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CMA Foundation · Fundamentals of Business Laws and Business Communication · Introduction to Business Communication

Rumours about an impending transfer spread among the staff of a Kolkata firm through casual talks in the canteen, without following any official line. Which feature correctly describes this channel?

The grapevine is an informal channel. It arises from social contact among employees, is not prescribed by the organisation's structure, and spreads information very fast, though the content may be distorted. Formal channels, by contrast, follow the official chain of command and are usually documented.

  1. AIt is a formal channel and always carries verified facts
  2. BIt is an informal channel, which is not officially prescribed and spreads fastCorrect
  3. CIt is a formal channel that follows the chain of command
  4. DIt is a written channel recorded in the office files

Explanation

The grapevine is an informal channel arising from social interaction, not set by the organisation's structure. It spreads quickly and its content may be distorted. Formal channels follow the official hierarchy.

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