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CMA Foundation · Fundamentals of Business Laws and Business Communication · Types of Business Communication

Which feature most clearly distinguishes external communication from internal communication in a business?

External communication is distinguished by involving parties outside the organisation, such as customers, suppliers and authorities, so it is generally formal and affects the firm's public image. It can be oral or written, is often recorded, and may create legal consequences, unlike the claims in the other options.

  1. AIt always uses oral channels
  2. BIt involves parties outside the organisation, often needing greater formality and care for imageCorrect
  3. CIt never requires records to be kept
  4. DIt is free from any legal consequences

Explanation

External communication connects the firm with customers, suppliers, banks, regulators and others outside it, so it is usually formal and shapes the firm's image. It may be oral or written, records are often kept, and it can create legal liability, for example through offers or contracts.

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