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The Tips college of Commerce
Q.1 Define communication? Also explain its importance?

The exchange of messages between human beings is known as communication. Linguists
have defined the term communication according to their own perception. Broadly
speaking communication is the exchange of information in such manner so that it may be
understood by parties involved.


The word ‘communication’ comes from the Latin word ‘communicare’ meaning to share,
to have in common, etc


► By Aristotle:
“Communication means the search for all available means of persuation”
►By Prof. Park Hurst:
“Communication is the main highway for all human relations”
► The Oxford Dictionary
“Communication is the action of conveying or exchanging information and ideas”
►By George Terry:
“Communication is an exchange of ideas, facts, opinions or emotions by two or
more persons.”

Purposes of communication:-

Communication has following purposes:
1. To inform
2. To persuade
3. To build human relations

Importance of communication:

Communication plays an important role in the life of a person and organization.
Communication makes the world more. A person or an organization cannot exist without

The importance of communication is discussed below:

Importance in a business organization:-

Communication is “Lifeblood” of every organization. An organization carries out
communication at internal and at external level. Internal communication inside an

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It has three levels:

A. Downward: It travels from higher ranks to lower ones.
B. Upward: It travels from lower ranks to higher ones.
C. Horizontal: It takes place between the employs of the same rank.

External communication links an organization with an organization with the outer world.

If one wants to ensure the proper implementation of one’s polices, their must be co-
ordination among all the relevant parties and this is only possible when there is an
effective system of communication. The following points will prove its importance in
Importance in General:

If one wants to influence others, one will have to make one’s personality strinking. For an
effective personality, one should be a good communicator. A communication means if he
is giving to speak, he should speak; he should keep the academic, social and cultural back
grounds of the listener in the mind.

1. Smooth flow of work:-
Communication is necessary for the successful, smooth and unrestricted
working of an enterprise. All the activities in an organization can only go unrestrictedly
when you have an effective system of communication.

2. Helps in Management:-
There are five major elements in management, leading, organizing,
staffing, planning and controlling. All these activities can only be performed successfully
if one has an ideal communication system. For example, you are not a good leader or
manager unless you communicate your policies to the other members.

3. Promotion of enterprise:-
The promotion of your business depends on communication as the ability
to communicate effectively with others is repeatedly as a top quality of a successful

4. Maximum production at minimum cost:-
Every business organization aims at getting the maximum production at
minimum cost. It depends upon the strength of internal and external system of
communication. The stronger is the internal and external system; the maximum is the
production with minimum cost.

5. Motivation among the Members:-
Performance measurement is almost conducted in good organization. If
the proper information is not made to the members about their performance they will lose
their confidence.

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“When employees receive appropriate downward
Communication from the management, they can be
Better be motivated and more efficient”

6. Human Relations:-
A successful business organization knows the worth of human relations
and it aims at developing healthy relation with all such members who are concerned with
the firm directly or indirectly. It all depends upon the effective system of communication.

7. Enhancing Morale:-
Morale is a human element that motivates a man to work in high spirits.
The successful enhancement morale much depends upon your communication. It also
urges them to work in the organization.

8. Quick decision making
Fact collecting process is necessary in order to make decision.
Communication not only helps in seeking the required information before making any
meaningful decision but also the implementation of that particular decision. Thus
decision making and its implementation require effective system of communication.

9. Contract with External Parties:-
Communication is necessary for the international management of
organization but helps contact with the outside world. Good communication can ensure
the positive attention of the external parties. Such contacts also go a long way in
increasing and retaining the goodwill of the firm.

10. Positive image:-
Communication system plays a vital role in building your positive image
in the market especially the written communication. The extreme care taken by the
organization in sending the written message actually indicates how efficient and
disciplined system you have. It leaves a positive image in the mind of reader.

Hence one cannot overlook the importance of communication. The success,
goodwill and progress of any organization largely depend upon the communication
system. Communication is the mouthpiece of an organization. The role of communication
becomes more critical as the organization grows in size, complexity and sophistication.

Effective business communication is the lifeblood of every organization (H.A. Murphy)

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Q.2 What are the components of communication? Explain them?

Communication is process of sending and receiving verbal as well as nonverbal
messages. It is two way process of exchanging ideas and information. It is considered
effective, when it achieves the desired reaction or response from the receiver. It
comprises following components:
1. Context
2. Sender/ Encoder
3. Message
4. Medium
5. Receiver/ Decoder
6. Feedback


Every message, whether oral or written, begins with context. Context includes
country, culture, organization, and external and internal stimuli. All these things
influence the way we communicate. The stimulus for a message may be external or
internal. The internal stimulus includes attitudes, opinion, emotions, past experiences,
likes and dislikes, education, and job status. The external stimulus may be a call, memo,
letter, e-mail, fax, telex, meeting or a casual conversation that activates the sender to
think about sending a message.

The sender is a person who sends a message. The sender is called an encoder
because he uses the codes of words to translate his ideas. The sender may be a writer or
speaker depending on whether the message is written or oral. The sender composes his
ideas by choosing symbols that suit the mode of communication and that are likely to get
the desired response. The sender should encode his message by aptly, properly, clearly,

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correctly and completely. While encoding, the sender should give consideration
to his receiver’s attitude, culture and viewpoints. It is called you-attitude.

The message is the core idea or feeling which the sender conveys to the receiver.
It includes both verbal and non-verbal symbols. An effective message is one which has
unity of thought, consistency in expression and emphasis on the main points. The first
task of the sender of the message is to decide exactly what his message is and what
contents to include. He should take care that irrelevant details must not be included in the
message. Facts and figures should be checked and rechecked to avoid misunderstandings.

The medium is the means used to convey a message. There are two main channels
used as the medium to communicate a message to others: (1) Written words (2) Sound.
Simply, it can be said that the sender can use either written or oral channel. The choice of
a channel depends on the nature of message, situation, relationship between the sender
and the receiver, urgency of the message, status and position of the receiver etc.
For long, technical and formal messages, written channel is preferred. The oral
channel is effective when the message is urgent or personal and immediate feedback is of
great importance. However, a written message provides the sender with the possibility of
review and is useful for permanent record.

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The reader or listener of the message is known as decoder or listener. Decoding
means interpreting the message or assigning certain meanings to it. Decoding is affected
by knowledge, experience, attitude, abilities and opinions of the receiver. As different
people have different experiences, attitudes and knowledge, they are likely to interpret
the message differently. In order to minimize the misinterpretations, the sender while
drafting the message should take into account all these factors.

The feedback is the reaction on the part of the receiver of the message. It can be
oral or written. It is an essential part of the process of communication. It indicates the
success or failure of communication. It may be favourable or unfavourable. An undesired
feedback is the result of vague, unclear or miscommunicated messages by the sender or
misinterpreted by the receiver. The feedback can be oral or written. Sometimes, silence is
used as feedback but it is almost always ineffective.

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Q.3 : What are the various barriers to effective communication?


When the sender’s message is misunderstood by the receiver or when the sender
is unable to send a comprehensive message, miscommunication is likely to occur. It
causes loss of time, money and energies. Miscommunication occurs as we all do not have
identical experiences. Another factor is social, cultural and environmental differences
between the two parties. The message sender’s meaning and the receiver’s response are
affected by numerous factors such as:

1) Difference in Perception
Our past experience determines our perception as to the world. So people of
different ages, nationalities, cultures, education, occupation, sex, status, personality, and
so on having different perceptions. If we communicate same thing to the persons have
different perception, they will perceive it differently. Hence, miscommunication will

The same gesture  has two meanings in Pakistan. One indicates the sign of greetings
and the other refers to the sign of disapproval.
“People perceive reality in different ways.”
--------- H. A Murphy
2) Ambiguity of Words
Another reason of miscommunication is ambiguity of words. There are two kinds
of meanings of a word:
1. Denotative Meaning
2. Connotative Meaning
The secondary meaning of a word other than primary one is called connotation. The
sender should avoid connotation to make his message free from any kind of ambiguity.
When a speaker uses such words as have both denotative and connotative meaning,
miscommunication is likely to occur.
The word “Professional” has two meanings: a highly skilled fellow and a person who
does something for money. The speaker should be well aware of the denotative and
connotative meanings of the words to avoid ambiguity.

3) Lack of Interest
Lack of interest on the part of the receiver is another barrier to communication.
Miscommunication is likely to happen when the receiver is indifferent to the words of the
speaker. The receiver of the message does not pay any attention to the message received.
The speaker should do his utmost to seek the attention of the listener.

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A marketing manager can never convince a customer who does not want to buy the
4) Emotions
One of the greatest barriers to communication is the internal stimulus. Internal
stimulus means the internal environment of anyone. Sometimes the sender or receiver is
unable to send or receive the message properly under the force of emotions. Your
communication reflects your emotions. The same message can have different effect on
the same person.
An angry man speaks anger and when everything is rosy in his personal life, his
communication evidently reflects his emotions.

5) Sender’s Credibility
Sender’s credibility is another barrier to communication. The receiver does not
show any interest in the message if the sender does not enjoy any credibility. In such case
it is not the quality of the message matter but the source of the message. If the sender
enjoys credibility in the eyes of the listener, the positive response is certain or vice versa.
A religious bigot turns deaf ear to the sermon of a scholar having antagonistic views.
“Employees, customers and people in general
react more favourably when a communicator
has credibility”
H.A Murphy

6) Distraction
Sometimes the receiver or sender is unable to perform the process of
communication properly. If the sender is distracted by some noise, temptation, or some
unusual circumstances, he is unable to pay due concentration on the message. As a result
miscommunication is likely to occur.

7) Incorrect Choice of Channel
Miscommunication occurs when the sender selects the medium of message that is
not appropriate for the situation. The sender while sending the message should select the
channel that best suits according to the situation. The selection of channel depends upon
the following factors:
1. Nature of message
2. Urgency of message
3. Kind of Receiver

For an effective communication we should realize that human beings mental
filters differ. When to communicate, we should keep in mind the social, cultural and
personal background of the receiver to avoid any miscommunication.

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Q.4 Define non-verbal communication and discuss its various types?

Message communication without written or oral words is called non-verbal
communication. These are the messages which are conceived through circumstances,
appearance or facial expression. Suppose when we see a person laughing, we conceive
that he is happy. Thus communication without words is called non-verbal

Types of Non-verbal communication:
There are three types of non-verbal communication:
► Appearance
► Body language
► Silence, Time and Space


Appearance carries non-verbal impression and it affects the attitude of receiver of
message. Appearance affects both the written and oral communication.

Effect on written message:
In written letters writing styles, neatness of paper and language of letter gives message
about taste, mind and behaviour of the writer.

Effect on oral message:
While you are talking face to face to a person or grouping a meeting, both your personal
appearance and appearance of your surrounding affect your listener or listeners.
(a) Personal appearance
Clothing, hair styles, neatness, jewellery, cosmetics and your style of talking are
all part of your personal appearance. They carry impression regarding occupation, age,
nationality, social and economical level, job status, and good or poor judgement
depending on circumstances.
(b) Surrounding appearance
Surroundings mean and include the place from where message is being
communicated such as room size, furnished architecture, decoration and other features.
Surrounding varies according to status, country and culture.


Body language includes facial expressions, gesture posture and movement, smell
and touch, and voice and sound.

Facial expression:
The eyes and face play a key roll in non-verbal communication. They can expose the
hidden expressions including anger, fear, confusion, joy, surprise, uncertainty and others.

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Gesture, Posture and Movement:
Posture, gesture and body language carry message. Gesture and movement are
culture specify. The meanings of gesture vary from culture to culture. It can convey self
confidence, status or interest.

Smell and Touch:
Various fragrance or perfume may convey the emotions of sender of letter and
sometimes affect the reaction of receiver.

Paralanguage / Voice
Voice quality and extra sounds are also a part of non-verbal communication called
paralanguage. It includes voice volume, pitch and other sound we may make. A loud
voice often communicated anger or urgency while a normal one is charming.


Silence, time and space communicate strongly; even cause hard feelings, loss of
business or profit.

Just imagine a person when he talks someone and gets no answer or response. Or think
about the confusion when written message brings no response.

A person can face problem when he does not reach in time to his office or examination

Idea of space also carries non-verbal message. In different cultures people like to keep
certain distance from one another.

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Q.5 What are 7C’s? Explain the qualities of a good business letter?

Essentials of a Good Business Letter:

Message to people outside the company can play an important role for it’s ultimately
success. A good business letter must possess the following qualities for effective
communication. As all these qualities begin with “C” and are seven in number, these are
known as “7C’s” qualities. These are:

Our letter should be clear so that it may be easily understood. We should use easy
words and sentences in order to get clarity. Our purpose is not to show our vocabulary
but to convey the message. We should use simple language, e.g.
Pay Remuneration
Issue Promulgate
End Terminate

It means accuracy of contents, form, language and expressions.
Correctness is the greatest quality of message. Everything about the letter should be
correct. The physical appearance, information, grammar, error even on minor nature,
creates a negative impression and can cause miscommunication.
Common Mistakes:
Following errors may be found in an incorrect letter:
a) Misspelled words and name
b) Mistakes related to figures and dates
c) Mistakes related to punctuation and capitalization
d) Omission of inside address or signature

A business letter should be concise and to the point. Conciseness means using the fewest
possible words.
Shakespeare said:
“Brevity is the soul of wit”
While writing a business letter, we should avoid unnecessary details, long phrases,
superfluous words and needless prefaces. Conciseness is of great importance due to the
following advantages.
a) Reduction in typist’s time
b) Saving in paper and typist’s time
c) Reduction in printing cost
d) Saving in reader’s time
e) Saving in filing space.

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Courtesy means politeness in behavior. It is the part of business ethics. Therefore, the
tone of a business letter must be courteous. Courtesy cost nothing but it brings much. It
wins customers whereas uncourteousness losses them. It is wise saying that,
“Everyone gains where courtesy reigns.”
“Thank you” and “Please” add grace to the writing. But courtesy should be used with
How to gain courtesy:
a) Be sincere, tactful, and appreciative.
b) Omit expressions that irritate the reader.
c) Begin your letter with best news.

It means looking at the message from the receiver’s point of view. It is called “you-
attitude.” While writing letter, the writer should give full consideration to reader. It will
attract him easily. The more consideration the writer gives to reader, the greater the
chances of positive response.
However in the following specific ways you can indicate that you are considerate.
a) Focus on you instead of I and we.
b) Show interest and benefits of reader.
c) Emphasize on positive and pleasant facts.

“It means to use specific and definite words in the message.”
Concreteness means creating word picture in the mind of the reader. To achieve this, we
should words that appeal to five senses. These senses include sight, sound, touch, hearing
and smell. The following guide line will help you to compose, concrete, convincing and
coherent message.
a) Use specific facts and figures
b) Choose vivid, image-building words.

“It means that business message should be complete to bring the desired result.”
Our message must be complete in every respect. A complete message brings desired
result. An incomplete message causes loss of money, time and effort. The message is
complete when it answers the “Five W question” i.e. what, when, why, who, where.

The observer of the 7C’s principles does not mean that a writer has to include them one
by one in his message. In fact, there should be a clear reflection of all these principles in
an effective business message.

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Q.6 What are the essential parts of a business letter?

Compulsory parts of the business letter:

A typical business letter has seven essential parts. Here is a list from top to bottom:
1. Letter head / Heading
2. Date
3. Inside Address.
4. Salutation
5. Body of the letter
6. Complimentary close
7. Signature/ Signature line/ Signature Area
We start the letter from the heading. The heading contains the name and full
address of the firm or person of the sender. The modern heading includes the fax no, the
e-mail address, telephone no etc.
Semi Block Form:
We place heading two inches below the top of the paper from the right of the
center of the page.

Full Block Form:
We place heading two inches below the top of the paper towards the left margin.

2). DATE:
Below the heading comes date. It must be written carefully and correctly. Date
written in figures only as 02/01/2010 can cause misunderstanding. The date should be
written in full as:

March 15, 2010 or 15 March 2010 or 15th of March, 2010 or March 15th, 2010. All these
correct but the first one preferred. The name of month should not be abbreviated. It is
written two spaces below the last line of the heading.

It is the address of the receiver of the letter. Sometimes it also includes the name
of the receiver. It should contain at least two lines. It is written two spaces below the first
line of the date at the left margin. We usually start it with the designation of the receiver
The Manager,
Habib Band Limited,
Satyana Road,

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It is courteous opening of a letter. It is written two spaces below the inside address
at the left margin. Form of greeting depends upon the relation with the receiver.
Following points should be kept in mind while going to give salutation.

For Men For Women

Most Formal Sir Madam
Less Formal Dear Sir Dear Madam
Informal My Dear Sir My Dear Madam
My Dear Ali My Dear Salma

It contains the information or the message that a sender sends to the receiver. It is
the most important part of the letter. This is, of course, the letter itself. It should be
divided into various sentences and paragraph as per need. It should be reasonably short
and it is better to write it on one page. It is written two spaces below the last line of

The body can be divided into following three parts as:

a. Opening Paragraph
b. Main message
c. Closing paragraph

It is the polite way of leave-taking. It is written two spaces below the last line of
the body. It should agree with the salutation. Here some complimentary closes are:

Formal Yours obediently, or Yours respectfully,
Less Formal Yours truly, or Yours sincerely,
Informal Yours affectionately, or Yours lovely,

Signature is the final compulsory part of the letter. It is written two spaces below
the complimentary close. It provides your letter legal value. The letter should always be
signed in ink and it should not be typed. It shows three identifications or the writer:

a. Signature
b. Name
c. Designation

Muhammad Nadeem
Finance Manager

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Non-essential parts of a letter:

Beside the essential parts, a business letter has some non essential parts. As the title
shows, these parts are non essential. It means that the letter will not be defective if any
one of them is missed. A letter may contain none of them, one of them or all of them.
Here is a list of optional parts.
1. Reference line
2. Attention line
3. Subject line
4. Identification line
5. Enclosure / Enclosure notation
6. Copy of notation
7. Postscript


It shows the reference number of the letter. It links the replies with the previous
letter. This line is written to the left margin of the paper just opposite to the date line.
Generally, it is formed from the initials of the name of the organization, e.g.
Ref No. _AIOU/16/2010


Sometimes the letter is addressed to an organization. Then who will receive the
letter? It is mentioned by including attention line. This line is written below the inside
address and above the salutation. For example
Badar Enterprises
20 Mall Road
Attention: Mr. Abbas Ali


The subject line tells the reader at a glance what the letter is about. We use this
line when the material is lengthy. It also helps in feeling. It should be written two spaces
below the salutation to the left margin of the paper. Commonly, it is used in long
messages only. It may be all capitalized. For Example


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This line is used in business letter and not in personal correspondence. It includes
the short name or the initials of the write and that of the typist. This line begins at the left
margin of the paper and usually it is written two spaces below the signature. The initial of
the writer come first on the left side and those of the typist on the right. For Example
Yours truly,

Asad Raza

MA / sa
The above identification line indicates that Muhammad Ashraf (MA) is the writer
whereas Shafiq Ahmad (sa) is the typist.


Sometimes a document, etc. is attached to the letter. We should bring thing in the
notice of the reader. If we enclose some light weight paper or some document without
giving any cue to the reader and do not mention this is in the letter, the reader may
through the envelope. It is always indicated by writing the word “Enclosure” or the
abbreviation “Encl” It is written one or two spaces below the identification line. Eg.

1. Bio data
2. C.N.I.C Copy
3. Testimonials

Sometimes copy of the same letter is sent to many persons the receivers are made
aware of that. “Cc” on all the letters is written with the name of the rest of the receivers.
It is placed just below the reference initials or the enclosure notation whichever comes
last. For example

1. Muhammad Asif
2. Farooq Ahmad
3. Intikhab Akram

If a thing is forgotten from the body of the letter, it may be brought below
everything else in the letter. But as far as possible its use should be avoided. It does not
leave a good impression upon the reader. For Example

P.s. Send your cheque to our address.

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Q.8 Job Application

Examination Hall,

17th July, 2008

(The HR Manager),
(Name of the Company),
(Name of the City)

Subject: Application for the post of (Name of the Post)

Respected Sir,

This is in response to your advertisement, published in “The Daily Jung” inviting
application for appointment against the post of “Accountant”. I am confident that I
possess the requisite qualification. I, therefore, feel grateful if you kindly consider me for
appointment against this post.

I am young, energetic and enjoy enviable health. I bear a very good moral character.

I request you to call me for interview, so that I may be able to justify that my
appointment as “Accountant” in your institute/department/organization would be an
addition of an honest, industrious and efficient worker, who would certainly contribute in
the uplift of your institute/department/organization.

Awaiting an encouraging reply,
Thanking you.

Yours faithfully

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OBJECTIVE: To seek a career in dynamic organization which provides exposure,
training and growth opportunity in various IT avenues.


Name : ………………………….
Father Name : …………….…………….
Date of Bith : ………………………….
Religion : …………….……..……..
Nationality : …………….……………
N.I.C No. : …………….……………
Domicile : …………….……………
Marital status : …………….……………
Contact No. : …………….……………
Email Address : …………………………….
Permanent Address : …………….……………

DEGREE YEAR DIVISION BOARD/UNIVERSITY 2012 1st Punjab University Lahore 2010 1st Punjab University Lahore 2008 1st Faisalabad Education Board
Matric(science) 2006 1st Faisalabad Education Board


► Diploma in Microsoft Office
MS Excel, MS Word, MS PowerPoint, Inpage, Email

►Position holder in
►Scholarship holder in

Reading books, Reading Newspaper, Cricket.

Urdu, English, Punjabi

REFERENCE: Reference will be provided on demand.

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Planning and preparation is needed for every work. Communication is no
exceptions. If things are done without preparation, there are few chances of success. If a
tour is conducted without any planning, it will annoy the participants. Communication is
the sensitive issue. It should not be taken lightly. Utmost care should be taken to make
our message successful through planning and preparation.
The following points should be proving very helpful:

It is very necessary to determine the purpose first of all. It is foundation stone of
our message. The building of message would be constructed on the purpose. There may
be so many purposes of sending the message. It may be good news, bad news,
congratulations, suggestions, recommendation, introduction, questions, reply and so on.
The purpose of message may also be to promote profit the expenses goodwill. The sender
should note down the purpose on paper. Then it should be the focal point of the message.

The sender should analyze the audience the audience while composing the
message. The audience plays an important role in the communication process. The
education, experience, age group, mental caliber, knowledge on the topic etc of the
audience must be visualized. Then the choice of words is also made in accordance with
the level of the audience. It is very essential to think from the audience point of view. The
communication will be successful only when it fills the need of the audience.

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The next step is to gather the idea. It is sort of research. We may have to do much
work. We may go through files, we may meet different people. We may interview
customers. This research will be of two categories. It is a hard job. In many examples, the
data is gathered in large quantity. Then we shall use abstracting and filtering. Abstracting
means taking out the desirable part of the data. Filtering means omitting under reliable
part of data. The data should be gathered as per need.

Organization and order brings beauty and grace to a thing. It is very necessary
that the message should be started beautifully, organized logically and concluded
effectively. It is human nature that we read at least few lines of a written material. We
should take benefit of this human psychology and try to make our opening lines very
impressive. In this case, the reader will continue reading.
The organization of message is very important. A message should be staled in one
impressive way. The things of importance should be mention first. If you are giving good
news, start the message with main news. But if you are giving the bad news, start the
message buffer. The buffer is technique to prepare the reader mentally for bad news. A
message may be organized in different ways as per need.

Now the sender is ready to send the message. He has completed his homework.
But before sending the first draft, he should prepare first. He should complete the draft in
every respect. Then he should check grammar, spelling etc. he should also check the
completeness and clarity. If something is missing, it would be included. If there is some
irrelevant information, it should be removed. Revising a message does not show the
weakness. Revising brings perfection in the message. These were the planning steps
which are needed for an effective message.

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Q.10. Define listening? What is meant by effective listening and results of listening?

Listening is half of oral communication and it is a skill which should be taken very
seriously. Unfortunately, listening is neglected study in our schools and colleges even
though managers from the world consider it is the significant part of one’s
communication skills. How a person listens shows his attitude to other people as clearly
as the way in which he speaks. It is a complex process because an average listener who
hears a 10 minute presentation will hear, understand, and retain only half of what is said.
48 hour later that proportion drops another 50%. Put another way, we retain only 25% of
what we hear.

Dumont & Lannon define it as:
“Listening is the complex, and selective process of receiving,
Focusing, deciphering, accepting and storing”
Process of Listening
The above process is distinct but closely interrelated. Listening takes place only when all
of the following steps of the process are present.
1. Receiving
2. Focusing
3. Deciphering
4. Accepting
5. Storing

In receiving, the listener hears or receives the sound
In focusing, the listener pays attention to the sounds which are of interest and
important for him
In deciphering, the listener assign meanings or decoding the words received and
focused upon.
In accepting, the listener interprets the message as intended by the speaker.
In storing, the listener puts the accepted message in mind for future used.

Importance of listening
The importance of listening cannot be exaggerated because it is essential for success of
organization and individual alike. Based on an outgoing survey that has covered a million
workers, it appears that companies that encourage upward communication and listen to
their employees perform better than other companies. Research finding testify to the
relationship between listening and organizational effectiveness.

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One study shows that we spend our total worker hour according to the following

Skill % of working hours
Listening 45
Speaking 30
Reading 16
Writing 9

Purpose of Listening
By listening we enhance our
1. Knowledge about new facts. 2. Motivation
3. Learning 4. urge to learn new things and ideas
5. Improve our own communication 6. Inspiration for effective communication

Steps in Listening or Effective Listening or Listening Skills (Qualities)
Some general steps in effective listening are given below:

1) Avoid unnecessary talk
A listener should avoid unnecessary talk while listening. He should realize the
speaker that is so absorbed in his conversation that he does not want to utter a
single word

2) Avoid Fidgeting
Another important step in listening that the listener should not fidget while
listening the speaker. Fidgeting actually indicate that the listener is fed up with his

3) Eye contact
The listener should maintain an eye contact with the speaker as it indicate that the
listener is fully involved with him. Staring hare and there shows that the listener is

4) Avoid Interruption
Another important skill of listening is that the listener should avoid interrupting
the speaker. He should let the speaker speak out what he wants to. If the listener
chips in again and again, this may irritate your speaker.

5) Be Receptive minded
The listener should be receptive minded. He should listen with receptive bent of
mind. He should not underestimate or form negative ideas as to the speaker before
he listen him.

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6) Be Cool and Composed
The listener should cool and composed even if the speaker opposes his ideas or if
the speaker seems to have contradictory ideas. He should not hold his nervous in
such case.

7) Seek information Tactfully
The listener should seek the information tactfully if he has some doubt about
anything or if he needs clarification to digest the speaker’s details.

8) Avoid Criticism
The listener should avoid criticism even if the received information hard to
believe. Rather he should swallow the information like a bitter pill. As this may
irritate your speaker and things may go against you.

Following are the causes of listening pitfalls:

All of us have personal opinions, attitudes, or beliefs about certain things. When we listen
to a speaker who is contrary to our ideas, we cannot maintain attention. As a result we do
not to whatever he says. We should give a chance to the speaker to finish his message.
Later, we can agree or disagree.

Not only the verbal message but also the non-verbal cues of the speaker affect our
listening. Actually, the entire physical environment affects listening. Among the negative
factors are noisy fans, poor light, distracting background music, and bang of horn.
Among the speaker’s nonverbal cues are his clothes, his voice quality, his wearing of a
certain perfume, reek of sweat, excessive gestures, etc.

The average thinking capacity of a person is up to 800 words per minute while the
average speaker utters 80 to 160 words per minute. This difference sometimes makes
listener deviate from the speaker’s words and they shift to something else.

Semantic Barrier / Annoying words
Meaning of words also create problem in listening, as meaning of words vary from
person to person influenced by feelings, attitudes, prejudice and biases. Sometimes the
way a speaker utters a word annoys us; thus our effective listening is impaired.
Effective listening means being positive and purposeful when listening to someone. Eight
actions should be taken: be prepared; accept the positive; listen to understand not refute;
concentrate on context; focus attention; take notes; curb impulse to interrupt; and
summarize and evaluate.

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Q.11. Discuss the points one should keep in mind while giving an oral presentation?


Non-written communication is known as oral communication. Speaking,
delivering lecture, reading, interviewing and listening etc are some forms of oral
communication. The sentence structure of oral communication is simple. This medium
use shorter words and shorter sentence. It brings prompt feedback.


1. Extemporaneous
This method of delivery is very carefully planned. In it, speaker uses notes of his /
her own remarks. It is very effective method of delivering a speech. He usually may use 3
by 5 inch cards or a full sheet of paper as notes. It allows more eye contact with the

2. Reading
It is preferred by those who do not want to make a mistake. If you choose to read
your speech your practice should be so much that you can have eye contact with your
audience. Otherwise, your speech may become boring.

3. Memorization
Short speeches should be completely memorized. In case if a long speech, often
the first few words of a statement can be memorized. Groping of words in front of an
audience decreases your credibility.

4. Impromptu
Impromptu refers to a speech made without preparation. Sometimes you are
called upon the last moment to make a speech on a particular topic. You should avoid the
temptation to beat about the bush. It is one place where the greatest leaders fail. Only
tactful orators can handle such a situation.

Rules of Oral Presentation

A. Verbal

1. Rate
Rate means how many words do you use per minute as you speak? Rate of public
speakers range between 80 to 160 words per minute.

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2. Voice
You must know to use your voice properly, if you wish to become an effective
On every occasion when you have to speak, remember the following:
• Variation in the pitch and tempo of the voice
• Fast delivery shows a lack of confidence
• Pronounce words properly, putting stress at the right place
• Speak with enough volume so that you are audible
• Avoid vocalized pause like “error, unh, um,” etc.

B. Vocal

1. Pitch
Pitch is the highness or lowness of your voice. In speaking this pitch should be
2. Volume
Volume is loudness or softness of your voice. Your voice should be audible the
person sitting in the last row.

C. Visual

It has been estimated that 11% of what we learn is through hearing, 83% through
sight and the rest through the other three senses. Hence, visual aids can make your
presentation more effective. Some of the aids, which can serve you well, are map picture,
charts, motion picture, slides and over head projectors and a white/ black board.


The following seven steps are essential for successful oral presentation

1. Determine the purpose

2. Analyze the audience

3. Select the main idea

4. Research the topic

5. Organize the data and write the draft

6. Create visual aids

7. Rehearse the topic

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1. Determine the Purpose
The first requisite is to determine the purpose of talk. Knowing the purpose helps
what to say and how to say.

2. Assess the Audience
Knowledge of audience is significant for communicating effectively
3. Main Idea
We should select the main theme of our message and note it down. Then
additional information will be gathered in support of the main idea. The choice of the
idea depends upon the nature and purpose of the message.

4. Research
We need to gather facts, data and information in order to discover new and better

5. Organization
After gathering the information, the next step is to organize the data and write
down the first draft.
Oral Presentation has three parts
a. Introduction
The introduction should attract the attention of the listeners and should layout the
direction of the speech.
b. The Body
The body is the heart of the message. Here we explain and support the main
purpose of our presentation.
c. Summary
A summary reminds the audience of the main ideas covered in the body of the

6. Visual Aids
Visual aids make oral presentation more interesting, comprehensible and
effective. Visuals like graph, table, charts, photographs make a talk convincing.

7. Rehearse
After preparing talk, we should make practical application by rehearsing the talk.

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Posture, how you stand, even sit, communicates something about you as a
communicator. When you stand straight and balance your weight on both feet,
you give the impression of complete control. Your outward appearance shows
your inner mood. When speaking to a business conference of, say, 10 people, you
might sit on the edge of a table or even address them from a chair. A formal talk
to 200 people would demand more formality in posture.

Movement during presentation makes your audience more attentive. Taking a few
steps during presentation helps to hold attention. You move of possible, for the
following reasons:
• Move to hold attention
• Move to get rid of nervousness
• Move to suggest transitions

Movement of the hands, arms, shoulders, head are terms as gestures. Your gesture
show the audience whether you are confident or not. Gestures should be varied.
Using the same action repetitiously is boring to the audience and suggests lack of
creativity on your part.

Your facial expressions could convey primary gestures. A smile or laugh suggests
that your topic interests you. Facial expressions include eye contact. Eye contact
with your listeners suggests respect and goodwill. Speakers who avoid eye contact
lack confidence.

Appearance means clothing, hairstyle, neatness, jewelry, cosmetics and posture.
Your appearance also conveys the message about the culture of your company.
Your appearance starts working before actually do anything. What you wear
affect the audience.

Before you begin your talk, size up your listeners, their age, sex, background and
interest. Try to make an overall assessment of the audience before you speak or at
least you should assess whether the audience is receptive or unfriendly. You
should knit/ arrange your ideas in such a way that each listener should feel that
you are talking to him individually. Keep your audience in with and do not let
them scatter. A lot of common sense is required to become a good speaker.


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The art of speaking is the reward of president effort. There is no magic formula to
make you an effective speaker. Adequate planning and preparation are essential
for a presentation. As far as possible do not read out a written speech word by
word. However, If an extremely complex subject is being presented to the
members of a professional body, you may read the written material. In fact, this
may create a feeling among the listeners that you have taken pains to prepare for
the occasion.

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Q.12 Define market report? Explain its Types, Functions and Characteristics?

A marker report is the report of modern market concerning the conditions of the
market of given commodities on a particular date or for a certain period. Briefly put, a
market report is an index to business conditions prevailing in particular market.

Different types
There are different types of market report on the basis of different period as:

1. Daily Market report
2. Weekly market report
3. Monthly market report
4. Annual market report
5. Informal market report

Importance and Advantages of Market Report

With the steady expansion of markets, the importance of market report has grown
tremendously. Market reports are now considered as valuable document of commerce.
These reports tell the past, present and future trend of the market to the traders and
speculators so that they can easily safeguard their respective interests.

Benefits / Functions / Advantages
The benefits may be mentioned as follows:
1. Market report give a true account of the nature and volume of business transacted
in any market
2. Such reports provide valuable data
3. Future movement is indicated by such report
4. Market report bring market to the door of the businessmen and public and offer
them opportunities to think over whether they will sell or purchase the goods,
which are brought in the different markets for sale
5. These reports also serve as media of advertisement for the goods, which are
brought in different markets for sale.
6. Market report can tend to stabilize prices in all markets for different wares and
prevent from selling the commodities at various prices in different markets.
7. Such report give a new look to commercial literature, full of commercial terms
and market terminology.
8. These reports provide the facility to the traders to make comparative study of
many markets for one ware or merchandise.
9. Such reports show the need of commerce in the minds of newspaper reading
10. Lastly, such reports render opportunities to the people who are in trade, commerce
and industry to have a direct touch with the business world.

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1) Daily Market Report
Daily market report is one which display the conditions of the market on a
specified date as regards the price dealt in, quotation of the closing rates of the precious
market day, the opening rates of the day, the highest and lowest reached during the
course of that day and the closing rates and the demand and the supply of the
commodities of that day. This report is published in daily newspapers and is broadcast
through Radio and TV

2) Weekly Market Report
Weekly market report is one gives the idea of any market for six working days
regarding the closing prices of the commodities in the past week, the opening rates on
Monday, the highest or lowest on any day in the week and closing rates on Saturday. This
report is circulated through newspapers.

3) Monthly Market Report
Monthly market report is review of business transacted during the whole month.
This report shows closing rates of commodities in the previous month, the opening rates
of the month, highest and lowest and closing rates of the month. These reports are written
for those commodities which enjoy a stable market and permanent demand. These are
published in newspapers, trade journals and monthly bulletins.

4) Annual Market Report
Annual market report is one which gives the idea of the volume of business
transacted during the year by presenting the monthly summaries, supplemented by price
lists of the twelve months under report.

5) Ouinquennial Market Report
Ouinquennial market report is one, which shows the progress of the business over
long periods.


Market should contain such particulars of information which are of much value to
different classes of people who are much interested in different types of commercial
transactions. So the writer of the market report must be will conversant or will acquainted
with subject matter under report and he must remember the following points in writing
the same.

Report must be Personal
Third person and the past tense, unless otherwise required by circumstances, must
be used in writing a market report.

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Used of Technical Terms
The choice and arrangement of technical terms, phrases and specialized
commercial vocabulary must be produced and presented in the report in such a way as
can be intelligible to general readers.

Economy in Composition.
In concise form and in minimum words report should be written. Unnecessary
words and superfluous details should be avoided: standard commercial vocabulary must
be used so that minimum words can give the better idea of different market conditions to
the traders.

Cause and Effect of the change of Market Price
Casual relation between demand and supply of the commodities with price
change, i.e. the effect of action and reaction of supply and the different causes of changes
of price of goods must be traced out and must be presented in the report.

Causes of Change in Business Conditions
Causes of any change in business condition must traced out by taking into
consideration the factors within as well as outside the market to arrive at reliable
conclusions. Such causes must be presented nicely in the report.

Exactness of Detail
True and correct records of past events for the period under review in their
minutest detail, the main features of business, stage by stage, in their original form must
be written in the market report.

Concluding Remarks
The writer of the market should write his concluding remarks most frankly and
impartially on overall market conditions he must also give particular care and attention in
writing this part of report as the average businessmen generally direct their business
operations on the basis of such forecast.

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Q.13Define Business Report? What are the essentials of a good business report?

In olden days, reports were not needed. Every man was his own complete business firm
or the overseer of a small group of people under his command. As on the spot manager of
his affairs, a man saw all the facts he needed for making decisions about how to operate
his business. In the 21st Century business world, it is unlikely that any organization of
size could function without using reports.

“A business report is an orderly and objective communication of factual
Information which serves some business purpose.”

According to British Association for commercial and industrial Education

“A document in which a given problem is examined for the purpose of
Conveying information and findings, putting forward ideas, and sometimes,
making recommendations.”


A well written report should have the following qualities:

1) Accuracy
It must be accurate. The facts should be gathered carefully and interpreted
honestly. Facts and opinions should be intermingled. No executive want to base decisions
on a report written on writer’s assumptions or his concepts.

2) Clarity
It must be clear. The report will be clear only if it is presented as an orderly
procession of facts and ideas. Clarity can result from the use of commonly understood
words, short sentences and paragraphs, itemization, graphic presentations and specific,
concrete writing. The use of vague and muddled phrases should be avoided. The most
important aspects of style is that the report should be so written that it is easily
understood by the reader for whom it is intended.

3) Conciseness
It must be concise. It should not be too long, for a manager is much more
interested in the report recommendation than in all the ramification of argument leading
up to them. It should be to the point and never longer than it needed be. The essential
point is not the length of the report, but economy in the use of words.

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4) Readability
It must be readable. It is enough for presentation to be clear; it must be attractive
in form and in terms that capture attention. To use bright and colourful language adds
interest to what you have to say and makes your report more readable. Technical
language should not be used, if it can be avoided.

5) Tone
The tone of a report is more formal than that for the business letter. It is,
therefore, customary, to write in the impersonal third person, except when the report is
the account of an eyewitness or is made in letterform.

6) Free from Prejudice
Your report should be free from prejudice of all kind. The writer should collect
and form the without having any personal malice with any person. The report should be a
fair presentation of some information as it is collected.

7) Fair Information
The report should contain the facts as they are without any distortion in the facts.
The writer should collect all the facts and figures and the necessary information honestly.
It should give the fair picture of the matter.

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Q.14 Define adjustment letter and elaborate its principles?


A letter written by the seller in response to the complaint letter is called adjustment letter.
The writer has to deal this letter tactfully. He has to work upon two things: one is to
satisfy the customer, second is to maintain the goodwill of his organization. Previously
the business people disliked complaints and the complaints were looked down upon with
deep suspicion. But modern trend is different. Today reputable business firms welcome
healthy criticism.

Principles of Complaint Letter

Following points should be kept in mind while writing an adjustment letter.

1) Prompt Reply

One of the basic principals of adjustment letter is that the writer should send the letter to
moment he receive the complaint letter. Any delay can further aggravate the situation and
can make the complaint angry.

2) Show Concerns

The writer should show his concern over the loss and inconvenience caused by the
problem. He should regret at the trouble faced by the complaint.

3) Show Understanding of Human Nature.

The writer should honestly admit that he has clear idea about the feelings of aggrieved
party. The writer should not show rudeness even if he believes that the complaint made
by the complaint is unjustified and the claim demanded by him is unreasonable.

4) Fair and Just Solutions

Another important point in writing adjustment letter is that the writer should handled the
situation in such a manner as to ensure aggrieved party that the problem will solved fairly
and justly.

5) Seek Confidence

The writer should win the confidence of the complainant by assuring him through his
writing that he will be treated just and his complaint will be dealt with concerns. He
should realized the aggrieved party that the matter of great importance to them.

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6) Pay Thanks

One of the Basic Principles of adjustment letter is that the writer should thank the
complaint even if the complaint is unjustified and unreasonable. He should thank him for
bringing the matter into his notice.

Adjustment letter

Nasir & Co,
40 Mall Road,

August 6, 2008
The Manager,
M/S Merry China Ltd,
22, Gulberg III,

Dear Sir,

We are surprised to learn from your representative today that the shirts you had ordered
on 23rd October, have not yet reached you. We confirm that your consignment was
delivered in time to the Parcel Booking Office at Lahore Central Railway Station for
onward dispatch by passenger train. We think it would be advisable that you also make
inquires at your end.

Yours truly,

Mohsin Ali
(Purchase Manager)

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Q.15 Define Order letter and the qualities of an Order Letter?

A letter that contains a formal request for the supply of goods or
services is called and order letter. It should be handled carefully as a little
mistake can make a big difference.

Importance of order letter

An order letter is the most important letter. It is a first phase of legal
contact. The writer should write the letter with utmost care as a little mistake
on the part of the sender can cause an irrepareable loss.

Qualities of an Order Letter
An order letter should have the following qualities:

1) Complete Information
An order letter should contain the complete information about the goods
ordered like:
a. Quality of Product
b. Quantity of goods
c. Design, Color, Style etc
d. Size, Number
e. Name of the product
f. The writer can make reference to the catalog if any

2) Price of Goods
The writer should also state the price clearly that he is going to pay for
the goods ordered. He should mention the price per unit and the total price in
separate columns to make things clear.

3) Time of Delivery of Goods
An order must declare the time within which the delivery of goods is to
be made. In order to create certainty the mentioning of time limit is necessary.
If the buyer gives no time for delivery of goods the goods must reach him
within reasonable time.

4) Mode of Carriage
Another important area of an order letter is the mode of carriage of
goods. The buyer must state the mode of carriage to be adopted. The seller
should send the goods as per buyer’s instructions. The seller should make sure
the safe delivery of goods if the buyer does not mention a particular mode of

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5) Mode of Payment
If the buyer and the seller have decided about the method of payment
the amount should be paid in the same manner so decided. But if there is no
such commitment the buyer must state clearly what method of payment he is
going to adopt like cash, cheque, on credit money order or draft.

6) Place of Delivery
The buyer should also mention the place of delivery if he wants to be
goods delivered to some particular place otherwise the seller is supposed to
send the goods to the buyers address.

7) Special instructions
The buyer must also mention special instruction if there are any special
instructions like packing, insurance and custom duty or if any other can.

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Write an order letter for the purchase of crockery items

ABC Ltd,
Mall Road,

August 7, 2008
The Manager,
Ahmad Enterprises,
Sheikhupura Road,

Dear Sir,

We thank you for your letter dated 20th July, 2008, in response to your inquiry
for the supply of crockery. We would appreciate if you could send us the
following items.

Sr. No Item Name Brand No. No. Of sets Price per set Total
(Rs) Price
1 Dinner Set France A 05 200 1000
2 Tea Set France E 08 100 800
3 Ice Cream Set France X 10 150 1500
4 Hot Pot Set France 13 05 50 250
Total 38 3550

Please pack the items in strong cases, insure at your own cost and
responsibility, and send us the relevant papers in advance. Make sure we
receive the goods by August 10.The payment will be made through our band,
after we receive the goods.

Yours Sincerely,

(Purchase manager)

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Collection of past due accounts is an important feature of business. After a debtor
gets a loan or a customer purchases something on credit, payment should be made within
the time agreed upon. Collection letters become necessary when credit customers fail to
pay their accounts promptly. Hence, letter that are written to the customers for collecting
past due accounts are called collection letters.

“A letter written to collect a past-due account is called collection letter.”


• They forget to pay
• They disregarded the due date of small amounts
• They are dissatisfied with the goods
• They have objection over the handling of complaint
• They are short of money
• They are habitually slow in paying
• They don’t feel like it.


There may be several good reasons why a customer fails to pay in time.
Therefore, in case of writing a collection letter we must keep in mind that the customer
habitual to late the payment and how important the customer is.

A good letter of collection has following three fold purposes:
1. Collecting the money
2. Retaining the customer
3. Building the goodwill

1. Collecting the money
The first and foremost purpose of writing a letter of collection is to recover the
outstanding amount. It is easier to collect money through courteous and tactful letters
than to disagreeable ones. If customer does not pay by the due date, the collection
manager begins to send a series of messages called collection.

2. Retaining the customer
We must not collect our outstanding dues in such a way that we recover our
money but lose the customer. This would be poor policy. A good collection letter
recovers the debt as well as retains the customer. The writer must assume that customer is
an honest person. The defaulting customer must be given a chance to explain honestly
why he is not making payment.

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3. Building goodwill
A good collection letter recovers the dues as well as builds the goodwill of the
organization. In order to achieve this purpose, a letter of collection must be written
courteously. The writer must not use harsh and impolite words because they lose the

The writer of collection letter should bear in mind the following points
(i) Knowledge of human psychology:
Every person is different from other. The writer of collection letter should think
about the debtor. His letter to an 80 years widow should be different from a letter written
to young man used to late paying.
(ii) Knowledge of credit terms:
The writer must be aware of the company policy, and credit terms fixed with the
debtor. If the writer is at fault the debtor may take an action.
(iii) Use of appeals:
The writer may make some appeals in collection letter. The appeals to the
debtor’s honor, self-interest, pride, honesty, reputation, caution, may prove effective.


Ali And Company,
100, Gulberg III,

August 15, 2011
Mr. Muhammad Yousaf,
10-Model Town,

Dear Sir,
We must regret to inform you that in spite of our collection letters dated July 3,
July 10 and July 20, you have failed to pay the overdue amount of Rs.25000.

On August 8, we also served a notice to the Market Union of your area, but of no
use. We are sorry to say that it is not possible for us to keep our accounts unbalanced for
a long time. We request for the last time to pay the above noted amount by the August 25,
failing which we would be forced to ask our legal advisor to take legal steps in this
Your immediate response is imperative and we would like our business affiliation to
Yours Truly,
Mohsin Ali

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Q.17 What is credit letter? Explain in detail?

A credit letter is a request by a customer to some other person or another
organization. The customer wishes to buy now and pay later. He says: “I am short of
money, but long of character.” It is all about trust and confidence.
Modern business is built upon the foundation of credit. Credit is the instrument which
enables producer, manufacturer, retailer and customer to obtain goods even if ready cash
is not available. Most business concerns buy or sell on credit. Credit is a confidence in a
customer. Credit may be classified as follows: public, investment, wholesale or retail,

“It is promise of future payment for present money, goods or services.”

Three C’s of credit:-

A credit person judges a credit request on the basis of three C’s
1. Character
Character means desire for honest dealings. It is applicant’s reputation especially
in the matter of paying debts. The debtor who pays his debts promptly is sure to get the

2. Capital
Capital is the net financial worth of a person or a company. It consists of the total
value of all the assets including cash, goods and property. It excludes all outstanding

3. Capacity
It is the ability to manage business affairs efficiently. Capacity depends upon the
individual’s education, experience and competence. The capacity of the company
depends upon its location, source of material, market for its product and the technical
skill of its personnel.

Format of credit letter:-

1. Introduction
Introduce yourself to the creditor. Also tell about your past dealing with him, if
any. Then tell what form of credit you are looking for.

2. Convincing your creditor:-
Assure him of your fair dealing. Mention your reputation and also offer
references. The references include banks, chambers of commerce, industry and credit
rating agencies.

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3. Closing request

Make request for the grant of credit. Close the letter courteously.
Credit series:-
1. Request for credit
2. Letter from creditor to reference
3. Reply from reference
4. Final letter, granting / refusing credit

Credit Letter


January 20, 2010

The Chief Executive
Ali And Company
Mall Road

Dear Sir,

During the past five years we place several orders with you. These orders were filled on
cash basis. Our business is fast growing and we except to place even larger orders with
you in future.

Recently your representative Mr. Ali called on us. He requests us to stock your
merchandise. We are thinking to do so. But in case we would like to avail credit facility.

We refer you to the MCB Bank Limited, Shadman Road Lahore where we hold current
account no. 157. Please give us an early reply so that we may place an order with you.

Sincerely yours

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Q.18 What is sales letter? Explain its functions as well as uses?

A sales letter is a sales person absentia. It is convenient and effective way of
securing business. A sales letter is often prepared as a circular to many customers or to a
certain types of customers trying to create interest in the existing or new products or
services. An effective letter can influence a very large number of readers, convert them
into prospective buyer and bring huge business into the firm. Although it advertises a
products or services yet it is a different from advertisement and is more effective. There
is that unlike advertisement, it has a great audience for whom it can transmit a suitable
sales message.

A sales letter is direct offer for sale of goods and services. It urges the reader to become a
customer by buying the goods or services offered for sale. The aim of sales letter is to
persuade and convince the reader that he / she needs what the writer wants to sell. Of
course persuasion is a difficult task. It is for these reasons that sales letter is highly
specialized form of writing, requiring exceptional ability, skill and experience.

A sales letter must perform certain functions or it must have certain characteristics or
qualities. An effective sales letter is always written in conformity with the following


The first thing that you do is to seek the attention of your reader. You begin your letter in
such a way that the reader has no option but to study it. This you can starting the letter by
tricky or startling sentence. Once you capture the attention of the reader, the half of the
battle is won.
To intercept the reader’s attention, writers use
• A pertinent Question
• Quotation from an eminent authority
• An appeal to fear
• An appeal to economy.

The second function of the sales letter is to create interest in the mind of the reader for the
product or service. A description written with a “You Attitude” will help the reader
imagine himself or herself using the product or service. You can also mention the reader
as to why he needs his product or service by enumerating the benefits that he will enjoy
after he shows his interest.
a. The writer must be made to realize that he has a need for the product or service
b. He must be satisfied that the advertiser’s product can fill that need.

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Next, give physical details of the product or service, such as dimensions and materials,
and specifies about the guarantee, service and so on. These details will help to clinch the
sale by whetting the reader’s desire for the product or service. You actually aim at to
make your reader realize as to why only your product is beneficial for him. Desire can
a) by making moderate claims
b) by logical arguments
For example
Free trail offer, performance test, samples free of cost, eviedences


Stimulating action is the last function of sales letter. It must convert a prospective buyer
into regular by stressing what action the reader should take. The writer can also motivate
the reader to take a positive action by offering incentives, like discount, guarantee, after
sales service etc.

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Write a sales letter for a new model of wall clock

Nasir & Co.,

August 6, 2008
The Manager,
M/S Merry China Ltd,
22, Gulberg III

Dear Mr. Ibrahim

We feel pride in making you aware of a new model of wall-clock with features
beyond imagination. Available in different sizes and customized colours, you can place it
according to your requirement. Made by imported material, you can easily see the time
even in the pitch dark. Moreover the model is available with variety of distinctive
features, such as modern style, attractive colour, and imported parts that are easily
available. Being an old patron of us, we feed delight to offer you some special incentives
in form of discount, lifetime guarantee, and free home-delivery.

We are looking forward to your kind visit to our sales-center and give a kind look
to our new product. A small token of affection in form of a gift is here waiting for you.

Yours truly,
Mohsin Ali

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The Tips college of Commerce

M.COM Part-I
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The Tips college of Commerce

M.COM Part-I
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The Tips college of Commerce

M.COM Part-I