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

Employees of a Chennai firm hear a rumour about a possible office relocation before any official announcement. The rumour spreads quickly through casual talk among staff across departments. This channel is best described as:

The channel is the grapevine, an informal network where information spreads through casual personal contact outside the official chain of command. It is fast but may be inaccurate. Formal channels follow the organisational hierarchy and use authorised communication.

  1. AFormal vertical channel
  2. BThe grapevineCorrect
  3. CCircular memo
  4. DStatutory communication

Explanation

Informal communication not following the official chain of command, spreading through social contact, is called the grapevine. A formal vertical channel follows the hierarchy, and the other options are formal written or legal forms, so they do not fit.

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