters are the most economic and convenient means
of exchanging information. With the help of letter, executives can easily exchange
information with customers, suppliers, investors, government offices; regulatory authorities
etc.
2. Establishing business relationship: Business letter play important role in establishing

and maintaining relationship with various parties. Business letters reduce the distance
between a business and its customers, suppliers, creditors and other public groups.
3. Creation of Markets: Circular letter a form of business letter helps to create new markets
for goods and services. This letter contains information about utility, features and usefulness
of the products and induces the customer to buy the products.
4. Substitute to personal visit: Introduction of letters in business world relieves the business
executives’ form visiting their clients, suppliers, creditors and other public groups by
travelling a long distance. For this reason, commercial letters are called alternative
technique to personal visit.
5. Saving cost and time: Business letters relieve the busy executives from visiting personally
their clients and other concerned parties. Therefore, valuable time and costs can be saved.
6. Maintaining secrecy: Business letters also help to maintain secrecy of information. Non
one other than the sender and receiver can know the message contained in the letter.
7. Increasing goodwill: Business letters, like inquiry letter, circular letter, order
acknowledgement letter, adjustment grant letter etc. Help to increase good will of a business
with the customers.
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8. Formal agreement: Business letter acts as formal agreement between buyer and seller.
For example an order letter contains name of items, price, and quantity, time of delivery
and mode of payment. All these are regarded as the conditions of agreement between
buyer and seller.
9. Settlement of transaction: Commercial letters have paramount importance in setting

business transaction. For example, by writing claim letter, buyer can raise his claims to
the seller by writing collection letters; seller can collect dues form the customers.
10. Use as reference: Information exchanged through letters can be preserved permanently
and used as reference when need arise. Therefore, making business decisions becomes
easier.
11. Legal acceptance: Business letter is an acceptable document in the eye of law. It can be
stored and produced as a documentary proof.
12. Assistance in local and international trade: Both local and foreign trade essentially
requires the help of various business letters. Through letters, businessperson make inquiry
about products and prices place orders for goods collect the dues make and settle claims
etc.
From the above discussion, it can be concluded that successful operation of business
activities establishing, maintaining and developing business relationship and finally achieving
business goal all require help of business letter. In a sense, conducting business is impossible
without business letters.
2.4. Functions of a Business Letter
Business people have to communicate with the suppliers, debtors, creditors, customers
and with other concerned parties to exchange information. Business letters are basically used
to communicate with the above parties.
According to Ricks and Gow, “The primary purposes of business letters are to inform,

instruct, request, inquire, remit, order, advice, correct and to question.”
Functions or purposes of business letter are as follows:
1. Convey Information: The basic purpose of any business letter is to convey information
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regarding business activities. Information can be transmitted through business letter to

customers, suppliers, debtors, government authorities, financial institutions, bank and
insurance companies and to any other parties related with the business
2. Conclude Transaction: This is one of the specific purposes of business letter. To conclude
in completed transactions business letters are frequently used.
3. Creation of Demand: Business letters especially circular letters used to create demand
for new products. Circular letters can communicate many people in the same time.
4. Creation of Goodwill: In this electronic era messages can be sent within few seconds
through electronic media but a well decorated business letter has its own importance in
creation positive image of the company.
5. Expansion of business: Through goodwill messages and through circular letters existing
market can be expanded.
6. Establishment of relationship: Another important purpose of business letter is, it helps

to establish mutual relationship with the customers, suppliers and with the other interested
parties.
7. Evidence: Business letters are also used to maintain documentary evidence. Letters can
be preserved for future reference.
8. To Inquire: A business concern not only sends messages but also receive information
from the outside. To run the business any firm need different types of information from
outside. Through business letters firms can inquire regarding necessary matters.
9. Placing Order: It is a very common purpose for using business letter. Both trading and
manufacturing concerns need to place orders for finished goods or raw-materials to run
the business.
10. Problem Solving: In the course of business, disputes and misunderstanding may arise.
Business letters play vital role in solving such misunderstandings.
2.5. Business Letter – Lay Out
When writing a business letter, the layout of your letter is important, so that it will be easy
to read and looks professional. So is your use of an appropriate salutation and closing. Your
spelling and grammar, and the tone you employ.
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Here’s information on business letters, including selecting a font, paragraph spacing,

formatting, margins, what to include in each paragraph, how to close the letter, and an example
of the proper layout for a business letter.
1. Letter Font and Spacing

i. Properly space the layout of the business letters your write, with space between the
heading, the greeting, each paragraph, the closing, and your signature.
ii. Single space your letter and leave a space between each paragraph. When sending
typed letters, leave two spaces before and after your written signature.
iii. Left justify your letter, so that your contact information, the date, the letter, and your
signature are all aligned to the left.
iv. Use a plain font like Arial, Times New Roman, Courier New, Calibri or Verdana. Make
sure that the font size you use is large enough that your reader won’t need to reach for
their glasses – the standard font size for these fonts is 10 point or 12 point. If you are
submitting your business letter to a very conservative organization, it is best to use the
traditional Times New Roman 12 point font. Do not, under any circumstances, use fancy
fonts like Comic Sans or handwriting fonts like Lucida on business correspondence.
2. Business Letter Etiquette and Tone

 Salutation: it is still standard to use the recipient’s title (Mr., Mrs., Ms., Dr., Professor,
Jude) before their last names in the salutation of formal business correspondence
(Example: “Dear Mr.Smith”). The word “Dear” should always precede the recipient’s name;
don’t simply use their name by itself as you might do in casual correspondence. By the
same token, avoid beginning business correspondence with openings like “Hello”, “Hi”, or
“Good Morning” – business letters should always begin with “Dear [recipient’s title and
name]’ unless you use the salutation “To Whom It May Concern” (in instances when you
do not know the name of the recipient).
 Closing: Your closing needs to err on the side of the conservative. Acceptable closings to
use include: “Sincerely”, “Sincerely yours”, “Best regards”, “Regards”, “Thank you”, “Thank
you for your consideration”, “Respectfully”, and “Very Respectfully” (this, often abbreviated
“V/R”, is common in military business correspondence). Do not use casual closings like:
“Later”, “Cheers”, “Cordially”, “Thanks!”, or “Warmly”.
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 Word Choice and Grammar: Although your word choice for business letters should not
be too stilted, flowery, or ornate, you should also avoid using slang, abbreviations/acronyms,
emojis, or text-speak. By no means should you use the sentence fragments that are
commonly used when texting. Instead, use complete sentences are joined by a comma).
Proofread carefully for spelling errors and grammatical mistakes.
 Paper: If you are drafting a formal business letter to be mailed as opposed to an email,
the paper you use should be a standard white bond paper of a decent weight - do not use
the sort of colored or flamboyant stationery that might be used in marketing “junk mail”.
It’s fine to include a simple business logo at the top of the paper.
1. Types of Business Letter Layouts

 Indented Style
 Semi-indented Style
 Hanging Paragraph Style
 Block Style
 Semi Block Style
 Modified Block Style
 NOMA (This National Office Management Association of America)
 Indent Type Layout
This form is more suited when the letter is hand written. While writing address comma is
used and ends with full stop. The first line of each para begins away from the margin. The
complimentary close is at the centre of the typing line.
Characteristics
 5 spaces indentation for each line of the address of the recipient from the previous one.
 The first line of the paragraphs are also indented 5 spaces
 Margin of 1 to 1.5 inches on left and 1 inch on right is to be maintained.
 The complimentary close is right of the middle of the width of the page.
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Specimen of Indented Style
XXX Enterprises
Phone:............ .............Address
Fax:................. .............Writer......
........Designation
.........and Address of the recipient
3rd September 2018
Dear Sir
I am glad to state you that ...........................................................................................

......................................................................................................................................................
We think you are capable of handling .............................................................................
Yours faithfully
.........Signature.................
Cc: Copy to another party.
Semi- Indented Layout
Characteristics
 The address of the recipient is always typed in block letters and in the same indent.
 A contact of the writer together with the name and designation is given on the top left
corner.
 The subject is also typed in block letters.
 The other parts of the letter remain same as in the indent form.
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Specimen of Semi-Indented Style
XXX Enterprises
Designation of the Writer
Phone:............
Fax:................. 3rd September 2018
Address of the .......
..........recipient.................
Dear Sir
SUBJECT

..................................................................................................................................................
We think you are capable of handling ............................................................................

..................................................................................................................................................
Yours faithfully
.........Signature.................
Hanging Paragraph Style
Characteristics
 Both, address and the first line of the paragraph begins from the left margin.
 The subsequent lines of each paragraph are intended 3 or 5 spaces away from the left
margin.
 Recipient’s address is written in block form.

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 The date and the writers address is typed on the right top corner.
 The complimentary close, the signature and the information are placed in the intended
style layout.
Disadvantages of Hanging Paragraph Style

This layout has witnessed certain amount of disadvantage, which are;-
 It distracts attention from the contents to itself.
 This layout results in wastage of paper.
 It is time consuming.
Specimen of Hanging Paragraph Layout

XXX Enterprises
Phone:............ .............Address....
Fax:................. .............Writer......
........Designation........ 3rd September 2018
.........and Address of the .......
..........recipient........
Dear Sir
Sub: Subject..............................

......................................................................................................................................................
We think you are capable of handling ............................................................................

......................................................................................................................................................-
Yours faithfully
.........Signature.................

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Block Style Layout
Characteristics
 Originated in United States
 Everything including the date, recipient’s address, the salutation, each paragraph, etc
stats from the left margin.
 No commas are sued in the salutation, complimentary close an recipient’s address.
 The date is on the right side of the letter.
Specimen of Block Style Layout

XXX Enterprise
Writer, Address
Phone No., Fax
3rd September 2018
M/S YYY Pvt. Ltd.,

Address
Dear Sir,

......................................................................................................................................................
We think you are capable of handling .............................................................................................

......................................................................................................................................................
Yours faithfully,
.........Signature.................

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Semi-Block Style of Layout
Characteristics
 The recipients address is written in the block form without punctuation mark.
 Body of the letter is in indented form.
 The complimentary close, signature, etc are also in the indented form.
Specimen of Semi-Block Layout

XXX Enterprises
Writer, Address
Phone No., Fax
3rd September 2018
M/S YYY Pvt. Ltd.,

Address
Dear Sir,
I am glad to state you that ......................................................................................................

......................................................................................................................................................
We think you are capable of handling .........................................................................................

......................................................................................................................................................
Yours faithfully,
.........Signature.................

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Modified Block Layout
Characteristics
 Sender details in the top right of the letter head.
 Body of the letter are in the block form
 Date, complimentary close and signature are on the right alignment.
Specimen of Modified-Block Layout
XXX Enterprises
Phone:............ .............Address....
Fax:................. .............Writer......
........Designation........ 3rd September 2018
.........and Address of the .......
..........recipient........
Dear Sir
Sub: Subject..............................
I am glad to state you that........................................................................................................

......................................................................................................................................................
We think you are capable of handling ....................................................................................

......................................................................................................................................................
Yours faithfully
.........Signature.................

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NOMA Layout
Characteristics
 Omission of the salutation, left complimentary close, name in capital letters below the
signature.
 Attention line is 3 line below the recipient’s address
 Left alignment of the date, recipient’s address, signature & initial letter information.
Specimen of NOMA Layout
XXX Enterprises
Fax
Address of the Writer
3rd September 2018.
Recipient
Address
ATTENTION LINE
I am glad to state you that........................................................................................................

......................................................................................................................................................
We think you are capable of handling .....................................................................................

......................................................................................................................................................
Yours faithfully
.........Signature.................
NAME
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2. Business Letter Layout Example
Contact Information
Your Name
Your Address
Your City, State, Zip Code

Your Phone Number
Your Email Address
(Space)
Date
(Space)
Contact Information
Name
Title
Company
Address
City, State, Zip Code
(Space)
Dear Mr./Ms. Last Name:
(Space)
Body of Business Letter
The first paragraph of your business letter should provide an introduction to why you are
writing.
(Space between paragraphs)

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Then, in the following paragraphs provide more information and details about your request.
(Space between paragraphs)
The final paragraph should reiterate the reason you are writing and thank the reader for
reviewing your request.
Closing:
(Space)
Respectfully yours,
(Double Space)
Signature:
Handwritten Signature (for a mailed letter)
(Double Space)
Typed Signature
Check Your Progress
1. What is adjustement letter?
2. Define follow-up letter.

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3. What do you mean by layout of the letter?
2.6 Summary
In this unit we have discussed about the meaning of business letter, different types of
business letters such as sales letters, order letters, complaint letters, adjustment letters, inquiry
letters, follow-up letters, letters of recommendation, acknowledgement letters, cover letters,
and letters of registration, apart from this, it helps to understand the importance of business
letters, functions of a business letter, and the layout of the business letters. The layout of the
business letters helps us to understand the different lay outs of business letters and it suits for
different types of business letters based on the different situations.
2.7 Key Words

 Layout
 Etiquette
 Inquiry
 Secrecy
 Goodwill
 Orders

1. What do you mean by cover letter?
2. List out the different types of business letters and explain in detail.
3. Explain the functions of a business letter.
4. Describe the different styles adopted in business letter.
5. Bring out the layout of a business letter.

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UNIT - 3
QUOTATIONS
Learning Objectives
After studying this unit, you should be able to :
 define quotation
 explain the types of quotation
 discuss price estimates
 distinguish between price estimation and quotation.
Structure
3.1 Introduction
3.2 Meaning
3.3 Quotation Letter Sample
3.4 Types of Quotations
3.5 Price Estimate
3.6 Summary
3.7 Key Words
3.1 Introduction
Quotation letter is the most common and used letter in a business organization. So, detail
discussion about quotation letter with quotation letter definition and quotation letter sample/
quotation letter format/ quotation letter template are given below.
3.2 Meaning
A quotation is a specific offer for sale. It is sent in response to an inquiry from a particular
person or business house. Thus it is a reply message to an inquiry from a potential buyer. A
quotation includes details about the prices of specific goods selected, terms of payment and
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conditions of delivery while writing such letter, the seller should clearly state everything as
inquired by the buyer. The letter must be written to the point with conciseness and complete
tone. A seller must have the intention to create goodwill through such letter which will establish
a business relationship.
The quotation may contain the following points:

 Details about quality of goods offered for sale.
 Details about quantity of goods offered for sale.
 Type of quotation
 Sale price per unit of the commodity
 Term of payment like Cash or Credit, trade discount, cash discount and other allowances
if any.
 Time, mode and place of delivery.
 Details of duties, Octroi, etc., payable
 Details of packing, labelling, insurance, etc.
 Net price payable.
 E and O.E (Errors and Omissions-Expected)
It is important for a business organisation to invite quotations from several sellers before
placing an order. This is done to find out the cheapest and best source of supply of goods
required. A great care is necessary in drafting such letter so that right seller can be located as
quickly as possible. The inviting quotations letters should include following points:
 Describe the need clearly and precisely. Give detailed specifications such as the shape,
size, quality, make etc. Of the goods you require. For example if you need to buy inverters,
give the exact numbers, watt hours, size, guarantee period, shape, make and quality.
 Request the seller to quote his prices and terms of payment.
 Ask him for a sample, if necessary. Sometimes the buyer may already be possessing the
sample and in the Inviting Quotations, he can specify that the sample can be seen from
his office before quoting rates. In case, he does not have the sample, he can ask for a
sample if required.
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 Give an idea of the quantity you intend to buy.
 Indicate the time by which you would like the goods to be supplied. This will help the seller
determine whether during the periods available he will be able to meet your demand or
not.
 Ask what accessories and spares, if any would be supplied and how much they cost.
 If the goods you are ordering need installation, ask the seller the cost of doing so and also
the repair facilities offered by him. For example computers are required to be installed by
expert technical persons. In such cases, ask the supplier as to how much he will charge
for the same and whether or not there will be repair charges.
 As the processing of a purchase proposal takes some time, ask the seller to indicate the
period for which his quotations will be valid.
 Independently ask for tax components. In addition to the basic price of the good, there will
be few taxes such as Sales Tax, Central Tax, and VAT etc., which may be paid by the
buyers.
3.3 Quotation Letter Sample
An inquiry letter was written to a firm for the price of mobile sets.
AIRVOICE COMMUNICATIONS
No.1/26, Periyar Street, T.nagar, Chennai-600 003.
14th September, 2018
Sales Manager
Tele-Communication Ltd.
57, Bharathi Nagar 4th Street, Chepauk, Chennai -600 005.
Ref; An Inquiry for price of Mobile sets
Dear Sir,
Wold you kindly give us detailed information about the “Samsung Galaxy S9” mobile sets
recently advertised by you in the “Daily Star”. We are impresses by the description of the
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respective mobile set as advertised by you and expected to purchase if terms and conditions
are found to be suitable. Our annual requirement of such set is around twenty-five thousand
(25,000) pieces.
As we handle a lot of mobile sets each year, e hope and trust you will quote the most
favourable prices and terms.
Yours faithfully
B. Anandhan
Purchase Manager
Helpline Communication
After receiving the letter of enquiry from a prospective buyer, the sellers supply the relevant
information by writing a letter that is called quo
QUOTATION LETTER SAMPLE

Tele Communication Ltd.,
57, Bharathi Nagar 4th Street, Chepauk, Chennai -600 005.
24th September, 2018
Manager
Purchase Division
Air Voice Communication
No.1/26, Periyar Street, T.nagar, Chennai-600 003.
Ref: Terms and Quotations for Samsung Galaxy S9
Dear Sir,
Thank for yours inquiry of 14th September, 2018. We are glad to enclose the following
quotations of “Samsung Galaxy S9”.
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Set Model Battery Price per Set Warranty
Samsung GalaxyS9 Hungary 15,000 1 Year
Samsung GalaxyS9 China 13,000 6 Months
Samsung GalaxyS9 Malaysia 14,000 6 Months
Our normal trade discount is 15% for ten (10) days and 5% extra if order is made for more
than5, 000 pieces at a time. We do supply to our customers’ door through our own care. Our
Mobile is originally imported with intact packing and we provide guarantee for our mobile sets
for three (3) years.
If you need any further details to meet your customer’s requirements, you should feel free
to write to us.
Yours faithfully
Sanjeev
Sales Manager
Tele Communication Ltd.,
3.4 Types of Quotations

Following are the main kinds or types of quotations;
1. Loco Price Quotation: Loco means ‘On the Spot’. Therefore, the loco price refers to the
cost of goods at the factory or godown of the seller. Once the goods are out of the sellers’
factory or warehouse, all the expenses for carrying the goods from the seller’s warehouse
to the buyer’s place to be borne by the buyer. This is the lowest price quotation.
2. Station Price Quotation: Under this quotation, seller’s responsibility is to send the goods
to the nearest railway station from his warehouse. It includes the cost of carriage of
goods to the station. Since he delivers the goods upto the station, he charges a litter
higher price. All further expenses on goods such as freight, insurance, etc. Have to be
borne by the buyer.
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3. Free On Rail (FOR) Price Quotation: free on Rail (FOR) price quotation covers the
expenses of carrying the goods to the railway station nearest to seller plus the loading
expenses, freight and unloading expenses are to be borne by the buyer. FOR Price
Quotation = Station Price Quotation + Loading Charges
4. Cost and Freight (C & F) Price Quotation:Cost and Freight (C & F) price quotation
includes the cost of the goods and all the expenses like carriage to the seller’s nearest
station, dock and loading charges and freight. Expenses like insurance, unloading and
cartage to the buyer’s place are to be borne by the buyer.
C & F Price Quotation = FOR Price Quotation + Railway Freight
5. Cost Insurance and Freight (CIF) Price Quotation: There is a risk involved in transporting
goods and this risk is covered by insurance. Generally, the buyer pays insurance changes
but if CIF quotation is mentioned then the seller pays for the insurance charges along with
other previous mentioned prices. So, the price includes cost of the goods plus carriage
upto seller’s nearest station, loading, freight and insurance charges.
CIF Price Quotation = C & F Price Quotation + Insurance.
6. Franco Price Quotation: Franco price quotation is the highest price quotation. In spite of
being the highest quotation, buyers prefer this quotation because under this price, the
goods are delivered to the buyers at their door-step. The buyer is relieved from the tension
of transporting goods from the seller’s warehouse to his own ware house.
Franco Price Quotation = All Expenses upto the buyer’s warehouse.
7. Free Alongside Ship (FAS) Price Quotation: Franco Alongside Ship (FAS) Price
Quotation is the highest price quotation includes the cost of the goods and all the expenses
to deliver the goods at the dock nearest to the seller. The buyer has to bear the expenses
of loading, insurance, freight and the customs duty, etc., in addition to the cost of goods.
Though this quotation is used in some countries, it is not in use in India.
FAS Price Quotation = Loco Price Quotation + Cost of Carriage of Goods upto the
harbour nearest to the seller.
8. Free On Board (FOB) Price Quotation: Free on Board (FOB) price quotation is similar
to FOR in inland trade. This is normally used in foreign trade. Under FOB quotation, the
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seller quotes a price which includes all the expenses incurred until the goods are actually
delivered on board the ship at the port of shipment.
FOB Price Quotation = Cost of Goods + Expenses up to Goods on Ship’s Board
9. Cash with Order (CWO) Price Quotation: In Cash with Order (CWO) price Quotation,
the buyer has to send cash along with the order, otherwise, the order may not be executed.
10. Cash on Delivery (COD) Price Quotation: In Cash on Delivery (COD) price quotation,
the buyer has to pay cash after receiving the delivery of the goods ordered by him.
3.5 Price Estimate
An estimate is an educated guess at what a job may cost. It is not binding. To account for
possible unforeseen developments, you should provide several estimates based on various
circumstances, including the worst-case scenario. This will prevent your customer from being
surprised by the costs.
1. How to give a price quotation or estimate?
To work out a quote estimate you need to know your fixed and variable costs. These
include the cost-per-hour of manual labour and the cost of the materials you will need. You can
then calculate you quote or estimate based on what you think the job will involve.
You should provide all your quotes and estimates in writing, including a detailed breakdown.
This will help to avoid any disputes about what work is included in your overall price. Be sure to
state clearly whether it is a quotation or an estimate.
Check Your Progress

1. What do you mean by Low Price Quotation?
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2. Expand the followings;
C&F
CIF
FAS
CWO
COD
3. What is Price Estimate?
3.6. Summary
In this unit we have discussed about the meaning of quotation as it is a specific offer for
sale. It must have the intention to create goodwill through such letter which will establish a
business relationship. Quotation also helps the organization to find out the cheapest and best
source of supply of goods required. The different types of quotation have also been explained
in this unit. The quotations can be classified as loco price, station price, free on rail price (FOR),
cost and freight price (C& F), Cost Insurance and Freight (CIF) Price, Franco Price, Free alongside
Ship (FAS) Price, Free on Board (FOB) Price, Cash with Order (CWO) Price, and Cash on
Delivery (COD) Price Quotation. After understanding the different types of quotations, we can
also able to differentiate the price estimate from the quotation.
3.7. Key Words

 Enquiry
 Offer
 Quotation
 Order
 Estimate
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3.8. Review Questions
3. What do you mean by Quotation?
4. Write the different types of quotations.
5. Draft a quotation to the import company for their requirements according to your
assumptions.
6. What do you mean by price estimates?
7. Bring out the differences between the price estimates and quotation.
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UNIT - 4
ORDERS, EXECUTION AND CANCELLATION
Learning Objectives
After reading this unit, you must be able to:
 define orders
 explain the purpose of order form
 provide hints for drafting order letter
 draft letters of order, execution and cancellation letters.
Structure
4.1 Introduction
4.2 Contents of Order Letter
4.3 Execution Letter
4.4 Cancellation Letter
4.5 Specimen Letters
4.6 Delays in Execution
4.7 Summary
4.8 Key Words
4.1 Introduction
The letter that is written by a potential buyer to the seller requesting him to deliver goods
is known as order letter. By writing inquiry letters, buyers can collect necessary information
about the price, quality of goods and terms of sale. If the buyer finds the quoted price, quality of
goods and terms of sales satisfactory, he places an order to supply goods in his address. The
seller delivers the good according to the buyer’s order.
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In modern time, sellers supply printed orders forms to the customers and customers
place orders by filling up those printed order blanks. In this case, the printed order sheet or
blank is considered at the order letter.
4.2 Contents of Order Letter

Through order letter, the potential buyers request the suppliers to deliver goods to them.
In modern time, printed order blanks or purchase order forms supplied by the seller are typically
used for placing orders. However, in absence of order blanks and purchase order forms, order
letters are written. Such letters contain three major categories of information:
 Information about the items being ordered;
 Information relating to shipping; and
 Information relating to payment.
1. Information about the items being ordered
An order letter must contain full particulars of goods ordered. Such information include
the followings:
 Product name
 Brand name
 Quantity
 Catalog number
 Model number
 Colour
 Size
 Weight
 Unit price
2. Information relating to shipping
Shipping information is very important. In absence of shipping information, there can

arise misunderstanding between buyer and seller. Shopping information may include the
followings:
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 Desired receipt data
 Desired shipping location and
 Mode of shipping (rail, road, or waterways)
3. Information relating to payment
Mode of payment of prices for the ordered items must be clearly indicated. The seller will
accept the order letter only when both of them come to a common ground relation to payment
of price. Payment information include the following:
 Mode of payment (cash, cheque, draft)
 Payment data
The above stated factors are usually included in order letter. However, the buyer can
include any other instruction or element if he thinks necessary.
4.3 Execution Letter
The letter through which the seller informs the customer that the ordered goods have
been delivered is called order execution letter. Once seller receives order from customer, he
can accept or reject it. Whether the order is accepted or rejected, the seller must inform it to the
customer. When the seller accepts the order and delivers the ordered items, he writes the order
execution letter. The purpose of writing this letter is to inform the customer about the date of
delivery, mode of transportation used, the probable date at which customer will get the shipment
and the total price. The invoice is usually enclosed with this letter.
4.3.1. Contents of Order Execution Letter

Generally, and order execution letter conations the following points:
 Reference number of order letter with date
 Name, brands an quality of products
 Quantity of products
 Date of delivery of goods
 Nature of packing of goods

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 Transportation used for delivering goods
 Total price of the products and
 Expected date and mode of payment
4.4 Cancellation Letter
When the buyer writes letter to the seller requesting him not to deliver the ordered goods,
it is called letter of order cancellation. Generally, customer places orders for delivering some
specific good in his address. Having been received an order from customer; the seller takes
step to deliver goods immediately. Because, delay in delivery can cause the customer to do
business elsewhere. However, after placing the order, the customer writes a letter to the seller
cancelling the previously placed order. This letter is known as letter of order cancelling the
previously placed order. This letter is known as letter of order cancellation.
1. Causes of Order Cancellation

A potential buyer may cancel his order on the following grounds:
 If the seller fails to deliver goods within the specified time
 If the prices of ordered products continues to decrease
 If the demand of the ordered items declines gradually
 If the customer gets an offer from elsewhere to buy the same product at a lower price
 If the customer decides to discontinue his business
2. Contents of Order Cancellation Letter

A letter of order cancellation usually conations the following:
 Date and reference of the order letter placed earlier
 A direct request to cancel the order
 Cause of cancelling the order
 A declaration stating his unwillingness to receive goods if the seller delivers.
 Regretting for any inconvenience of seller caused due to cancellation of order

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 Expressing the hope of maintain business relationships in future
 Assuring to compensate any loss suffered by the seller due to order cancellation through
future business dealings.
1. Letter Placing Order for Air-conditioners
SUJATHA ELECTRICALS LTD

Hill View, Salem
5thSeptember, 2005
Aparna Electricals Ltd
Bhavans apartment
Mangalore
Dear Sir,
Thank you for your prompt reply. We have received the catalogue and price list. We
are glad to place orders for 100 pieces. Please arrange for the following:
 Volta’s window A/C – 20 Pieces.
 L.G. Split A/C – 30 Pieces.
 Samsung window A/C – 20 Pieces.
 Samsung Split A/C – 20 Pieces.
 Onida window A/C – 10 Pieces.
Please confirm the order and we request you to dispatch the goods within two weeks. We
receive the right to reject the goods if received late. You can be sure of still larger orders if you
can accept to our terms and conditions. A prompt reply will be highly appreciated.
Yours faithfully
R.Suresh
(General Manager)
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2. Reply for the order received

APARNA ELECTRICALS LTD
Bhavans apartment
Mangalore
7th September, 2005
Sujatha Electricals Ltd

Hill View
Salem.
Dear Sir,
Thanks for your order dated 5th September and we take it as an indication of your
increased business.
All the items you have ordered will be dispatched ON 9TH September by Thirumalai lorry
transport and will reach you by 11th September, well in time. We have enclosed an invoice for Rs
16 Lakhs payable 30 days after sight, and trust that you honour it on maturity.
We thank you once again for the order and hope you will continue to patronize us. We
look forward to the development of our mutual business relations and assure you our best
attention to your orders.
Yours faithfully
T. Babu
Managing Director
Encl : 1. Lorry Receipt
2. Invoice
4.6 Delay in Execution
Sometimes it may not be possible to execute the order promptly. It might be due to various
causes like being out stock, Scarcity of raw materials, strike or lockout, machinery break down,
heavy orders in hand, shifting of premises or customers asking for special terms. It is better to
inform the buyers the reason for the delay in execution of order. It is advisable to state what is
being done to speed up the delivery.
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1. Write a letter stating the delay in execution
Sakthi Masala Ltd.,

Sterling Road
Chennai.
2nd Oct, 2005
M/s. Sriram Ltd

Church Gate
Mumbai
Dear Sir,
Sub: Delay in Execution of the order – Reg.
We are pleased to receive your order for 1000 pieces, which you want us to supply
immediately. The recent strike of transport workers has caused delay in the dispatch of goods.
We are sorry that your order is held up for this reason. All goods are packed according to your
instructions and handed over to our transport agents on 3rd Sep. Due to the unexpected strike
your goods are still in Chennai. We are making private arrangements to ship your goods. We
apologise for the delay, and assure you that we are doing our best to get your consignment
dispatched at the earliest.
Yours faithfully
P.Jai.
2. Regret letter
Varun Ltd.,
Vel Street, Vellore.
20th June, 2005
M/s. Arun Ltd

Andavar Street
Annanagar, Chennai.
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Sir,
We regret to inform you that it is impossible for us to accept your order for regular supply
of materials. We are sure to know that due to adverse weather conditions and drought sugar
cane is affected to a great extent. The prices are very high. Since you are our regular customer
I have a suggestion to offer. Mr. Das deals in this business and they can handle the volume of
trade you offer. You can quote our name and contact Mr.Ravi. We thank you for your patronage.
Yours Faithfully
R.Sundar.
Mr. Ravi,
Raja Street, K.K Nagar, Chennai.
Tel: 55460987
3. Cancellation of the Order
CHENNAI FOODS LTD.,

M.T. Road, Ambattur.
21st December, 2005
Nilgiris Stores Ltd

2nd Avenue
Ashok nagar, Chennai.
Dear Sir,
Sub: Cancellation of Order.
We thank you for your order dated 15th December, We regret to inform you that we are
unable to supply you appalam, sambar powder and pickles. The delay is due to the non availability
of raw materials for the above products. Our suppliers have assured us that it will be available
in a month time. We are very sorry for our inability to serve you at present, but look forward to
the time when we shall be able to attend to your order. We request you to cancel the order and
enter to a fresh agreement in future. We hope you will co-operate and bear with us.
Yours Faithfully
S.Sachin
General Manager
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4. Cancellation of Order
Chennai Silks
T.Nagar, Chennai
7th july,2005.
Lakshmi Stores
Lake Street
Tiruppur.
Dear Sir,
We wish to confirm the following telegram sent by us cancelling the order for 100 pieces
of T-Shirts of various sizes on 1st July.
“Cancel order 1st July for T- Shirts”
We have been compelled to cancel the order due to the fall in demand in the market and
arrival of goods at lesser price in the market. We request you to stop the consignment. We
assure you that we shall make good to you the loss in this order at the earliest.
Yours Faithfully
R.Ram
For Chennai Silks
Check your Progress

1. What do you mean by order form?
2. List out the points to be rememberd while drafting order letter.

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3. What is cancellation letter?
4.6 Summary
In this unit we have discussed about the order, execution and cancellation letters. Order
letter means that, a letter written by a potential buyer to the seller requesting him to deliver
goods. It consists of the information such as information about the items being ordered,
information relating to shipping, and information relation to payment. After understand the
order letters and its contents, this unit helps us to understand the meaning of execution letter.
Execution letter means, the letter through which the seller informs the customer that the ordered
goods have been delivered. Once seller receives order from customer, he can accept or reject
it. The information such as reference number of order letter with date, name, brands an quality
of products, quantity of products, date of delivery of goods, nature of packing of goods,
transportation used for delivering goods, total price of the products and expected date and
mode payment are must be presented in the order execution letter. This unit also throw lights
on the cancellation letter and the causes of order cancellation, and also given some specimen
letters related with ordering, execution and order cancellation and the like.
4.7. Key Words
Order, Execution, Cancellation, Acceptance
1. List the contents of an order letter.
2. What are the merits of printed order form?
3. Write a note on execution of order and cancellation of order.
4. Confirm the order given by telephone for the supply of 100 kg of snow white washing Soap.
5. Draft a letter of cancellation of the orders placed with suitable reasons.

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UNIT - 5
COMPLAINTS, ADJUSTMENTS AND
SETTLEMENT OF ACCOUNTS
Learning Objectives
After reading this unit, you should be able to:
 discuss the causes for complaints
 explain the adjustment letter
 draft complaint, adjustment and settlement of account letters.
Structure
5.1 Introduction
5.2 Hints for Drafting the Letter of Complaint or Claim
5.3 Adjustment Letter
5.4 Hints for Drafting the Adjustment Letter
5.5 Settlement of Accounts
5.7 Summary
5.8 Key Words
5.1 Introduction
It is natural for human to commit mistakes. From the time the orders received till they
reach the customers, many persons are involved in it, and there is every possibility of inadvertent
mistakes being committed by someone. This may cause inconvenience to their customers.
Hence the customer has every reason to complain the seller. The best business houses with
efficient personnel and which is backed by reputation will also receive complaints. When mistakes
occur, Complaints will arise. Complaints are regular part of business.
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Errors very frequently occur in the best managed business houses, because to err is
human. The moment the mistake is discovered by the trader; he must immediately write a letter
of complaint or claim to the supplier. When the defects are proved the supplier should try to
settle the matter amicably. Occasions which gives room for complaint may vary and hence it is
very difficult to enumerate them. However the following are the important causes that give rise
to complaints:
 Incomplete or defective order.
 Inordinate delay in the execution of order.
 Supply of wrong goods or defective section.
 Wrong directions to the dispatch section.
 Defective packing which has lead to the damage of goods in transit.
 Variance in the terms and conditions relating to the payment and delivery.
 Mistakes committed by accounts section in the preparation of invoice.
 Manufacturing defect not detected at the time of inspection.
When a mistake is to be rectified, making a complaint requires tact, carefulness and art of
convincing. The complaint should be made politely without showing any sign of anger. A trader
must be extra ordinary careful while drafting a letter of claim in a satisfactory manner; as such
letters are drafted in a mood of dissatisfaction. To avoid unnecessary bitterness and legal
proceedings the complaint letter should be drafted with politeness.
5.2 Hints for Drafting the Letter of Complaint or Claim

 Make a clear statement of the mistake.
 The claim should be specific
 State the steps necessary to rectify the mistake.
 Make a concrete suggestion for the redress.
 Brief the inconvenience suffered by the customer.
 Make a courteous but firm request that the, matter should be attended promptly.
 The letter must be fair but not apologetic.

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5.3 Adjustment Letter
The business man must welcome the complaint letter and should not consider it as
impuissance. The replies to complaint letter are called adjustment letters. It requires more skill
as they only have to satisfy the customer but also has to safeguard the reputation of the firm.
Principles of Adjustment Policy
Customer is always right. No one will complain unless there is a reason to complain. This
policy can be considered to an extent as this policy encourages unscrupulous customers to
make false complaints.
Grant adjustment whenever the claim seems fair: This is the widely used policy towards
claims as only the genuine claims are granted.
Caveat Emptor: It means let the buyer be aware. It does not entertain any claims. No firm
can adopt it unless it wants to run itself.
Every game cannot be played in the same manner. In the same way every complaint is
unique. Unless there are peculiar problems, the second policy can be considered more affective.
The adjustment letter will either be granted or refused.
5.4 Hints for Drafting the Adjustment Letter

 When they feel the customers are right, they thank the customers for pointing out the
mistakes which needs improvement.
 Admit the fault frankly.
 Regret the mistake sincerely and promise it will not occur in future.
 When you feel the customers is wrong gradually make him to look at the situation from
your angle.
 Letter must be drafted in a polite way as it is considered an ambassador of good will.
 Reply for the complaint letter promptly.
 Give importance to the customer’s feelings.
 Never treats any complaints indifferently.

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 Avoid wrong words or expressions that seem to charge the customers.
 Do not think of paying back your customer in the same coin even though his letter is
abusive.
5.5 Settlement of Accounts
After receiving the goods the buyer should not only acknowledge the receipt of goods.
But also make arrangements for the payment to the seller. The mode of payment depends
upon the agreement between the buyer and the seller. In many cases the accounts will be
settled by means of cheque, demand draft or acceptance of bills.
The cost of remittance is borne by the buyer except in few cases where the seller will bear.
Remittances against periodical statement of accounts must be maintained with care and accuracy
as it is related to money.
1. Letter of Complaint for damage in transit.
Kamala Stores
Krishna Nagar, Krishnagiri
July 16, 2005
Mr. Gandhi
Godown Street
Gothawari.
Dear Sir,
Sub: Goods received in damaged conditions – Reg.
Thank you very much for the dispatch of books ordered by us on 2nd July. We regret to
inform you that one of the boxes containing 15 books were found to be in a damaged condition
and it is not fit for sale. On careful examination it was found that the boxes were not packed
properly as such the damage might have occurred in transit.
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Hence we are forced to return the goods. Will you please let us know immediately whether
we send them back so that you can replace them? W are sorry for what has happened.
Yours faithfully
M. Krishna.
2. Reply to the above Letter
Mr. Gandhi
Godown Street
Gothawari
July 18, 2005
M/s. kamala Stores
Krishna Nagar
Krishnagiri
Dear Sir,
We thank you for your letter dated 16th July. We are sorry to know that you have received
15 copies in a damaged condition. We shall be very grateful to you I you can return those 15
copies to us, So that we can replace them immediately.
We are sorry for the inconvenience caused by us. We assure you that such mistakes will
not be repeated in future. The postage cost will be borne by us, and once again we apologize
for inconvenience caused by us.
Yours faithfully
G.Gandhi.
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3. Letter of complaint for delay in dispatch of goods
Swathi Trading Company

Sivaji Road, Madurai.
3rdMarach 2005
M/s .Snehacompany Ltd

Besant nagar
Chennai.
Dear Sir,
We regret to inform you that the inordinate delay on your part in delivering 50 washing
machines ordered on 15th February has caused us considerable inconvenience and it threatens
heavy loss to us.
We have entered into contract with our customer to deliver them by the end of February,
but the delay in delivery will spoil our prospects. In view of this critical condition we request you
to inform us over telephone, the exact date when delivery could be made.
As we have cordial relationship I have decided to wait till 6th March. We trust you will take
every effort to prevent us from taking severe action against you.
Yours Faithfully
S.Sankar
4. Letter of Adjustment to explain Delay in Delivering
Snehacompany Ltd
Besant Nagar, Chennai
5 th March 2005
Swathi Trading company

Sivaji Road
Madurai.
Dear Sir,
We thank for your letter and we have already send you the e-mail today stating we have
dispatched goods today.
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We are extremely sorry for the delay. The sudden break down in the machinery in the last
week on February has put us into great difficulties. We made every effort to set it right, but we
could resume the work only after 5 days. Though our employees worked over time, we could
not deliver your goods in time.
We thank you for the consideration you have shown us by extending the delivery date till
6th March, and hope you will accept our sincere apologies for the delay and continue your
patronage with our firm as before.
Thanking you
Yours faithfully
R.Ravi
5. Letter Informing the Remittance by Cheque

Sivaji Road, Madurai
20th April, 2005
Snehacompany Ltd
Beasantnagar
Chenenai.
Dear Sir,
The goods have arrived safely. We enclose a cheque for Rs one lakh in full settlement of
my account. Please acknowledge the receipt and credit us with the amount.
Yours faithfully
S.Sankarmm
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6. Letter acknowledging the receipt
Sneha Company Ltd

Besant Nagar, Chennai.
23rd April, 2005

Sivaji Road
Madurai.
Dear Sir,
Thank you for letter dated 20th April enclosing a cheque for Rs. One lakh. This will be
credited to you in full settlement of your account. We are privileged to have customers like you.
We are pleased to learn that you are satisfies with our products. We expect a suitable proposal
from you at the earliest.
Yours faithfully
R.Rav.
7. Letter requesting to adjust prices wrongly calculated
R.K Ltd
R.S. Puram, Coimbatore
18th May, 2005
K.P. Ltd
K.K Nagar
Chennai.
Dear Sir,
We have received your cheque no: 23456 for Re 58,000 in full settlement of your account.
You have deducted Rs. 4000 for discount, which is offered when payment made immediately.
Kindly bear with us and hope you will agree with our policy. We do not wish to show any
discrimination among our customers. Hence co-operate with us and send the balance amount.
Yours faithfully,
P.Suresh
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Check Your Progress

1. What is complaint letter?
2. What is adjustment letter?
3. What do you mean by settlement of account?
5.7 Summary
This unit has explained about the circumstances where a complaint letter needs to be
written. Due to some circumstances, the customer may disappoint with the product or services
of the company. In this situation, the trader has to discover the mistake and proved the supplier
by writing the complaint letter. The complain should be made politely without showing any sign
of anger. Hints for drafting the letter of complaint or claims such as make a clear statement of
the mistake , the claim should be specific, steps necessary to rectify the mistake, concrete
suggestion for the redress, inconvenience suffered by the customer and the like are have also
discussed. The adjustment letter along with the principles of adjustment policy, hints for drafting
the adjustment letter, settlement of accounts have also discussed in detail along with the
correspondent specimen letters.
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5.8 Key Words

 Complaints
 Adjustments
 Settlement

1. What precautions to be taken while drafting complaint letter?
2. Write a reply to a complaint letter from the customer who has purchased an AC recently
from you.
3. Draft a complaint letter stating the amount has been wrongly specified in the invoice to
their seller.
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UNIT - 6
CIRCULAR AND STATUS ENQUIRIES
Learning Objectives
 discuss the objective of business letters
 explain the situations when the circular letter are sent
 list the merits of circular letters
Structure
6.1 Introduction
6.2 Objectives of Circular
6.3 Importance of Circular Letter
6.4 Kinds of Circular Letters
6.5 Features of Circular Letter
6.7 Summary
6.8 Key Words
6.1 Introduction
Circular letter is one of the oldest types letter. This kind of letter originated in ancient time
when people felt the necessity of circulating any message to a large number of people at a time
in the same way. Generally, the letter that is used to circulate any special message to a huge
member of audiences at the same time is known as circular letter. It is one of the cost effective
means of circulating information or introducing new products to mass people. However, circular
letters are not only used in business, but also in social, political and personal affairs.
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Prof. W.J. Weston said, “A circular letter is one which is meant to be read by a number of
correspondents. It is of the nature of an advertisement and is usually a business announcement
or an attempt to advance business.”
From the above discussion we can say that circular letter is a kind of written announcement
that is distributed to a large number of people to convey any commercial or non-commercial
message at minimum time, costs and efforts. Drafting circular letter is purely an art. It should be
drafted in such a way that can attract readers’ attention and can serve its purpose.
6.2. Objectives of Circular Letter
The objectives of circular letter are many folds. Generally, circular letter passes business
related information to a huge number of readers. However, it may also circulate non-business
information. Circular letter is drafted and distributed for attaining three sets of objectives: business
objective; personal objective and social objective. These purposes of circular letter are also
known as the situations requiring circular letters. These objectives or situations are discussed
below:
A. Business Objectives
Circular letter is written for the following two business objectives:
1. Circulating business information: the primary objective of circular letter is to distribute

information relating to business. Circular letter usually circulates the following business
information:
 Launching a new business
 Expansion of existing business in any new field
 Changing the nature of business
 Opening or closing branches of the business
 Changing the name of the business
 Shifting the address of the business
 Discharging any officer, executive, agent or representative of the business
 Employing any new business executive or agent

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 Admission of new partner
 Retirement or death of any existing partner
 Cancellation of any business deal or contract
 Entering into any business contract
 News regarding increase or decrease of price
 News regarding trademarks, registered brand etc.
 Amalgamation of some business units and
 Winding up of business partly or wholly
2. Increasing Demand for the Products: Business circular letter also aims at increasing
products demand. In this case, circular letter contains the following information:
 Innovation of new product
 Quality improvement of existing products
 Import of any new products
 Marketing of new products
 Decease or increase in product price
 Decease or increase in product price
 Any special discount or reduction in price
 News relating to any business award or certificate such ISO 9001
B. Personal Objective
Circular letter may be used to circulate the name and fame achievement, contribution
etc., of an individual.
C. Social Objective
Circular letter can also be drafted highlighting the social or national problems with a view
to build public awareness.
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6.3 Importance of Circular Letter
Circular letter circulates information relating to a company, its products and services etc.
To a large number of people at a time. It plays an important role in the growth and development
of business. Its importance is briefly discussed below:
1. Simple and Easy Technique to communicate the information: circularletter is the
easy, simple and effective way to communicate any information to a large number of
people.
2. Affordable Method: It can be can be used for wider spread of information. As a result,
organizations can save cost of sending letters to different parties separately and can gain
economy.
3. Helps to Save Time: Instead of reaching individually, Circular letter transmits information
to so many people and groups at a time. It helps the organisation to save time.
4. Effortless Method: Writing or typing information and sending the same to each and
every one individually will be tedious job. With the help of circular letter, we can
communicate with the large number of people at a minimum effort.
5. Market Creation: Through Circular letter, a company can inform the potential customers
about its products and services. In this way, new market can be created.
6. Increasing consumer’s confidence: Convincing and attractive circular letter can easily
touch the reader’s heart and thus helps to enhance consumer’s confidence on the
company’s products.
7. Creating Public Consciousness: In circular letter, information like price, quality, utility,
place of availability etc. Are mentioned in details that make people more conscious about
the product.
6.4 Kinds of Circular Letter

Circular letters are prepared for circulating business and non business messages. Thus,
it seems that circular letters can be of the following two types:
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1. Trade Circular Letter: When a circular letter is prepared and distributed for circulating
any business related messages, it is known as trade circular letter. Its main objective is to
circulate business information like, launching new business, opening new branch or
showroom, changing address of business, introducing new product, inclusion, retirement
or death of partners etc.
2. Non-Trade Circular Letter: The circular letter that is prepared and distributed for circulating
personal or social information is known as non trade circular letter. The examples of non
trade issues are preaching the political ideology by a political organization, circulating
personal opinion on any matter by an individual etc.
6.5 Features of Circular Letter

A well drafted and persuasive circular letter should possess the following features or
characteristics:
1. Wide Publicity: One of the most important features of circular letter is that it makes wide
publicity of information at a least possible time.
2. Method of Drafting: Circular letter is very simple in nature. It is drafted in a simple language
so that people of various sections can easily understand.
3. Attractiveness: Another dominate feature of circular letter is the attractive and distinctive
presentation of message. In this letter, information is presented attractively so that it can
convinces the readers.
4. Conciseness: A well drafted circular letter is always concise but complete. It expresses
the message using the least possible words.
5. Courtesy: Since circular letter is conveyed to external parties, it presents information

courteously. Circular letter is drafted by using polite and cordial language so that it wins
the readers heart.
6. Persuasiveness: Circular letter is written in a persuasive and motivational way so as to

influence the reader’s decision in favour of the company.
7. Reader’s Interest: Circular letter always focuses on the interest of the readers and presents
trustworthy information.
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8. Universality: The format, message and the wording of circular letter should be such that
all concerned parties accept it.
9. Free from Controversy: A business circular letter is free from political, religious, social
or any other controversies.
1. Sample Circular Letter for announcement of a new business
Dear Sir,
We take pleasure in announcing the opening of a Super Market at ECR, Mayajal Plaza (Shop.No.
216). We have taken on initiative to provide 15% discount sale on the inaugural day. The
opening ceremony of the store will take place in the morning at 10.00 am on 13th March, 2019.
You are cordially invited.
Thank you,
Yours faithfully
Surana.
2. Sample Circular Letter for Change of Address
Dear Sir,
We take great pleasure in informing you that we have shifted to larger premises at Phoenix Mall
from 14th September 2018. The shift is due to the fact that the site is in the heart of the city and
the transport system is quite good. We are sure to serve you better from this place.
Thank you,
Yours faithfully
Robert
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3. Sample Circular Letter for Opening a New Branch
Dear Sir,
We take great pleasure to announce that on 1st January, 2019 we are opening a new branch of
readymade garments at No.57, Thiruvanmiyur, Chennai. The new branch is just the expression
of customer’s faith in our products. Mr. Sanjay Kumar Mehta our manager for the last 20 years
will be in charge of the new branch.
We welcome your visit to our new branch.
With thanks
Yours faithfully
Sunil Ram Dev.
4. Sample Circular Letter for Announcing the Price Reduction
Vasanth & Co.,

North Usman Road
T.Nagar, Chennai
24th July 2018
R.Raja
K.K.Nagar
Madurai.
Dear Sir,
We are pleased to inform you that we offer you an extra ordinary reduced prices for Diwali for
all house hold electronic items. We have latest models on all sizes, and you will find it a land of
all brands. The reduction sale begins from 1st October and ends on 30th October. Our shop will
be kept open on Sundays also. A special offer of 20% reduction from the regular pries will save
your money. Hurry up as the delay might disappoint you. Visit us at the earliest and make your
shopping a pleasure.
Thank you,
Yours faithfully,
V.Vasanth.
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5. Sample Circular Letter for Introducing New Product
Nitin Industries Pvt. Ltd.

Nethaji Nagar, Neiveli,
10th July 2018
AvikshithEnterprised Ltd
Thirumangalam
Madurai
Dear Sir,
Economical, improved technology and scented breeze are the three reasons for buying our
‘cool breeze’ split A/C for your lovely home. We have adopted Japan technology and you will
find the difference when you install at your home. We offer you free home delivery, and two-
year free service to our customers. We are noted for our after sale service and you need not
have any second thought in buying our product.
We have enclosed the price list and catalogue. It is indeed after prolonged experiments that
we have been able to offer this product to our customers. In case if you place orders for
more than one A/C we offer you 10% discount and this initial offer is granted only up to the
end of this month. Kindly avail this offer and feel happy, as your satisfaction is our
satisfaction.
Thank you.
Yours faithfully,
Nitin.K
Encl: 1. Price List
2. Catalogue
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Check Your Progress

1. Define Circular.
2. What is trade circular letter?
3. What is publicity?
6.7 Summary
In this unit, we have discussed about the meaning and definition of circular letter, the
different objectives of circular letter such as business objectives, personal objective and social
objective. The importance of circular letters such as simple and easy technique to communicate
the information, affordable method, helps to save time, effortless method, market creation,
increasing consumer’s confidence and creating public consciousness have also discussed in
detailed. It also throw light on the kinds of circular letters such as trade and non-trade circular
letters and the features like wide publicity, method of drafting, attractiveness, conciseness,
courtesy, persuasiveness, reader’s interest, universality and free from controversy. The related
specimen letters have also been given for the easy understanding.
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6.8. Key Words

 Circular Letter
 Sales offer
 Change in Premises
 Removal of business
1. State the objectives of writing circular letters.
2. Mention the advantages of writing circular letters.
3. Draft a circular letter announcing a new branch opening.
4. Draft a circular letter announcing retirement of a partner of your firm.

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UNIT - 7
COLLECTION LETTERS
Learning Objectives
 discuss the guidelines for drafting collection letters
 give the meaning of collection letter
 list out the methods of collection
STRUCTURE
7.1 Introduction
7.2 Objectives of Collection Letter
7.3 Collection Series
7.4 Other Collection Methods
7.6 Summary
7.7 Key Words
7.1. Introduction
No matter how carefully a company chooses its credit customers, there will be times
when a bill goes unpaid and steps to collect must be taken. The problem when writing a collection
letter is how to get payment and at the same time keep a customer. The writer of a collection
letter wants to get the money owed and maintain goodwill.
Collection letters, therefore, should be persuasive rather than forceful, firm rather than
demanding. A fair and tactful letter gets better results than a sarcastic or abusive one. In fact,
collection letters should be “you-oriented”, courteous, considerate, and concerned about the
customer’s best interest.
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7.2 Objectives of Collection Letter

 To get the money.
 To keep the customer and future business
 To build goodwill
The purpose of the collection process is to maintain Goodwill while collecting what is
owed Collection is a sensitive issue
The following practices may be avoided
1. Falsely implying that a lawsuit has been filed
2. Contact the debtor’s employer or relatives about the debt
3. Communication to the other persons that the person is in debt
4. Harassing the debtor
5. Using abusive or observe language
6. Using defamatory language
7. Intentionally causing mental stress
8. Threatening violence
9. Communicating by postcard (not confidential enough)
10. Misrepresenting the legal status of the debt
11. Communicating in such a way as to make the receiver physically ill
12. Misrepresenting the message as a government or court document
13. Communicating by postcard (not confidential enough)
14. Misrepresenting the legal status of the debt
15. Communicating in such a way as to make the receiver physically ill
Right attitude for successful collections

 Any emotional reaction on the part of the debtor may reduce the chances of recovery
 Successful collection depends to on the following factors

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 Understanding of Human Nature
 Knowledge of collection policies and laws
 Using persuasive / positive appeals effectively
7.3 Features of the Collection Letter

The collection letters are different from the other business letters.
1. Two Parties are Involved : In this type of the letter, there are two parties involved among
which one is the buyer to buy products on credit and another is the seller who sells
product on credit. For payment of dues, such a letter is written by the seller to a buyer.
2 Prime Objective : The prime objective of writing a collection letter is to receive the
payments from the debtors or you can say, customers.
3. Written in a Series: Collection letters are written in a series and it starts with the reminder
letter. Later on, this continues with the inquiry letter, appeal letter, urgency letter and ends
with the warning letter.
4. Main Principle : While writing such a letter you need to understand the main principle of
the letter that is to retain the customer with the company, while receiving your debts.
5. Refer to the previous letter : When you write such a series of the letter, then in every
letter do not forget to add the reference of the earlier letter.
6. Make use of friendly language : While writing a collection letter you should make use of
the friendly language but be straightforward when it comes to defining motive of the letter.
7. Legal Action : It is always advisable for a seller to send such a letter through the
registered post, in order to avoid unwanted delays.
7.4 Types of Collection Letters

1. Reminder Collection Letter : The reminder collection letter is written in a friendly manner.
This letter is written with the assumptions that customer has forgotten to make the payments
or is facing some financial or medical difficulties. You can receive the payments after
sending a couple of reminder collection letters.
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2. Inquiry Collection Letter : Try to find out whether the customer is facing any extraordinary
circumstances before writing an unforgiving letter. If you are sensitive to certain problems
while collecting debts, then it can make it easy for you to maintain the good relationship
with the customer. In the inquiry collection letter, you can show your willingness to help
the customer. In such a letter, you can give the option of making partial payments.
3. Appeal Collection Letter : If your customer is not responding to any of the collection
letters, then you can write the appeal collection letter. In this letter, you can show your
aggressive approach. Maintain fairness and personal pride while making an aggressive
approach.
4 Ultimatum Collection Letter: In this type of a collection letter, you can mention the
action that you will take if customer fails to revert back or pay your money. In such a letter
you should add logical and fair statements.
5. Collection of Refund Letter : Collection of refund letter is written to collect the refunded
money on any defective product or services or from the bank. It is written by the customer
to the dealer so that he can collect his refunded money. Many a time, it happens that,
dealers/ manufacturers provide their customers with faulty services or product, for which
they demand a refund for te advance payment.
A collection of refund letter should be written formally and with utmost respect towards
the dealer you are writing it to. Tell them about the defect in their product/ services in
detail and what grievances it caused to you. Ask for the refund in genuine and proper
manner, do not be hostile. Choose our words wisely. Give them all the details regarding
purchase date and warranty period of the product that might speed up the refund process.
Proofread your letter once you are through it.
6. Debt Collection Letter : A Debt Collection Letter or a “Letter of Demand” is written to

inform the subject of a debt i.e his/her payment is overdue and request/ remind him/ her
to make the payment. A deadline for the payment is mentioned and the legal court actions
that would be taken against him/her in the case of failure to make the payment despite
the reminder are also included. Basically, this letter serves two purposes to warn the
subject about the defaulted payment as well as formal evidence that the debt collector
had informed the subject of the situation and following procedures.
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7.5 Collection Letter Writing Tips

 First and foremost it is vital to give some extra time to the debtor to arrange funds for the
payment in this letter.
 The tone of the letter should be firm and formal.
 The letter should mention the due date for the payment and also the amount.
 You must mention the repercussions which the debtor may face regarding non payment
and also provide a last date for the payment.
 Once you are through writing the letter, please recheck the same for spelling mistakes or
punctuation errors.
7.6 Sample Letter
1. Reminder Letter
Abirami Traders
Ranganathan Street,
Chennai
26.07.2018
Shenbagam Enterprises Pvt. Ltd.,

Velan Nagar,
Vellore
Dear Sir,
Your attention is called for a sum of Rs. 1,00,000 due from you. The amount is lying
unpaid since two weeks. As you are busy with your production schedules probably this might
have escaped your attention. This letter is written as reminder along with the enclosed statement.
Thank you.
Yours faithfully
V. Saravanan.
Encl: Statement of Accounts.

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2. Second Letter Asking Payment
Abirami Traders
Ranganathan Street,
Chennai
7th August 2018

Velan Nagar,
Vellore
Dear Sir,
Ref: Statement of Accounts sent dated 26th July
We are at a loss to understand there is no reply regarding your account due for more than
a month. We still value your business and eager to serve you though your credit account but it
depends on prompt payment. Perhaps the delay is due to unexpected reasons and a personal
discussion will help you to find a solution for this problem.
Kindly write to us telling how you propose to settle the accounts. We request you to make
an early payment.
Thanking you,
Yours faithfully
V. Saravanan
3. Letter Threatening Legal Action
Abirami Traders
Ranganathan Street,
Chennai
17th August 2018

Velan Nagar,
Vellore
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Dear Sirs,
In spite of our repeated reminders there is no reply from you and your long
standing account has not been attended by you. We cannot wait for your cheque indefinitely
like this. If this state continues, business would come to a standstill and everybody
would suffer.
I believe you dislike the process of law as much as we do. If you do not act promptly, I will
be compelled to place he matter in the hands of our lawyers. Hope you will not give a chance for
unpleasant state of affairs.
Thank you
Yours faithfully
V.Saravanan
4. Reply from the Debtor Offering Terms of Settlement
Velan Nagar,
Vellore
20th August 2018
Abirami Traders
Ranganathan Street
Chennai
Dear Sir,
We are in receipt of your letter dated 26th July and 7th and 17th August 2018 abd the
settlement of Rs. 1,00,000 against our bill dated 26th July 2018.
Please excuse us for having not settled your account.
Due to some personal problems we were unable to send you cash immediately. However
a cheque for Rs.1,00,000 is enclosed in full settlement of our account.
Thank you.
Yours sincerely,
K. Muthu
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5. Last Letter of Warning when Cash is not received
Abirami Traders
Ranganathan Street,
Chennai
24th August 2018

Velan Nagar,
Vellore
Dear Sirs,
We earnestly regret to say that your account has been handed over to our lawyers for
taking legal action as there is no alternative for us.
All our efforts to receive the cheque have failed for three months. Our accountant has
already asked our lawyers to move the matter to the court. But I have requested them to wait till
the end of this month. Please send the cheque immediately to save yourself from the
consequences of legal proceedings.
Yours faithfully,
V.Saravanan
Check Your Progress

1. Define collection letter.
2. What do you understand by ultimatum collection under?

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3. What is debt collectino letter?
7.7 Summary
The reason for writing the collection letter is easily understandable by the name itself. In
order to collect the credits from its customers, without affecting its goodwill, the selection of
words is very important. The different purposes of collection letters is to get the money, to keep
the customer and future business and to build goodwill have also listed in this unit. The features
of the collection letter such as two parties are involved, prime objective, written in a series, main
principle, refer to the previous letter, make use of friendly language and legal action have also
explained. The different types of collection letters like appeal collection letter, ultimatum collection
letter, collection of refund letter, and the debt collection letter have also explained in detail.
Along with the collection letter writing tips the sample letters also given in this unit.
7.8 Key Words

 Bill of exchange
 Trade Protection
 Correspondence
7.9. Review Questions
1. Mention the various stages of collection series.
2. What guide lines to be kept in mind while drafting collection letters.
3. The function of collection is not merely to collect dues, but collect them painlessly-Discuss
4. Draft a collection series beginning with formal notification of debt and ending with a hint to
legal proceedings.
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UNIT - 8
APPLICATION FOR A SITUATION
Learning Objectives
After studying this unit, you must be able to:
 discuss the points for drafting application letter
 differentiate resume and bio-data
 explain the types of resume
Structure
8.1 Introduction
8.2 Job Application Letter
8.3 Types of Application Letters
8.4 Resume or Bio-Data
8.5 Summary
8.6 Key Words
8.1 Introduction
There is always tough competition in the job market and the prospective employers will
form their first impression about the job seeker from his application. A job application letter is a
letter which is written by the job seeker to a prospective employer for a position is his organization.
In fact, a job application letter is written to sell one’s qualities and services to an employer.
8.2 Job Application Letter
According to Quible and others, “A letter of application is a message designed to inform

the reader of your desire for a position in his or her organization and to request an interview for
that position.” A job application letter, also known as a cover letter, should be sent or uploaded
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with your resume when applying for jobs. The job application letters you send explain to the
employer why you are qualified for the position and why you should be selected for an interview.
From the above discussion, we can say that a job application letter is a written appeal to
an employer for a position by a job seeker. Application letters must be written from employer’s
point of view. Before writing an application letter the applicant must analyze carefully the job
requirement and his own achievements.
8.3 Types of Job Application Letters

There are two types of job application letter, such as Solicited letters and unsolicited
application letter.
1. Solicited Application Letter
Solicited application letters are written in response to an advertisement for hiring or

recruitment. Here the job seeker knows the vacancy and can tailor his application as per the
requirements of the said post. If you are sending a solicited application letter, you will usually
know what qualifications the organization is seeking. In this case, highlight the chief qualifications
and mirror the requirements specified in the advertisement. You should grab the attention by
focusing on the phase Proven Skills, sometimes used in the advertisement.
Example:
February 27, 2018
To
The Managing Director,

Anusuya Enterprises Pvt. Ltd.,
57, Anna Salai, Chennai.
Sub : Application for the post of Management Trainee Officer.
Sir,
In response to your advertisement published in The Hindu on February 11, 2018, I would
like to offer my candidature for the above mentioned port. The details relevant to the post are
enclosed herewith my resume for your kind consideration.
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I am looking ahead to immediate hearing from you.
Yours sincerely
Emi.H
Enclosure:
3. Resume
4. Photocopies of all academic certificates
5. Two recent passport size photos.
2. Unsolicited Application Letter
Unsolicited applications letter are written at the writer’s own initiative to the organization.
Who has not advertised for recruitment? Unsolicited application letter is also called prospecting
letter. But in case of writing an unsolicited letter, you have a better chance of being read and
receiving individualized attention. You can gain attention by focusing on the needs of the
employers and how they will be gained by employing you. An example of unsolicited job
application letter is given below:
Example
March 1, 2018.
To.
Personnel Manager,
Cognizant Pvt. Ltd.,
Velachery, Chennai.
Sub: Application for a suitable position.
Dear Personnel Manager,
As a graduating senior in computer science at Chennai, I am interested in pursuing my

career in computers. The Chennai is a chambers of Commerce and Industry of Tamil Nadu has
given me your firm’s name as a leader in this field.
The enclosed resume indicates my background in computer science and human relations.
Although I am unaware if any position you might have available, I would be able to visit your
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organization over our spring break, April 2 through 11. Should you have opening, I would be
very much interested in visiting with you and taking about those positions.
I am available daily after 3pm at 95683 48752. I can be reached by mail at the address
above. I would appreciate any effort on your part of contact me.
Yours Sincerely
Madhan.J
8.4. Resume or Bio-data
A resume is a document that summarizes your education, skills, talents, employment

history, and experiences in a clear and concise format for potential employers. The resume
serves three distinct purposes that define its format, design, and presentation:
1. To represent your professional information in writing.
2. To demonstrate the relationship between your professional information and the problem
or challenge the potential employer hopes to solve or address, often represented in the
form of a job description or duties.
3. To get you an interview by clearly demonstrating you meet the minimum qualifications
and have the professional background help the organization meet its goals.
An online profile page is similar to a resume in that it represents you, your background
and qualifications, and adds participation to the publication. People network, link and
connect in new ways via online profiles or professional sites like LinkedIn. In many ways,
your online profile is an online version of your resume with connections and friends on
public display. Your MySpace and Facebook pages are also often accessible to the public,
so never post anything you wouldn’t want your employer (Current or future) to read, see
or hear. This chapter covers a traditional resume, as well as the more popular scannable
features, but the elements and tips could equally apply to your online profile.
8.4.1. Main Parts of a Resume
Regardless of the format, employers have expectations for your resume. They expect it
to be clear, accurate, and up to date (Bennett, S.A., 2005). This document represents you in
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your absence, and you want it to do the best job possible. You don’t want to be represented by
spelling or grammatical errors, as they may raise questions about your education and attention
to detail. Someone reading your resume with errors will only wonder what kind of work you
might produce that will poorly reflect on their company. There is going to be enough competition
that you don’t want to provide an easy excuse to toss your resume at the start of the process.
Do your best work the first time.
Resumes have several basic elements that employers look for, including your contact
information, objective or goal, education and work experience, and so on. Each resume format
may organize the information in distinct ways based on the overall design strategy, but all
information should be clear, concise, and accurate (Simons, W., Curtis, R., 2004).
1. Contact Information
This section is often located at the top of the document. The first element of the contact
information is your name. You should use your full. Legal name even if you go by your middle
name or use a nickname. There will plenty of time later to clarify what you prefer to be called,
but all your application documents, including those that relate to payroll, your social security
number, drug screenings, background checks, fingerprint records, transcripts, certificates or
degrees, should feature your legal name. Other necessary information includes your address,
phone number(s), and e-mail address. If you maintain two addresses (e.g., a campus and a
residential address), make it clear where you can be contacted by indicating the primary address.
For business purposes, do not use an unprofessional e-mail address. Create a new e-mail
account if needed with an address suitable for professional use.
2. Objective
This is one part of your resume that is relatively simple to customize for an individual
application. Your objective should reflect the audience’s need to quickly understand how you
will help the organization achieve its goals.
3. Education
You need to list your education in reverse chronological order, with your most recent
degree first. List the school, degree, and grade point average (GPA). If there is a difference
between the GPA in your major courses and your overall GPA, you may want to list them
separately to demonstrate your success in our chosen field. You may also want to highlight
relevant coursework that directly relate to the position.
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4. Work Experience
List in reverse chronological order your employment history, including the positions,
companies, locations, dates, duties and skills demonstrated or acquired. You may choose to
use active, descriptive sentences or bullet lists, but be consistent. Emphasize responsibilities
that involved budget, teamwork, supervision and customer service when applying for positions
in business and industry, but don’t let emphasis become exaggeration. This document represents
you in your absence, and if information is false, a minimum you could lose your job.
8.4.2. Types of Resume

Sl. Type Function Advantage Disadvantage
No
1 Reverse Reverse chronological resumes Demonstrates a It may be difficult to highlight
Chronological (also called reverse time order) consistent work history skills and experience.
focus on work history
2 Functional Functional resumes (also called Demonstrates skills that It is often associated with
competency-based resumes) can clearly link to job people who have gaps in
focus on skills. functions or duties. their employment history
3 Combination A combination resume lists your Highlights the skills Some employers prefer a
skills and experience first, then you have that are relevant reverse chronological
employment history and to the job and provides a order.
education. reverse chronological
work history.
4 Targeted A targeted resume is a custom Points out to the reader Custom documents take
document that specifically how your qualifications and additional time, preparation,
highlights the experience and experience clearly match analysis of the job
skills that are relevant to the job. the job duties. announcement, and may not fit
the established guidelines.
5 Scannable A scannable resume is specifically Increasingly used to
formatted to be read by a scanner facilitate search and
and converted to digital information retrieval, and to reduce Scanners may not read the
physical storage costs. resume correctly.
You may choose to include references at the end of your resume, though “references
upon request” is common. You may also be tempted to extend your resume to more than one
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page, but don’t exceed that limit unless the additional page will feature specific, relevant
information that represents several years of work that directly relates to the position. The person
reading your resume may be sifting through many applicants and will not spend time reading
extra pages. Use the one-page format to put your best foot forward, remembering that you may
never get a second chance to make a good first impression.
8.4.3 Maximise Scannable Resume Content

1. Use Key Words
Just as there are common search terms, and common words in relation to each position,
job description, or description of duties, your scannable resume needs to mirror these common
terms. Use of nonstandard terms may not stand out, and your indication of “managed employees”
may not get the same attention as the word “supervision” or “management”.
2. Follow Directions
If a job description uses specific terms, refers to computer programs, skills, or previous
experience, make sure your incorporate that language in your scannable resume. You know
that when given a class assignment, you are expected to follow directions; similarly, the employer
is looking for specific skills and experience. By mirroring the employer’s language and submitting
your application documents in accord with their instructions, you convey a spirit of cooperation
and an understanding of how to follow instructions.
3. Insert a Key Word Section
Consider a brief section that lists common words associated with the position as a skills
summary: customer service, business communication, sales, or terms and acronyms common
to the business or industry.
4. Make it Easy to Read
You need to make sure your resume is easy to read by a computer, including a character
recognition program. That means no italics, underlining, shading, boxes, or lines. Choose a
sans serif (without serif, or decorative end) font like Arial or Tahoma that won’t be misread.
Simple, clear fonts that demonstrate no points at which letters may appear to overlap will increase
the probabilityof the computer getting it right the first time. In order for the computer to do this,
you have to consider your audience a computer program that will not be able to interpret your
unusual font or odd word choice. A font size of eleven or twelve is easier to read for most
people, and while the computer does not care about font size, the smaller your font, the more
likely the computer is to make the error of combining adjacent letters.
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5. Printing, packaging and Delivery
Use a laser printer to get crisp letter formation. Inkjet printers can have some “bleed”
between characters that may make them overlap, and therefore be misunderstood. Folds can
make it hard to scan your document. E-mail your resume as an attachment if possible, but if a
paper version is required, don’t fold it. Use a clean, white piece of paper with black ink; colours
will only confuse the computer. Deliver the document in a nine-by-twelve-inch envelope, stiffened
with a sheet of cardstock (heavy paper of cardboard) to help prevent damage to the document.
Check Your Progress:

1. What is job application letter?
2. What is resume?
3. What do you mean by targetted resume?
8.5. Summary
In this unit, the meaning for application letter and the reason for writing the job application
letter has discussed along with the different types of job application letters such as solicited
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application letter and unsolicited application letter have also discussed in detail. The meaning
for the terms resume and bio-data, and how it differs from one another has also given in detailed
manner. The main parts of the resume such as contact information, objective, education and
work experience also discussed. The different types of resume are also discussed.
8.6 Key Words

 Resume
 Bio-data
 Solicited
 Unsolicited.
1. What are the points to be kept in mind while drafting an application letter?
2. What is the necessity to enclose the bio-data?
3. Draft an application for the post of computer operator in a big firm.

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UNIT - 9
COMPANY CORRESPONDENCE
Learning Objectives
 list out the essential features of banking correspondence
 explain the types of bank correspondence
 describe the insurance, export and import correspondnce
 bring out the importance of sales correspondence
Structure
9.1 Introduction
9.2 Types of Company Correspondence
9.3 Bank Correspondence
9.4 Insurance Correspondence
9.5 Export and Import Correspondence
9.6 Sales Correspondence
9.7 Personalised Correspondence
9.8 Circulars
9.9 Key Words
9.10 Summary
9.1. Introduction
Company correspondence is a form of written communication used for business purposes.

It is usually made between organizations, within the organization, or between clients and the
organization. Email can be considered as a form of Company correspondence when used to
represent a company or for the purpose of the business.
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Written communication is important in a business for various reasons. It serves as a

formal way of exchanging information while maintaining professional relationships between
organizations, employees, and clients. It can also serve as future reference for the information
being communicated.
9.2 Types of Company Correspondence
There are different kinds of company correspondence that are typically used in
organizations. The 5 most common types of company correspondence include internal
correspondence, external correspondence, sales correspondence, personalized correspondence
and circulars.
9.2.1 Internal Correspondence
Internal correspondence is a written communication between the employees, units,

departments, and branches of the same organization. Internal correspondence can either be
formal or less formal. Routine internal correspondence are usually less formal, such as quick
instructions between a supervisor and a staff, and these are normally in the form of email.
There are other more formal types of internal correspondence which include promotion
letter, written reprimand, notice to explain, memorandum, formal requests for approval, and
letter of approval or dismissal. These types of communication are ideally printed on paper,
signed by the sender, and physically received by the recipient.
9.2.2 External Correspondence
External correspondence takes place between different organizations, or between an

organization and their individual clients. This is a form of written communication made by a
company to those who do not belong to their organization.
External correspondence is commonly made to vendors, creditors, suppliers, existing

customers, prospective clients, financial institutions, government offices, law and accounting
firms, business affiliates, sponsors or donors, and other offices that have either direct or indirect
business relationship with the company.
9.3 Bank Correspondence

Correspondence with banks is essential for organizations. Banks also are business houses
and they have to correspond with clients and customers. Banks whether private or public, local
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or foreign, have to face stiff competition from others. Computerised accounts, automatic teller
machine, credit and debit cards have enlarged the scope of business. Banks which were the
monopoly of the rich men today are attracting common and ordinary people. The whole
competition of banking business has undergone a sea-change. Banking correspondence is of
a special nature because it deals with finance. Letters have to be carefully written to protect the
interest of the bank as well as its clientele. In the first place, it has to be very confidential in
nature. The financial status of its clientele can be quite fluctuating owing to extraneous reasons.
The interest of the client has to be protected as well as the interest of the bank. The
correspondence should also be tactful. A bank cannot afford to be judgemental in issues
connected with a transaction. Banks can suffer from bad debts but it cannot afford t hastily call
a client a bad-debtor. Courtesy is another important feature of making correspondence. Banks
should always look at a situation from the receiver’s point of view. ‘you-attitude’ in letters is very
important for all correspondence connected with banks
Sample Letters
1. Letter requesting banker to open an account
Auron& Company Ltd
Anna Nagar, Vellore
5th May, 2005
The Manager
Vijaya Bank Ltd
Vellore.
Dear Sir,
Sub: Request for opening an account
We request you to open a current account in the name of Auron&Co Ltd. We are dealing
in textile products and our annual turnover is Rs. 50, 00,000. We will be happy if you could avail
us over draft facility.
I have enclosed the filled up application form and other relevant documents. Mr. Kumar
will deposit Rs. 1,00000 in cash to enable us to open the account. Kindly send with him a
cheque book, a pass book, and a paying – in – slip book for the purpose of remittance.
Yours Faithfully
J.Vasanth
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2. Letter asking for Over Draft
Vasanth& Company Ltd

Vijay Nagar, Vellore
5th May 2005
The Manager
Vijaya Bank Ltd
Vellore
Dear Sir,
Sub: Request for over draft facility
We are happy to inform you that our business is progressing well. There is a good demand
for our products. We wish to add other lines of products also. Our present suppliers are unable
to grant us credit.
Hence we request you the over draft facility for Rs. 1, 00000 for 2 months. We are
willing to give guarantee as a security for over draft. Copies of audited financial statements are
enclosed; we expect a favourable reply at the earliest.
Thanking You
Yours Faithfully
R.Vasanth
3. Letter from a bank regarding dishonoured cheque
The Manager
Vijaya Bank Ltd, Vellore
July 16, 2005
Vasanth& company Ltd
Vijay nagar
Vellore
Dear Sir,
I regret to inform you your number 25680 dated July 13, 2005 drawn in favour of Raja
Co. Ltd for Rs. 40,000 was written unpaid due to the insufficiency of funds. The balance in your
account as on today is Rs. 39,000 only.
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We request to ensure the sufficient funds are maintained in your account to meet such
contingencies, Otherwise necessary arrangements can be made for an over draft against the
deposit of usual securities.
Yours Faithfully
K.Karthik
(Manager)
4. Letter to a customer regarding investment
The Manager
Vijaya Bank Ltd, Vellore
July 16, 2005
Vasanth& company Ltd
Vijay nagar
Vellore
Dear Sir,
I received your letter dated 14th July asking for advice on suitable investments. I am sorry
to inform you that our bank does not undertake such services regarding investments. You can
contact the stock brokers who will guide you in this regard.
This information is passed on to you on the understanding that no liability is attached to
the bank or to any of its officials.
Yours Faithfully
K.Karthik
(Manager)
5. Letter from branch to head office recommending an over draft

to its customers
Indian Overseas Bank Ltd

Chennai
September 14, 2018
The General Manager

New Delhi
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Dear Sir,
Mr.Parthiban proprietor of Bay Leaf catering services, Chennai has approached for over
draft facility for Rs. 10,00,000 for 6 months to meet the increasing demand for their product
during festival season. He agrees to offer some securities to cover the over draft.
He is one of our old customers and has satisfactory dealing with us. He is financially
sound hence I recommend offering over draft facility for him. His application for the over draft
facility is enclosed.
Yours faithfully
Vishva.D
6. Reply from the head office for the above letter
The General Manager

New Delhi
August 31, 2005

Chennai
Dear Sir,
With reference to your letter dated August 27 recommending over draft facility for
Mr.Parthiban for Rs, 1,00,000, We are glad to accept your recommendation and sanction the
over draft, provided a margin of 80% should be maintained in the form of stocks offered by him
as security throughout the period of over draft.
Yours Faithfully
D.Dinesh
(General Manager)
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7. A confidential enquiry regarding the status of a client from one

bank to another
The General Manager
Indian Overseas Bank Ltd.,
New Delhi
September 11, 2018.
The General Manager
State Bank of India
New Delhi
Dear Sir,
We will be much obliged if you could favour us with your opinion regarding the credit
worthiness of the person mentioned below. Mr. Sharma, Proprietor of Vijay Tex, Coimbatore.
We assure you that any information given by you will be strictly treated as confidential.
Yours faithfully
Vishva.D
9.4 Insurance Correspondence
Insurance is a business that covers risks due to loss of life and assets due to fire, theft,
burglary, natural calamities etc., Insurance business to start with private sector. Later, owing to
Government policies two giant corporations like LIC and GIC emerged. Today, in the background
of privatisation, many new private enterprises including foreign companies have entered the
field. There appears to be a future of stiff competition in the insurance sector. Insurance operates
under two guiding principles, namely faith and indemnity. It is a business where a high level of
ethical value should prevail with both the customers and the company. Companies are obliged
to do a balancing act between competition and ethical values. Insurance correspondence
demands tact, faith, courtesy and transparency in their content.
Types of Insurance
a. Life Insurance or Personal Insurance
Life Insurance is different from other insurance in the sense that, here, the subject matter
of insurance is the life of human being.
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The insurer will pay the fixed amount of insurance at the time of death or at the expiry of
the certain period.
At present, life insurance enjoys maximum scope because the life is the most important
property of an individual.
Each and every person requires the insurance.
This insurance provides protection to the family at the premature death or gives an
adequate amount at the old age when earning capacities are reduced.
Under personal insurance, a payment is made at the accident.
The insurance is not only a protection but is a sort of investment because a certain sum
is returnable to the insured at the death or the expiry of a period.
b. General Insurance
The general insurance includes Property Insurance, Liability Insurance, and other forms
of insurance.
The strictest form of liability insurance is fidelity insurance, whereby the insurer
compensates the loss to the insured when his is under the liability of payment to the third party.
c. Property Insurance
Under the property insurance property of person/persons are insured against a certain
specified risk. The risk may be fire or marine perils, theft of property or goods damage to
property at the accident.
d. Marine Insurance
Marine insurance provides protection against loss of marine perils. The marine perils are
a collision with a rock, or ship, attacks by enemies, fire, and captured by pirates, etc. These
perils cause damage, destruction or disappearance or the ship and cargo and non-payment of
freight. So marine insurance insures ship, cargo and freight.
Previously only certain nominal risks were insured but now the scope of marine insurance
had been divided into two parts; Ocean Marine Insurance and Inland Marine Insurance.
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The former insures only the marine perils while the latter covers inland perils which may
arise with the delivery of cargo from the go-down of the insured and may extend up to the
receipt of the cargo by the buyer (importer) at his go-down.
e. Fire Insurance
Fire Insurance covers the risk of fire. In the absence of fire insurance, the fire waste will
increase not only to the individual but to the society as well. With the help of fire insurance, the
losses arising due to fire are compensated and the society is not losing much. The individual is
preferred from such losses and his property or business or industry will remain approximately in
the same position in which it was before the loss.
The fire insurance does not protect only losses but it provides certain consequential losses
also war risk, turmoil, riots, etc. Can be insured under this insurance, too.
f. Liability Insurance
The general insurance also includes liability insurance whereby the insured is liable to
pay the damage of property or to compensate the loss of personal, injury or death. This insurance
is seen in the form of fidelity insurance, automobile insurance, and machine insurance, etc.
g. Social Insurance
The social insurance is to provide protection to the weaker sections of the society who
are unable to pay the premium for adequate insurance.
Pension plans, disability benefits, unemployment benefits, sickness insurance an industrial
insurance are the various forms of social insurance. Insurance can be classified into four
categories from the risk point of view.
h. Personal Insurance
The personal insurance includes insurance of human life which may suffer loss due to
death, accident, and disease. Therefore, the personal insurance is further sub-classified into
life insurance, personal accident insurance, and health insurance.
i. Property Insurance
The property of an individual and of the society is insured against loss of fire and marine
perils, the crop is insured against an unexpected decline in deduction, unexpected death of the
animals engaged in business, break-down of machines and theft of the property and goods.
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j. Guarantee Insurance
The guarantee insurance covers the loss arising due to dishonesty, disappearance, and
disloyalty of the employees or second party. The party must be a party of the contract. His
failure causes loss to the first party. For example, in export insurance, the insurer will compensate
the loss at the failure of the importers to pay the amount of debt.
k. Other Forms of Insurance
Beside the property and liability insurances, there are other insurances which are included
in general insurance. The examples of such insurances are export-credit insurances, state
employees insurance, etc. Whereby the insurer guarantees to pay a certain amount at the
certain events. This insurance is extending rapidly these days.
l. Miscellaneous Insurance
The property, goods, machine, furniture, automobiles, valuable articles, etc. can be insured
against the damage or destruction due to accident or disappearance due to theft. There are
different forms insurances for each type of the said property whereby not only property insurance
exists but liability insurance and personal injuries are also insurer.
Advantages of Insurance
Some insurance policies are required for businesses, and others are optional. Policies
such as workers’ compensation are required for companies that have employees, while general
business liability or professional liability policies might only be required by companies in specific
industries. Even if it isn’t required, there are pros and cons to having insurance. Business
owners need to look at potential risks to determine if the benefits outweigh the disadvantages.
1. Covers Business Property
Most businesses have business property and inventory. If there is a fire, robbery or another
type of accident leading to damage or property loss of business leases for operations. If a
storefront window is broken by a vandal, the glass could be covered by the policy. Business
owners should do a thorough inventory of assets including computers, furniture, supplies and
inventory to have adequate coverage.
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2. Protects Against Liabilities
Businesses are sued for a lot of different things. Business insurance protects against
many types of lawsuits. Workers’ compensation covers employees from injury or illness at
work. Business liability insurance protects the business if a consumer trips and falls in the office
or otherwise is hurt. Professional liability insurance such as medical malpractice insurance
protects professional from mistakes that may result I harm to a client. Many insurance policies
pay not just the settlement to the injured party but also cover legal fees incurred by the company
when battling a lawsuit.
3. Replace Income
There are times when business operations must halt because of a break-in, fire, flood or
another disaster. Some business policies cover revenues based on historical information. So if
you average Rs. 1,00, 000 a month in revenues, your policy would pay that to you up to the
policy limits during the time your business is closed.
Disadvantages
1. Denies Claims or Pays Slowly
Because business insurance is confusing with many types of policies, a claim may arise
that the company’s policy doesn’t cover. Additionally, many claims take time to process because
insurance companies need to assess the damage and determine an accurate accounting of
loss. The time and energy required can be frustrating and end unfavourably for the business
claimant.
Business owners need a professional business insurance agent versed in the needs of
the business industry to develop an insurance portfolio that meets a company’s specific needs
and budget limits. For example, if the policy property limits are Rs. 2, 00, 000 but the business
needs Rs. 5,00, 000 to replace everything, it is underinsured and is responsible for the gap.
2. Adds Expenses
Business owners are constantly examining budgets and looking for ways to save money.
Insurance can be expensive, especially in certain industries where workers’ compensation injuries
are common. Construction business policies are more expensive than policies for accounting
offices. As a business grows, it should review its policies to make sure they cover the existing
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needs. Otherwise, the policy may not cover a loss completely, leaving the business
underinsured.
Common Terms used in General Insurance

 Insurance: Insurance is a contract in which an insurance company promises to
compensate an insured.
 Agent: A person or a group of people selling insurance on behalf of an insurance company.
 Insurer: is the company which accepts risks after receiving premiums and pays claims.
 Insured: The term “insured” refers to the person who has taken insurance against various
risks and who pays a premium for the insurance.
 Broker: An independent professional person who is registered under the Insurance Act
who advises customers on insurance. The broker operates as your agent, and not that of
any insurance company. In Kenya, most Brokers are members of the Association of
Insurance Brokers of Kenya (AIBK)
 Underwriter: The person who decides how much to charge and who manages the account
that bears the cost of claims for motor or household insurance, or the person who decides.
 Premium: The amount you pay to an insurance company, sometimes in regular instalments
or as per your agreement with the insurer for your insurance policy.
 Commission: This is the money that is paid to agents or brokers who sell an insurance
product on behalf of an insurance company. Commissions are paid by insurers.
 Excess: This is the amount that insured is expected to make when making acclaim. This
amount is usually specified in the policy. It discourages the insuredfrom making very
small claims and instead meeting this cost themselves.
 Liability: your responsibilities for the adverse effects of our actions, or lack of actions on
others.
 Third Party: Any other person who may be affected by your actions- for example, in a car
accident, it would related to damage to their car. In this context, it is well to recognize that
the first partyin an insurance policy is you, and the second is your insurance company
and the third is the other person or vehicle in the accident.
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 Proposal: This is the application form which you have to fill in when you apply for insurance
cover.
 Sum Insured: It relates to the value of goods at risk and this is the basis upon which the
premium is calculated.
Sample Letters
1. Letter for the remittance of life insurance premium
Rajesh.N
Palkalai Nagar, Padi, Chennai.
April 10, 2018
The Manager
Life Insurance Corporation of India
Mount road, Chennai
Dear Sir,
Sub: Payment of premium for the policy no: 98765 dated April 2011 for Rs. 1, 00, 000.
I have enclosed a cheque for Rs. 15,000 being the premium in respect my policy specified
above. Kindly acknowledge the receipt.
Encl: Cheque Yours Faithfully
Rajesh.N
2. Enquiry letter for loan against the policy
Rajesh.N
Palkalai Nagar, Padi, Chennai.
April 10, 2018
The Manager
Life Insurance Corporation of India
Mount road, Chennai
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Dear Sir,
Sub: Loan against the policy no: 23456 dated April 2011 for Rs 1 lac.
I hold the above policy on my own life and have remitted the premium promptly so for. At
present I am in need of money and wish to know the maximum amount of loan that can be
granted against my policy.
Kindly intimate the procedure for getting the loan amount at the earliest.
Thanking you
Yours Faithfully
Rajesh.N
3. Notice of damage by fire with a request to settle the claims
Santhanam and Company Pvt.Ltd.,

Kamarajarsalai
Korattur, Chennai
July10, 2018
The Manager
New India Fire Insurance Company
Anna nagar, Chennai-40
Dear Sir,
Sub: Loss by fire. Fire policy no:1357
I regret to inform that my entire warehouse at II main road has been guttered by fire on 9th
July in the early morning. Despite the best efforts of the fire brigade, there has been a considerable
damage amounting to Rs.30 Lakhs.
Please make necessary arrangements to assess the loss and settle our claims at earliest
as we are under financial stringency owing to dull business. We are eagerly waiting for your
representatives to visit our warehouse.
Yours Faithfully
S. Nathan.
(Managing Director)
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9.5 Export and Import Correspondence
Written Correspondence is a part and parcel of any business. For the business to be
successful, effective communication is a must. That is why we insist that you must learn how to
write different types of business letters. The content of a business letter should be crystal clear
to its recipient. Your words and the style you follow conjure up an image about you in the mind
of the reader of the business letter. Letter is the best way to develop a rapport with the clients,
vendors, customers and others related to our business. A well-drafted and well-displayed business
letter will create a far more significant positive goodwill among the customers. We have taken
pains to see that all parts of the business letters are explained in detail so that our readers will
understand them in a clear manner.
Import export business is another aspect of general trade. The only difference is that the
trading is between an indigenous concern and a foreign company. Normally, these letters have
to be written with an understanding of the working of the working company and the cultural
milieu (environment) of the people who are responsible for that foreign company. In fact, export
business also involves communication at different levels, with licensing authorities, transporters,
customers, authorities and others. All correspondence has to be coordinated with speed as the
watchword.
Specimen Letters
1. A letter receiving Indent
Venkatesh Trading Company Ltd

Vasan Avenue, Chennai -5
March 5, 2005
The Manager
Fashion garments ltd
London
Dear Sir,
Sub: Dispatch of Indent no: 1250
We are sending our indent no: 1250 for 500 jeans pants and shall be glad if you effect the
shipment at the earliest.
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Kindly arrange for the insurance and draw on us through our bankers. State bank of India.
Mount road, Chennai.
Encl: Indent
Yours Faithfully
P.Venkatesh
(Managing Director)
9.6 Sales Correspondence
Sales correspondence refers to sales-related communications, it is not limited to just

selling a product or service, but it also includes other activities relating to sales. Sales
correspondence include marketing letters, offer and discount letters, sales proposals, invoices,
statement of accounts, sales reports, order confirmation, purchase orders, letters of authorization,
collection letters, and such.
For the purpose of selling, it is important to know how to write quality sales letters to be
able to communicate effectively. Also, marketing and offer letters should reflect truthful and
non-misleading information. Other kinds of sales correspondence – such as invoice, purchase
orders, and collection letters- must contain accurate information.
9.7 Personalized Correspondence
Personalized correspondence involved persona and emotional factors. Despite being

labelled as “personalized”, this type of correspondence can also be sued for business purposes.
Examples of personalized correspondence include letters of gratitude, letters of favours or
requests, appreciation notes, letters of congratulations of commendation, and such.
This particular type of correspondence does not need to have a very formal tone. Though
this can be done via email, writing an actual, physical letter is more preferable because it has a
sense of personal touch. You may use a regular office paper for this, or perhaps a personalized
yet cheap note pads, or a greeting card for a certain purpose.
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9.8 Circulars
Circulars are notices that are communicated to a large number of people within the
organization. It is also referred to as office instructions or announcements. Often, general
announcements (such as changes in contact information, details about meetings with
shareholders, instructions about certain protocols, etc) are being communicated via circulars.
Check Your Progress

1. What do you understand by bank correspondence?
2. What do you mean by personalised correspondence?
3. Write a note on marine insurance.
9.9 Summary
In this unit, the meaning of company correspondence is explained as it is a form of written

communication used for business purposes. It is usually made between organizations, within
the organization or between clients and the organisation. The different types of company
correspondence such as internal correspondence, external correspondence and bank
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correspondence are explained in detail. The different methods and ways of correspondence
such as correspondence with bank, insurance companies, export and import, sales, personalised
and circulars are also discussed in detail along with the relevant specimen letters for the better
understanding.
9.10 Key Words

 Bank Correspondence
 Insurance Correspondence
 Export import Correspondence
 Sales Correspondence
 Circulars
1. Write the different types of company correspondence.
2. Bring out the different types of insurance.
3. What do you mean by circulars?
4. Draft a letter to the insurance company to settle the claims.
5. Draft a requisition letter to the bank for over draft.

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UNIT - 10
REPORT WRITING
Learning Objectives
After studying this unit, you will be able to:
 define report.
 explain types of report
 give the meaning of agenda
 explain the types of meeting
Structure
10.1 Introduction
10.2 Meaning
10.3 Features of Report Writing
10.4 Format of Report Writing
10.5 Types of Report Writing
10.6 Agenda
10.7 Classification of Meeting
10.8 Summary
10.9 Key Words
10.1 Introduction
Report writing is a well-organized writing process that needs enough skill, research, and
details. This report writing process is usually time-consuming and often requires a detailed
research for which the report writer may have to visit places, meet people and find a solid
conclusion at the end of the day to write a good report.
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Use of report writing is to explain a matter or issue and inform higher authorities to help
them take a right decision or action in regards to the matter or issue.
There is a little room for creativity in the report writing structure as the main focus is to
enlighten the readers about a matter or issue and make the whole thing self-explanatory for
easy understanding. Report writing is the primary tool of media personnel through which they
pass on specific information about an incident or topic.
Apart from the media usage, report writing is required in various sectors like corporate,
government, politics etc. To offer a better understanding, learning about the essence of this
form of writing – “the Report” is very important.
10.2 Meaning
A report is a methodical, well planned document which outlines and evaluates a subject
or problem, and which may include:
 The record of an order of events
 Explanation of the implication of these events or facts
 Evaluation of the facts or results or research presented
 Discussion of the consequences of a conclusion or course of action
 Conclusions
 References
10.3 Features of Report

 Correct
 Crisp
 Clear and
 Well-structured
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10.4 Format of Report Writing
Every organization has a predefined report writing format and hence a writer cannot
remain struck to a specific format for different reports. While writing a formal report, the freelance
writer must keep in mind that the target readers need do not have to do unnecessary research
to take a decision or action after reading the report.
10.5 Types of Report Writing
Everything must be in details. There are many types of report writing for organizations
that are used for various purposes. To format your report to serve varied needs, have a look at
the primary report writing types mentioned below:
1. Formal Report Writing
Formal report writing is pretty complex and time-consuming. Usually, it demands an

immense research, explanation, references, links, lists and may other things to make the primary
point clear enough for the readers.
This type of report writing is usually preferred for an important incident, issue or matter by
big organizations. Formal report writing is generally long and expensive. Formal report writing
has an internationally accepted pattern that includes various components that are mentioned
below.
1. Cover: The cover of report is something that drives a reader’s attention first. The report’s
cover leaves a huge impression on the reader’s mind and he/she can get an idea regarding
the report’s topic or quality through the cover design. There is a saying – “don’t judge a
booked by its cover” but it is also true – what seems well, sells well and hence the report
writer must take care of the cover of the report with has a major role to depict the report
brief.
2. Title of the Report: This component includes the report’s title and the name of the writer.
Apart from these things, the title can also have a date and the name of the organization
for which the report has been prepared. The cover also has these things but putting them
in details in the title section is mandatory.
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3. Table of Contents: This section includes headings and subheadings of the primary text
written. This is a very important portion of report writing. It helps your readers to reach
desired sections in your report in a hassle-free manner.
4. Summary: Here you basically provide the synopsis of the whole report’s primary text and
you can also call it an informative summary. Many times, it is referred as ‘executive
summary’. You can also use descriptive summary which is a simple table of contents. The
format is always decided by the organizations.
5. Introduction: This is the most important section of the main text. The main text always
includes three components – introduction, discussion, and conclusion. Here, you introduce
the main text of your report in the most intriguing a detailed manner so that all types of
readers can get your point without much effort.
6. Discussion: In the discussion section, a report writer discusses the main story of the
report. According to your reader’s convenience, you decide the order of the report’s results.
You can also do a result to theory comparison here along with the analysis, evaluation
and interpretation of the data included.
7. Conclusion / Recommendation: You can present the summary of the discussion section
here. Here, you mention your findings and recommend the elements to your readers as
per your overall evaluation.
8. Appendix: In the appendix portion, you can attach the graphs, lists, survey and suchlike
stuff that are related to your report and helps your readers to understand the report
comprehensively.
9. Reference / Bibliography: You can cite your report’s references in this portion.
2. Informal Report Writing
This type of report writing is comparatively easier and less time-consuming than the formal
report writing. Here, you need to perform lesser research and it also includes lesser components.
The basic components of informal report writing include- introduction, discussion and references.
Different organizations include more components to this type as per their requirements.
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Informal report writing can also be divided into few types – credit report, feasibility report,
progress report, sales activity report, financial report, personal evaluation and literary report.
All the above mentioned information in regards to report writing and its types must have
helped you, but to understand the process in a better manner, here is a seven step process for
report writing that can help any report writer to master the report writing technique.
3. From the stand point of legal formalities report are classified as:
Formal Report
It refers to a report submitted as per the requirements of law or order or by an official

having formal status. This report can further be classified as
1. Statutory Report: It is prepared and submitted as per some specific statute
Eg: Reports sent to all share holders as per section 165 of Indian companies act.
2. Non Statutory Report: This is prepared and submitted to the management to give
information. It helps the management in framing policies, making decisions and controlling
the operations. This report is very helpful when the management is in need of some
important information, on certain occasion.
Informal Report
It is a mere communication from person to person without any statutory obligation or

formal requirement, procedure being involved.
1. Reports of Committees of Directors: The directors usually appoint standing committee

with 2 or more directors to help the board relating the day to day administration of the
company. Eg: Finance committee, share transfer committee etc.
2. Reports of Ad-hoc Committee: This committee is formed by directors to report on certain

special issues like new factory building, opening of new branch and capital reorganization
etc.
3. Directors Report to share holders of a company: On certain occasions the directors

prepare a separate report and submit to share holders. Eg: Report when entering a new
line of business, negotiation to purchase another company business etc.
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4. Report by Executive heads and officers of a company: The managers of different

departments submit reports on the internal management of a business. Eg: The trends of
operation, deviation from the budgets etc.
5. Financial Report: This is prepared by the manager of the finance department and
submitted to directors. They give information relating to the financial structure, and their
effective use of funds.
6. Reports of the Company Secretary: The company secretary submits reports on

complaints from branches, employees’ grievances, threat due to strike, improvements in
working conditions etc.
7. Report on Meetings: The secretary is expected to prepare the report on the proceeding
of meetings and submit it to the members who have not attended the meeting, and to the
press. The report of meeting should be written in third person and in the reported speech.
4. From the stand point of the number of persons entrusted to draft the
report:
1. Report by Individual: The individual draft such report to pay particular attention to the
order in which the items to be embodied in a report otherwise it will lack attractiveness
and force. An improper arrangement will make the report a disk connected and unintelligible
muddle. The individual should proceed in a systematic manner. Eg: Report by the
production manager. He should draft in the following order:
 The method that is in use at present with its advantage, disadvantage and drawbacks
clearly.
 The estimate of the cost of installation and working cost.
 Comparative analysis of estimated cost of new methods with that of the old methods.
 Considered opinion of the writer and his recommendations.
2. Reports of Committees: This report is expected to be the considered opinion after a

cautious deliberation of the members. Hence it must be drafted in a formal way, signed by
the members of the committee or by the chairman. The following matters are incorporated
while drafting this report:
 Analysis of the object of the committee’s investigation.
 Brief analysis of the proceedings and discussions.

118
 The names of the witnesses examined and the details of the evidence offered.
 Decision arrived in the form of recommendation for the consideration of the person
to whom the report is addressed.
10.6 Agenda
It is virtually the road map of a meeting. Agenda means; Things to be done’. The chairman
must take care and see the items in agenda are neither altered nor omitted. It is circulated
along with the notice so that the members will come prepared. It helps in conducting the meeting
in order and also helps the chairman to control the meeting from going off the tract
It contains the following information.
 Minutes of the previous meeting
 Suggestions received from members
 Actions and events taken place since the previous meeting
 Correspondence on the subject
 Directors and annual report
 Auditors report.
Specimen 1 : Minutes of annual General Meeting
Minutes of the 50th Annual general meeting of jai engineering ltd held at the registered
office conference hall, Chennai at 10 am On Friday 27th June 2005.
S.No Particulars Details of Minutes
1 Notice of the meeting The secretary read the notice convening the
meeting.
2 Auditors report The company’s auditors Puja & Co read the

auditor report.
3 Directors report and & accounts With the consent of directors, both the reports
were circulated and taken as read.
119
4 Chairman’s address The chairman addressed the meeting and gave

details of the present position and prosperity of
the company
5 Dividend After discussion the chairman approved 20%

dividend to be distributed on 10th July 2005.
6 Company’s auditors Every one unanimously accepted to reappoint

Puja & co as the auditor.
7 Election of director Mr.Jai proposed Mr.Niranjan as the director, it

was accepted and he was elected as a director.
8 Remuneration The enhancement of remuneration of auditor

was put to motion and fixed at Rs 12000.
9 Vote of thanks The meeting concluded with vote of thanks by a

share holder.Signature of Chairman:P.Thananjai.
Specimen 2: Minutes of the Board Meeting
Minutes of 150th Meeting of the Board of Directors of Jai Engineering ltd held at the
registered office conference hall, Chennai at 10 am On Friday 27th June 2005.
S.No Particulars Details of Minutes
1 Members present: P.Raja, Meeting conducted with required quorum.

R.Roja,P.Puja,
S.Suja.L.Laja- Secretary
2 Confirmation of minutes The minutes of 149th board meeting was

confirmed and signed by the chairman.
3. Leave of absence This was granted for the following
directors:P.Praja, S.Saja, &G.Gaja
4 Progress report Monthly progress of the company read and

discussed.
5 Appointment of additional director It was resolved h .Huja to be appointed as

additional director.
120
6 Financial statements Financial statement was read, discussed and

recorded
7 Appointment of sales manager Resolved B.Baja is appointed as sales manager

for 4 years as per the agreement.
8 Interim dividend As the company has earned enormous profit it
was resolved to declare 5% interim dividends
to all share holders on 15th July
9. Next meeting Decided to conduct next meeting on 27th

august 2005P.Thananjai. (Chairman-)
Specimen 3: Notice
Notice is given for the 50th Annual general meeting of Jai engineering ltd held at the
registered office conference hall, Chennai at 10 am on Friday 27th June 2005.
L.Laja (Secretary)
Encl: Agenda.
Agenda
 Confirmation of the minutes of last meeting.
 Director’s report and annual accounts.
 Auditors report
 Appointment of auditors
 Declaration of dividend
 187
 Election of directors.
 Any other matter with the permission of the chairman.
L.Laja (Secretary)
121
Notice for monthly Board meeting
150th Meeting of the Board of Directors of Jai Engineering ltd held at the registered at the
conference hall, Chennai at 10 a.m. on Friday 27th June 2005.
Agenda
 The minutes of the previous meeting
 Matters arising.
 New lay out and allotment procedures
 Any other matter.
 Schedule for the next meeting.
L.Laja (Secretary)
10.7 Classification of a Meeting
1. Informal meeting
A senior person may call for a meeting without reference to a rule or bye –law. The
meeting can be called orally or in writing. It is conducted out of common interest or due to
urgency. The discussions are related to specific issues. For example the General Manager
might call for a meeting of sales manager to discuss the sales target. Such meetings do not
have a fixed agenda, minutes etc. such meetings are vital to business organizations.
2. Formal meeting
It is conducted in accordance with bye-laws, and Memorandum or Articles of association.

These meetings have to be conducted in fixed intervals. Notice accompanied by agenda has to
be served to all the members.
3. Annual Report
Before the annual general meeting is conducted along with the notice, and agenda, annual
report will also be sent to all members by the secretary. The main duty of the auditor is to make
the annual report to the members of the company on the accounts examined by him from the
balance sheet and the profit and loss account of the company and on every document which is
122
annexed to the balance sheet or profit and loss account laid before the company in annual
general meeting. The auditor owes a duty to the members to state whether the accounts give a
true and fair view of the affairs of the company at the end of the financial period.
Specimen
Puja & Company

Chartered Accountants
13th Main Road, Anna Nagar
Chennai.
AUDIT REPORT
We have audited the accounts of Jai engineering ltd, Chennai as on March 31,2005.
 To the best of our knowledge and the explanations given to us, as per the company’s act
1956, we found that the accounts are maintained properly.
 Jai engineering ltd is having a branch at Coimbatore since last year. From the statement
of accounts supplied by the branch, we find the firm is running at a loss and hence the
branch can be closed down immediately.
 While auditing the stock registers of the head office it was found that bulk purchases are
made and money is unnecessarily locked up to the extent of Rs 50000. This type of huge
purchase has to be avoided.
 Balance sheet and Profit and loss account agree with the books of accounts.
 Debtors have been written off as bad debts to the extent of Rs. 5000, the company has to
take effective strep to collect the money promptly from the debtors and there by avoid
such bad debts.
 In our opinion we feel that the firm is maintaining proper books of accounts as per the
company’s act of 1956.
Puja & company

Chartered Accountants
123
Check Your Progress

1. Define Report.
2. What is agenda?
3. What is statutory report?
10.8. Summary
Constantly business organization conduct meetings like executive meetings, shareholders,

meetings and committee meetings. The basic objectives of meeting are to achieve the goal of
organizations. Meetings may be statutory meetings, and annual general meetings, extra ordinary
general meetings, board of directors meeting and creditors meeting.Report is a sum total of
ascertained facts. A good report must possess characteristics such as clarity, accuracy, objectivity,
brevity and unambiguous language. Reports are classified into 6 types on the basis of
methodology. Legality, number of persons, length, period and content. Report drafting is
discussed at the end of this unit.
124
10.9. Key Words

 Formal Report
 Informal Report
 Agenda
 Meeting
 Minutes

1. Explain the terms agenda and minutes
2. Distinguish between formal and informal meeting.
3. What is an annual report?
4. Draft minutes of the annual general meeting where dividend not paid due to lack of profits.
5. Draft the minutes of the meeting of the student’s council of your college which is held to
decide the progammes for the annual day.
6. State the characteristics of the good business report.
7. Classify the different types of business report.
8. Write a note on drafting of a report.
9. State clearly the method of preparing the long reports.
10. Specify the hints on the preparation of the final copy of the report.
125
UNIT - 11
ROLE OF COMPUTERS IN BUSINESS
CORRESPONDENCE
Learning Objectives
After studying this unit, you should be able to :
 explain the importance of computer in business
 examine benefits and effects of technology in business correspondence
 analyse the effects of technology in business communication
Structure
11.1 Introduction
11.2 Importance of Computer in Business
11.3 Functions of Computer in Business
11.4 Benefits of Computer in Business Correspondence
11.5 Laptop vs. Desktop
11.6 Effects of Technology in Business Communications
11.7 Different forms of Technology Mediated Communication
11.8 Summary
11.9 Key Words
11.1 Introduction
Computer technology has great applications in almost all kinds of businesses. They are
relying on computers for automating their traditional processes. Businesses use computers for
communications across a number of types of people, such as between employees, between
the business and its customers, and between a business and its suppliers. One major advantage
126
of computer communication is that it is often asynchronous, which means that communication

can happen even if one person is not available by telephone. Additionally, computers can store
huge amounts of data that, if printed, would take rooms and rooms full of file cabinets (this one
way in which computers help save trees). It is also easy to find particular data or to pull two data
sets together using a computer; this would consume a lot of time with paper records in a file
cabinet. Employees who use computers can get more done than their non-computer-using
peers because both communications is easier to accomplish and finding and using information
is easier. Another role that the computer has played in recent years is the ability to do things
easily that would have been difficult in the past. For example, in the past, if a company wanted
to produce a video, it would have had to rent or buy large video cameras and the equipment to
process video. Digital video and the software to edit videos are much less expensive. Finally,
computers allow business employees to analyze huge data sets and to find out new information
that can help with business decisions.
11.2 Importance of Computer in Business
Computer speed up the business processes and systems with top quality, Today’s world
computer is important to use to start any online and offline business. A computer is important to
use in business to automate the manufacturing, marketing and, distribution process.
Computer help business to collect, manages, calculate, arrange, and visualize customer
data and information. Computer helps to communicate faster with customer. It’s really important
for the administration of the big or small organization and each field that manage resources and
opportunities.
Computer help creates marketing and advertising materials. Computer is used in business
to create website for business. The computer is important in business to automate the business
transactions such as online banking, payment gateway.
Computer is used around the world in almost all the private, government and home based
business and organization. Without a computer, it’s impossible to conduct, run and grow the
business. That’s why the computer is important to use in business organization and companies.
127
11.3 Functions of Computers in Business

Most business processes now involve the use of computers. Here are some of them:
Communications: companies use computers for both internal and external communications
via e-mail, what’s-app, conferencing and word processing.
a. Research: Businesses can use computers to research industry trends, patents,

trademarks, potential clients and competitors via search engines and proprietary databases.
b. Media Production: computers are now used to produce different types of media, including
graphics, video and audio productions.
c. Data Tracking and Storage: Although paper files containing hard copy documents are
still in use, organizations also store and manage their data using software and the cloud.
d. Product Development: Developers use computers to create new products and services.
e. Human Resources: Internal HR processes and payroll systems are managed using
software and online services.
11.4 Benefits of Computers in Business Correspondence
i. Communication
Computer technology facilitates business communication. Employees can exchange

information without leaving their desks through instant messaging and email. These technologies
provide a written communication record, making them ideal for official discourse that may need
to be referenced later. In addition, these technologies make it cost effective for businesses to
communicate with people over great distances, whereas a long-distance phone call or letter
can be costly. This capability helps businesses break into international markets that were not
viable before computer technology.
ii. Accuracy
It is impossible for a computer to make an error in calculating, whereas humans frequently

make mathematical mistakes. Removing human error decreases the chances of a business
making a costly mistake in its figures. For example, a business’s budgeting spread sheet may
have to take into account a huge range of financial factors and run to several pages. As long as
128
the spreadsheet is created correctly, a computer performs the calculations accurately in a matter
of seconds.
iii. Small Business Benefits
Computer technologies can increase your company’s marketplace presence by providing

small businesses with cost-effective marketing and production tools. Social media and
inexpensive graphic design programs mean that although successful marketing is still a skilled
task, effective worldwide marketing campaigns no longer need to cost millions of dollars to
implement. In addition, specialist programs can help small business users perform several
company roles at once. For example, a business owner might use accounting software rather
than employing an external accountant.
iv. Working Practices
Computer technology allows both businesses and employees to be flexible in the ways
they work. Before computers, employees had to be physically present in their offices to perform
their daily tasks. However, the advent of technologies such as virtual private networks have
allowed for remote work, enabling workers to perform many of their duties while at home or
travelling. In addition, computer technology allows organizations to outsource parts of their
business to other companies who specialize in those fields, such as customer service or field
repair.
11.5 Laptop vs. Desktop

Business owners who are considering the purchase of computers have a lot of decisions
to make, including the types of computers they want to be used in their offices: Laptops or
desktops. While laptops have surged in popularity over the past decade, some experts believe
that desktops are still agood option for many companies. Here are some factors to consider.
 Cost of purchase and Repair: Desktop computers are often more affordable, compared
to laptops that have similar processing speeds and features. In addition, desktops may
be less costly to repair.
 Size and Ergonomics: both desktop and laptop computers are available in a range of
sizes. If space is at a premium in your office, take the time to compare the size and shape
of available machines. Ergonomics is also a factor; if your employees will be spending a
lot of time at their desks, choosing a system that encourages healthy body positioning is
129
important. In some cases, laptops can present greater ergonomic challenges, although
these can be overcome by purchasing peripherals, such as a separate monitor and
accessories.
 Portability: where do your employees work? If you expect your team to be at their desks
most of the time, desktops may make the most sense. If your team is on the road a lot,
laptops are the better choice. In some cases, your best option may be to purchase a mix
of machines: Laptops for the sales and promotional teams, and desktops for administrative
staff.
11.6 Effects of Technology on Business Communications

Technology has changed business in many ways, but its affect on communication is
arguably the most significant. Indeed, communication through email, text messaging, instant
messaging, and even budding tools like social networking have been among the most profound
effects of technology on every area of business. However, while technology did make business
communications faster and easier, it has also made, at times, communication more distracting
and less clear.
Faster Communication
Whether you need to speak with an employee who is travelling in another state or country
or you need to communicate with your supplier half way around the world, technology allows
you to do so instantaneously. In fact, thanks to email and text messages, you can now send
messages to people in other time zones before you forget without worrying that you will wake
them up. In fact, according to Walden University, the Internet has allowed business people to
communicate easily regardless of time zone and language issues.
Expanded Communication Opportunities
Technology allows individuals to communicate and carry on a business relationship without

ever meeting face to face, so people in all parts of the world now have the chance to interact
with a company in a rural part of the United States. For example, technology allowed for the
emergence of the virtual assistant, a worker who completes tasks for her client online without
having ever met him, in the 20th century.
130
Communication must be More Deliberate
Although technology has made communication instantaneous, so you do not have to

spend hours planning and composting before you communicate and wait a long period for the
reply, it has also made planning deliberate communication periods more important. First,
companies that do take advantage of telecommunicating andvirtual offices need to deliberately
plan to communicate with individuals in teams to avoid employees losing touch and to make
sure all are working towards the same goals. Second, even if you work in a physical office,
instantaneous communication regarding quick decisions and memos cannot replace specific
communicating in multiple ways every day, it can be easy to forget to schedule these types of
meetings.
Communication is More Distracting
From constantly overhearing cell phone conversations, to the worker who is constantly
emailing or texting you to the incessant “ding” of your office’s instant messenger, communication
tools that were designed to make you more productive can actually do the opposite. Instant
communication can make it harder for workers to deal with one task at a time when their work
is constantly being interrupted by comments and questions that relate to other projects or even
personal issues. In fact, some employees must make an effort to turn off communication devices
while they work to meet deadlines.
11.7 Different forms of Technology-Mediated Communication
Technology has revolutionized the way people do business. Rather than rely solely on
face-to-face communication, company owners and their employees have a wide variety of
technology-mediated resources at their disposal. Computerized communication allows immediate
access to customers, business associates, vendors and employees in other parts of the country
and even the world. Examine the many technology tools available to small business owners to
see which of them you can benefit from using.
i. Email
Email has become a standard form of business communication, both inside a company
and with outside contacts. Emails can be sent to individuals or groups of people who all need to
be aware of the same information. This kind of technology-based communication allows you to
take care of customers, partners and other stakeholders without lengthy conversations while
131
maintaining a record of exactly what was communicated. Additionally, email marketing services
such as MailChimp and Constant Contact allow you to send the same email to all interested
parties on your mailing list with the push of button.
ii. Smart Phones and Texting
While speaking with people on the phone has gone somewhat out of vogue in favour of
email, texting has become the most personal form of business communication. While you might
give your email address to many people, your personal phone/text number is reserved for a few
close associates. A quick text to an employee with information about the job they are working
on is low key, non disruptive and takes less time than a phone call.
Smart phones also allow employees to take advantage of a variety of management

applications that can make their job easier, especially if they are out of the office and on the
road, working from home, or even just checking in while in vacation. For many businesses,
these minicomputers and management tools are essential for sales staff and managers who
can stay connected with other employees and company updates.
iii. Management Tools
Business management tools make it easy to track the progress of projects from start of
finish, programs like Wrike, Trello, Salesforce.com and Basecamp allow team members to
assign tasks within a project, upload documents, make changes and comment on one another’s
work, send messages and update progress, all in one place. Other file-sharing programs such
as Google Docs, Microsoft One Drive and Dropbox also allow for team collaboration and
communication on projects. Individuals can create and store documents and then give other
team members access to those documents. Changes can be made and shared among team
members and stored for later retrieval. Even if employees are working in different locations or
times of the day, the collaborative effort is simple, and nothing is missed.
iv. Video Conferencing
If your business is spread out in various locations, you can save both time and money by
using videoconferencing for meetings with staff from various offices. Applications such as Google
Hangouts and Skype allow you to see one another while you hold your meetings. This allows
for face-to-face communication even though participants are many miles apart. This is an
especially useful tool for maintaining camaraderie among office personnel despite long distances.
132
v. Social Networking
When it comes to marketing our business, social network sites such as Facebook, LinkedIn
and Instagram can be essential to getting your message out. Since you gather “friends” on
these sites, you have to adjust your communication style to an informal approach. These sites
are places to do relationship marketing and make announcements about new products, specials
or events you are hosting. Instead of sales pitches, place messages on these sites that sound
like you have a good deal for your friends.
Twitter is another social media network where you can spread your message in brief
tweets. You must choose your words wisely because the app limits how many characters you
can use. Tweets may not result in immediate sales, but hey keep you company in your followers’
minds in the marketplace.
vi. Website Blogs
Blogs, or weblogs, are an essential part of many company websites. Blogs typically provide
information on the products or services that interest the consumers. As the expert in our particular
field, you can offer information and function as a resource for both your customers and potential
clients. When people search the internet for information on a particular type of product or
service and find helpful information on your blog, they are more likely to come to your for the
related products or services you sell.
vii. Messenger Apps and Chatbots
Another tool for computerized communication with customers is integrating chatbots into
messenger applications on your website. Using chatbots can lessen your employees’ workload
while providing basic customer service. A chatbot is an automated service that interacts with a
customer over a chat interface without the presence of a live person. The chatbot is programmed
to respond to certain questions and provide information or assistance as needed. If necessary,
a live customer service representative can take over the interaction to provide more detailed
help.
133
Check Your Progress

1. What is computer?
2. What do you mean by video conference?
3. What do you understand by social net working?
11.8. Summary
In this unit, the different company correspondence along with the technology up gradation
is deals by the companies have discussed. The role play by the computer in any company is
enormous. The importance of computer in business and the functions of computer in business
such as research, media production, data tracking and storage, product development and human
resources along with the benefits of the computers like communication, accuracy, small business
benefits, and the working practices also explained in detail. The meaning for laptop and desktop
and the differences between these two have also discussed. The effects of technology used on
communication and the different forms of technology mediated communication have also
discussed in detail.
134
11.9. Key Words

 Technology
 laptop
 E-mail
 Facebook
 Twitter

1. Write the different forms of latest technologies used for business correspondence.
2. Explain the importance of modern technologies for business correspondence.
3. What is the role of computer in business correspondence?
4. Explain the importance of comoputer in modern business.
5. Whaat is E-mail? How it helps in communcation?

135
Model Question Paper

BCOM - General Commerce
First Year – First Semester
Paper - I
Time : 3 Hours Maximum : 75 Marks
Part A – (10x2 = 20 marks)

Answer any ten questions each in 50 words.
1. What is meant by communication?
2. What do you mean by Layout?
3. What is Quotation?
4. What do you mean by Order Form?
5. What do you mean by Adjustment Letter?
6. What is Circular?
7. What do you mean by Collection Letter?
8. What is Resume?
9. What is meant by personalised correspondence?
10. What do you mean by Agenda?
11. What is E-mail?
12. What do you mean by Website Blogs?

136
Part B – (5x5 = 25 marks)

Answer any five questions each in 250words
13. State the objectives of business communication.
14. List out the different types of Business Letters.
15. How the price estimation differs from Quotation?
16. Write a note on Execution of Order and Cancellation of Order.
17. Write a reply to a complaint letter from the customer who has purchased an AC recently
from you.
18. What are the types of meetings?
19. Explain briefly the uses of computer in communication.
Part C – (3x10 = 30 marks)

Answer any three questions each in 500 words
20. What are the objectives of business communication? Explain the process of
communication.
21. Describe the different types of Quotation. Write a letter to a company asking quotation for
buying certain products.
22. Draft a complaint letter stating the amount has been wrongly specified in the invoice to
their seller.
23. Explain the different types of insurance and the format for writing a claim letter to the
insurance company.
24. Write a letter to a manager of XYZ Bank requesting him / her to provide overdraft facilities.
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SUCM 102

INSTITUTE OF DISTANCE EDUCATION

It is with a great pleasure to welcome you as a student of Institute of Distance Education,

With best wishes from mind and heart,

© UNIVERSITY OF MADRAS, CHENNAI 600 005.

Communication- Definition - Methods - Types - Principles of Effective Communication -

Bank Correspondence - Insurance Correspondence - Agency Correspondence -

Reports - Meaning - Writing of Reports - Meetings - Agenda - Minutes - Memorandum -

Modern forms of communication - Fax - email - video conference - internet - websites -

2. Shirley Taylor, Communication for Business, Pearson Publications, New Delhi.

3. Bovee, Thill, Schatzman, Business Communication Today - Peason Education Private

4. Penrose, Rasbery, Myers, Advanced Business Communication, Bangalore.

7. Sundar, K. A, Business Communication, Vijay Nicole Imprints Pvt. Ltd., Chennai.

Sl.No. Title Page

1. Business communication – An introduction 001

2. Letter of Enquiry 019

4. Orders, Execution and Cancellation 046

5. Complaints, Adjustments and Settlement of Accounts 056

6. Circular and status Enquiries 066

7. Collection Letters 076

8. Application for a Situation 085

9. Company Correspondence 094

10. Report Writing 112

11. Role of Computers in Business Correspondence 125

1.1 Meaning and Definition

1.2 Objectives of Communication

1.3 Essentials of Good Communication

1.4 Types of Communication

1.5 Levels of Communication

1.6 Process of Communication

1.7 Importance of Communication

1.8 Barriers in communication

1.9 Tools of Effective Communication

1.11 Review Questions

1.1 Meaning and Definition

In Oxford English Dictionary is defined the term “communication” as “the imparting or

Peter little defines communication as “the process by which information is transmitted

W.H. Newman and C.F.SummerJr define “Communication is an exchange of facts, ideas,

1.2 Objectives of Communication

6. Education: Education is a very conscious process of communication. The main purpose

1.3 Essentials of Good Communication

A healthy relationship in any quarter begins with good communication. In business, it is

10. Conciseness: Transmission of maximum information by using minimum words should

13. Courtesy: Courtesy means politeness. It always pays to be courteous in business. It

16. Appropriateness: Appropriateness refers to writing or replying letters keeping in mind

Check Your Progress - A

2. State any two objectives of Communication.

1.4 Types of Communication

1.4.1. Based on Organisational Structure

This is also known as ‘grapevine’ communications. In the case of informal communication,

1.4.2. Based on Expression

It refers to the form of communication in which message is transmitted verbally, which

 It brings quick feedback

Written communication is most common form of communication being used in business.

 Written communication provide record and back-up.

 It take more time in composing a written messages as compared to word-or-mouth and

1.4.3. Nonverbal Communication

Nonverbal communication is the sending or receiving of wordless messages. Such as

Nonverbal communication have the following three elements:

Speaker: clothing, hairstyle, neatness, use of cosmetics

Surrounding: room size, lighting, decorations, furnishings.

Body Language: facial expressions, gestures, postures

Sounds: Voice Tone, Volume, Speech Rate.