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

Which of the following is an example of external business communication?

A quotation sent to a prospective customer of another firm is external communication, because it passes between the business and an outside party. Memos, staff notices and branch reports to head office are all exchanged within the same organisation, so they are internal communication.

  1. AA memo from a production manager to the stores department
  2. BA quotation sent by Sharma Traders to a prospective customer in another firmCorrect
  3. CA notice on the staff notice board about a holiday
  4. DA report from a branch manager to the head office of the same company

Explanation

External communication is exchanged between the organisation and outside parties such as customers, suppliers, banks and government. A quotation to a prospective customer crosses the organisational boundary. The other three options all take place between members or units of the same organisation.

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