Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · Features of Effective Business Communication

A company's CEO tells a shareholder over a phone call, 'Our results are good.' The shareholder understands this as a promise of a high dividend, though the CEO meant only that sales had increased. In terms of the nature of communication, what does this situation best illustrate?

The situation shows that meaning lies in how the receiver interprets the message, so the intended and understood meanings can differ. Sending a message does not make it effective. Clear wording and feedback are needed to confirm that the receiver has understood what the sender actually meant.

  1. AThe meaning exists in the receiver's interpretation, so the sender's intended meaning may differ from the understood meaningCorrect
  2. BOral communication is always legally binding
  3. CFeedback is unnecessary in business communication
  4. DA message is effective whenever it is sent

Explanation

Communication involves sharing meaning, and the receiver may interpret words differently from the sender's intention. This shows why clarity and feedback matter. Sending a message alone does not make it effective, and the facts do not suggest any legal binding effect.

Did you get it right without looking?

One question tells you little. A timed set on Features of Effective Business Communication shows your real accuracy, how long you take and where you lose marks.

Practise Features of Effective Business CommunicationFree diagnostic mock

More Features of Effective Business Communication questions