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

Which statement about internal and external communication in a business is correct?

External communication helps build the firm's image with outsiders and generally follows a formal style. Both internal and external messages may be oral or written, and communication with shareholders is external, not internal, since internal communication stays among people within the organisation.

  1. AExternal communication is always informal and never written
  2. BInternal communication cannot be in written form
  3. CExternal communication helps build the firm's image with outsiders and often follows formal styleCorrect
  4. DInternal communication takes place only between the firm and its shareholders

Explanation

External communication with customers, suppliers and public shapes the firm's image and is usually formal in tone and format. Both internal and external communication can be oral or written, so the first two statements are false. Shareholders are outsiders, so the last statement is wrong.

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