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CMA Foundation · Fundamentals of Business Laws and Business Communication · Writing and Drafting for Business Audiences

Which feature best distinguishes a memorandum from a business letter?

A memorandum is chiefly an internal communication used within the same organisation, such as between departments or between a manager and staff. A business letter, by contrast, normally goes to external parties like customers or suppliers. Memos are short, direct and need no auditor signature or Board issue.

  1. AIt is used mainly for communication within the same organisationCorrect
  2. BIt is always sent to customers outside the firm
  3. CIt must be signed by the company's statutory auditor
  4. DIt can be issued only by the Board of Directors

Explanation

A memo is an internal document that circulates between people in the same organisation, usually in a brief and direct format. A business letter is the normal tool for outside parties such as customers and suppliers. The option about customers reverses this, and the other two options state requirements that do not exist for memos.

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