Business Communication · Communication
Meaning and Nature of Communication for CSEET
Updated 11 October 2026 · Fact-checked
Communication is the exchange of information, ideas or feelings between two or more people so that the message is understood. Its nature is two-way, continuous, purposeful and dynamic. To answer exam questions, define it, list features with one-line explanations, then add objectives and importance with business examples.
Understand Meaning and Nature of Communication
The word communication comes from the Latin word communis, which means common. So communication means making something common between people. If you send a message and the other person does not understand it, communication has not happened. It is complete only when the receiver gets the same meaning that the sender intended.
A simple example: a manager tells a team, "Send the report soon." One person sends it in an hour, another in two days. The words were sent, but the meaning was not shared. Good communication removes this gap.
The nature of communication is about its main features. It involves at least two parties, a sender and a receiver. It is a two-way process because feedback comes back. It is continuous, because people communicate all the time, even through silence or body language. It is purposeful, since it aims at some result. It can be verbal or non-verbal, and it happens in formal and informal settings.
The objectives of communication are to inform, to persuade, to instruct, to motivate, to build relationships, to seek or give feedback and to help in decision-making. In business, every one of these matters. A company informs customers about a new product, persuades them to buy, and instructs staff how to deliver it.
The importance of communication in business is that it keeps the organisation running. It helps planning and coordination, supports decisions, improves employee morale, builds goodwill with customers and investors, and reduces conflict and errors. For a Company Secretary, who deals with boards, members, regulators and the public, clear communication is a core skill.
Key rules to remember
- Core idea of communication
- Communication = Sender → Message → Receiver → Feedback
- Understanding by the receiver and feedback make it complete. Sending alone is not enough.
- Key features to remember
- Two or more parties + common understanding + two-way + continuous + purposeful + verbal or non-verbal
- Use this as a checklist when writing a features answer.
- Main objectives
- Inform, persuade, instruct, motivate, build relationships, get feedback, support decisions
- Give each with a short business example.
How to solve Meaning and Nature of Communication questions
Use this method for any question on meaning, nature, objectives or importance of communication.
- 1Read the question and mark the keyword: define, explain features, list objectives, or discuss importance.
- 2Start with a one-line definition. Mention sharing of information and understanding between sender and receiver.
- 3Explain the Latin root communis if the question asks for meaning.
- 4List points in a numbered or bullet form. Give a heading in bold and one explaining line for each.
- 5Add a short business example, such as a company notifying shareholders or a manager instructing staff.
- 6Match the count of points to the marks. Use about 4 to 5 points for a short answer and more for a long one.
- 7Close with a one-line conclusion linking communication to business success.
Quickest way: Definition plus points plus example
When to use it: Use when time is short, for short-note or 5 to 8 mark questions.
- Write a single-sentence definition.
- Write 4 to 5 bold points with six to ten words each.
- Add one business example.
- Stop. Do not repeat points.
Common mistakes in Meaning and Nature of Communication
Defining communication only as sending a message
Students think speaking or writing is the whole process.
Fix: Always include understanding by the receiver and feedback in your definition.
Mixing up features, objectives and importance
The three lists sound similar and overlap.
Fix: Features describe what communication is. Objectives describe what you want to achieve. Importance describes the benefit to business. Keep three separate lists.
Saying communication is only verbal
Daily life links communication to talking.
Fix: Mention that gestures, tone, silence and written words are also communication.
Writing points without examples
Students memorise lists and do not practise applying them.
Fix: Attach one short business example to at least two points.
Ignoring the two-way nature
Notices and orders look like one-way messages.
Fix: Remember that feedback, even a silent reaction, makes communication two-way.
Worked examples
Example 1
Define communication and explain its main features. (Short answer)
Show the solution
- Define: Communication is the process of exchanging information, ideas or feelings between two or more persons so that a common understanding is reached.
- Feature 1: It needs at least two parties, a sender and a receiver.
- Feature 2: It is a two-way process because feedback returns to the sender.
- Feature 3: It is continuous, as people keep communicating in organisations all the time.
- Feature 4: It is purposeful, with an aim such as informing or persuading.
- Feature 5: It can be verbal or non-verbal, formal or informal.
- Add an example: a company sends a notice of a meeting, and members reply by attending or giving proxies.
Answer: Communication is the sharing of information and understanding between a sender and a receiver. Its features are: two or more parties, two-way flow with feedback, continuity, purpose, and verbal or non-verbal forms.
Example 2
Discuss the importance of communication in business.
Show the solution
- Open with one line: communication links people inside and outside the business and keeps it running.
- Planning and coordination: managers share goals so departments work together.
- Decision-making: accurate information helps managers choose well.
- Morale and motivation: clear instructions and recognition make employees feel valued.
- Goodwill: prompt replies to customers and investors build trust.
- Reduces errors and conflict: clear messages avoid misunderstanding.
- Conclude: good communication improves efficiency and reputation.
Answer: Communication is important because it supports planning and coordination, better decisions, higher morale, goodwill with customers and investors, and fewer errors and conflicts, which together improve business performance.
Exam tips
- Always write a definition first, even if the question asks only for features or importance.
- Use bold headings for points so the examiner can scan your answer quickly.
- Keep features, objectives and importance in separate lists, and give a short business example.
- In the written paper, match the number of points to the marks rather than writing long paragraphs.
- Link a point to company situations, such as notices to shareholders, to show application.
Practice questions from Communication
- A company secretary reads a board resolution aloud, but the directors simply nod and give no response of any kind. Which essential element o…
- Which of the following is an example of 'noise' as a barrier in the communication process?
- Ms. Iyer tells her team in a meeting, 'Submit the audit file by Friday.' Nobody responds, and on Friday three members have not submitted it,…
- The Latin word from which 'communication' is derived, and its meaning, is:
- A company secretary says, 'I told the board everything clearly, so communication has taken place, even though nobody understood the technica…
Meaning and Nature of Communication: frequently asked questions
What is the simple meaning of communication?
Communication is sharing information, ideas or feelings so that the receiver understands the message as intended. The word comes from the Latin communis, meaning common. It is complete only when understanding is shared.
What are the main features of communication?
It involves two or more parties, is two-way with feedback, is continuous and purposeful, and can be verbal or non-verbal. It also takes place in both formal and informal settings.
What is the difference between objectives and importance of communication?
Objectives are the aims you want to achieve, such as informing or persuading. Importance is the benefit communication brings to a business, such as better coordination and goodwill.
How many points should I write in a written answer?
Match the points to the marks. For a short answer, four to five clear points with a definition and an example are usually enough.