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CMA Foundation · Fundamentals of Business Laws and Business Communication · Writing and Drafting for Business Audiences

A committee set up by Sundaram Traders to examine whether to open a new branch in Coimbatore is told the exact matters to investigate, the time limit and to whom it must report. In report writing, this statement of scope and authority is called:

This is called the terms of reference. They define the subject, scope, time limit and reporting authority for the committee's inquiry. A transmittal letter only forwards the completed report, an abstract summarises it, and an index helps locate topics, so none of those set the scope.

  1. ATerms of referenceCorrect
  2. BLetter of transmittal
  3. CAbstract
  4. DIndex

Explanation

Terms of reference specify what is to be investigated, the limits of the inquiry, and the reporting authority. A letter of transmittal merely forwards the finished report, an abstract summarises it, and an index is a navigation aid.

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