Fundamentals of Business Laws and Business Communication · Process of Communication

Meaning and Definition of Communication for CMA Foundation

Updated 10 October 2026 · Fact-checked

Communication is the process of exchanging information, ideas or feelings between two or more people so that the message is understood. It needs a sender, a message and a receiver. In MCQs, look for the words sharing, exchange and understanding. Without understanding, communication is incomplete.

Understand Meaning and Definition of Communication

The word communication comes from the Latin word communis, which means common. So communication means making something common, that is, sharing a message so that both sides hold the same understanding.

A simple definition: communication is the exchange of information, ideas, opinions or feelings between people, through words, writing, signs or other means, so that the message is understood. Notice the key point: sending a message is not enough. The receiver must understand it. If a manager sends an email and the staff member reads it but misunderstands it, communication has not been fully achieved.

Business communication is communication used for the purposes of a business. It covers messages inside the organisation (a manager briefing a team) and outside it (a firm writing to a customer, supplier or bank). Its aim is to get work done, take decisions and keep relationships healthy.

The key features of communication are:
- It involves at least two parties, a sender and a receiver.
- It is a two-way process, because feedback completes it.
- It is a continuous, ongoing process.
- It exchanges information, ideas, opinions or feelings.
- Its goal is common understanding.
- It can be verbal (spoken or written) or non-verbal (gestures, tone, facial expressions).
- It is a dynamic and pervasive activity, found at every level of an organisation.

Its importance in business is wide. It helps managers plan and give instructions, supports decision making, builds coordination between departments, improves morale and teamwork, maintains good customer relations, and reduces errors and confusion.

Key formulas to remember

Core definition: Communication = exchange of information, ideas or feelings + common understanding; Exchange alone is not enough. Understanding by the receiver is the test of successful communication.
Minimum elements: Sender + Message + Receiver (+ Feedback); Feedback makes communication two-way and confirms understanding.
Origin of the word: Communication ← Latin 'communis' = common; Often asked directly. It means to make common or to share.

How to solve Meaning and Definition of Communication questions

Questions on this topic test definitions, features and importance. Use this method for any such MCQ.

1Read the question stem and note the key word: meaning, feature, importance, or origin.
2Recall the core idea: sharing of information with common understanding.
3If the question asks for a definition, pick the option that includes both exchange and understanding.
4If it asks for a feature, pick the option that matches two-way, continuous, or involving two parties.
5Eliminate options that call communication one-way only, or that limit it to written words only.
6Eliminate options with absolute words such as only, always or never unless the idea is certain.
7Check the remaining option against the Latin root 'communis' or the purpose of business if relevant.
8Mark the answer and move on. Do not spend more than a minute.

Quickest way: Keyword matching for definition questions

When to use it: Use this when you have little time and the options look similar.

Look for the keywords: exchange, sharing, understanding, two or more persons.
Reject any option that says one-way, only written, or only spoken.
Between two close options, choose the one that mentions understanding or feedback.
For origin questions, choose the option with communis or common.

Common mistakes in Meaning and Definition of Communication

Treating communication as only sending a message.
Students think speaking or writing is the whole act.
Fix: Remember that the message must reach and be understood by the receiver. Understanding completes communication.
Calling communication a one-way process.
Students picture a speaker and a listener but forget feedback.
Fix: Link communication with feedback. Feedback makes it two-way.
Thinking communication means only words, spoken or written.
Everyday use of the word focuses on talking and writing.
Fix: Include non-verbal signals such as gestures, facial expressions and tone.
Confusing the Latin root.
Students mix up communis with other Latin words from their notes.
Fix: Link communication with communis, meaning common, as in making ideas common.
Limiting communication to outside parties in business.
Students think of customers and suppliers only.
Fix: Remember it also covers internal communication between managers and staff and among departments.

Worked examples

Example 1

Which of the following best describes communication? (A) Sending a message to a person (B) Exchange of information resulting in common understanding (C) Writing a letter to a customer (D) Giving orders to subordinates

Show the solution

The key idea of communication is exchange plus understanding.
Option A talks only of sending, which is one-way.
Option C covers only one written form.
Option D covers only one direction of instructions.
Option B includes exchange and common understanding, so it matches the definition.

Answer: (B) Exchange of information resulting in common understanding

Example 2

The word 'communication' is derived from the Latin word 'communis'. What does 'communis' mean? (A) Common (B) Message (C) Speak (D) Connect

Show the solution

Recall that communication means making ideas common between people.
So the root communis means common.
Message, speak and connect are related ideas but are not the meaning of communis.
Hence the correct option is Common.

Answer: (A) Common

Exam tips

Learn the one-line definition with both words: exchange and understanding.
Memorise the Latin root communis meaning common. It is a favourite direct question.
Expect feature questions such as two-way, continuous and involving two or more parties.
Be ready for 'which is NOT a feature' style questions. One-way only and written only are usually the wrong features.
There is no negative marking, so always attempt every question.

Practice questions from Process of Communication

Meaning and Definition of Communication: frequently asked questions

What is the meaning of communication in CMA Foundation?

Communication is the exchange of information, ideas or feelings between people so that a common understanding is reached. It requires a sender, a message and a receiver. Feedback shows whether the message was understood.

What are the main features of business communication?

It involves two or more parties, is a two-way and continuous process, and aims at common understanding. It can be verbal or non-verbal. It is found at all levels of an organisation.

Why is communication important in business?

It helps in planning, giving instructions and taking decisions. It improves coordination, teamwork and morale. It also keeps relations with customers and suppliers healthy and reduces mistakes.

Is communication complete if the receiver does not understand?

No. Communication is complete only when the receiver understands the message as the sender meant it. Feedback helps the sender check this.