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

A report shows a bar chart of Rs 40 crore and Rs 44 crore sales for two years, but the vertical axis starts at Rs 38 crore, making the second bar look nearly three times taller. What is the main communication problem?

The problem is that the truncated vertical axis exaggerates the difference between the two years, making a 10 percent rise look like a threefold gap. This misleads readers and breaches the requirement that graphics represent data honestly and accurately.

  1. AThe chart is a visual aid and therefore should never be used for two values
  2. BThe truncated axis exaggerates the difference and misleads readers, violating ethical presentationCorrect
  3. CBar charts can only show percentages, not sales amounts
  4. DThe chart has too much text beside it

Explanation

Starting the axis at Rs 38 crore makes the bars Rs 2 crore and Rs 6 crore in height, so the 10% real rise (4 on 40) appears as a threefold difference. This distorts the data and misleads readers. Bar charts can show any quantity, and two values can legitimately be charted.

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