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CMA Foundation · Fundamentals of Business Laws and Business Communication · Use of Graphics and References for Business Communication

A company's profit figures are shown in a line graph whose vertical axis starts at ₹95 lakh instead of zero, so a rise from ₹98 lakh to ₹100 lakh looks dramatic. What is the main communication problem?

The main problem is that the truncated vertical axis distorts the scale and exaggerates a small ₹2 lakh increase, misleading the audience. Effective business graphics must present data honestly and accurately, so the axis should normally start at zero or the truncation should be clearly disclosed.

  1. AThe graphic may mislead the audience by distorting the scaleCorrect
  2. BThe graph cannot show profit figures at all
  3. CLine graphs can only be used for percentages
  4. DThe graph breaches the rule that titles must be omitted

Explanation

A truncated axis exaggerates a small change of ₹2 lakh, giving a false impression. Ethical, effective graphics use honest scales. Line graphs can show money values, and titles should be included, not omitted.

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