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PreparedByProf.M.

Aqil

BUSINESSCOMMUNICATION B.COM.II
Q. Define Business Communication?
Ans: CommunicationisdefinedasTheflowofmaterialinformationperception,understanding
andimaginationamongvariousparties.
Business includes those organizations, which are engaged in the production and
distributionofgoodsandservicestoearnprofit.ThereforeBusinesscommunicationmeans,Flowof
information,perceptionetc.eitherwithinabusinessorganizationoroutsidetheorganizationamong
differentparties.

EXPLANATION:

Wecanextractthefollowingpointsformtheabovedefinition;
(1)
Flowbetweentwoormoreparties.
Inbusinesscommunicationthematerialflowfromonepersontoanotherpersonorfrom
manypersonstodifferentpeople.Thisflowmayeitherbeinsidetheorganizationoroutsidethe
organization.

(2)

Flowofinformation,perception,imaginationetc.
Flowofinformationtakesplacewhenapartytransfersthematerialtoanothermind.For
example,whenanewscastersays,Pakistanhasconductednuclearteston28 thMay1998.Thisisa
flowofinformationfromnewscastertothelisteners.
Flowofperceptionmeanstransferofdifferentfeelings.Finally,flowofimaginationthat
occurswhenapainterconveyshis/herimaginationsthroughaportrait.

17.

Discuss the role of effective business communication within


and
outside
the
organization
Communication is called,
organization? OR

OR
Life

Why
Business
blood of an

Ans: AbusinessOrganizationisagroupofpeopleassociatedtoearnprofit.Variouskindsof
activitieshavetobeperformedbythepeopleofanorganizationsoastoearnprofit.Theseactivities
needaneffectiveandsystematiccommunication.Withoutefficientcommunication,onecannoteven
imaginetodoworkandhencewillbeunabletoearnprofit.Sincetheaimofbusinessorganizationis
toearnprofit,theorganizationwilldiewithoutprofitandthisdeathisaresultoftheabsenceof
communication.Thisiswhycommunicationiscalledlifebloodofabusinessorganization.Wecan
provethisstatementinthefollowingmanner.

COMMUNICATIONINSIDEANORGANIZATION:
Differentemployeesandofficialsinanorganizationneedtocommunicatetoeachother.
Thisinternalcommunicationwithitsimportanceisshowninthefollowingway:

1.SettinggoalsandObjectives:

Mostly,theorganizationshaveavarietyofformalandinformalobjectivestoaccomplish.
These objectives may be financial results, product quality, market dominance, employees
satisfaction,orservicetocustomers.Sothecommunicationenablesallthepersonsinanorganization
toworktowardsacommonpurpose.

2.MakingandImplementingdecision:

In order to achieve the objective, people in a business organization collect facts and
evaluatealternatives,andtheydosobyreading,askingquestions,talkingorbyplainthinking.These
thoughtsareputintoawrittenform.Onceadecisionhasbeenmade,ithastobeimplementedwhich
requirescommunication.
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3.Appraisal:
Havingimplementedthedecision,managementneedstodeterminewhetherthedesired
outcomeisbeingachieved.Statisticsonsuchfactorsascost,sales,marketshare,productivityand
inventorylevelsarecompiled.Thisisdonethroughcomputers,manualpapers,memosorreports.

4.Manufacturingtheproducts:

Getting an idea for a new product out of someones head, pushing it through the
productionprocessandfinallygettingtheproductalsorequirecommunication.Designingtheplan
regardingproduct,introducingtheworkers,purchasingrawmaterial,marketinganddistributingthe
productallrequireeffectivecommunication.

5.Interactionbetweenemployer&employee:

Employees areinformedaboutpoliciesanddecisionsofemployers throughcirculars,


reports,noticesetc.Employersalsogetintouchwithemployeesthroughapplication,complaintetc.
So,communicationplaysavitalroleintheinteractionofemployerandemployee.

EXTERNALCOMMUNICATION:
1.Hiringtheemployees:
Ifacompanywantstohiresomeone,itadvertisesthevacancy,receivesapplications,
callsthecandidates,takestheinterviewandthenoffersjobtothesuccessfulcandidates.Thewhole
processrequirescommunication.

2.Dealingwithcustomers:

Saleslettersandbrochures,advertisements,personalsalescalls,andformalproposalsare
allusedtostimulatethecustomersinterest.Communicationalsoplaysapartinsuchcustomer
relatedfunctionsascreditchecking,billing,andhandlingcomplaintsandquestions.

3.Negotiatingwithsuppliersandfinanciers:

Toobtainnecessarysuppliesandservices,companiesdevelopwrittenspecificationthat
outlinestheirrequirement.Similarly,toarrangefinance,theynegotiatewithlendersandfilloutloan
applications.

4.Informingtheinvestors:

Balance sheet, income statement, and ratio analysis are used to inform the investors
regardingperformanceofbusiness.

5.InteractingwithGovt.:

Government agencies make certain rules to regulate the economy. These rules are
communicated to organizations through various papers. These organizations try to fulfill, these
requirementlikefillingtaxationformandotherdocuments.

17. Define communication. What is the importance of


communication for an individual and for an organization?
COMMUNICATION:Definition:Communicationistheprocessbywhichinformationistransmittedbetweenindividuals
andorganization,sothatanunderstandingresponseresults.
OR
Communicationistheprocesswhichinvolvestransmissionandaccuratereplicationof
ideas,ensuredbyfeedbackforthepurposeofelicitingactionwhichwillaccomplishorganizational
goals.
IMPORTANCEOFCOMMUNICATIONFORANINDIVIDUAL
(1)Helpsingettingadesiredjob:
Gettingadesiredjobisnotaneasytask.Itrequiresapersontobeexcellent,especiallyin
termsofcommunicationabilities.Communicationabilitiescanbeclassifiedintofivecategoriesthat
isreading,writing,speaking,listeningandobserving.Ifacandidateisagoodreaderofnotonlytext
booksandreferencebooksbutalsoofnewspapersandmagazines,thiswouldhelphimdeveloping

PreparedByProf.M.Aqil

confidencelevelatthetimeofinterview.Writingskillsarenecessaryforpreparinganappropriate
Biodata and covering letter, so that a better initial impression could be created. No doubt,
conversational skill right at the time of interview is equally countable towards success of the
candidate.Listeningabilitiesontheothercouldprovetobefruitfulespeciallywhentheinterviewer
ismakingacommentoraskingaquestion.Inshortwecansaythatthepresenceofabovementioned
fivecommunicationskillscouldgiveabetterchanceofbeingselectedduringaninterview.
(2)Helpinmaintainingsocialrelationships:
Weashumanbeingsliveinacobwebofrelationshipsrathersocialrelationship.These
socialrelationscompelustoactsimultaneouslyinthecapacityoffather,child,husband,uncle,
neighbour,cousin,teacher,nephewandsoon.Alltheserelationshipsespeciallynearonescouldbe
maintainedproperlyifwecancommunicatewelltoalltheserelations,thatweareheretotakecare
ofthemandourservicesarealwaystheretohelpthemincaseofanyneeds.
(3)Helpsingettingonthejobpromotion:
Perhapsfindingajobwouldnotbeabigdealincaseofifthecandidateiswellconnectedand
belongstoawellofffamily.Butpromotiononthejobrequiressomeextraskillsonthepartofthe
candidate.Amongstthoseskills,communicationabilitiesrankonthetop.Ifapersoncanspeakwell
duringinteractiveandpresentationsessions,canreportsproperly,hewillautomaticallybeintheeyesof
themanagementandwheneverachanceforpromotioncomes,hewillbeonthetopofthelist.
(4)Helpsinsolvingothersproblems:
Itiscommonlyobservedthataroundustherearesomanypeoplewhomweliketomeet,
theircompanyisasourceofenrichmentforus.Whenwearewiththemwefeelsecured.Theonly
reasonforsuchtypesoffeelingsisthatsuchtypeofpeoplearenotonlygoodlistenersbuttheyalso
knowitwellthatwhenevertheywouldspeak,itwouldonlybeforthesakeofencouraging,not
discouragingothers,onlyforsolvingothersproblemsandnotforcreatingproblemsforothers.Such
peoplearenodoubtexcellentcommunicators.
Q.4

Differentiate between formal and informal language;

Ans:
Formal language:
(1) Itisthelanguagespokeninoffice,
businessandotherformalplaces.
(2) Properandstandardwordsareused.
(3) Itconsistsofspecificpurposewords
likemanager,supervisor,owner,
employeretc.
(4) Itisusedcomparativelylessthan
informallanguage.
(5) Itisusedwhenthespeakerisrelaxed.

Q.

Informal Language:
(1) Itisthelanguagespokenathomeor
withfriends.
(2) Improperwordsandslangsareused.
(3) Ithasallpurposewordslikeboss
thatstandsforvariouspersonalities.
(4) Itisusedindailylife.
(5) Itisusedwhenspeakerisinahurry/

Explain the process of communication. OR Communication


is a two way process of exchanging ideas or

information between two human beings. Explain this statement


with the help of a diagram.
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PreparedByProf.M.Aqil

Ans: Communicationsimplymeansexchangeofideas&informationbetweentwopersons.A
personsendsamessagetoanotherpersonandgetstheresponsefromthereceiveronthemessage.
Thiswholephenomenoncanbeexplainedasunder.

1.Sendersthoughts:
Theveryfirststepintheprocessofcommunicationisgenerationofthoughtinthesenders
mind.Thesethoughtsmaybeaboutarequest,order,inquiryproductionoranyothersuchactivity.

2.Encoding/Message:

The thought generated in the mind of sender is ambiguous and unable to be


communicatedunlessitisputintoareceivableform.Thisstepisknownasencodingwherethe
senderconvertshisthoughtintoamessagebymeansofalanguage.Forexample,asenderthinks
abouthavingajob.Now,hewillputhisthoughtonapaper.Thatiscalledjobapplication.Inhis
way,histhoughtbecomesamessage.

3.Transmissionthroughmedia:

Onceathoughtisconvertedintomessage,itshouldbetransmittedtothereceiverthrough
asuitablemedium.ThismediamightbeelectronicmediaasT.V.,Email,radioetc.oritmaybe
print media like newspaper, magazines, letters or merely sound that is transmitted through the
mediumofair.

4.NoiseandBarriers:

Whiletransmittingtheinformationtothereceiver,thesenderfaceslotsofbarriers.These
noiseandbarriersareexplainedasunder:
(1)
Onsendersside:Noiseandbarriersmaytakeplaceduringtheprocessofencoding.
Someofthemmaybecausedbydistraction,lackofconcentration,typingmistake,
poorlanguageetc.
(2)
Inthemedium:Somebarriersarecausedbymediumsuchaspoortransmissionon
T.V.andradiomisprintinginnewspapersetc.
(3)
Onreceiversside:Thereceivercanalsocreatecertainbarrierstothereceivingof
messagesuchaspoorreadingability,emotions,lackofconcentrationetc.

5.DecodingbyReceiver:

Havingreceivedthemessageformthesender,thereceiverattemptstounderstandand
interpretthemessage.Thisprocessofconvertingthelanguageofmessageintothoughtsisknownas
decoding. For instance, the receiver, having received job application, reads the application and
understandsthemessageconveyedbytheapplicant.

6.IdeaReceived:

Assoonastheprocessofdecodingisfinished,theideagivenbythesenderisreceivedby
thereceiver.Itmeansthethoughtthatwasgeneratedinthemindofsenderhasbeentransmittedto
themindofreceiver.Inourexample,thesenderwantedtoinformthereceiverabouthisthoughtof
havingajob.Nowthesenderhasgotthisidea.

7.Feedback:
Processofcommunicationisincompleteuntilthereceiverrespondstothesender.This
response may be negative, positive, or for further enquiry. It means when the receiver of job
applicationwelcomesorregretsthesender,theprocessofcommunicationisdeemedtobecomplete.
Thiswholeprocesscanbedepictedthroughthefollowingdiagram.

PreparedByProf.M.Aqil

Senders
Thoughts

Encoding

Transmission
throughmedia

Noise&Barriers
Decoding

FeedBack

IdeaReceived

Q. Discuss five elements (Factors) of the process of communication;


Ans: Communicationistheexchangeofideasbetweentwominds.Thisprocessofexchanging
ideaisbasedonfollowingfivefactors.

1.Sender:

Senderisthepersonwhoinitiatestheprocessofcommunication.Hegeneratesanideain
hismindregardingproductioninvention,innovation,request,order,enquiryetc.So,heisthefirst
factorofcommunicationprocessandhisfunctionistogenerateanidea.Therefore,itisnecessary
thattheideashouldbeclear,andconvertibleintomessage.Forthispurpose,thesenderneedsto
applyhisknowledgeandimaginativepower.

2.Message:

Theideainthemindofsenderistransformedintowordsthatiscalledmessage.The
senderdecidesonthelength,style,organizationandtoneofthemessage.Themessagemaybe
presentedinmanyways,dependingonthesubject,purpose,audience,personalstyle,moodand
culturalbackground.

3.Media:

ThemediaoftransmissionofmessageareelectronicmediaasT.V.,radio,computerand
printmediaasnewspapers,letter,magazineetc.mediaplayaveryimportantroleinhelpingthe
receivers understand the message. A wrongly chosen medium can interrupt the process of
communication,Selectionofmediumdependsuponmessage,audience,urgencyandsituation.

4.Receiver:

Receiveristhepersonwhogetsthemessagefromthesender,decodesit,understandsit
andinterpretsit.

5.FeedBack:

Havingunderstoodthemessage,thereceiverrespondstothesenderinyesornoorasks
furtherquestions.Thisprocessiscalledfeedback.

17.

Explain in detail verbal and non verbal communication?

Ans: VERBALCOMMUNICATION: Verbalcommunicationmeanssuchacommunication that


takesplacebymeansofalanguageorwords.Itincludesthefollowingcontents.
1.
Oralcommunication(Speaking&listening)
2.
Writtencommunication(writing&reading)

PreparedByProf.M.Aqil

1.Speaking:
Inordertosendmessageinbusiness,speakingplaysavitalrole.Givinginstruction,
conductinginterviews,attendingmeetings,sendingordersthroughtelephonecallsareverycommon
intodaysbusiness.

2.Writing:

It is used when a complex message is sent. Placing order through letters, informing
employees through circulars, sending reports and memos, filling different government forms,
keepingrecordsinwritingaresomeexamplesofthisaspectofverbalcommunication.

3.Listening:

People in business spend more time in obtaining information then transmitting it.
Listening is the most important way to receive information: information regarding order of
employers,instruction,rulesandregulation,customertrendetc,areobtainedthroughlistening.But
inlistening,peoplegenerallyforget75%ofthemessageafterfewdays.

4.Reading:

Reading reports, memos, policies, circulars, and different business statements are
essentialforanorganization:Readinginvolvesunderstandingandinterpretingthematerial.
NONVERBALCOMMUNICATION: Itmeanscommunicationwithouttheuseoflanguage or
words.Itincludesappearance,bodylanguage,silence,etc.Itsexplanationisasfollows;

1.FacialExpressions:

Face and eyes are helpful means of nonverbal communication. They reveal hidden
emotionssuchasanger,confusion,enthusiasm,fear,joyetc.
and fingers.
2.Gestures,postures&movement:
Communicatio
Posturesmeansthelanguageprimarily
nofofposture.
composedofhanddeafpeopleandsignalgivenby
Gestures and
trafficconstablearetheexamplemovementalso
body indicates
indicatemanythings.Shakinghandwithfirmness
a

warm
movingbackandforthrevealsnervousness.
relationship,
ance size, colour, weight,
used and
sp
postageandthelettersoverall
understood.
ok
1Q
Enumerate the
appearance length stationary,
Nonverbal
en
different
enclosures, layout, etc. may
communicatio
categories
of
m
conveysignificantinformation
n

may

be
non-verbal
es
andimpressions.
divided into
communication
sa
the following
ii.SpokenMessages:
and state their
ge
three
importance
in
Personal appearance of the
categories:
s
communication
speakerclothing, jewelry,
process
with
1. Appearanc
as
hairstyle,neatness,etc.may
suitable
e
fol tell about the age, sex
examples.
2. Body
occupation, nationality,
lo
Ans: NONVERBAL
Language
ws social, economic and job
status. Similarly, appearance
COMMUNICATION:
3. Silence,
:
of the surroundings room
Time and
Communication may be
size, location, furnishings,
i.Writ
Sounds
verbal by written or
lighting, etc. may tell a lot
ten
spoken symbols (usually
aboutthemessage.
1.
Mess
words)oritmaybenon
2. BODY
verbal without words.
ages:
APPEAR
Nonverbal messages are
LANGUAGE:
The
sometimes more clear,
ANCE:
Facialexpressions,
envelo
accurate and effective as
Appearance
pes
gestures,posture,smell,
compared to verbal
overal
touch,voiceetcare
affectsthe
communication, because
l
includedinbody
qualityof
they are internationally
appear
language.
writtenand
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PreparedByProf.M.Aqil

1.
FacialExpression:
Theeyesandfacemayexpressthehiddenemotionse.g.anger,fear,joy,love,surprise,sorrow,
interestetc.
2.
PostureandGestures:
Themessagecaneffectivelybecommunicatedbyactions.Deafpeopleandtrafficconstables
makeuseofactions.Inourdailylifeclenchedfistsmayindicateanger,leaningforwardtothe
speakermayrevealinterestandrepeatedlyglancingatthewatchmaybeasignofbeingbored.
3.
Smell:
Goodorbadsmelloftenexpressesthesituatione.g.smellbecauseofoilorgasleakagewarnsthe
danger.Similarly,fragranceandperfumeconveyemotionsandfeelingsbetterthanspokenor
writtenwords.
IV Touch:
Touching people in different ways (and places) can silently communicate friendship, love
approval,angerorotherfeelings.
3.Silence,TimeandSounds

1.
Silence:
Silenceisaneffectivemediumofexpressingseriousfeelingsandemotionse.g.deathofrelative
orlossinbusiness.Amistakemaybeadmittedbysilence.Silencemayalsoconfirmastatement.
2.
Time:
Timecommunicatesinmanyways,e.g.waitingforalongtimemayindicateinterestorloveand
givingashortnoticemeansurgency.
4.
SoundsandParalanguage:
Thestyleofspeakingand thevolume ofvoice(IntonationsandModulations) ofvoicemay
producevariationsbetweenwhatissaidandwhatismeant,e.g.thewordshowpromptyouare
maycriticizeapersonarrivingtoolate.

Q.DiscusstheIMPORTANCEOFNONVERBALCOMMUNICATION:
1.Reliability:
Nonverbalcommunicationismorereliablethenverbalcommunication.Wordscanbe
controlledmoreeasilybutitsdifficulttohidefacialexpressionslikesadness,gladness,joyetc.So
nonverbalcommunicationisregardedasamorereliablemeansfortransmittingmessage.

2.Supporttoverbalcommunication:

Bodylanguageandappearancesupporttheverbalcommunication.Awaveofhand,smile
etcmightbeveryusefultoexplainandunderstandaparticularpointofview.

3.Quickness:

Adenialoracceptanceexpressedbymovingheadsaveslotoftime.So,itisimportantin
thisrespectthatnonverbalcommunicationtransmitsthemessagequickly.

FUNCTIONOFNONVERBALCOMMUNICATION:
Therearefollowingsixfunctionsofit.
(1) Toprovideinformationeitherconsciouslyorunconsciously.
(2) Toregulatetheflowofconversation.
(3) Toexpressemotion
(4) Toqualify,complement,contradictorexpandverbalmessage.
(5) Tocontrolorinfluenceothers.
(6) Tofacilitatesspecifictasks,suchasteachingaperson.

Q. Differentiate between oral and written communication;

PreparedByProf.M.Aqil

Ans: Thedifferencebetweenoralandwrittencommunicationcanbeenumeratedasunder:

1.Ratio:
Accordingtoaroughestimate,about75%oftotalcommunicationisoralwhereastherestis

written.

2.DataSafety:
Dataandinformationaresafeinwrittencommunicationwhilemostofinformationis
forgotteninoralcommunication.

3.Natureofmessage:

Writtencommunicationisusedwhenthemessageiscomplexandoralcommunicationis
usedforsimplemessage.

4.LegalAspect:

Fromlegalpointofview,oralcommunicationisleastreliableandwrittencommunication
ismuchmorereliable.Forexample,anoralpromisemaynotbechallengedinacourtingeneralbut
awrittenpromisecanbechallenged.

5.Flowofinformation:

Informationcanbetransferredwithinashortperiodoftimeinoralcommunicationbutit
takesmoretimeinwrittencommunication.

6.Nonverbalfacilities:

Oralcommunicationcanbesupportedbynonverbalfacilitieslikegestures,posturesetc.
butsuchasupportisimpossibleinwrittencommunication.

7.Grammar&Accent:

Oralcommunicationrequiredconsiderationforaccentandpronunciationwhereaswritten
communicationneedscorrectgrammarandspelling.

17.

How a message is prepared? Why proofreading is necessary


for a

good written
message? Ans: PREPARING
MESSAGE:
Afterhavingcompletedthefivestepsofplanningamessage,itshouldbedraftedonpaper.A
routineshortcommunicationmaybewritteneasilywithlittleornorevising.Butcomplexand
longerlettersandreportsshouldberevisedandeditedproperlybeforetheyaresentout.

FirstDraft:
Thefirstdraftofmessageshouldbepreparedbychoosingproperwordstoexpressideas,
mistakesofgrammar,punctuationandspellingshouldbeignoredforthetimebeing.
RevisingandEditing:
Thedraftshouldbereadparagraphbyparagraph,sentencebysentenceandwordbywordto
checkthecontinuityofideasandgrammatical,punctuationandspellingmistakes.Whilerevising
andeditingthemessageitmustbeensuredthatthemessagemeetsalltheprinciplesofgood
businesscommunication.
ProofReading:
A careful proof reading is essential after the revised and edited message has been finally
typewritten.Beforeitismailed,itshouldbereadbyresponsibleandreliableperson,because
errors,ifleftuncorrected,mayresultinlossofgoodwill,sales,incomeandevenlives.
Proofreadingforeverythingatonceishardtodo.Abetterpracticeistoproofreadseparatelyfor:
1. Context:Doesthestatementmeanwhatthewritermeanttosay?Doesthemessagepossesall
thequalitiesofeffectivecommunication?
b.Accuracy:Isthelanguagefreefromerrorsofspelling,punctuation,grammar,capitalization?
Arefigures,diagramsandothermarksaccurate?
c. FormandAppearance:Isthelayoutcorrect?Doesitlookgood?

Proofreadingmaybedoneindifferentways:

PreparedByProf.M.Aqil

(1)
(2)
(3)
(4)

Forewordreading.
Backwardreading.
Askinganotherpersontoread.
Readingwithanotherperson.

Discuss briefly, in proper sequence, the steps followed in


planning an effective communication.
Ans: PLANNINGSTEPS:

17.

1.
2.
3.
4.
5.

Knowingthepurposeofthemessage.
Visualizingthereader(receiver).
Choosingtheideastobeincluded.
Gettingallthefactstobackuptheideas.
Outliningandorganizingthemessage.

1. Knowingthepurposeofthemessage:
Purposeistheprimaryreasontowriteorspeak.Itsidentificationleadstodeterminationof
thecontentsofthemessage.
Each message must have a specific purpose e.g. asking for rebate on defective goods,
announcingclearancesale,awakeninginactiveamount,makinginquiry,seekingjobetc.in
additiontothespecificpurpose,thegeneralpurposeofeverybusinessmessagemustbeto
establishgoodwillandgoodrelations.Forexample,thepurposeofacollectionlettershould
betwofoldi.e.askingformoneyandatthesametimemaintaininggoodrelationswiththe
customer.
2. VisualizingtheReader:
Itisveryimportanttoadaptthemessagetothereadersviews.Butwriteroftendoesnotknow
muchaboutthereader.However,attemptshouldbemadetoknowaboutthefollowingpoints.

1. Whatrelationshipiswiththereader?Isthereaderacustomerorasupplier,abossora
subordinate?
2. Whatispositionofthereader?Isreaderanengineeroranaccountant,asupervisororan
executive?
3. What is reading level of the reader? It can be guessed by noting the educational
qualification,technicaltraining,professionalstatusandexperienceofthereader.
4. Whatareinterestsofthereaderrelatingtojobandsocialactivities?
5. Howmuchreaderknowsaboutthesubjectmatteranditsbackground?
6. Isthereaderprejudicedorbiasedonreligious,politicalandsocialissues?
7. What are readers unspoken needs for information? This can be known by reading
betweenthelines.
3.ChoosingtheIdeas:
Thenextstepistochoosetheideas.Theideastoincludedependuponthemessagebeing
communicated.Forexample.Awelcomelettertoacustomer,shouldincludethefollowingideas:
1. Welcomingandtankingthereaderforopeningtheaccount.
2. Statingtheservicesandfacilitiesofferedtoregularcustomers.
3. Mentioningtheworkinghours.
4. Informingaboutthecredittermsanddiscountrates.
5. Assuringtohelpinsolvingthecustomersproblems.
4. GettingalltheFacts:
The facts and figures to be stated in a message may be certain names, dates, address,
percentages,statementsetc.forsomemessagesallthefactsmaybeinthewritersmind,butfor
othersextensiveprimaryand/orsecondaryresearchmaybeneededforcollectingtherequired

data.

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PrimaryResearch:
Primaryresearchdatamaybecollectedbyanyofthefollowingresearchmethods.
1. ExperimentalResearchMethod:Whichseekstodeterminewhetherachangeinonefactor
causeschangeinanother.
2. ObservationalResearchMethod:Whichinvolveseitherhumanormechanicalviewingof
theactionsorresultsofsomehearing,touching,smellingetc.
3. Survey Research Method: Which requires the researcher collect data from respondents
throughquestionnaires.
d.CombinationoftheVariousResearchMethod: Mayalsobeusedwhenanyoneofthe
abovemethodsisnotappropriate.
SecondaryResearch:
Secondaryresearchdatamaybecollectedfromthefollowingsources.
1. CompanyPublications: Newsletters,bulletins,brochures,pamphlets,handbooks,manuals
andcompanyrecordsandreports.
2. Books:Relatingtothetopicunderresearch.
3. Periodicals:Magazines,journalsandnewspaperspublishedatregularintervals.

4. Other Sources: Radio and T.V. programmes, publications of other companies and
professionalassociation.
5.
OutliningandOrganizingtheMessage:
Beforewritingamessage,itshouldbeoutlinedandorganizedeitheronpaperormentally.There
arefourdifferentorganizationalplansthedirectrequest,goodnews,badnewsandpersuasive
request.Thefirsttwousethedirectapproachandthelasttwo,theindirectapproach.
6.
RevisingandEditingandProofReading:
Thedraftshouldbereadparagraphbyparagraph,sentencebysentenceandwordbyword
to check the continuity of ideas and grammatical, punctuation and spelling mistakes.
Whilerevisingandeditingthemessageitmustbeensuredthatthemessagemeetsallthe
principlesofgoodbusinesscommunication.
7.

Acarefulproofreadingisessentialaftertherevisedandeditedmessagehasbeenfinally
typewritten.Beforeitismailed,itshouldbereadbyresponsibleandreliableperson,
becauseerrors,ifleftuncorrected,mayresultinlossofgoodwill,sales,incomeandeven
lives.

Q.WhatarethedirectandIndirectapproaches?
Direct(Deductive)Approach:
ThedirectapproachisusedforDirectRequestandGoodNewsPlans,becausethemessageis
easilyunderstandableandconsideredfavourableorneutral.Underdirectapproachthemessage
beginswiththemainideaorgoodnews,andnecessaryexplanatorydetailsfollowsinoneor
several paragraphs. The message ends with an appropriate friendly paragraph. Thus a direct
approachhasthreepartsmainidea,explanationandfriendlyclose.
Indirect(Inductive)Approach:
TheindirectapproachisusedforPersuasiveRequestsandBadNewsPlans,becausethereceiver
isexpectedtoresistandreactunfavourably.Underindirectapproachthemessagedoesnotbegin
with the main idea or bad news. Instead it begins with some relevant pleasant or neutral
statementsfollowedbyadequateexplanations,beforeintroducingtheunpleasantidea.Herealso
themessageendswithappropriatefriendlyorsympatheticwords.Thus,anindirectapproachhas
fourpartsstatementstogetinstepwiththereader,explanations,mainideaandfriendlyand
courteousclose.
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PreparedByProf.M.Aqil

What are the four basic organizational plans? Prepare brief


outlines for each of these plans.
Ans: BASICORGANIZATIONALPLANS:
Therearefourbasicorganizationalplans:
(1) Directrequest,
(2) Goodnews
(iii)Badnewsand
(4) Persuasiverequest.
Thefirsttwousethedirectapproachandthelasttwo,theindirectapproach.

17.

Direct(DeductiveApproach:
Thedirectapproachisusedfordirectrequestandgoodnewsplans,becausethemessageis
easilyunderstandableandconsideredfavourableorneutral.Underthisapproachthemessage
beginswiththemainideaorgoodnewsandnecessaryexplanatorydetailsfollowsinoneor
severalparagraphs.Themessageendswithanappropriatefriendlyparagraph.Thusadirect
approach has three parts shown in the following out lines for Good News and Direct
Requestplans.
GoodNewsPlan
DirectRequestPlan
01. GoodNewsormainidea:
01. MainIdea:
a.Request,Mainstatementorquestion.
b.Reason(s)ifdesirable.
02. Explanation:
02. Explanation:
a. Allnecessaryanddesirabledetails.
a.Allnecessaryanddesirabledetails.
b. Resale
material
(Favourable
b.Numberedquestionsifhelpful.
informationaboutaproductor
c.EducationalMaterial.
servicehasalreadyboughtoris
planningtobuy).
c. Easyreadingdevices.
d. Sales
promotion
material
(suggestions
for
additional
productsorservicesthecustomer
mayfinduseful).
03. PositiveFriendlyClose:
03. Courteousclosewithmotivationto
action:
a. Appreciation
b. Clearstatementofactiondesired,
a. Clearstatementofactiondesired.
ifany.
b. Easyaction.
c. Easyaction.
c. Datedactionwhendesirable.
d. Datedactionwhendesirable.
d. Appreciationandgoodwill.
e. Willingnesstohelpfurther.
f. Readerbenefit.
Indirect(Inductive)Approach:
The indirect approach is used for persuasive requests and bad news plans, because the
receiverisexpectedtoresistandreactunfavourably.Underthisapproachthemessagedoes
notbeginwiththemainideaorbadnews.Insteaditbeginswithsomerelevantpleasantor
neutralstatementsfollowedbyadequateexplanations,beforeintroducingtheunpleasantidea.
Herealsothemessageendswithappropriatefriendlyorsympatheticwords.Thusanindirect
approach has four parts shown in the following outlines for Badnews and Persuasive
Requestplans.
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BadNewsPlan
01. Buffer:(Pleasantorneutralstatements
togetinstepwithreader)

PersuasiveRequestPlan
01. Attention:
a.Readerbenefit
b.Readerinteresttheme
02. Explanation:
02. Explanation:
a.Descriptivedetails.
a. necessarydetails,tactfullystated.
b. Pertinent
favourable
then
b.Psychologicalappeals.
unfavourablefacts.
c.Readerbenefits.
c. Readerbenefitreasons.
03. Decision:(impliedorstated), along 03. Desire:
withofferofadditionalhelpor
a. Statementofrequest.
suggestions.
b. Convictionmaterialtohelpcreate
readersdesiretograntrequest.
04. PositiveFriendlyClose:
Action:
a. Appreciation
a. Clearstatementsofactiondesired.
b. Invitationtofutureaction.
b. Easyaction.
c. Clearstatementofactiondesired.
c. Datedactionwhendesirable.
d. Easyaction.
d. Specialinducement.
e. Datedactionwhendesirable.
e. Readerbenefitplug.
f. Willingnesstohelpfurther.
g. Readerbenefitandgoodwill.

OpeningandClosing
1Q

Two most important position in any business message is the


opening and closing paragraph elaborate.

Ans: Openingandclosinginbusinesslettersplayanimportantroleinmakingthemessage
effective.Theyarediscussedasunder.
Opening:
Firstimpressionsarelasting.Thisquotationrevealedtheimportanceofopening.Ithas
followingfeature.

1. ItCatchesAttention:
Agoodopeningcatchestheattentionofreaders.Themainpurposeofsendersinpersuading
requestistoconvincethereadertoreadthemessage.Agoodopeningfulfilsthisrequirement
efficiently.
2. ItMotivatestheReader:
Iftheopeningofletterisimpressiveitleavesgoodimpressiononthemindandattitudeof
sender.Ultimatelyitmotivatesorinducesthereadertodothedesiredactivity.
3. ItHelpsReaderUnderstandtheMainIdea:
Messageisstartingwiththemainidea,thereaderrealizesthatitisagoodnewsordirect
requestmessage,ontheotherhandifitisstaringwithabufferorneutralstatementitappears
tobeabadnewsorindirectrequest.Inthiswaythereadertreatsthemessageaccordingtoits
requirement.
Closing:
Closingmeansthelastparagraphoftheletter.Werememberbestwhatwereadlast.Agood
closinghasfollowingadvantages.

1. EmphasisUponAction:
Abusinessletteriswrittenwithaspecificobjective.Inthelastparagraphusuallytheemphasisis
upontheaction.Thisactionisessentialtofulfillthepurposeofletter.Forexampleinsales
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PreparedByProf.M.Aqil

lettertheobjectiveistosellbymail.Inclosingparagraphthereaderismotivatedtovisitsthe
shoporpurchasethegoodorservices.Becauseifthereaderacquiresalotofinformationfromthe
letterbutdoesnotpurchasethegood,themainpurposeoftheletterremainsunfulfilled.

2. ToMotivatetheReader:
Italsomotivatesthereadertopurchasetheproductassoonaspossible.Forthispurpose,a
deadlineisfixedoranyotherincentivewithaspecificperiodoftimeisgiven.
17.
Write a checklist for opening and closing.
Ans: ChecklistforOpeningParagraph:
1. Choseanopeningappropriateforthemessage,purposeandforthereader.
(1) Mainideaorgoodnewsfirstfordirectrequest,neutralandgoodnewsmessage.
(2) Bufferfirstforthebadnewmessage.
(3) Attentiongettingstatementfirstforpersuasiverequests.
2. Maketheopeningconsiderate,courteous,conciseandclear.
(1) Getreaderintoopening.
(2) Keepfirstparagraphrelativelyshort.
(3) Focusonthepositive.
(4) Usecourteousconversationallanguage.
(5) Avoidunnecessaryreputation.
3. Checkforcompletenessregarding.
(1) Sentencestructure.
(2) Dateofletteryouareanswering.
ChecklistforClosingParagraph:

1. MakeyouractionrequestclearandcompletewiththefinelistandH(how)ifyouwant
yourreadertodosomething.
(1) Whatandwho:Clearlystatewhatactionyoudesireandwhoshoulddoit.
(2) Howandwhere:Makeactioneasy.
(3) When:Datetheactionifdesirable.
(4) Why:Showreaderbenefitifpossible.
2. Endonapositivecourteousthought.
(1) Includeanypositivesandnegativesbeforethelastparagraph.
(2) Befriendly.
(3) Showappreciation.
(4) Occasionallyaddapersonnote.
3. Keepthelastparagraphconciseandcorrect.
(1) Avoidtriteexpressions.
(2) Omitdiscussionsoftrivialdetail.
(3) Userelativelyshortandcompletesentences.

Q. DISCUSS VARIOUS LEGAL ASPECTS IN


BUSINESS COMMUNICATION.
LegalaspectreferstotheselectionofwordsusedinBusinessCommunicationsoastoensure
theirconformitywiththerulesandregulationslaidbythecountrysbusinesslawfailuretowhich
maycauseapersontobeupagainstlegalactions.
Apersonorthecommunicatorshouldbemindfulofthefollowingareaswhilecommunicatingwith

1. Defamation
2. Invasionofprivacy

3. Fraud
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PreparedByProf.M.Aqil

4.

Misc.areas.

1. DAFAMATION:
Theunconsented&unprivilegedpublicationofafalseideawhichinjuresthereputationofa
personinasocietyiscalledDefamation.
Wewilldilateonthisareabygivingafocusedviewtosomeoftheimportanttermsusedinthe
definition.
Unconsented:
Unconsentedmeanswithoutagreement.Thismakesthefirstpointclearthatwhateveraperson
istodefametheotherperson,itisagainstthewillorconsentoftheotherperson.
However,insomeofthecasestheactofdefamationiscarriedoutwiththeconsentoftheperson
whoisaimedat.Someofthosecasesareasunder.

1 Showbiz
2 Sports
3 Politics
Unprivileged:
ThismeansUnrightful.Itsplaintounderstandthatitisdefaminganotherpersonwhenheis
notgiventheprivilegeorrightbythelawtodefame.
Somebodies/organizations/personshavetheprivilegetomakedefaminginformation/material
knowntothepeopleotherthanthetwopersonsinquestion.Privilegeismainlyoftwotypes.

1 Absoluteprivilege.
2 Conditional/Qualifiedprivilege.
AbsolutePrivilege:
Apersonhasabsoluteprivilegetodefametheotherpersonmeanshehasbeengivenfullrightby
the law to defame the other person on any matter whatsoever. This case is limited to the
followingareas:
JudicialProceedings.
AssemblyProceedings.
OfficialProceedings.
JudicialProceedings:
AparticularactionoracourseofactioninthelawcourtiscalledJudicialProceedings.The
Lawyersinsuchproceedingshavefullrighttodefamethepersonagainstwhomasuitisfiled.
AssemblyProceedings:
Legislatureistheplacewhererepresentativesofpoliticalpartieshavefulllibertytoensurethe
governmentorviceversa.
OfficialProceedings:
GovernmentbodiessuchasNAB(NationalAccountabilityBureau)havebeengivenabsolute
privilegetodefamethenabbedperson.
Conditional/QualifiedPrivilege:
PrivilegeundercertainconditionsorprivilegetodefameoncertainmattersiscalledConditional
Privilege.Forexample,anemployermaydefamehisemployeeonthefollowingmatters.
1 Tenure
2 Salary
3 Responsibilities
Publication:
Whenadefamatorymatterismadeknowntoathirdpartyeitherintentionallyorunintentionally
itscalledpublication.Publicationbranchesoffintotwotypes:
1 Slander
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PreparedByProf.M.Aqil

1 Libel
Slander:
Slanderisanoraldefamation.
Libel:
Itmeanstousewrittenmaterialsuchasnewspapers,letters,picturesetc.todefameaperson.
Asagainstslander,libelisconsideredasthesevereroneandisofmoreseriousconsequences
becausethedefamatorymaterialisathandtodragthedefamertothecourtoflaw.
FalseIdea:
Astatementwhichistermedasdefamatoryshouldbefalseinitsnature.Ifitsrightandnotfalse,
thenitcanneverbetermedasdefamation.Therefore,ifinacourtoflawthedefendantproves
thatwhateverhemadepublicabouttheplaintiffisabsolutelytrue,hecouldnomorebeliablein
thecaseofdefamation.
Person:
Anaturalindividual.
Injury:
Harm.
Society:
Anypersonotherthanthedefamerandthepersonwhoisdefamedorinshort,thirdpartymember.
Unconsented:
Unconsentedmeanswithoutagreement.Thismakesthefirstpointclearthatwhateveraperson
istodefametheotherperson,itisagainstthewillorconsentoftheotherperson.
2. INVASION OF PRIVACY:
a. IntrusionintoaPersonsPhysicalsolitude:
This sheds light uponthe fact that there are certain activities we engage in our solitude or
loneliness.Ifapersoninfringesuponanotherpersonssuchactivities,hesinvadinguponthat
personsprivacy.
b.Disclosureofprivatefactsaboutanindividual:
Ifsomeprivatefactssharedbytwoindividualsaredisclosedbyanyoneofperson,itsinvasion
ofprivacy.
c. Usingapersonsnameoridentityforacommercialpurposewithouthispermission:
Wecallitinvasionofprivacywhenwithouttheconsentofaperson,hisnameoridentityisused.
PepsisShahrukhKhan&FakeHritikRoshanstarringad.Isthepointincase.
d.Throwingfalsepubliclighttoapersonunintentionally:
Ifunintentionallyapersonisexposedtopublicattentioncensurethenthepersonresponsiblefor
itmayhavethecourtoflawtoanswertoforinvadingupontheinnocentsprivacy.

3. FRAUD:
Fraudisanintentionalmisrepresentationoffactswithaviewtoinducetheothertoenterintoa
contract.
EssentialElementsofaFraud:
a. Itmustbeintentional:
Todoafraudapersonshouldwillinglymisrepresentafact.
b.Itmustrelatetoamaterialfact:
Itmeansthatafraudisalwaysrelatedtoanimportantfact(Afactuponwhichacontractismade).
c. Itmustbegivenbeforetheconclusionofthecontract:

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Thissignifiesthatafraudisalwaysdonebeforetheendingofacontract.Aftertheendofthe
contractafraudcannotbetermedasafraudevenifitisafraud.Therefore,makingtheperson
responsibleforthefraudnotliableforanylegalproceedings.
d.Itmustinducetheotherparty:
Afraudisdesignedinamannersoastocompeltheotherpartytoengageinacontract.
e. Itmustbeastatementoffactnotastatementofopinion:
Itmeansthatitshouldbaseuponaconcretefact,whichdoesnotvaryfrompersontoperson.
f. Itmustresultinalosstotheaggrievedparty:
Itmakesthepointdistinctthatafraudisalwaysendinafinanciallosstothevictim.
4. MISC. AREAS:
a. CurrencynotesandGovernmentpapersetc:
Apersonwhocounterfeitscurrencynotes,treasurybillsorbondsmayfindhimselfinthecourtof
lawforacrimelikethat.
b.Copyright:
Theftofcopyrightmaterialsuchasrepublishingabookwithouttheconsentofthepublisherand
reproductionofanauthorizedrecordedtapesorCDsmaycauseapersonliabletolegalactions.
c. Pornographicmaterial:
Anyobscenematerial,whichisagainstthemorality.
BUSINESS WRITING PRINCIPLES
OR
SEVEN Cs IN BUSINESS COMMUNICATION

1. CORRECTNESS:
Normallyitisassumedthatcorrectnessonlyreferstospelling,punctuationandgrammaretc.but
businessCommunicationissomethingmorethanthat.Followingguidelineshouldbeconsidered
forachievingcorrectness.
(1) Usethecorrectleveloflanguage
(2) Includeonlyaccuratefactsandfigures.
(3) Maintainacceptablewritingmechanics.
(a)UsetheCorrectLevelofLanguage:
There are usually three levels of language that is formal, informal and substandard.
Informalleveloflanguageisthelanguageofbusinessletters,memosandreports.Formal
languageisusedforwritingresearchpapersandlegaldocumentsetc.Substandardlevel
oflanguageisnotusedinanytypeofcommunicationbecauseiteitherreferstothestreet
languageorunacceptablelanguage.
Incorrect:
Correct:

Wethankyouinanticipationofthiscourtesyandassureyouthatitwillbe
apleasuretoserveyouinsimilarmanners.
Iwillappreciateyourhelpingus.LetmeknowwhenIcanreturnthefavour.

(b)IncludeOnlyAccurateFactsandFigures:
Thewriterofabusinessmessageshouldspecificallybecarefulwhenheisquotingany
factorfigure.Thesituationismorecriticalwhenthereaderreliesontheaccuracyoffacts
andfigures.Anincorrectfiguremayleadeventothelossofcustomer,becausecustomer
mightfeelthatheisnotdealingwithbusinesslikepeople.Forexampleifabankmanager
providesawrongbalancefiguretohisaccountholder,theresultmightbedisastrousfor
thebank.
(c)MaintainAcceptableWritingMechanics:

PreparedByProf.M.Aqil

Writingmechanicsincludeanumberofconsiderations.Forinstance,useofgrammar
rules,sentencesstructure,composition,punctuation,spellingandallotherconsiderations.
WhichformthestructureofEnglishLanguage?

2. CONCISENESS:
Withtheadventofinformationrevolution,businessmessagesaregettingshortdaybyday.This
isbecauseofhugeinflowandoutflowofmessagesondailybasis.Therefore,concisenessisa
primerequirement.Followingpointsshouldbeconsideredforachievingconciseness.
(1) Omittingtriteexpressions.
(2) Avoidunnecessaryrepetition.
(3) Includerelevantfacts.
(a)OmittingTriteExpressions:
Triteexpressionsarealsocalledclichsorstereotypedexpressions.Theyareusually
longer,formalandrelativelymeaninglessbecauseofoveruse.
Example:
Trite:

Inaccordancewithyourrequestofrecentdate,weareenclosingherewith
ourcashierschequeintheamountofRs20,000,representingawithdrawal
ofsaidsavingA/c.No.3595.

Improved: AccordingtoyourrequestofApril25,chequeofRs.20,000isenclosed.
(b)AvoidUnnecessaryRepetition:
Skillfulbusinesswritersavoidunnecessaryrepetitionbyrewordingtheirmessageand
tryingtoreduceitbyalmost50%.Inotherwordsfirstdraftofthemessageisneverfinal
anditalwaysrequiresasecondrewordedreduceddraftbeforedispatchedtothereceiver.
Example:
Wordy:IhaveyourletterofOctober14andwishtosaythatwewillbegladtogiveyou
arefundforshirtyoupurchasedherelastweek.
Improved: Youcanavailrefundfortheshirtyoupurchasedlastweek.
(c)IncludeRelevantFacts:
Relevantfactsrefertothosenecessaryfactswhichshouldbepresentandshouldneverbe
compromisedforachievingconciseness.

3. CLARITY:
Clarityreferstoaclearunderstandingofthemessagebythereceiver.Inotherwordsthereceiver
should not face any problem in getting the meaning of the message. The clarity could be
achievedbythefollowingtechniques.
(1)
(2)
(3)
(4)

Choosewordsthatareshort,familiarandconversational.
Constructeffectivesentencesandparagraphs.
Achieveappropriatereadability.
Includeexamples,illustrationsetc.
(a)ChooseWordsthatareShort,FamiliarandConversational:
ThevocabularyofEnglishlanguageissorichthatanumberofwordsarepossiblefora
singleoccasion.IntodaysbusinessEnglish,analystssuggestthatitsbettertousesuch
wordsinbusinesswriting,whicharenormallyusedindaytodayconversation.Therefore,
itisalwaysbettertoavoiddifficultandhighsoundingwords.
Example:
ThebankstatementshowsanOverdraftofRs.10,000.
ThebankstatementshowsanexcesswithdrawalofRs.10,000.
(b)ConstructEffectiveSentencesandParagraphs:

PreparedByProf.M.Aqil

The number of paragraphs for a business message should not exceed more than 34
paragraphs.Withinoneparagraph,numberofsentencesshouldnotexceedmorethan34
sentencesandwithinonesentence,numberofwordsshouldnotexceedmorethan1215
words.
(c)AchieveappropriateReadability:
ForachievingreadabilityFOGINDEXiscalculated.Thecalculationisgivenbelow.
Formula:
WordCount
No.ofsentences
Averagesentencelength(1107)
HardWords
%ageofhardwords(13110x100)
Totalofaandb
Multiplier(27.5x0.4)
FOGINDEX

110
7
15.7 (a)
13
11.8 (b)
27.5
0.4
11

IftheanswerofFogIndexrangesbetween10and15,thismeansthemessageisreadable
byapersonhavingaverageeducationalbackgrouIftheanswerexceedsthemarkof15,
thismeanstounderstandthemessage,somehighereducationalqualificationisrequired.
(d)IncludeExamples,Illustrationsetc.:
Examplesandillustrationsworkassupplementarytoolsforthewriter.Exampleshelpthe
readertounderstandmeaningofthemessage.

4. COMPLETENESS:
ItisnotnecessarythatallsevenCscouldbeappliedtoalltypesofbusinessmessages.TheC
of completeness should be kept in mind especially giving replies to inquiries and writing
adjustmentletter.FollowingpointsareconsideredfortheCofcompleteness.
(1) Answerallquestionsasked.
(2) Givesomethingextra.Whendesirable.
(3) CheckforfiveWs.
(a)AnswerallQuestionsAsked:
Ifintheproductrelatedinquirytheprospectivecustomerhasaskedfourquestions,itis
muchnecessarytoanswerallthefourquestions.Evenifasinglequestionismissedand
notanswered,theinquirerishavingallthereasonstobelievethatthepersongivingreply
isacarelesspersonorheisnotinterestedinansweringthequestionsorthereissomething
wrongwhichheiswillingtohide.
(b)GiveSomethingExtraWhenDesirable:
Normallyagoodmarketingtechniqueappliedbymanagersistooffersomethingextra
apartfromoriginalquestionsasked.Thissomethingextramaybethepointofsaleforthe
producerbecausecustomerwouldliketobuyfromsuchamanufacturerwhoisoffering
somethingextra,whichothersarenotoffering.
(c)Checkfor5Ws:
FiveWstoWho,What,When,WhereandWhy.Forexampletoordermerchandise,we
shouldmakeclear What wewant, When weneedit, Where itistobesent, How the
paymentwillbeneeded.

5. CONCRETENESS:
Concretenessaddsconvictiontothemessage.Itiseasyforthereadertobelieveonconcrete
messages.Concretenessalsoincreasescredibilityofthesenderofmessage.Followingpoints
shouldbeconsideredforachievingconcreteness.
(1) Usespecificfactsandfigures.
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(2) Putactionintheverb.
(3) Choosevividimagebuildingwords.
(a)UseSpecificFactsandFigures:
Useoffactandfiguresplayavitalroleespeciallywhendescribingaproductorservice.
Example:
General: Thesebrakesstopcarwithinshortdistance.
Specific: Thehydraulicpressurebrakesstopacarwithadistanceoftwofeetassoon
as theyareapplied.
(b)PutActionintheVerb:
Thebasicfunctionoftheverbistodescribeactionofanounorpronoun.Therefore,care
shouldbetakenthattheactionshouldalwaysberepresentedbyverbandanactionis
foundinanoun,itshouldbeconvertedintoverb.
Example:
Noun:
Theyheldmeetingintheoffice.
Verb:

Theymetintheoffice.

(c)ChooseVividImageBuildingWords:
Vivid image building words are generally used for creating an impression upon the
reader,sothatthereadershouldstartbuildinganimageoftheproductorserviceinhis
mind.Suchwordsareusedinsalesandsalespromotionletters.
Example: Thisisaverygoodcomputer.
ThePIV800MHz,20GBHD,64MBRAM,500MBCACHE,Intelgenuineprocessor,
inATXcasingisacomputerofnewmillennium.

6. CONSIDERATION:
Considerationreferstogivingimportancetotheotherpersonwhetherheisareaderaudience,
spectatororlistener.Forachievingconsiderationfollowingpointsareconsidered.
(1) Youattitude
(2) Showreadersinterest
(3) Applyintegrityinthemessage
(4) Emphasizethepositive

(a)YouAttitude:
Youattitudemeanswritingabusinessmessagefromthepointofviewofthecustomeror
atleastshowingthatthecustomerisveryimportant.
Example:
IAttitude:

Weallow5%discountonCashPayment.

YouAttitude:

Youcanenjoy5%discountonCashPayment.

(b)ShowReadersInterest:
Peoplearebasicallyselfishintheirnature.Theyareonlyinterestedinthemselvesand
theyalwayslookforsomematerialbenefit.Thereforebusinessmessagesshouldalways
bedraftedinsuchamannertooffersomethingtothecustomer,whichisofinterestfor
him.Minditcustomersarenotinterestedintheproducerorserviceprovider.Theirfocus
ofconcentrationistheirownself.Acustomerwillbealoyalcustomer,ifheisobtaining
somebenefitonaregularbasis.
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(c)ApplyIntegrityintheMessage:
Integrityreferstocharacterinthebusinessmessage.Thiswouldcomebybeinghonest
andtruthfulwiththecustomer.Nevermakesuchapromise,whichcanbefulfillednever
givefalsehopestothecustomerandalsoneverbluffthecustomer.
(d)EmphasizethePositive:
Mostofthestatementseveninbusinessmessagescouldbewrittenfromangles.Oneis
the positive angle and the other is the negative one. It is always better to highlight
positivelyratherthannegatively.
Example:
Negative: Wedonotrefundiftherefunditemissoiledandunsalable.
Positive:

Wedorefundifthereturneditemiscleanandsaleable.

7. COURTESY:
Surviving in todays business world requires courtesy on the part of producer or seller. A
discourteousproducerorserviceprovidercannotsucceedinthebuyersmarket.Thatiswhy
famoussloganofCustomerisalwaysrightinvented.Toachievecourtesyfollowingpoints
shouldbeconsidered.
(1)
(2)
(3)
(4)

Betactful.
Omitexpressionsthatcanirritate.
Answer/mailpromptly.
Grantandapologize.
(a)BeTactful:
Tactmeanshandlingcustomerwitharighttechnique.Otherwise,ifcustomersarenot
handledproperly,businessmaysuffer.
Example:
Tactless: YourletterisnotcompleteIcannotunderstandit.
Tactful:

IfIunderstandyourlettercorrectly,youwanttosaythat.

(b)OmitExpressionsthatCanIrritate:
Irritatingexpressionsaredislikedbyallandcustomersarenotanyexception.
Example:
(1) Youhavefailed
(2) Youhavenochoice
(iii)Youneglect
(4) Youclaimthat
(c)Answer/MailPromptly:
Itisamatterofbusinesscourtesythatallmailsshouldbeansweredpromptly.Alatereply
maygiveanimpressionthatthemanufacturerisnotinterestedinthecustomer.
(d)GrandandApologize:
Itisalwaysadvisabletogivesomefavortothecustomerifheaskedforit,andifsomemistakeis
committed,itisbettertoapologize.
LISTENING
Q. What are the responsibilities of a good listener? OR
Explain consideration before starting listening?
Ans: Therearefollowingresponsibilitiesofgoodlisteners;

1.Preparationforlistening:

Alistenershouldpreparehimselftolisten.Thispreparationincludesfollowingpoint:
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(1)
(2)
(3)

Notalking:Alistenermustnottalkwhenheisgoingtolistenotherwise,theideamay
notbereceivedoritmaybeinterrupted.
Avoidingdistraction:Thelistenershouldnotdistracthisattentionfromthespeaker
tosomeotherobject.Shufflingpapersordoinganyotherthingmaydisturbthe
personofreceivingideas.
Goodenvironmentalcondition:Thelistenersshouldarrangeasuitableconditionbefore
listening.Noiseoftraffic,poorventilation,extraordinarywarmnessor
coldness
and
manyothersuchthingscauseproblemsinlistening.

2.Concentrationonmessage:
Alistenerisrequiredtoconcentrateonverbalandnonverbalmessage.Forhavinggood
concentration,followingpointsaretobeconsidered:
(1)
Controllingemotionandfeelings:Sometimesithappensthatspeakerswordshurtthe
feelingsoflisteners.Inthissituationthelistenersshouldcontrolhis/heremotionand
feelingbecauseifhelosestemperament,hecannotgetthemessage.
(2)
Avoiding evaluation: The listener should concentrate only on listening and avoid
jumpingtoconclusionorevaluatingthemessage.
(3)
Showinginterest:Thelistenershouldshowhisinteresttothetopicsothatthespeaker
canbemotivatedtoconveyhisideasinabetterway.
What are the faults/pitfalls of listening?

17.

Ans: Listeningisaveryimportantaspectoforalcommunication.Ifthereisanylackingorfault in
listening,itmightcausefailuretocommunicationprocess.So,peopleshouldbewellawareoffaultsin
listeningsoastoimprovetheoverallcommunicationability.Thesefaultsareenumeratedasunder:

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

Prejudiceagainstthespeaker.
ExternalDistraction.
Thinkingspeed.
Prematureevaluation.
Semanticstereotype.
Deliveryofspeech.
Language.
Sluggishness.

Theexplanationofabovementionedpointsisasunder:

1.Prejudiceagainstthespeaker:
follows:

Sometimesthespeakerconflictswithourattitude.Thesummaryoftheseconflictsisas

(1)
(2)

Personality of the Speaker: If the speaker is not liked by the listener, the
listenermaynotpayattentiontolistening.Forexampleabusinesspersonmight
notlistentohisrivalbecauseheisbiasedwiththepersonalityofthatrival.
Thoughts of speaker: If the thoughts of speaker are in contrast with the
listenersthoughtsthelisteningprocesscouldbedamaged.

2.ExternalDistraction:

External environment affects listening a lot. Noisy fans, poor light, distracting
background music, overheated or cold room, poor ventilation and many other things distract a
listenersattentionfromthespeakersmessage.

3.Thinkingspeed:

Onaverage,mostofusspeakbetween80and160wordsperminute.Whereas,people
havetheabilitytothinkattherateofupto800wordsperminute.Despitethisfact,thelistenermay

haveslowerthinkingprocessduetothefollowingreasons:

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(1)
(2)

Competition of concentration: The listener could not concentrate on the


messagebecausehehasmanythingstothinkbesideslisteningtothemessage.
Doingsomeotheractivity:Thelistenermightbeinvolvedindoingsomeother
activity.

4.Prematureevaluation::

Whenthelistenerstartsevaluatingthemessageduringtheprocessoflistening,he/sheis
notattentiveenoughtothemessage.Thisisanotherfaultoflistening.

5.Semanticstereotype:

There are many topics to which the listener has emotional and psychological
belongingness.So,thetopicandissueswhichhurthisfeelingsarenotabsorbedbyhimeasily.

6.Deliveryofspeech:

Amonotonecaneasilyputthelistenertosleeporcausehimtolosetheinterest.

7.Language:
Anotherfaultoflisteningisthelanguage.Ifthespeakerusingsuchwords,idioms,or
structureoflanguagewithwhichthelistenerisnotfamiliar,thespeakerwillfacedifficultiesin
conveyinghismessage.

8.Sluggishness:

Ifthelistenerismentallyorphysicallytired,orhabituallylazy,hewouldfeeldifficultyin
listeningtothemessage.
Q.

What are the guide lines to effective listening? OR How


can good listening habits be developed?

Ans: Listeningisveryimportantaspectofcommunication.Around20%ofoverall communication


is listening. Therefore, one should strive for adopting good listening habit. There are following
guidelinesforgoodlistening:
(1)
Preparationbeforelistening.
(2)
Listeningtounderstand,nottorefute.
(3)
Focusingtheattention.
(4)
Concentrationoncontext.
(5)
Takingnotes.
(6)
Curbingtheimpulsetointerrupt.
(7)
Askingquestions.
(8)
Summary&evaluation.
Thedetailsofeachpointareasfollows:

1.Preparationbeforelistening:
Asalreadymentionedthatlisteningplaysimportantroleincommunication.Soone
shouldpreparehimselfbeforestartinglistening.Inpreparation,therearefollowingguidelines:
(1)
Stop talking: Human brain can perform one activity efficiently at a time, so
duringlisteningthereshouldbenotalkingbythelistener.
(2)
Removedistraction:Noisyfan,trafficnoise,entranceofunauthorizedpersons
mayinterruptthelisteningprocess.Allthesebarriersshouldberemoved.
(3)
Goodenvironmentalconditions:Thereshouldnotbeextraordinarycoldorwarm
environmentandventilationsshouldbeproper.

2.Listeningtounderstand,nottorefute:

Therecouldbemanytopicstowhichthelistenerhasreservations.Apartformthese
reservations,thelistenershouldtryhisbesttounderstandthemessage.

3.Focusingtheattention:

Theremaybemanyobjectsonwhichthelistenershouldconstructamentaloutlineof
wherethespeakerisgoinginhisspeech.

PreparedByProf.M.Aqil

4.Concentrationoncontext:
Thelistenershouldkeepinmindthebackgroundandthemeofspeech.Thisthingenables
himtoabsorbthematerialquicklyandefficiently.

5.Takingnotes:

Listenershouldkeepontakingnotes.Hence,heshouldjotdownideasratherthan
sentences.Inthisway,he/shecouldmakethemessagesafeforalongtime.

6.Curbingtheimpulsetointerrupt:

Oneshouldavoidinterruptingthespeechuntilthespeakerinvitesquestions.Thishabit
putsthespeakerandlistenerbothatease.

7.Askingquestions:

Askingrightquestiononrighttimeisquitedifferentforminterruption.Listenershould
haveanideatoknowrighttimetoaskquestions.

8.Summary&evaluation:

Thelistenershouldsummarizeandspeechbutnotduringlisteningprocess.

Q.3

Why should a business communicator know about


listening? OR Discuss advantages of good listening: OR
What is the purpose of listening? Discuss;

Ans: Listeningisanimportantaspectofbusinesscommunication.Itstandsthirdafterwriting and


speaking.Abusinesscommunicatorhastolistentovariouscustomer,employees,officer,suppliers,
financiersetc.Obviously,itisanunavoidabletaskforabusinessperson.Thisimportantreasonasto
whyabusinesscommunicatorshouldknownaboutlisteningisenumeratedasunder.
(1)
Togainnewinformationandideas.
(2)
Toquestionandtestevidenceandassumptions.
(3)
Tobeinspiredandmotivated.
(4)
Toimproveoverallcommunication.
Theexplanationofthesepointsisasunder:

1.Togainnewinformationandideas:
Abusinesspersonhastogetnewinformationandideasfromvariousparties.Forexample
hegets the informationfromcustomers regardingthe product.Hetakesvariousideas from the
employeesinsidetheorganization.Hereceivesorderorinstructionformshissuperiors.Hegets
trainingformhisinstructor.Alltheseactivitiesrequirehimtobeagoodlistener.

2.Toquestiontestevidenceandassumptions:

Anyactivity,particularlybusiness,activityrequiresgoodanalyticalskilltosurviveinthe
environment.Agoodlistenerdoesnotfeelmuchdifficultyindoingso.Themessageofspeaker
mostlyconsistsoffacts(Verifiabledata)oropinions(inferences).Goodlistenerstestthosefactsand
opinionsagainstassumptionsandthenquestionthespeaker.Inthiswayheisabletoanalyzethe
massageandtreatitonitsmerit.

3.Tobeinspiredamotivated:

Adynamicbusinessmanwantstobemotivatedagainandagain.Goodlisteningenables
himtotakeinspirationfromthemessageandbringsaboutenthusiasminhisattitude.

4.Toimproveoverallcommunication:

Abusinesspersonneedsstrongcommunicationskillstosurviveinthemarket.Andto
faceahighdegreeofcompetition.Thiscanonlybeachievedbyhavingstrengthinallareasof
communicatingi.e.writing,reading,speakingandparticularlylistening.

17.

What do you mean by good listening and bad listening?


Discuss,

Ans: Goodlisteningmeansapersonsabilitytounderstandthemessageeffectivelyand
efficiently.Itresultsinimprovedcommunicationandquickfeedback.

PreparedByProf.M.Aqil

ADVANTAGESOFGOODLISTENING:
Listeningisnotjustheart.Itisrespectivelythatpermitsunderstandingofwhatisheardandmakes
thelistenerasharerincommunication.
Listeningisaskillthatrequiresparlanceandlact.Therearecertainadvantagesofgoodlistening.
1. Itleadstohelpfulpositiveattitudes.
2. Itpermitsthespeakerandlistenertoimprovecommunication.
3. Itprovidesafeedbacktothespeakerwhocanadjusttothesituationandhelpshis/hergive
better presentation.
4.Itcreatesbetterunderstandingofthetwoparties.

Badlistening:
Itmeansapersonsdisabilitytounderstandthemessagepartiallyorcompletely.Itresults
in(i)Poorhearing(ii)Poorunderstanding(iii)Poorinterpretation,
Itcanbeovercomebyfollowingtheguidelinesoflistening.

Interview
17.
Explain the types of patterned interview .
Ans: Inapatternedinterviewtheinterviewercontrolsthedirectionofconversation.Itisof
followingtwokinds.
1. DirectInterview:Inthedirectinterviewtheinterviewerkeepsveryclosecontrolatalltimes
bydirectinglimitedandspecificquestion.He/Sheaskscloseendedquestionanddoesnotlet
theintervieweespeakfreely.
2. IndirectInterview: Intheindirectinterviewtheinterviewermakeslittleornoattemptto
directtheapplicantconversation.

17. Whatarethedifferentpurpose/objectivesforwhichinterviewiscarried?
ANSWER.
Intertiesarefacetofacecommunication.ItisaformofinterpersonalCommunication.Interviews
arenotjustforjobprocurement.
Thepurposeforwhichinterviewsarecarriedmaybeasfollows:
1.CONUSELLING:takenbyasupervisor,officer,orcounselorwhomayaskquestionsrelatingto
work or problem from the employee. In other cases interviews may be conducted by a
doctor/psychiatristofpatientsorpersonfacingpsychologicalproblems.
2.EVALUATING: takenbysupervisor,managertoreviewandevaluatetheperformanceofthe
employee(s).
3.DISCIPLINING:takenbyanofficer,managerifthebehavioroftheemployee(s)requireaction
tomaintaindiscipline.
4.COMPLAINING:takenbyanofficer,manageriftheemployee(s)wishtolodgecomplaintfor
certaindissatisfactionoractionrequired.
5.TERMINATING:takenbyanofficer/managertoinformemployee(s)abouttheterminationfrom
job.
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PreparedByProf.M.Aqil

1.OtherobjectivesTherearefollowingobjectivesofpatternedinterviews.

1. Theresumeprovidesalotofinformationaboutthecandidatebutnotalltheinformationso
thisinterviewisconductedtoevaluatejobqualificationthattheresumecantprovide.
2. Anotherpurposeistodeterminetherealcommunicationabilityoftheinterview.
3. Thisinterviewalsohelpstheinterviewerprovideessentialfactsaboutthejobandcompany.
4. It also instills a feeling of material understanding and confidence in the applicant, who
acceptsthejob.
5. Itpromotesgoodwilltowardsthecompany,whethertheapplicantacceptthejobornot.Itis
importanttogivetherightimpressiontothecandidatewhoisdisappointedbyaturndown.
Discuss briefly various symbols of positive and negative
attitude of an interview?

17.

Ans: Aninterviewmayhaveanegativeorpositiveattitudeduringthetimeofinterview.The
summaryofthesenegativeorpositivesymbolsisasbelow.
A.DirectInterview:
a)
b)
c)
d)
e)
f)
g)
h)

Positive
Earlyarrival
Alert,responsibleattitude
Emphaticattitude
Relaxedmanner
Smiles
Clearvoice
Diligent,responsible,smart
Stronganddeterminedattitude

Negative
Latearrival
Intensive,dullattitude
Withdrawnattitude
Tension,bodytremor
Frowns
Chokedvoice
Lackofconcentration,dull,weak
Lackofdetermination

B.VerbalBehavior:
a)
b)
c)
d)
e)
f)
g)

17.

Positive
Stickingtothemainpoint
Relevantresponses
Wellorganizedpresentation
Appropriateuseofhumor
Spontaneousreplies
Speakingwellofpeople
Eyecontactingconfident

Negative
Changingthesubject
Irrelevantresponses
Disorganizedpresentation
uncalledoflevity
Longpausebeforereplying
Criticismofothers
Lookingsidewayscrestingayesdownward.

How should an effective interviewer behave during interview?


What pitfall an effective interviewer avoid? What are the
guidelines

to an interview to conduct and effective interview? Or what


are the responsibilities of an interviewer?
Ans: Givinganinterviewisequallyimportantastakinginterview,onehastobeverycareful while
givinganinterview,therearefollowingguidelinesingeneralwhichcouldenableaninterviewerto
conductagoodandeffectiveinterview.
1) Preparation
2) Conductduringinterview
3) Evaluation

1) Preparation:
Theinterviewershouldpreparehimselfbeforetheinterview,thefollowingpointsaretobe
consideredinthisregard.
1. ReadingapplicantsResume:Thereismuchinformationproviderinhisresumesothe
resumeshouldbereadindetail.Soastoasksthequestionintheperspectiveofresume.
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PreparedByProf.M.Aqil

2. BeingawareofstateRegulation:Therearemanypoliciesandrulesandregulationmade
byastateabouttherecruitmentofemployees.Theinterviewershouldbeawareofthem
soastoavoidanyprospectivelawsuit.
3. Planningthequestions:Theinterviewershouldplanthepatternofquestion,thenumber
ofquestiontypeslengthdurationetc.shouldbeclearinthemindofinterviewer.
4. Omittingpersonalbias:Theremightbemanybiasesinthemindsofinterviewerabout
thecandidates.Inordertomaketheintervieweefairheshouldavidthesebiases.

2) Conductduringtheinterview:
Havingpreparedfortheinterviewtheinterviewershouldconsiderthefollowingpointsduring
interview.
1. Lettingthecandidatespeak:Themainobjectiveofinterviewistohavetheinformation
fromthecandidateasmuchaspossible,sointerviewershouldletthecandidatespeakas
muchaspossible.
2. Usingthelanguageofcandidate:Ifthereisnorestorationregardingthelanguagesucha
languageshouldbeusedinwhichthecandidatefeelseasyandfree.
3. Avoiding arguing with the candidate: The purpose of interview is to evaluate the
candidatenottosolveadispute,soargumentationwiththecandidateshouldbeavoided.
4. Notinterruptingthecandidate:Thecandidateisalreadyunderalotofpressure.Sothe
candidateshouldnotbeinterrupted.
5. Controllingtheemotions: Duringtheinterviewtherearemanystagesonwhichthe
interviewersmightgetemotional.Thismaycausefailurestotheinterviewprocess.
6. Establishingeyecontact:Inordertobeconfidentandtheputthecandidateatcase,the
interviewershouldestablishaneyecontactwiththecandidate.
7. Usingbodylanguage:Useofbodylanguagecanplayanimportanttomakethequestion
clearthecandidate.
8. Askingopenendedquestionsinstantly:Thecloseordeadendedquestionsarenotvery
usefultoacquiremoreinformation.Soopenendedquestionshouldbeaskedasmuchas
possible.
3) Evaluation:
Aftertheinterviewthelaststepistoevaluatetheinterviewee.Forthispurposethereare
followingpointswhichshouldbegivenimportance.
1. Nopersonalbias:Theremightbemanycandidateswithwhomtheinterviewermayhave
personalbias.Thisshouldbeavoidedinanycasesoastohirethepotentialpeople.
2. Clearcutstandards: Theinterviewershouldtrytoestablishaclearcutstandardfor
evaluationsuchaspointsystem.
17.
What pitfall an interviewer should avoid?
Ans: Therearemanythingsinwhichtheinterviewercaneasilybetrapped.Therearethegeneral
pitfallswhichshouldbeavoided.Theyrelatemainlytothefollowingbiasesprejudicesandother
weaknesseswithintheinterviewer.
1. HaloEffect:
Itisthetendencyoftheinterviewertofromanoverallopinionregardingtheapplicantonthe
basisonasingleaspectofhisorherpersonality.Forexample,ifthecandidatedidnotcomb
hishairsproperlytheinterviewermighthaveanimagethattheapplicantisacarelessperson.

2. StereotypeErrorTrap:
Itisthetendencytocategorizethecandidateonthebasisoffeaturesofsurfacecleansor
somesuperficialhints.
3. ExpectancyError:
Itisthetendencyoftheapplicanttoanticipatetheneedandpreferenceoftheinterviewerand
torespondaccordingly.Forexample,thecandidatemaygiveananswer,whichiscorrectbut
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PreparedByProf.M.Aqil

notinaccordancewiththeinterviewerpreference.Sotheinterviewershouldgivethe
leveragetothecandidate.

4. Idealimageerror:
Usually,aninterviewerhasanimageofacandidate.Thisusuallyhappensthattheimagein
themindinterviewerdoesnotcoincidewiththecandidate.Sotheinterviewershouldgoon
foracompromise.
5. Personalbiasoftheinterviewer:
Theinterviewermayhavemanypersonalbiasesagainstthecandidate.Poorhandshake,biting
offinger,gum,chewing,loud,clothes,pooreyecontactetc.theseshouldbeignored.
6. Pseudoscienceandmyths:
Handwriting,outwardfeatures,dateofbirthnumberoflettersnthenamelinesormakeson
thepalmofhandandshapeandbulgesoftheskullarenotscientifictollstojudgetheability
ofthecandidate.Aninterviewershouldavoidthem.
7. StereotypesMechemiol:
Interviewermightindulgeinmonotonyindifferentquestionsindifferentwaysshouldbe
asked.
8. Otherpitfalls:
Thereareanumberofpitfallsotherthanthosementionedabove.Theseareasfollows;
1.
Illusionthatthepreviousexperienceofitselfguaranteesabilitytodothejobwell.
2.
Being impressed because the applicant needs a job even though the necessary
qualificationislacking.
3.
Talkingtoomuchbyintervieweenotlistening.
4.
Poorpreparationbeforeinterview.
5.
Askinginappropriatequestions.
6.
Beingdiscourteousandrudetowardstheapplicant.
7.
Jumpingtoconclusion.
8.
Acceptingfactswithoutintendingtodeterminemeaningandaccuracy.
9.
Leavingunexploredgaps.
10. Allowingcandidatetoguidetheinterviewer.
11. Dependingonmemorytoconductinterviewandtoevaluatetheapplicantsqualification.
12. Askingotherquestionswhentheapplicanthesitatesamoment.
13. Appearingtobecriticalandcoldtowardstheapplicant.
14. Notobservingnonverbalbeclues.
15. Poorquestions(a)leadingquestion(b)loadedquestion(c)deadendedquestion.
1Q

What
is
the
role
communication? Or

of

interview

in

interpersonal

what is the purpose / Objective or patterned interview? Or


what is the importance or interview?
Ans: Interviewplaysaveryimportantroleininterpersonalcommunication,sinceitisbetween two
personsorpartiesi.e.interviewerandinterviewer,itsimportanceisdiscussedwithrespecttoboth
aspects.

1) FromInterviewerPointofView:
Interviewhasfollowingimportancefortheinterviewer.
1. ToMatchtheapplicantandthejob:
Ajobhasspecificrequirement.Everypersonisnotsuitableforeverykindofjob,sothe
interviewsenabletheinterviewertomatchtheapplicantandthejobrequirement.This
matchingmaybeinthefollowingway.
(a)MatchingQualification:

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Acandidatehavingamastersdegreedoesnotmeanthathehastheknowledgeof
masterlevel.Askingquestionsaboutthefieldofcandidateenablestheinterviewerto
knowastohowmuchknowledgethecandidatehasacquired.

(2) MatchingCandidateAbility:
Differentcandidateshavedifferentabilities.Theinterviewhelpsknowtheabilitiesof
everycandidateaccordingtothejobrequirement.
(3) OtherAreas:
Candidatesconduct,attitude,confidence,communicationskillandotherareasare
expressedmeansofinterviewers.
2. Todeveloptheimageoforganization:
Anothersecondaryroleofinterviewsistoestablishagoodimageofanorganization
beforecandidateandultimatelybeforethemarket.
2) FromIntervieweePointofView:
Aninterviewisequallyimportantforinterviewersasitsforinterview.Thisimportanceis
enumeratedasfollows.
1. Tohaveinformation:
Anintervieweecanhavedifferentinformationabouttheorganization.Thisinformation
mightbeabouttheorganizationnatureofjobsalaryruleandregulations,etc.
2. Tohaveasuitablejob:
Interviewhelpsthecandidateknowaboutthejob.Inthisway,he/shecanchoosethe
bestoneofhim/her.

Dictation
17.

What is dictating? State its importance and enumerate good


dictating techniques.

Ans: DICTATING:
Dictation is an oral communication between two persons (usually an executive and a
secretary).Theexecutivespeaks(dictates)amessagetothesecretary,whotranscribesthe
spokenwordsintoawrittenmessagethatistobesenttoaddressees.
Importance:
Thepersonwhocandictatemessagesclearlyandquicklysavestimeandmoneyforthe
employer,andwhoindirectlyhelpbuildcompanygoodwill.
Ontheotherhand,poordictatinghabitsresultinconfusions,errors,costlydamages,lossof
companygoodwill,anddamagestheexecutivesstatus.

SUGGESTIONSFORBETTERDICTATION:

Followingarethesuggestionsforimprovingdictatinghabits:
PreparationbeforeDictation:
Preparationbeforedictationrequirestheexecutiveto
1. Knowthepurpose.
2. Visualizethereader.
3.
Considerthesecretary.
4.
Collectallfactsneededforthecontentsofthemessage.
5. Prepareanoutline,withmainpointsonpaperorinmind.
GoodDictatingTechniques:
Gooddictatingtechniquesincludethefollowing:

PreparedByProf.M.Aqil

1.
2.
3.
4.

DictatinginalanguagethatpossessesalltheCqualities.
Dictatingfromtheoutline(preparedinadvance).
Clearpronouncing.
Clarifyingtheconfusingwordsandfigurese.g.EmaybeclarifiedbysayingEfor
elephantandSixtybysixzero.
5. Spellingtheunusualandconfusingwordsandnames.
6.
Givinginstructionsfornumberofcopies,reference,subject,ordinaryorregistered
mail,etc.
7.
Dictatingpunctuations.
8.
Maintainingacceptablespeed.
9.
Avoidingenvironmentaldisturbance.
10. Providingwrittenmaterialwhentherearetablesofnumerousfigures.
11. Settingatimefreefrominterruptionsbytelephoneorcallers.
12. Developingandusingsimpleabbreviationsandcodewords,e.g.SRMforsendby
registeredmail.
13.
Dictating only the basic ideas (allowing the secretary to compose the complete
message) when the message is of routine nature and the secretary has adequate
informationandability.
SigningofDictatedMessage:
Afterthesecretaryhastranscribedthespokenwordsintoawrittenmessage,theexecutive
signsit.Whiledoingso,he/sheshouldchecktheletterwithspecialattentiontospellings
and figures. The executive should also make sure that instructions as given have been
followedbythesecretary.

17.

Howcanadictationbeeffective?

ANSWER.
Writing latter in a big and busy organization may mean the use of Stenography/Secretary or
Recording Machine. Saying something to be written or noted down or recording. (L1 case of
mechanicaldevice)maymeandictation.
Foraneffectivedictationboththepartiesonegivingandtheothertakingthenotesshouldbe
alertandthrough.Itisherewhereitismorevalid:thinkbeforeyouspeak,similarly,understand
beforeyoumadeshouldbethemottoforthesecretary/steno.
Dictationmaybethroughmen/womanordictatingmachine.Bothneedstobehandledwithcare.

1. Dictationisgivenfromanoutline.
2. Enunciateclearlyinwordsandfigures.
3. Spellunusual/difficultwords,names,etc.
4. Givespecialinstructionsinthebeginning.
5. Dictatepunctuations,paragraphs,andquotations.
6. Dictateatnormalratewithease.
7. Dictatelessanddelegatemore.
8. Getpreparedtointerpretproperly.
Q.WhatarethefaultsofDictation?whatstepsyoushouldadopttoovercomethosefaults?
ANSWER.
DICTATIONhascertainfaultsifitisnotproperlydeliveredwhichisevidentfromthecomplaints
receivedfromsecretarieswhogetthedictation.Suchfaultsmayarisefromcarelesshandlingofthe
situationbytheexecutives.
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PreparedByProf.M.Aqil

However,somespecificfaultsmaybetracedinthefollowingpoints:
1. Lackofproperenunciation.
2. Lackofpatienthearing.
3. Lackofcarebythepersongivingdictation.
4. Lackofinterpretationbythepersongettingdictation.
Thereisnospecificsuggestiontostopdefinitemistakes.Inanycase,thesituationofdictationcan
improveifthefollowingpointsaretakenintoconsideration.

1) Dictationshouldbegivenfromanoutlinewellprepared.
2) Enunciateclearlyinwordsandfigures.
3) Spellunusualwords,namesandsounds.
4) Dictatespecialinstructionsinthebeginning.
5) Dictatepunctuation,paragraphs,andquotations.
6) Dictateatnormalratewithease.
7) Dictatelessanddelegatemore.
8) Getpreparedtointerpretproperly.

TELEPHONING:

1Q

Write a note on Telephoning.

Ans: ImportanceandAdvantages:
Forbusinessandprofessionaluse,thetelephoneisaneffectiveoralcommunicationtool
andoneofthemostimportantchannelsofcommunication.Oftenatelephoneconversation
cantaketheplaceoftwowrittenmessagesorafacetofaceinterview.Inmostofthecases
communicationthroughtelephoneiscomparativelylesstimetakingandmoreeconomical.
Telephone talks are also more effective in some cases than the written messages.
Somethingdifficulttosayinfacetofaceinterview,canbeeasilysaidontelephone.The
timethatphonecallssavetohandlecertaininquiriesandbusinessisvaluableforboththe
callersandtherespondents.Businessmayalsosellgoodsandservicesthroughtelephone
calls.Itisamedium,whichhelpscontactmorecustomers,morefrequentlyatlowercost,
andearnsmoneyfromsales.Thetelephoneistherefore,usefulinsavingmoney,timeand
labour,andincreasingefficiencyandrevenue.
Suggestionsforeffectivetelephoning:
Telephoning to be effective requires: (a) preplanning by the caller, and (b) desirable
behaviorduringconversationbytheconversingpersons.

Preplanning:

Beforecalling,thecallershould:
1. Knowthespecificpurposeofthecall.
2. Knowthepersontobecalled.
3.
Considerthebesttimetophone.
4.
Plantheopeningstatement.
5. Jotdownthequestionstobeasked.
6.
Havepaperandpenhandyfornotetaking,and
7.
Placenearthephoneanyfigures,file,correspondenceorwhatevermaybenecessary
forreference.
Desirablebehaviorduringconversation:
Calledshould:
1. Confirmwhetherthedesiredpersonorofficehasbeenconnected.
2. Statethepurposeofthecallatthebeginning.
3.
Summarizethemainpointsbeforeclosing,and
4.
Thankthelistenerandlethim/herhangupfirst.

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PreparedByProf.M.Aqil

Respondentshould:
1. Respondpromptlywithaclearpleasantvoice.
2. GreetthecallerbysayingASSALAMOALAIKUMandmentionatthebeginning
hisorher(respondents)nameadoffice.
3.
Answerallquestionsasked.
4.
Giveextrainformationifrelevant.
BothPersonsshould:

1.
2.
3.
4.
5.

Smile,becausethetoneofasmilingspeakersvoicesoundspleasantalthoughhe/she
arenotseen.
Trytomaketheconversationinteresting.
Listenwithoutinterruptingtheotherperson.
Listenforthetoneoftheotherpersonsvoice.
Holdthephonemouthpieceaboutinchesfromlips.

Leading
Q

CONCEPTOFLEADERSHIPINBUSINESS
ExplaintheconceptofLeadershipinbusiness.

ANSWER:
TheconceptofLeadershipinBusinessCommunicationmaybetracedinabusinessmeetingandits
success,Ameetingshouldbeheldonlywhenitisverynecessaryandcanbringaboutafruitful
result. The success of a business meeting depends on the ability of the leader initiating and
conductingthesame.
Abusinessmeetingisagatheringwherepurposivediscourseoccursamongpeoplewhoexchange
informationforunderstandingandmakingbetterdecisions.Ameetingisusefulwhentheleaderand
theparticipantscometoanunderstandingaboutanissue,Meetingsmaybeinformational,suggestive
orproblemssolving.
IMPORTANCEOFLEADING&PARTICIPATING:
Leadership,ofcourse,playsthekeyrole.Aneffectiveleaderisallouttosucceed.Leadershipmay
be of various kinds. Authoritarian, democratic, or notleaders to be the worse. Naturally,
authoritarian,isonechoicebutnotveryhappyone.Democracyistheonlywaytosatisfymanyof
theparticipantsandaccommodativeinnature.
LeadingandParticipatingarecharacteristicsthatdevelopintheprocessofcommunicationasand
whenneeded.Theyareneededindiscussion,symposium,debate,panelforum,etc.Leadersand
participantsare prominentpeopleinagivensituation ofworkand arefocusedon massmedia.
Leadingandparticipatinghelpsolvingbusinessproblemorresolveissuespertainingtobusiness
activities. The contribute idea that may influence a meeting in the business areas. Business
communicationdemandsboththeleaderandtheparticipanttocomeuptotheexpectationofthe
peoplewhohavebeengatheredaround.Theycanhelpmoveinaguidedmanner.
VARIOUSFUNCTIONSOFALEADER
Q.StatethevariousfunctionsofaLeader.
ANSWER:
Aleaserhastoadopteitherthestyleofdominationoraccommodation.Dependingontheabilitya
personcanbeaverysuccessfulleaderinbusiness.
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Thefunctionsofaleaderinameetingcanbeunderstoodwithreferencetotime(i)beforethe
meeting,(ii)duringthemeetingand(iii)afterthemeeting.

(1)
BEFORETHEMEETING:theleaderplansthepurpose,theaudience,meetingdate,time,
place,agendaandvenue.
(2) DURING THE MEETING: leaders opening statement, stimulating discussion, sorting/
selectinginterpretingdataandstatingtheconclusionplayveryimportantroleinunderstandingthe
functionofleaderandsometimesthetypesofLeader.
(3) AFTER THE MEETING: follow up is very necessary function of a leader, it includes
distribution of minutes and seeing that responsible committees, departments or individuals are
appointedandactionhasbeeninitiatedintherightdirection,i.e,asdecidedinthemeeting.
Sothefunctionsofaleaderinbusinesscommunicationprovidethekeytosuccessintheendeavour.
KINDSOFLEADERSHIP
Q

Whatarethedifferentkindsofleadership?

ANSWER:Leaderidtheonewhomakesthingssmoothlyinadesireddirection.Thefunctionmay
movefromappointedleadertogroupsmemberseachcontributingideasinflouncethemeeting.
Leadershipmaybeofvariouskinds:
1) Authoritarianleadership
2) Democraticleadership.
c)Notleadersorleaderless.

1. AUTHORITATIANLEADERSHIP:
Itisautocraticinnature.Thatsleadersuggestionsmustbeacceptedcommandsmustbecarried
out.Theleaderhascontemptfordisgruntledparticipantsanddominatesthethinkingofthegroup.
He even manipulates others to his/her advantage. He/she accepts those who praise him/her and
resentsthosewhodisagree.Hekeepspeopleundertightcontrolandisselfseekerandselflover.
2. DEMOCRATICLEADERSHIP:
Itisopposedtoauthoritariancontrol.He/shetohearpeopleareaccommodatetheirviews.He/she
sharesviewswithpeople.Hegivesconcessionandstrengthensorganizationbyparticipationandco
operation.Hemakespeoplefeelthatitisagroupdecisionandcarriesweightorconsolidatesresults.
Peopleundercommandfeelhappythatitistheirowndecision.
3. WithdrawnLEADER
Itisthewordtypeofleadership.HegivesupLeadershipinfavourofgroup.Hebelievesinshared
wisdomrather.Hehasnopowertolead.Heisjustinandcontinuoustoexist.Hehaslittledirection
andcontrol.Hedependsonothers.Itisatbesttryingtosurvivemarginally.

Naturally,authoritarianisnotaveryhappychoicebutitexistsinreallife.
DemocraticLeadershipistheonlywaytosatisfymanyoftheparticipantsandaccommodativein
nature.Thelastone,i.e.notleaderofleaderlessisundesirableandnorapopularpractice.
HencethemostdesirableisDemocratLeadershipand;acceptedbyallAutocraticLeadershipis
foundincommandingpositionmorepracticallyinauthorityinbornareaswheresocalleddiscipline
iseverything.

TYPESOFCONFERENCE:

Q.

Describe in details various types of

17.

Brieflydescribethetypesofconferences.

1. Informationalconference.

conferences.

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PreparedByProf.M.Aqil

2. Suggestedsolutionconference.
3. Problemsolvingconference.
1. InformationalConference:
Asthename implies thepurposeofinformational conferenceistodisseminate some
informationtotheparticipantsoftheconference.Assuchnodiscussionsareheldduring
such types of conference. As the purpose is simply to give the information, a larger
numberofparticipantsduringthemeetingarealsopossible.
2.

SuggestedSolutionConference:

In such types of conferences a predecided solution is presented in front of the


participantssothatapprovalordisapprovalboutthesolutioncouldbeobtained.
3. ProblemSolvingConference:
Thistypeofconferenceiscalledwhentheexecutivehasnoadequatesolutiontosuggest
regardingaproblemandheseekssolutionfromparticipants.
Q. What is a Problem Solving Conference? Explain its planning and
Procedure.
Ans: Thereareprimarilythreekindsofmeetingsofconferences.
1. Internationalconferencewhosepurposeistoprovideinformationtotheparticipants.
2. Suggestedsolutionconferenceinwhichasuggestedsolutionispresentedfordiscussion.
3. Problemsolvingconference.
ANSWER:BusinessMeetingsisaformofOralCommunication.ProblemSolvingConferenceisoneof
suchmeetings,Meetingswhichresultindecisionforactionisverycommoninbusinessworld.

The problem is presented in such a meetings to prepare a written report on it. The participant
suggestssolutions,discussandevaluatethem,andarriveatadecisiononwhichactionistobetaken.
HencethenameisgivenadtheProblemSolvingConference.
Whentheproblemisofcomplexnature,theproblemisgiventotheparticipantwhotriesto
solveit,forexampleifthereiscontinuousunrestandlabourandtheexecutivesareunabletosolveit,
ameetingmaybearrangedtosolvetheproblemwiththehelpofparticipantsinthemeeting.

Planningstepsbeforeproblemsolvingconference.

1. ReviewingtheProblemandDeterminethePrecisePurpose:
Before starting the conference the leader should have a clearcut idea about the central
purposeofmeeting.Theproblemmightbedeclineinprofitdecreaseinmarketshareetc.the
problemshouldbereviewedindetail.
2. DecidingWhoShouldParticipate:
Insuchameeting,theparticipatinghavetoplayaveryimportantroleso,ithastobedecided
verycarefullywhoshouldparticipate:Theparticipantmaybeamongmanagerialstaffofthe
organization,specialistoutsidetheorganizationetc.
3. ArrangingforMeetingDate,Time,Place:
Thedate,timeandplaceshouldbearrangedproperly.Whiledecidingthese,oneshouldhave
knowledgeaboutthestrikes,holidays,weatheretc.havingdecidedthem,theirinformation
shouldbecommunicatedproperlytoallparticipants.
4. CreatinganAgenda:
Itisdesirableforthechairpersontosendtheagendainadvancedofameetingusuallythree
questionsarebroughtforthemeeting:
i. Facts Issomethingtrueornot.
2.
ValueWhethersomethingdesirableorundesirable.
3.
PolicyShouldsomethingbedoneornottobedone.
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5. DistributarystheAnnouncement:
Anannouncementshouldbedistributedtotheparticipant,Itshouldhavedate,time,place
agenda(ifany)purposeetc.
6. CheckingnPhysicalArrangement:
Itshouldinclude.
1.
Selectingtheseatingpattern.
2.
Determiningwhatkindofmaterialisneededintheroom.
3.
Makingavailablethevisualelectronicvisualaid.

ProcedureDuringtheMeeting

Aproblemsolvingmeetingcanhavethefollowingprocedure.

1. BeginningwithanOpeningStatement:
Aneutralopeningstatementformthechairpersoncangetthesessionofapositivenote.This
opening may be a statement of the problem, quotation, purpose peer ode of meeting
suggestionofissuesetc.
2. StimulatingDiscussion:
Involvingallmembersinadiscussioniscentraltoleaderresponsibilities.Askingquestion
providinginformationusingvisualaidetc.
3. Understandingtheroleofparticipant:
Thereareseveralclassificationsofparticipants.Thechairpersonshouldknowthemandtreat
themaccordingly.Therearesomeparticipantswhoarecalledsilentmembers,thechairperson
shouldstimulatehimtoparticipate.Theremaybesomeknowallsotheyshouldbeaskedto
justify their statement.There may besome persons who go ontalking. The leader must
interrupthimatthepauseofherhisspeech.
4. InterpretingDateforSolutionEvolution:
Afteralloptionsarebeforethegroup,itisthetimetoevaluate.Theleaderavoidsimposing
hisownopinionbutencourageconsiderationofadvantageanddisadvantage.
5. StatingMajorConclusionandPlanofAction:
Thisstepmaybeinthefollowingway,
1.
Themajorconclusionofthediscussionshouldbesummarized.
2.
Statingindividualswhoareresponsibleforspecificaction.
3.
Indicatingbywhichtimeataskistobecompleted.
4.
Extendingthankstothemembersforattendingandcompletingthetask.

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BUSINESS LETTERS
1Q

Draw a Sketch /Format of a Business Letter and Write a


detailed note on the appearance of business letters.
Format

SUI-GENERIS CUISINES INTERNATIONAL


D511,BathIsland,Clifton,Karachi,Pakistan.
Ph.#(92)(21)3497898184,Fax:(92)(21)34285033,UAN#111423423.
URL:www.suigeneris.com.pk,Email:suigeneris@cuisines.com
Letterhead(1)

July02,2005
Ref:Mkt/53/06/05

Date(2)
ReferenceNumber(3)

ConrdonBleuResoft(Pvt.)Ltd.
C312,SkybergComplex,Gulberg,
Lahore.

InsideAddress(4)

Attn.:

AttentionLine(5)

Mr.ShehzylBaig,ManagingDirector

DearMr.Shehzyl,

Salutation(6)

InquiryforMonsoonCruise503SUM

SubjectLine(7)

_____________________________________________________________________

Text(8)

___________________________________
_____________________________________________________________________
___________________________________
_____________________________________________________________________
___________________________________

Truly,
(AHMERRAJPUT)
MarketingManager

CC:

1)Mr.ArujImtiaz;ManagerFinance
2)Ms.MyraAhmed;GeneralManager

CM:MKT
FA:FIN

ComplimentaryClose(9)

SignatureArea(10)

CarbonCopyNotation(11)

ReferenceNotation(12)
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APPREARANCEOFBUSINESSLETTERS:
Thecriteriaforthephysicalmakeupofabusinessletterrelateprincipallytoits(1)
Mechanicaldetailsand(2)GeneralAppearance.
MECHANICALDETAILS:
Thefactorsofmechanicaldetailsofabusinessletterareits(a)Partsand(b)Layout.
LETTERPARTS
1.
Letterhead:
Companysletterheadisordinarilyprintedatthetopofthesheet.Itshouldcontainthename,
addressbriefdescriptionandtelephonenumberofthebusiness.Whenaprintedletterheadisnot
used,theaddressofthewriteristypewrittenontherighthandcorneratthetopofthesheet.
2.
Date:
Thedateshouldbeplacedafewspacesbelowtheletterhead,beginninghalfwayacrossthepage
orfurthertotherightofthefollowingcorrectstylesofwritingdowndates,theAmericalsytel,is
morepopular.
AmericanStyle
:
August22,1988
22ndAugust,1988
EnglishStyle
:
OxfordUniversityStyle
:
22August,1988
3.InsideAddress:
Theinsideaddressconsistsofthenameandaddressoftheaddressee.Itisplacedafewspaces
belowthedateonthelefthandside.Thenameofanindividualisprecededbyatitleofrespect
(Mr.,Mrs.,Dr.,Professoretc.)
4.
Salutation:
Thesalutationisafriendlygreetingplacedonthesecondlinebelowtheinsideaddress.Itis
generallyfollowedbyacolon(:)Thefollowingsalutationsaregenerallyusedinbusinessletters.
Forindividuals:DearSir,DearMadam,Gentlemen,Ladies,etc.
5.
Body:
Thebodyofthelettercontainsthemessage.Itisgenerallysinglespaced,withdoublespacing
betweenparagraphs.Whenthebodyofaletteristwoormorepages,eachpageexceptthefirst
oneshouldbeheadedbyaddresseesname,pagenumberanddateasfollows:
Mr.RiazAgha2October,10,1988.
6.

ComplimentaryClose:

Thecomplimentarycloseshouldbegintwospacesbelowthelastlineofthebodyoftheletterand
halfwayacrossthepage.Itisfollowedbyacomma(,).Themostfrequentlyusedformsof
complimentarycloseareVeryTrulyYours.SincerelyYours,Cordially,Respectfullyis
tooformaltosuitabusinessletter.
7.
Signature:
Thesignatureconsistsofsignature,nameand/ordesignationofthewriter.Thenameofthe
companyshouldalsobewrittenwhilesigningonasheetwithoutletterhead.
8.

Initials:

Theinitialsofthetypist/secretaryshouldappearbelowthesignatureonthelefthandsideofthe
sheet.
OPTIONALPARTS:
Inadditiontotheabovementionedessentialpartsofabusinessletter,thefollowingoptional
partsmayalsobeincludedwhenappropriate.
9.Enclosurenotationshouldbeputdirectlybelowtheinitialsasfollows:
Enclosures:2orEnclosures:4orEnclosures:BlankForm
10. Attentionline,consideredpartoftheinsideaddress,directingalettertoaparticularpersonor
department,isusuallyplacedbetweenheinsideaddressandthesalutation.
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11. Subjectline,indicatingthemessage,isusuallyplacedbelowthesalutation,witherincluding
omittingthewordsubject.
12. Copynotation,statingthenamesofthepersonstowhomacopyoftheletterissent,should
betypedbelowtheinitialsortheenclosures(ifany),arrangedinorderofimportanceor
alphabetically.
13. Referencenumberoffile,account,orcaseshouldbetypedabovethebodyoftheletter.
14. Mailingnotation:WordssuchasRegisteredMail,BookPost,SpecialDeliverymaybe
typedwitherbelowthelastlineoftheletterorabovetheinsideaddress.
Q.2

Describe the different letter formats. Illustrate clearly by


means of sketches.
Ans: LETTERFORMATS:
1. FullBlockForm:
Inafullblocklettereverylinebeginsattheleftmargin.Thisiseasiertotype.
2. ModifiedBlockForm:
Modifiedblockformisusedfrequentlyinbusiness.Allpartsexceptthedate,complimentary
close and signature sections begin at the left margin. The date, complimentary close and
signatureareamaystartatthehorizontalcenterofthepageortotherightofcenter.
3. ModifiedBlockformwithParagraphIndentations:
It is like the modified block form except that its paragraphs are indented. The date
complimentarycloseandsignatureareabeginatthehorizontalcenterofthepage.
4. ASMsimplifiedform:
ThisformahsbeenrecommendedbytheAdministrativeManagementSocietyofUSAasan
importanttimesavingstep.Followingareimportantfeatures.
(1)
Fullblockstyleandopenpunctuationsareused.
(2)
Salutationandcomplimentarycloseareomitted,buttopersonalizereadersnameisused
atleastinthefirstsentence.
(3)
Subjectlineistypedincapitallettersandthewordsubjectisomitted.
(4)
Signersnameandbusinesstitlearetypedincapitalletters.
5. HangingorInvertedParagraphForm:
Thisformiscommonlyusedinsalesandadvertisingletters.Thekeywordsarehanginginthe
leftmarginatthestartofeachparagraphwithotherlinesindented.Sometimesthekeywordsare
typedincapitallettersformoreemphasis.
Thesketchedoftheabovelettersaregivenonthefollowingpages.

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FULLBLOCKFORMAT:

LETTERHEAD
_____________Date_____________
_______________________________
_________InsideAddress_________
_______________________________

___________Salutation___________
FirstParagraph__________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
______________________________________________.
SubsequentParagraph(s)___________________________________________________________
_______________________________________________________________________________
__________________________________________________Body________________________
_______________________________________________________________________________
_______________________________________________________________________________
LastParagraph___________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

_________InsideAddress_________
_______________________________
____________Signature___________
_______________________________

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MODIFIEDBLOCKFORMAT

LETTERHEAD
_____________Date_____________
_______________________________
_________InsideAddress_________
_______________________________

___________Salutation___________
FirstParagraph__________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
______________________________________________.
SubsequentParagraph(s)___________________________________________________________
_______________________________________________________________________________
__________________________________________________Body________________________
_______________________________________________________________________________
_______________________________________________________________________________
LastParagraph___________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

_________InsideAddress_________
_______________________________
____________Signature___________
_______________________________

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MODIFIEDBLOCKFORMAT
WITHPARAGRAPHINDENTATIONS

LETTERHEAD
_____________Date_____________
_______________________________
_________InsideAddress_________
_______________________________

___________Salutation___________
FirstParagraph__________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
______________________________________________.
SubsequentParagraph(s)___________________________________________________________
_______________________________________________________________________________
__________________________________________________Body________________________
_______________________________________________________________________________
_______________________________________________________________________________
LastParagraph___________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

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ASMSIMPLIFIEDFORMAT:

LETTERHEAD
_____________Date_____________
_______________________________
_________InsideAddress_________
_______________________________

SUBJECTLINE_________________
FirstParagraph__________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
______________________________________________.
SubsequentParagraph(s)___________________________________________________________
_______________________________________________________________________________
__________________________________________________Body________________________
_______________________________________________________________________________
_______________________________________________________________________________
LastParagraph___________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

__________________
SIGNATUREAREA
__________________

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HANGINGPARAGRAPH:

LETTERHEAD
_____________Date_____________

_______________________________
_________InsideAddress_________
_______________________________

___________Salutation___________
FirstParagraph__________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
______________________________________________.
SubsequentParagraph(s)___________________________________________________________
_______________________________________________________________________________
__________________________________________________Body________________________
_______________________________________________________________________________
_______________________________________________________________________________
LastParagraph___________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
ComplimentaryClose_____________
_______________________________
__________SignatureArea_________
_______________________________

How can inquiry letter be made effective? Discuss the kinds


of inquiry letters.
Ans: INQUIRYLETTER:

17.

Aletterthatasksinformationaboutpersons,productsorservicesorothermattersisaninquiry
letter. The questions to be included in a good inquiry letter should be carefully planned.
Followingarethesuggestionsformakinginquirieseffective.

1.
2.
3.
4.
5.
6.

Makequestionsspecific,clearandcourteous.
Stateeachquestioninaseparateparagraphandnumberthequestionsifappropriate.
Useaseparatesheetofpaperforlistingthequestionsiftheyareinlargenumber.
Carefullyarrangethequestionsgenerallywiththeeasiesttoanswersheet.
Wordthequestionsinneutralwaytothatthereaderisnotinfluenced.
Wordthequestionstogetmorethanyesornoanswerifdetailsareneeded.

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7. Wordthequestiontogetyes,noordontknowanswers,ifnumerousquestionsaretobe
tabulated.
8. Expressconfidenceinthereader.
9. Assuresecrecy.
KINDSOFINQUIRYLETTERS:
Inquirylettersfallinthreecategories:1.Tradeinquiry,2.Statusinquiryand3.Generalinquiry.

1.TradeInquiry:
Atradeinquiry(orsalesrelatedinquiry)iswrittenwiththeintentionofmakingbusinessdeals
withtheaddressee.Suchinquirylettersarewrittenregardingproductsorservicespurchasedorbeing
consideredforpurchase.Thetradeinquiriesaskinformationaboutthesupplyofgoods,availability
ofgoods,deliverytime,leafletorcatalogue,quotationsorprice,methodoftransport,insurance,
samplesandtermsanddiscount,etc.

2.StatusInquiry:

Status inquiry is written to know the financial position of some individual or firm usually
perspectivebuyer.Inquiriesaboutthecharacter,qualifications,experienceandperformanceofthe
applicantforjobormembershipmayalsobetermedasstatusinquiries.

3.GeneralInquiries:

General inquiry is made to get information about rules and procedures used in other
organizations, government policies, market conditions etc. General inquiry may also seek
informationforprivateorbusinessresearch.Forexampleafirmmayreceiveinjuriesforvariousdata
fromstudents,teachersorexecutivesofotherorganizations.

1Q

What are main points of a good order letter?

Mention the circumstances under which an order letter


needs reply.
Ans: OrderLetters:
Anorderletterneedstobecorrect,completeanddefinitesothatthereadermayfillitexactly.
Incompletenessorerrorsmaymeanfurthercorrespondence,shippingdelays,complicatedbilling,
repackingandreshippingandlossofbusiness.Therefore,agoodorderlettershould:

1. Includefulldetailsofquantities,prices,colors,sizesetc.
2. Quotecataloguenumberifany.
3. Statetherequirementsastodeliverydate,place,modeoftransportetc.
4. Confirmthetermsofpaymentagreedinpreliminarynegotiation.
5. Refertotheenclosureofcheque,payorderordraftorsamplesorcolourofmaterialifany.
ReplyingofOrders:
Ordinarilyorderlettersneedtoreply.Butrepliesshouldbewrittenunderfollowingcircumstance.

1. Whenacustomerrequestsforacknowledgementinconfirmationoftheorder.
2. Whenanorderisincorrectincompleteorvague.
3. Whenanordercannotbecompliedwith.
4. Whenextratimeisneededtofilltheorder.
1Q

What are contents of claim letters?

Ans: ContentsofClaimLetters:
Adissatisfiedpartymayeitherdiscontinuebusinesscontactormaycomplainthroughaclaim
letter. The former option can never be recommended. Complaint is basically unpleasant,
therefore,shouldbebasedonthefollowingpoints:
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1. Statementofclaim,supportedbyfactsandfigures.
2. Indicationoflossandinconvenience.
3. Requestforexplanationofthecause.
4. Emphasisonquickaction.
5. Suggestionforreasonableadjustment.
6. Courteousandnonaccusatorywords.
Q. What is an adjustment letter? How it should be organized?
AdjustmentLetters:
Anadjustmentletterisareplytoacomplaint(claimletter).Itisbettertomakeadjustmentthan
torisklosingacustomer.Complaintsshouldnotbediscouraged,because (1) theyprovidea
meansofdiscoveringandcorrectingpoorservice,and (2) Theyprovideanopportunitytowin
backgoodwill.
AnalysisofComplaint:
Indealingwithacomplaintallrelatedfactsshouldbeinvestigatedtodetermine(a)whetherthe
complaintisjustifiedand(b)whether,andhow,adjustmentistobeeffected.
JustificationofComplaint:
Experienceprovesthatmostofthecomplaintsarejustified.Theyareusuallyaresultoffaulton
thepartofthesellerorthirdparty(transporter,etc.).Acomplaintisconsideredunfairwhen
buyerisatfaultandtherequestisforundueadvantage.
GrantofAdjustment:
Ajustifiedcomplainneedsproperadjustment,e.g.,refundingmoney,replacingmerchandise,
performingadditionalservice,admittingfaultandassuringcareinfuture,andtakingrightful
actionagainstthirdpartyresponsibleforthedamage.Properexplanationisnecessaryifbuyeris
atfaultorcomplaintisbasedonmisunderstanding.
AdjustmentPrinciples:

1. Answerpromptlytoavoidfurthercomplaint.Whenimmediateadjustmentisnotpossible,
anacknowledgementletterassuresthatthecomplaintisbeingconserved.
2. Givethecustomerthebenefitofdoubtbyassumingthatthecustomerisright,unlessthe
factsprovehim/herwrong.
3. Acceptblamegracefullywhenitisjustified:tobegpardonorbeunnecessarilyhumbleis
consideredpooracceptancethatmayresultinlossofgoodwill.
4. Be diplomatic, especially when the addressee is at fault or complaint is based on
misunderstanding.Adiplomaticwritercansayanythingwithoutinsultingthereader.
OrganizingtheAdjustmentLetters:
Theideasinanadjustmentletterareordinarilyarrangedasfollows:
1.ConciliatoryStatement:
Expressionofregretevenifthecustomerisatfault,orappreciationforhavingbeeninformedis
aneffectivestartofanadjustmentletter.
2.ExplanationofFacts:
Explainingthefactsrelatingtocomplaint,clarifyingthepositionincaseofmisunderstanding,or
indicatingthecustomersfault(ifany)shouldbethenextstep.
3.StatementofAdjustment:
Grantoftheadjustment(ifany),suggestingasubstituteforrequestedadjustment(whenitcannot
begranted)oramereacceptanceoffaultwithassuranceoftakingcareinfuture,shouldbestated
asthethirdstep.
4.StatementofGoodwill:
A last paragraph may be added (if appropriate) for rebuilding of goodwill and renewal of
businessrelations.
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Q Discuss (i) Uses, (ii) Functions, and (iii) Systems of sales


letters. Ans: (i) USESOFSALESLETTERS:
1.SellingbyMail:
Mailorder housesusesaleslettersforperformingtheentiresellingjob.i.e.fromproducing
inquiriestoshippingmerchandise.Thereplycardsblanksorderformsandothermaterialmaybe
enclosedwithasaleslettertomakeitmoreeffective.
2.ProducingSalesInquiries:
Businessesotherthanmailorderhousesconfinetheuseofsaleslettertosolicitinginquires,
whichmaybefollowedbyletters,telephoneorpersonalcalls.
3.FollowingUpSalesInquiries:
Theinquiries,unsoughtorproducedbysaleslettersoradvertisementsmaybehandledindifferent
ways.Saleslettermaybeusedforthispurpose.Printedmaterialmayalsobeenclosedwithit.
4.InducingPeopletoBuy:
Salesletters mayinducethecustomers orprospectivecustomerstobuy goods /services by
arousingtheirinterestanddesire.
5.BuildingUpGoodwill:
Saleslettersmayalsobeusedtothankthecustomersfortheirpatronage,extendgreetings,and
announcenewservices,forbuildingupgoodwill.
(ii).FUNCTIONSOFSALESLETTERS:
1.AttractingAttention:
Attracting Attention of the reader through decent stationery, proper layout, neat typing,
paragraphing,etc.further,theopeningsentencesofthetextmustmakethereaderthinkbymeans
ofasloganorextraordinaryidea.
2.ArousingDesire:
ArousingDesirebyappealingtoreason(fornecessities)andappealingtoemotionluxuries).The
desiretobuythegoodsorservicesmustbecreatedinthemindofthereader.
3.ImplantingConviction:
ImplantingConvictionaboutthegoodqualityofgoods/servicessothatthereaderdoeshesitate
inmakingthedecisiondesired.Thiscanbeachievedbymeansoflogicalreasoningmoderate
claims,andevidencetosupporttheclaims.
4.StimulatingAction:
StimulatingActionbynotallowingtheprospectivecustomertoputoffauction.Thiscanbedone
byofferinginducementsforquickaction,likespecialdiscount,gifts,replycards,etc.
(iii).SalesLetterSystems(Series):
Saleslettersaregenerallyissuedinaseriestoaselectedlistofprospectivecustomers,toachieve
theplannedsalestargets.Dependinguponthenatureoftheproductandthemarket,oneofthe
followingsystemsisapplied.
1.TheWearOutSystem:
Under this system the total number of letters to be issued for achieving the target and the
intervalsforwhichthedifferentletterswillbeissuedaredeterminedinadvance.Thetermsand
conditionsofferedarevariedfromlettertoletter.Whenallthelettersintheserieshavebeen
issued,theseriesisautomaticallyterminated.
2.TheContinuousSystem:
Thissystemissuitableforthoseproducts/services,whichareinregulardemand;thesales
letters are issued for the purpose of gaining the maximum share of the market. At suitable
intervals,salelettersintheseriescontinuetobeissuedaslongasthebusinessoperates.
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3.TheCampaignSystem:
Thetotalnumberofletterstobeissuedintheseriesisnotdeterminedinadvance.Salesletters
withvaryingtermsandconditionswillcontinuetobeissueduntilthesalestargetisachieved
thereforetheserieswillbeterminated.
Distinguish between solicited sales letter and unsolicited
sales letters.
Ans: SolicitedSalesLetters:

1Q

Solicitedsalesletterisreplytosalesrelatedinquiry(tradeinquiry).Suchlettersdealwiththe
questionsaboutcatalogue,prices,terms,discount,deliveries,manufacturingmethods,types
ofaccounts,availablesourcesofsupplyandsimilarinformation.
Solicitedsaleslettersarealsocalledinvitedsalesmessages.Theinquirerisoftenalready
customerorapotentialbuyer,whomaybecomeasteadysatisfiedcustomerifthereplyis
sentwithfavorableimpression.Followingaretheprinciplesofwritingimpressingsolicited
salesletter.

1. Answer Promptly, because a prompt answer is more effective and it also gives an
impressionofattentivenessinothermatters.
2. Respondcompletely,becauseomissionsofcertainfactslimitthevalueoftheanswerand
handicapthereaderindecisionmaking.
3. Giveadditionalinformationrelatingtotheinquiry,becausesomeinquiriesmaynotbe
clearandcomplete.
4. Replycourteously,becauseitcreatesfavorableimpressionevenifjustalittleinformation
isgiven.
5. Followupthereplywhendesiredresponsedoesnotresultwithinareasonabletime,give
somemoreinformationoraskifanyfurtherinformationcanbegiven.
UnsolicitedSalesLetters:
Unsolicitedsaleslettersarenotdirectanswerstoinquiries,buttheyareinitiatedbythesellerfor
variousreason.TheselettersarealsoknownasProspectiveandColdTurkeyletters.
AccordingtoMurphyandPeckthesuccessinunsolicitedsalesletterswilldependuponthree
factor;themailinglist,therightappeals,andthepresentation.Thefirsttwoofthesefactorsare
prewritingstepsandthelastonerelatestowritingthesalesletter.
PrewritingSteps:
The prewriting steps are the six planning stepsabout purpose, reader, ideas to include, fact
gathering,organizationandrevision.Whileplanninganunsolicitedsalesletterthesestepsare
takeninthefollowingsequence.

1.
2.
3.
4.
5.
6.

Gatheringfactsabouttheproduct.
Knowingthereaderandobtainingthemailinglist.
Decidingonpurpose.
Choosingideasandthemainappeal.
Planningthepresentation.
Makingrevisions.

WritingunsolicitedSalesLetter:
Thebasicstructureforunsolicitedsalesletterusuallyhasfourparts,commonlyknownasthe
AIDAformulaforsalespresentation.
AAttractingthereadersfavourableattention.
IArousingthereadersinterest.
DCreatingdesireandconvincingthereader.
AMakingcleartheactionthereaderneedstotake.

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Theseparts(alsoknownasfunctionsofsalesletterneednotalwaysbeinthesequencetheyare
listedabove,norneedallpatsbeineveryletter).
Q Differentiate between Sales and Sale Promotion Letter
Distinctionbetweensalesandsalespromotionletters.
1.
2.
3.
4.
5.

Q.

SalesLetter:
Aimsatsellingsomegoods/services.
Hasformalstyle
Generallyissuedinaseries.
Hasconvincingtoneandattitude.
Motivatesthereadertobuy.

1.
2.
3.
4.
5.

SalesPromotionLetter
Aimsatcreatinggoodrelationships.
Hasinformalstyle.
Issuedforanimportantcircumstance
orevent.
Hassuggestivetoneandattitude.
Expressesdesiretoservethereader.

What are sales promotion letters?

State their characteristics and uses.

Ans: SALESPROMOTIONLETTERS:
These letters are issued to supplement the direct sales efforts with a view to develop a
favourablefoundationandenvironmentforachievinghighersales.Infact,theselettersare
concernedwithbuildingupthegoodwillandreputationoftheenterprise.Thelettersaimat
creatingafavourableimageoftheenterpriseinthemindofthereader.

CharacteristicsofSalesPromotionLetters:
1.Timeliness:
Salespromotionlettersareissuedonspecialoccasions,e.g.Eid,Holiday,introductionofanew
product,etc.

2.Goodwill:

Asalespromotionletterisindirectsalesinvitation.Itdoesnotinducethereadertobuybutaims
atcreatinganenvironmenthelpfulforincreaseinsalesinfuture.

3.InformalStyle:
Asalespromotionletterisusuallywrittenininformal,friendlyandpersonalstyle,becauseit
aimsatestablishingandmaintaininggoodwillandgoodrelations.Itmay,however,suggestthesales
ofaserviceorproduct.

Uses(Objects)ofSalesPromotionLetters:
Theusesofsalespromotionlettermaybegroupedintofollowingfourcategories.

1.MaintainingContacts:
Inacompetitiveworlditisalwayspossiblethatsomeregularcustomersmaywithdrawtheir
patronage.It is,therefore,necessarytoissuesalespromotionlettersfromtime totime carrying
announcementsofvariousservices,andgreetingswithaviewtomaintaincontactswiththeexisting
customers.

2.AwakeningInactiveAccounts:

Inspiteofthebesteffortsformaintainingcontacts,someofthecustomersmaystopbuyingfor
certainreasons.Insuchcircumstances,salespromotionlettersareissuedinvitingcomplaints(ifany)
andofferingadjustments(ifpossible).

3.WelcomingNewCustomers:
Inadditiontohandlingtheexistingcustomers,thenewonesshouldalsobeentertained.Anew
customershouldbethankedandinformedaboutservicesavailabletoregularcustomers,througha
salespromotionletter.
47

PreparedByProf.M.Aqil

4.InvitingBusinessfromNewSources:
Anexpandingbusinesscannotdependontheexistingcustomersonly.Itmusttrytofind,attract
andinvitenewcustomersbyofferingvariousservicesandgreetingsthroughsalespromotionletters.

1Q

How job application letter is like a sales letter? Explain with

reference to its functions. Mention the considerations for


writing effective job application letters.
Ans: JOBAPPLICATIONLETTER:
Ajobapplicationlettershouldbeorganizedlikesalesletter,becauseitintendstosellthe
writersservicestothereader.Theimmediatepurposeofajobletteristosecureaninterview
andthefinalgoalistogetemployment.

SolicitedJobLetter:
Solicitedjobletterwritteninresponsetoaninvitation(usuallyadvertisement)hastheadvantage
thatavacancyexistsandthattheemployerisanxioustofillit.Itsdisadvantageisthatiffaces
competition.
Unsolicitedjobletter,writtentoanemployerwhohasnotinvitedanapplication,doesnotface
competition.But,possibilityofnonavailabilityofjobisitsdisadvantage.

FunctionsofJobLetters:
1.AttractingAttention:

Attractingattentionoftheemployerthroughappropriatestationery,neattyping,properlayout,
paragraphing,etc.further,theopeningshouldnotbestereotyped.

2.CreatingDesire:
Creatingdesiretoengagetheapplicantbydescribingrequiredqualifications,interestinthejob
andenvironment,andpersonalfavorablecircumstance.Becauseemployerspreferthosecandidates
whohavetherequiredqualifications,interestandfavorablecircumstances.

3.ConvincingtheEmployer:
Convincingtheemployerbygivingspecificdetailsofqualificationsandexperience,namesof
references, and results of aptitude and intelligence tests previously taken. Further, enclosed
certificates,recommendationlettersfromformeremployers,teachers,etc.andsimplesofwork,e.g.
translations,poetry,paintings,etc.,mayalsoconvincetheemployer.

4.StimulatingAction:
Stimulatingactionbymakingcourteous,gracefulandconfidentrequestforinterviewthatmay
leadtotheultimategoalofthejoblettertheemployment.

ConsiderationsofWritingEffectiveJobLetters:
1. Usingappropriatestationery.
2. Neattypingwithproperlayout.
3. Describingqualifications,experienceinterest,etc.
4. Avoidingstereotypedopening.
5. Beingspecific,definite,courteousandgraceful.
6. Givingnamesofreferences.
7. Mentioningtheresultsofaptitudeandintelligencetestspreviouslytaken.
8. Makingrequestforinterview.
9. Explainingreasonsforleavingthepreviousjoborforbeingunemployed,ifnecessary.
10. Enclosingcopiesofthecertificatesandrecommendationletters.
1Q

Emanate the usual contents of resume. Give specimen of the


resume of a candidate for the post of an assistant
accountant.

48

PreparedByProf.M.Aqil

Ans: RESUME:
Theresumeisanorganizedsummaryoftheapplicantsparticulars.Itisnotasubstitutefora
jobletter,butasupplementtoit.ItsalternatetitlesareDataSheet,BioDataetc.

Theusualcontentsofaresumeare:
Heading:

Name, address and telephone number of the applicant. Job title and career
objectivesmayalsobeincluded.

Education:

Academic qualifications mentioning degrees, certificates, scholarships, awards,


honors,andotheracademicrecognitionreceivedbytheapplicant.Itshouldbegin
withthemostrecentinformation.

Experience: Listingofpreviousemployers,jobtitlesandperiodofservice.Briefdescriptionof
jobdutiesandnamesofsuperiormayalsobeincluded.Itshouldalsobeginwith
themostrecentinformation.
PersonalData:
Age,height,
health,marital
statusetc.,ofthe
applicant.

Names,titles,addressesandtelephonenumbersofpeoplewhowillrecommendthe
applicant for the job. These people should know about applicants job skills,
aptitudeandexperience.

Reference:
Miscellaneous:Cocurricularactivities,interestsandhobbiesoftheapplicant.Drivinglicense,
passport,domicileandnationalidentitycardnumbermayalsobementionedif
material.

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PreparedByProf.M.Aqil

MOHAMMADAMIRKHAN
B117,ShadmanPlaza,
14B,NorthKarachi.
Telephone:02134159872
JOBOBJECTIVE
Toacquireexperienceinfinancialaccountingandtoadvanceintomanagementposition.
EDUCATION
B.Com.
FirstDivision,UniversityofKarachi,1991.
Intermediate:
BGrade,BoardofIntermediateEducation,Karachi,1988.
(Commerce)
Matriculation:
AGrade,BoardofSecondaryEducation,Karachi,1986.
(Science)
EXPERIENCE
AccountsClerk:SoofiTextileMillsLtd.August1991Jan.1993.MaintainedCash
ReceiptsJournal,CashPaymentsJournal,PettyCashBook.
BookKeeper:RajpootFabrics,December1990June1991.MaintainedCash
Book,PreparedDailySalesReport.
PERSONALDATA
Dateofbirth:
MaritalStatus:

June20,1970
Single

COCURRICULARACTIVITIES
Editor:
CollegeMagazine199091
Member: CollegeLiterarySociety199091
REFERENCE
Prof.A.Rehman: KarachiCollegeofArts&Commerce,GulshaneIqbal,Karachi.
Dr.GhulamAli: B40,ST9,Sector14A,NorthKarachi.

BUSINESS REPORTS
Q What is a business report? What are its functions?
Ans: BUSINESSREPORT:
According to Murphy and Peck a business report is an impartial, objective., planned
presentationoffactstooneormorepersonsforaspecific,significantbusinesspurpose.
Reports Travel upwards to supervisors and management policymakers, downward and
horizontallytothosewhocarryouttheworkandpolicies,andoutward(outsidethefirm)tostockholders,
customers, the general public and government officials. A report may be written or oral, but most
significantreportsarewritten.Thereportfactsmaybepertainedtoevents,conditions,qualities,progress,
results,investigations,orinterpretations.Theymayhelpthereceiver(s)understand

50

PreparedByProf.M.Aqil

a significant business situation, carry out operational or technical assignments, and / or plan
procedures,solveproblemsandmakeexecutivedecisions.
Agoodbusinessreportmustsatisfythefollowingcriteria:
a.Utility b.Persuasiveness
c.Reliability d.Readability
Abusinessreportsutility,persuasiveness,reliabilityandreadabilitymainlydependon
theapplicationofthecommunicationprinciples.CalledTheSevenCstheyare:(1)Completeness,
(2)Conciseness,(3)Consideration,(4)Concreteness,(5)Clarity,(6)Courtesy,and(7)Correctness.

FunctionsofBusinessReport:
Abusinessreportisverymuchusefulforthemanagementandalsofortheothers.Itsimportanceis
becauseofthefunctionsitperforms.Abusinessreport:
Provides Facts pertaining to events, conditions, qualities, progress, results investigations or
interpretations.
MeasuresProgressofemployees,departments,andcompanies.
PointsCausesofproblemse.g.,lowmargins,highrateofstaffturnover,accidentsinfactoryetc.
Suggestsmeasurestoovercomethebusinessproblems.
AssistsMannerincarryingoutoperational,ortechnicalassignments,planningprocedures,solving
problemsandmakingdecisions.
Q What are various bases of classification of business
report? Ans: CLASSIFICATIONOFBUSINESSREPORTS:
Thefollowingarebasesofclassificationofbusinessreports.

1. PURPOSE/FUNCTION:
(1) Informationalreport,givinginformationonanyissuewithoutanyanalysis,interpretation,
conclusionsandrecommendationsofthewriter.
(2) Analyticalreportpresentingfactsalongwiththeiranalysisandinterpretationaswellas
conclusionsandrecommendationsofthewriter.Analyticalreportmaybe:
(1) Feasibilityreport,analyzingaproposalandrecommendingwhetheritistobeimplemented
ornot.
(2) Waysandmeansreport,analyzingthecausesbehindaproblemandrecommendingasto
howitmaybesolved.
2. FORMALITY/APPEARANCE/LENGTH:
(1) Formalreport,characterizedbyacoverandbindingandotherfeatureslikecoveringletter,title
(2)

page,tableofcontentsandindexmaybesupplementedwithchartsandstatisticaltables.
Informalreport,withoutcover,tableofcontentsandothereditorialtrappings,submittedin
theformofletterormemorandum.

3. ORIGIN:
(1) Authorizedreportwrittenonsomeonesrequest.
(2) Voluntaryreportwrittenonwritersowninitiative.
4. CHANNEL:
(1) Writtenreport,presentedintheformofmemorandum,letterorformalreport.
(2) Oralreport,presentedinfacetofacediscussionorontelephone.
5. REQUENCYOFISSUE:
(1) Specialreport,presentedonaparticularoccasion.
(2) Periodicreport,presentedperiodically,e.g.daily,weekly,monthly,quarterlyorannually.

PreparedByProf.M.Aqil

(a) List the parts of a formal report.


(2)
Explain the parts of a report body.

17.

Ans: a). PARTSOFFORMALREPORT:


Partsofaformalreportmaybegroupedintoprefatoryparts,bodyparts,andsupplemental
parts.
Prefatoryparts cover;titlefly;titlepage;letterofauthorization;letterofacceptance;
letterofapproval;letteroftransmittal,acknowledgements;tableofcontents;tableoftables;
synopsis;abstractorsummary.
BodyPartsIntroduction;text;terminalsectionconclusionand
recommendations.Supplementalpartsappendix,bibliography,index.

b)PARTSOFTHEREPORTBODY:
Onepartthateverywrittenreporthasisthebody.Thispartincludesthreesections
introduction,textandterminalsection.
Introduction:
Followingarethepossibleelementsofintroduction:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Authorizationnamesthepersonwhorequestedthereport.
Problem,alsocalledissue,proposed,matter,etc.
Purpose,alsocalledobjectivegoal,mission,aim,etc.
Scopedeterminestheextentofinvestigationorcoverageandtheboundaryofthereport.
Methodology indicates the methods of data collection, e.g. reading, interviewing,
observing,orexperimenting.
Sourcesprimary(unpublishedsources)andsecondary(Publishedsources).
Backgroundofthesituationbeinginvestigated.
Definitionoftermsthathaveseveralpossibleinterpretations.
Limitationsrefertorestrictionssuchastime,money,availabledata,etc.
Briefstatementofresultssuggeststhedecisiontobetakenontherecommendationsina
fewwords.
Planofpresentationstatesthedivisionsandsubdivisionsofthereportandtheorderof
thetopics.
Introductionofthecompanyforwhomthereportisprepared,includesnature,ageand
sizeofthebusiness.
The introduction of report needs not include all the elements listed above, but only the
desirableandappropriateones.Forexample,avoluntaryreportcannotincludeauthorization,
oraperiodicreportmayomitallormanyoftheelementsofintroduction.Inshortreports,the
few needed elements may be grouped in a single paragraph without the heading of
Introduction.Longreportsmayhaveintroductionofmanypageswithheadingsandsub
headings.Theseelementsmaybearrangedseparatelyandmanyofthemmaybestatedin
partsotherthanIntroductionevenoutsidethebodyofthereport.

TEXT:
Textisthelargestportionofanyreportbody.Thissectiondiscussesanddevelopsand
developsthenecessarydetails.Aswithallgoodbusinesswritingonlypertinentfactsshouldbe
includedinthetext.
The text is never labeled Text. Its title should be discussion, finding, date or other
meaningful words. Or, instead of one main title for this section, a series of headings,
correspondingtothemaintopicsmaybeusedthroughoutthetext.
Thecontent,organization,languagestyleshouldbeadoptedtothereadersneeds.
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PreparedByProf.M.Aqil

TERMINALSECTION:
Terminalsectionsummariesthehighlightsofthewholereport.Thissectionshouldbe
basedonthetextdiscussionandshouldincludenonewmaterial.Itsummarizes,concludesand/
orrecommends.
Asummarycondensesthetextdiscussions.
Theconclusionevaluatesdiscussedfactswithoutincludingthewriterspersonal
opinion.Recommendationsmakesuggestionsforactionbasedontheconclusions.

17.

Enumerate and explain the steps in planning a report. OR


Write a note on the preparation before writing a report.

Ans: PREPARATIONBEFOREWRITINGREPORT:
Followingstepsaretakenbeforewritingareport.

1)DETERMININGTHEPROBLEMANDPURPOSE:
Analyzingtheproblemandknowingthepurposeofthereportdeterminethescopeand
limitationsofinvestigationandthelength,contentsandstyleofthereport.

2)VISUALISINGTHEREADER:
Thereadersviewpoint,experience,qualification,knowledge,responsibilityandstatusare
importantfactorsinplanningthelanguageandtheorganizationofthereportandthedetails
tobeincluded.

3)DETERMININGTHEIDEASTOBEINCLUDED:
Forwritingashortreportonlygeneralideasandmainpointsmaybepresented,butfora
longreportdetailedworkingplancontainingtherelevantfactorsalongwiththeirdivisions
andsubdivisionisdesirable.

4)COLLECTINGNEEDEDMATERIAL:
Forsomereportsallthedatamaybeinthewritersmind,forothersextensiveprimaryand/
orsecondaryresearchmaybeneededforcollectingtherequireddata.
PrimaryResearchforcollectingdatainvolvesusesof:

1.
2.
3.
4.
5.

Companyrecords
Letters,diaries,minutes,reports,etc.
Questionnaires
Interviews
Observations,andexperiments

SecondaryResearch isconductedthroughpublishedmaterialbooks,magazines,news
paper,pamphlets,governmentdocuments,etc.

5)SORTINGANDINTERPRETINGDATA:
Thecollecteddatainrawformisofonuse.Thedatashouldbetabulatedandorganizedin
suitablecolumnsandunderappropriateheadingsandsubheadings.Thetabulateddatashould
beanalyzedinamannerfreefrompersonalbasis.Theuseofcomputerisalsohelpful.

6)ORGANIZINGDATAANDPERFORMINGOUTLINE:
Theanalyzedandinterpreteddatashouldbeproperlyorganized.Thisorganizationshould
beaccomplishedintheformofafinaloutline.
PlansforOrganizingReportBody
Thebodyofthereportmaybeorganizedintwoways.
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3

PreparedByProf.M.Aqil

1.InductiveArrangement:
Inductivearrangementisthesameindirectplanusedforbadnewsandpersuasiverequest
messages,wherethemainideafollowsappropriateexplanation.Underthisplanthereport
bodymaybearrangedasfollows:

IntroductionTextTerminalSection:

2.DeductiveArrangement:
Deductivearrangementiscomparabletothedirectplanusedforgoodnewsanddirect
requestmessages,wherethemainideaispresentedbeforetheexplanation.Underthisplan
thereportbodymaybeorganizedinthefollowingalternatearrangements:
TerminalSectionIntroductionTextor
IntroductionTerminalSectionText
Inthebeginningthisreportcontainsintervieweesname,topiccovered,anddate.Thebody
coversitemslikeeducationalandtechnicalqualifications,training,experience,interest,and
overallsummary.Theconclusionshowscandidatesscoreandinterviewersopinion.

3.

Aftercarefuljudgmentandconsideration,theinterviewershouldchoose,orrecommendto
bechosen,therightcandidates).Arightcandidateisonewhohasabilityneitherbelow,nor
above,thejoblevel,becausetheformercannotperformthejobandthelatterwillnotstay
onit.
PARTS OF THE FORMED REPORT
(A) Prefatory Parts

(B) Body

1.Titlefly becauseofreport
containing(a)Title(b)Nameof
Receiver&Sender.
2.Titlepage NameofReceivers
Designation

1. Introduction.
2. Text.
3. TerminalSection.
(a)Summary
(b)Conclusion
(c)Premeditate

MARKETREPORTTERMINOLOGY
MEANING
Q.NO.01 DescribeclearlythemeaningofthefollowingtermsusedinMarketTerminology:
1
AnOrgyofSpeculation
34
Guilt
2
35
Arbitrageoperations
Heavytrading
3
Arrivals
36
Hella
4
Attractivelevels
37
Listlesscondition
5
Backdoorlisting
38
Longcorner
6
Bankerscallrate
39
Makeupprice
7
40
Bear
Mixedfeeling
8
Bearaccount
41
Moderatelyactivemarket
9
42
Bearhella
Offtake
10
Bearraid
43
Petofthemarket
11
Bearishatmosphere
44
Poortake
12
Bluechips
45
Quietspell
13
Bluechips
46
Ringsandpools
14
Bottomprice
47
Saggingtendency
15
Breakeven
48
Scrip
54

PreparedByProf.M.Aqil

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
ANSWER:

Bulge
Bullcampaign
Bullliquidation
Bulltrapped
Bullishfactor
Bullishspark
Capprice
Cheerfulstart
Cumdividend
Divergenttrend
Dulltone
Dumping
Exall
Exdividend
Forwardbusiness
Forwardbuying
Futurehardened
Gainedground

49
50
51
52
53
54
55
56
57
58
59
60
61
62
63

Shortsale
Slump
Speculativeissues
Spot
Spurtingmovement
Spurtsandrallies
Squeezedbear
Stalebull
Steadynote
Stock
Streetprice
Toneadundertone
Tradedemand
Wallstreet
Widefront

MarketReportTerminologieshavebeenexplainedasunder:

1.ANORGYOFSPECULATION:
Itisatermdenotinganunrestrainedspeculationabouttheprices.
Itreferstothemixedrumoursbythebullsandbearstoachievetheirobjectives.Theyactuallycreate
anuncertaintythatmayresultinsharpfluctuationsinprices.
2.ARBITRAGEOPERATIONS:
Itisanactofbuyinginacheapermarketofsessionofamarketandsellingindearermarketor
anothersessionofthemarket.Ofcourse,thecostofTransportation,Insurance,andLabouretc.must
beconsideredindoingthis.Thedealermusthaveafullknowledgeofthesituationotherwisehefails
miserably.
3.ARRIVALS:
Amarketusuallyopenstransactionwithstockinhandi.e,broughtfromthepreviousdayofbusiness.
Duringthecourseofthebusinessperiod,thedayorweek,freshstocksareboughttothemarket.Thisis
knownasArrivals.Itrefersonlytofreshadditiontothetotalsupplyofcommodityinthemarket.
4.ATTRACTIVELEVELS:
Itisasituationofhighprice.Goodbusinessisexpectedtobetransactedinhiscase.
5.BACKDOORLISTING:
Itisaprocessoflistingacompanythathasfailedtomeettheoriginalrequirementoflistingonstock
exchangebyacquiringasmallerlistedcompanyandmergingintotheacquisition.
6.BANKERSCALLRATE:
Itistherateofinterestchangedbyabankonloangivenoncallandshortnotice.
7.BEAR:
Thespeculatorwhoexpectsafallinpriceisbear.Hebuyscheapatfuturedatewhenthepricecomes
downaccordingtothisexpectations.Hesellsinhighpricesituation.Thedifferenceinthetwo
transactionsgiveshimprofit.
8.BEARACCOUNT:
Itistheexcesssalemadebybearoperatorsoverthepurchasemadebybulloperators.
9.BEARCOVERING:

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PreparedByProf.M.Aqil

Abearoperatorinamarketusuallyoperatesunderpessimisticfeelingi.e,heexpectsafallinprices.
Withsuchaframeofmind,sometimeshis
10.BEARHEELA:
It means temporary suspension of the market due to abnormal fall in prices and providing an
opportunityforthespeculatorstosettletheiraccounts.
11.BEARRAID:
Itisasituationinwhichspeculatorusesartificialmeansofcreatingrumorwhenhefindsthathis
expectationandfallinpricesarenotcomingtrue.
12.BEARISHATMOSPHERE:
Isamarkettrendinwhichthereisapessimisticfeeling.Theseareageneralsuspensionofthe
marketdealingduetoabnormalriseinprices.
13.BLUECHIPS:
Theyarethesharesoftheleadingcompanieshavingreputationofexcellentmanagementandstrong
financialbade.Giltedgedsecuritiesarealsobrandedasbluechips.Theyarealsoknownasfirstclass
securities.Theygivetheinvestormaximumsafetyandsecurity.
14.BOTTOMPRICE:
Thisisthelowestpriceinanorganizedmarketwhichcannotfurtherfluctuateddownward.
15.BREAKEVEN:
Itisapointwheretransactionterminateswithneitherprofitnorloss.
16.BULGE:
Itisatermusedtomeansuddenincreasesinvalue.
17.BULLCAMPAIGN:
Abulloperatornormallyoperatesunderoptimisticfeelingofrisingprices.Attimes,abullgoes
wronginhisforecastandthepricedoesnotrisetohisexpectation.Insuchacase,hetriestocreatea
rumourinordertoraisethepricelevel.Thebulltriestoinfluencethemovementofpriceinhisfavor.
Whenthepricerisestemporarilyhedisposesoffhisproduct/stock.Theuseofartificialmeansto
raisepricesisknownasbullcampaign.
18.BULLLIQUIDATION:
Itisasituationinwhichaspeculatorsellsfindinghisexpectationandriseinpricesarenotcoming
true.
19.BULLTRAPPED:
Abullisanoperatorinanorganizedmarketwithanoptimisticfeelingofriseinprices.Sometimes
thepurchasersdodgehimknowingthatheisinoverboughtpositionandsuspendpurchasestoforce
himtosellatlowerprices.Inthissituationthebullistrappedandfaceslossconsequently.
20.BULLISHFACTOR:
Whenalargeamountofbusinessisdonebybulls,themarketissaidtobebullishandthetendency
ofrisingpricesduetobulloperationsisknownasbullishfactor.
21.BULLISHSPARK:
Abulloperatorgenerallybuysforwardwiththeobjectofresellingitatacertainprofitbeforethe
dateofdelivery.BullishSparkisasupportofbulloperators.Bullsupportmeanspurchasesmadeby
thebulls.Theeffectofsuchasupportisreflectedinpricesbeingmovedupduetoheavypressureof
demand.
22.CAPPRICE:
Itisthehighestpriceonwhichbuyersarereadytopurchaseonaparticularbydemand,itisknown
asCheerfulStart.
23.CHEERFULSTART:
Itisasituationinmarketwhichopenswitharisingtrendonaparticulardayinanorganizedmarket.

PreparedByProf.M.Aqil

24.CUMDIVIDENDorCUMDIV:
CumDiv,isshortforCumulativeDividend.ItisatermofStockExchange.Whenasecurityis
quoted cumdividend; it means that the price includes dividend, or interest accrued on it. The
purchasercan,assuch,claimdividendsinceitslastpayment.
25.DIVERGENTTREND:
Itmeansanunsystematicriseandfallinpricesonamarketday.
26.DULLTONE:
Adulltoneisactuallytheweakstateofbusinessconditions,i.e.,therearefewerbuyersthansellers,
transactionsareafew,andpricesarereceding.
27.DUMPING:
Inanageofindustrializationandcutthroatcompetition,theremaybydifferenttechniquestocapture
market.Oneknowntechniqueusedininternationalmarketisdumping.Thenacountrysellsher
goodsatlowerpriceevenbelowthecostofproduction,itisknownasdumping.
28.EX.ALL:
Itisatermtodenoteallrighttodividendorinterestattachedtoasecurityinfavorofthesellerand
notthebuyer.
29.EXDIVIDEND:
WhenthepriceofasecurityisquotedExDividend,itimpliesthatthebuyerisnotentitledtoreceive
interestorincomeaccruedonthesecurityevenofhehadpossesseditbeforesuchclaimbecomedue.
Thesellerhastherighttosuchadividendandnoneelse.
30.FORWARDBUSINESS:
Whenabusinessistransactedtoreceiveortogivendeliveryatsomefuturesate,itisknownas
forwardbusinessorfuture.Itisanimportantfeatureofmodernorganizedmarket.Itissystemof
buyingandsellingcommoditiesinadvance.Afutureorforwardbusinessisknownbythenameof
themonthinwhichistobecompleted.
31.FORWARDBUYING:
Contracttotakedeliveryofgoodsinfutureisknownasforwardbuying.Thepriceinsuchacaseis
settled in advance. Neither the price is not paid nor is the goods delivered on the spot in this
situation,e.g.,Januaryfuture.
32.FUTUREHARDENED:
Whenthepriceofa commodityinthe forwardsectionofmarketincreases, itiscalledfuture
hardened.
33.GAINEDGROUND:
Itisaterminologyofthemarketreporttoshowtheconditionofrecovery.Thatis,pricesregained
afteradullperiod.
34.GLUT:
Itisamarketsituation.Itissaidtoexistwhenmoregoodsareavailablethancanbesoldoutata
reasonableprice.Naturally,itforcespricetocomedown.
35.HEAVYTRADING:
Itreferstolargevolumeofpurchaseandsaleinanorganizedmarket.
36.HELLA:
Itisatemporarysuspensionofthemarketdealingduetoabnormalriseorfallinprices.Theremay
beabullishhellaorabearishhellatoshowthe(either)situation.
37.LISTLESSCONDITIONS:
Itisasituationofanorganizedmarketinwhichthereisleastofactivity.
38.LONGCORNER:

PreparedByProf.M.Aqil

Whenabullhasafullcontroloverthesupplyintheorganizedmarketandsellsatthehighest
possibleprice,heissaidtohavealongcorner.
39.MAKEUPPRICE:
Itisapricefixedbystockexchangesecuritiesthataretobecarriedover.
40.MIXEDFEELING:
Isatoneofthemarketinwhichboththefallingandrisingtendenciesappearatthesametime.
41.MODERATELYACTIVEMARKET:
Isasituationinwhichthereisnotsomuchofactivityofbuyingandsellingasisinspected.
42.OFFTAKE:
Itreferstototalpurchaseofacertaincommodityonaparticulardayinaproduceexchangeor
bullionmarket.
43.PETOFTHEMARKET:
Thereategenerallyanumberofsectionsinamarkethummingwithactivities.Aparticularsectionof
marketwhichdominatesthebusinessonaparticulardayandfetchesgoodpriceforthecommodity
dealtthereinisknownasthePetoftheMarket.
44.POORTAKE:
Itisalittleamountofpurchasesinmarket(ofcourse,organizedmarket).
45.QUIETSPELL:
Itisaterminologyofthemarketreportinterpretingpoortransactionornegligiblebusinessactivity
forthedayreportedfor.
Itmeansanabsolutelynegligiblebusinesswasdoneonaparticulardayinanorganizedmarket.
46.RINGSANDPOOLS:
RingsandPoolsareorganizationofproducersanddealersinamarket.ARingisformedby
dealerstokeepthesupplyofcertaincommodityrestrictedsothatthepricemayriseandthushelpin
reapinghugeprofit.APoolisformedbyproducerstoeliminatecompetitionbyagreeingtodivide
outputamongthemselves.
47.SAGGINGTEDENCY:
Itsimplymeansafallingtendencyinprices.
Orisasituationinanorganizedmarketwherepricesarefalling.
48.SCRIP:
Itisatermusedinstockexchangereferstoasecurity,debentureorshare.
49.SHORTSALE:
Whenabearmakesheavyforwardsaleofthecommoditywhichhedoesnotpossesfordelivery,he
triestocoverhissalebyfuturepurchaseatalowerprice.Thisisknownasshortsale.
50.SLUMP:
Itisaperiodofsmallbusinessandfallingtendencyofpriceinanorganizedmarket.
51.SPECULATIVEISSUES:
ItisatermgenerallyusedinStockExchange.Itdenotestheshareswhosepriceshaveatendencyto
riseandfallinthemarket.
52.SPOT:
Itisareadybusiness.Itisoppositeoffuturedelivery.Goodsareactuallydeliveredonthespotafter
thecontractismadeandthepriceispaid.
53.SPURTINGMOVEMENT:
Itisasuddenriseinpricebyawidemargininanorganizedmarket.
54.SPURTSANDRALLIES:

58

PreparedByProf.M.Aqil

Sometimesthepricesinthemarketrisesuddenlyandbyawidemargin.ThisisknownasSpurtand
Rallies.
55.SQUEEZEDBEAR:
Where a bear is compelled to purchase from those who has to pay more in order to meet the
commitment,heissaidtobesqueezedbear.
56.STALEBULL:
Abullusuallybuysafutureinhopethatthepricewouldriseandhewouldbeabletomakeaprofit
on the bargain. Such and expectation is not always true. When it so happens that the market
conditiongoesagainsthisexpectationofrisingprice,thebulliscompelledtosellataloss.Thisis
knownasStaleBull.
57.STEADYNOTE:
Itisatoneinamarketwhichsignifiesacomparativestabilityinpriceathigherlevel.
58.STOCK:
Itisfullpaidshare,debentureorbondreportedonthestockexchange.
59.STREETPRICE:
The activities of buying and selling of securities generally continues outside the house (Stock
Exchange)evenafterthefixedhours.Thepriceatwhichthesecuritiesarethusboughtandsold
convenientlytermedasStreetPrice.
60.TONEANDUNDERTONE:
Tonereferstotheexistingtendencyofpricesinthemarket.Undertonestandsforthefuturetendency
ofprices.
61.TRADEDEMAND:
Itisthedemandoftradersformoneyfortheirownrequirement.Thisterminologyisusedinmoney
market.
62.WALLSTREET:
ItreferstoNewYorkStockExchangelocatedinWallStreet.
63.WIDEFRONT:
StockExchangehasusuallyawidefront.Itsimplymeanssharesofdifferentcompanies.
MARKETREPORTEXPRESSIONS
Q
Explain,insimplelanguage,thefollowingexpressionsasusedinamarketreport:
1. Afirmtonewasdisplayedthroughouttheday.
2. Afirmtonewasdisplayedthroughouttheweek.
3. BearishHellawasdeclaredinthemarket.
4. BlueChipswereingreatdemand.
5. BriskBusinesswasaffected.
6. Buoyancycontinuedinthemarket.
7. Easyconditionsinthemarket.
8. Easyconditionsprevailedthroughouttheday.
9. Saggingtendencywasnoticedinthemarket.
10. Theburdeningtendencywasnotedthroughouttheday.
11. ThemarketwasBearish.
12. Themarketwasbullishlyinclined.
13. Themarketwascheerful.
14. Themarketclosedflat.
15. Themarketwasfeatureless.
16. Thetoneofthemarketwasbright.
17. Therewasspurtingmovementthroughouttheweek.

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PreparedByProf.M.Aqil

ANSWER:
1.AFIRMTONEWASDISPLAYEDTHROUGHOUTTHEDAY:
Meanstherewasmorebuyersthensellers,transactionswerefewandpriceswererisingfortheday.
2.AFIRMTONEWASDISPLAYEDTHROUGHOUTTHEWEEK:
Meansthereweremorebuyersthansellers,transactionswerenumerous,andpriceswererisinginall
thedaysoftheweek.
3.BEARISHHELLAWASDECLAREDINTHEMARKET:
Meansthemarketwastemporarilysuspendedduetoabnormalfallintheprices.

4. BLUECHIPSWEREINGREATDEMAND:
Meansarushforgiltedged(firstclass)securities.
5. BRISKBUSINESSWASAFFECTED;
Meansthevolumeofbusinesstransactedinlargequantities.
6.BUOYANCYCONTINUEDINTHEMARKET;
Isusedtoindicatethehighlevelofprice,i.e.,anupwardtendencyofpricecontinuedinthemarket
7.EASYCONDITIONSINTHEMARKET;
Itmeansafallingorlowpricesrulinginthemarket.
8.EASYCONDITIONSPREVAILEDTHROUGHOUTTHEDAY;
Meansfallingpricesorlowpricesrulinginmarketofaday.Itshowsasmallvolumeofbusiness
transactedduetoshortageofdemandorexcessofsupply.

9. SAGGINGTENDENCYWASNOTICEDINTHEMARKET:
Meansfallingtrendofpriceswasobserved.
10. THEBURDENINGTENDENCYWASNOTEDTHROUGHOUTTHEDAY:
Isusedtoindicateapricewhichshowsatendencytorise,i.e.,therewasanupwardtendencyofthe
marketthroughouttheday.
11.THEMARKETWASBEARISH:
Isusedtoshowapessimisticfeelinginthemarketi.e.,therewasaspeculationamongthespeculatorsthat
thepricewillfall.Anytransactionwithsuchasentimentisboundtomakethepricedrop.

12.THEMARKETWASBULLISHLYINCLINED:
Meansthepresenceofgooddemand,heavytransactionsarerisingprices.Orisusedtoshowan
optimisticfeelingofrisingprices,i.e.,therewasaspeculationamongspeculatorsthatthepricewill
rise.Theresultofsuchaninclinationistopullupthelevel.
13.THEMARKETWASCHEERFUL:
Means the tone of the market indicating the presence of a large number of buyers numerous
transactionsandrisingprices.
14.THEMARKETCLOSEDFLAT;
Meanstherewerefewerbuyersthansellers,transactionswerefew,andpriceswererecedingwhen
themarketofthedaywasattheend.
15.THEMARKETWASFEATURELESS:
Meansthevolumeofbusinesstransactedinsmallquantities.Orisusedtoindicatethepresenceof
moresellersthanbuyers,afewtransactionsandfallingprices.Thisisalowtoneofmarket.
16.THETONEOFTHEMARKETWASBRIGHT:
Meansthepresenceofmorebuyersthansellersnumeroustransactionsandadvancingprices.
17.THEREWASSPURTINGMOVEMENTTHROUGHOUTTHEWEEK:
Meansabruptriseinpricesbyawidemarginforthewholeweek,whichmaybeshortlived.

MARKETREPORTEXPRESSIONS
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PreparedByProf.M.Aqil

Q.Explainthefollowing

18. ASHARPSPURTinMillatTractorsfeaturedyesterdaysstockmarket.
19. DuetotightsellersinthemarkettheOFFTAKEremainedlow.
20. EASYCONDITIONSmarkedtheopeningsessionoftheoilseedsmarket.
21. FairlyBRISKACTIVITYwaswitnessedinCottonMarket.
22. QuietlyMIXEDTRENDwasseenintheforwardcounter.
ANSWER:
18.ASHARPSPURTinMillatTractorsfeaturesyesterdaysstockmarket:
ThestockmarketshowedasharpriseinthepurchaseofsharesofMillatTractors.Thissudden
changeappearstobetheresultofinvestorsdecisiontoforwardwithpositivesteps.
19.DuetotightsellersinthemarkettheOFFTAKEremainedlow:
Duetoreluctanceofsellersinthemarketthetotalpurchaseremainedhesitantorabnormallylow.
20.EASYCONDITIONSmarkedtheopeningsessionoftheoilseedsmarket:
Theoilseedsmarketonitsopeningdidnotshowanysubstantialamountofbusinesstransaction.The
priceswerefallingandthetoneofthemarketwasreportedtobedepressed.
21.FairlyBRISKACTIVITYwaswitnessedinCottonMarket:
Thecottonmarketshowedabrighttonereflectedinbusybuyingbythebulls.Goodamountof
transactionstookplace.
22.QuietlyMIXEDTRENDwasseenintheforwardcounter:
Theforwardcounterwasexpressingirregularityinpurchaseandsales.Thatisfallaswellasarisein
priceswereindicated.
MARKETREPORTTERMINOLOGY/PHRASES
17.
CompareContrastBetween:
1. DailyMarketReportandWeeklyMarketReport.
2. NationalPrizeBondsandCompensationBonds.
3. RegisteredsecurityandGiltedgedSecurity.
ANSWER:
1.DAILYMARKETREPORTANDWEEKLYMARKETREPORT:
Amarketreportisaperiodicalpublicationoftheconditionsofanorganizedmarket.Itmaypresent
daily,weekly,fortnightlyormonthlyreviewsoftheconditionsofbusinesstransactedincommodity
orcapital.
Adailymarketreportgivesthedaysopeningandclosingratesofthecommodityandthetoneofthe
marketalongwiththereasonfortheriseorfall.Itmayprovidethevolumeofbusinesstransacted
duringthedayreportedfor.
2.NATIONALPRIZEBONDSANDCOMPENSATIONBONDS:
NationalprizebondsarebondsissuedtheGovernmentofPakistanindenominationofR.s500,
1,000,10,000and100,000etc.theholderofsuchabondmayclaimandgettheamountofprize
declareoneachdrawbyshowingthenumberdeclaredtobetheprizewinner.
CompensationBondsarebondsdeclaretobethepaymentorcompensationfortakingupownership
oflandorpropertybythestate.ExcesslandholdersofthelandreformsinPakistanandownerof
takenoverindustriesweregivensuchbondsinPakistan.
3.REGISTEREDSECURITYANDGILTEDGEDSECURITY:
AregisteredSecurityisasecuritythatdoesnotpassfreelyfromonehandtoanother.Thepossession
ofsuchasecurityisnoralegalproofofownershipunlessanewcertificateisissuedandtheoldone
hasbeencancelled.

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PreparedByProf.M.Aqil

AGiltedgedSecurityisasecuritythatgivestheinvestorthegreatestpossibledegreeofsecurity.It
isaclasssecurity.

17.

MARKETREPORTTERMINOLOGY/PHRASES
Distinguishbetweenthefollowingterms/phrases:
1. BonusissuesandRightIssues.
2. BullCampaignandBearRaid.
3. CumulativeDividendandExDividend.
4. RegisteredSecurityandGiltEdgedSecurity.
5. SpotMarketandFutureMarket.

ANSWER:
4.BONUSISSUESANDRIGHTISSUES:
Bonusissues:ShareswhichareissuedasbonusshareholdersareknownasBonusIssues.
Rightissues:ShareswhicharegivenasrighttoprofitareknownasRightIssues.
5.BULLCAMPAIGNANDBEARRAID:
BullCampaign:ABullisoptimisticinnature.Hemakesbargaininthehopeofriseinprice.When
hegoeswronginhisforecast,hetriestocreatearumourtoraisethepricelevel.Thisisknownas
bullcampaign.
BearRaid:ABearispessimisticinnature.Hemakesbargaininthehugeoffallinprice.Whenhe
goeswronginhisforecast,hetriestocreatearumourtomakethepricefall.Thisisknownasbear
raid.
6.CUMULATIVEDIVIDENDANDEXDIVIDEND:
CumulativeDividend:Itreferstoaquotationofsecurity/shareonthestockexchangewhoseprice
includesdividendandinterestaccruedonit.
ExDividend:Itindicatesthattherighttoreceivedividendandinterestaccruedonitremainwiththe
sellerevenifthesecurity/stockisinthehandsofthebuyers.
7.REGISTEREDSECURITYANDGILTEDGEDSECURITY:
RegisteredSecurity:itisasecuritywhichgivestitlesownershiptoitsholderwhocantransferitto
someoneelseonadeedbuttheownershipwillremainwiththetransferor.
Gilt Edges Security: it is Government security or first class security which gives the investor
greatestpossiblesecurity.
8.SPOTMARKETANDFUTUREMARKET:
SpotMarket: Anorganizedmarketwheregoodsareboughtandsoldonthespotanddeliveryis
madeimmediatelyisknownasspotmarket.
FutureMarket:Anorganizedmarketwheregoodsareboughtandsoldforsomefuturedareata
settledpriceisknownasfuturemarket.

VIII.MARKETREPORT
TOUNDERSTAND&INTERPRETAMARKETREPORT
Everydayinthemorningthefirstreadingmaterialthatcomestoyouisanewspaper.Youfind
onefullpagedevotedtoindustry,tradeandcommerce.Sometimesyouliketoreadit.
REQUIRED:
Explaintheproceduresyouwouldadopttomakeitconvenienttounderstandandinterpretamarket
report.

17.

ANSWER:
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PreparedByProf.M.Aqil

Tounderstandandinterpretamarketreportoneisdefinitelyputtoinconvenienceifheisnotfamiliar
withthetechnicaltermsusedandcompositionofthemarket.Itcanbeapproachablewiththehelpof
certainpointsinview.
1. TypeoftheReport.
2. ToneoftheReport.
3. Tendency.
4. NatureofBusiness.
5. VolumeofBusiness.
6.MarketQuotations.

1.TypeoftheReport:
Thereadershouldtrytodeterminethetypeofthereport,i.e.,classification.Thereportmaybedaily
orweeklyormonthly.Thecommoditydealtinmaybeproduceorcapitalormoney.
2.ToneoftheReport:
Thetoneofthereportmeasuresthehealthoftheexchange,i.e.,weak,film,cheerful,depressed,dull
orbright.
3.Tendency:
Tendency is the movement of price i.e., rising or falling upward or down ward optimistic or
pessimistic.
4.NatureofBusiness;
Nature of Business refers to transactions entered into and the mode of delivery, i.e., ready or
forward,spotorfuture.
5.VolumeofBusiness:
VolumeofBusinessistheamountoftransactiondoneonaparticularpointoftime,i.e.,1,000bales
ofCottonor2,000Sharespurchasedorsoldinaday.
6.MarketQuotations:
MarketQuotationsindicatedifferentpricesofdifficultvarietiesofcommoditiesorsharesdealtin
withreferencetoaparticularperiod.
DEFINATION&ADVANTAGES
Q.DefineaMarketReportandstateitsadvantages.
ANSWER:
i)Definition:
MarketReportistheperiodicalpublicationoftheconditionsorreviewofthebusinesstransactedina
certaincommodityorcapitalinaparticularmarket.Suchreportsmaybepreparedandpublished
daily,weekly,fortnightlyormonthlyetc.innewspaper,magazineandcommercialbulletins.Itgives
theopeningandclosingratesofcommodities(orcapital)alongwiththereasonsfortherisingof
fallingtrendofthemarketprice.
ii)Advantages:
TheadvantagesofaMarketReportmaybeenumeratedasfollows:
1. Itisanindexofprice.
2. Itprovidesstatisticsforcomparison.
3. Itshowstruenatureandvolumeofbusinesstransacted.
4. Itshapespublicopinion.
5. Ittendstostabilizeprices.
6. Itindicatesfuturemovementofprices.
7. ItservesasmediaofadvertisementfortheCompany(s).
8. Itshowstheeffectofdemandandsupplyonmarket.
9. Itwarnsspeculators.
10. Itprovidesvaluablecommercialliterature.

17.

CONTENTSOFAMARKETREPORT
ExaminethecontentsofaMarketReport.

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PreparedByProf.M.Aqil

ANSWER:
TheusualContentsofaMarketReportasfollows:
1. DateofBusiness.
2. PlaceofBusiness.
3. Periodunderreviewe.g.,day,week,fortnight,month,etc.
4. Typesandqualitiesofcommoditiesdealtin.
5. Estimateofdemandandsupplyatthetimeofreporting.
6. NatureofBusinesstransacts,termofdeliveryandpayment.
7. VolumeofBusinessi.e.,stockavailableandquantitysold.
8. Rulingpricesfordifferentqualitiesofcommoditiesatwhichtransactionsweremade.
9. Fluctuationinprices,localandoutsidefactorsinfluencingtherates.
10. Remarksofthereporterforecastofbusinessconditionsi.e.,prospectsofbusiness.

USEFULNESS OF A DAILY REPORT OF STOCK EXCHANGE TO PROSPECTIVE


INVESTORS
Q.Brieflyexplaintheusefulnessofadailyreportofstockexchangetoprospectiveinvestors.
ANSWER:i)
Definition:
AMarketReportmaybedefinedasaperiodicalpublicationoftheconditionsorreviewofthe
conditionsofbusinesstransactedinacommodityorcapitalmarket.Suchreportsmaybeprepared
andpublishedinnewspaperandcommercialbulletinsdaily,weekly,fortnightlyormonthly.

StockExchangeisanorganizedmarketandisapartofCapitalMarket.StockExchangemayhavean
international dimension. Indies the country, we find almost every day Stock Exchange Reports
publishedinallimportantnewspaper.Itprovidesanindexofbusinessconditionsinthecountryin
termsofvaluesandvolumesofsharestransactedinanexchange,e.g.,KarachiStockExchange.
Usefulness:
TheusefulnessofadailyStockExchangeReportcanbeviewedfromvariousangles,e.g.,investors,
businessmen, government, general public, etc. for prospective investors the usefulness may be
enumeratedasfollows:

1. ItgivesdetailsofpricesofsharesofdifferentcompaniesquotedonStockExchange.
2. Itindicatespaidupvalue,yesterdaysratesandthelossorgain,ifany,overthepreviousdays
closing.
3. Itprovidesindicationsaboutthebiggestgains,heaviestdeclines,largestturnoveranddayschanges.
4. Itshowsthelikelytrendinfuture,atleastthenearones.
5. Itgivesinformationforprospectiveinvestorsabouttheopportunityofinvestmentinvarioustypes
ofshares.
6. Itprovidesthethreatstonewinvestorsandtherebyhelpstheprospectiveinvestorinblindrushto
rushmoneyforbiggergain.
7. Itwantstomovecontinuously.
STOCKEXCHANGEMEANING&SALIENT
FEATURESQ.WhatisaStockExchange?Stateitssalient
features.ANSWER:
StockExchangeisamarketforthesaleandpurchaseofstocksandsharesofdifferentCompanies.
StockExchangeprovidesfacilitiesforlongterminvestmentsandmovementsofcapital.Itisan
organizedmarketandisasectionofcapitalmarket.
Stock Exchange are found in all big industrial and commercial centers, e.g., Karachi Stock
Exchange,BombayStockExchange,LondonStockExchange,etc.
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PreparedByProf.M.Aqil

SALIENTFEATURES:
TherearecertainsalientfeaturesofaStockExchange.Theymaybeenumeratedasfollows:

1. Thebusinessisvariedandcosmopolitaninnature.
2. Itisthenervecentreofpolitiesandfinance.
3. Itrepresentstheindustrialandcommerciallifeofacountry.
4. Itprovidesnewhorizonforbusiness.
5. Itprovidesafreemarketforsecurities.
6. Itprovidescapitaltoindustryandcommercebyinvestors,traders,bankersandgovt.
7. Ithelpsgovernmenttobarrowfrompublic.
8. Itislinkedwiththeprosperityoftheworldingeneralandofacountryinparticular.
DISTINGUISHPRODUCE&STOCKEXCHANGE
Q.DistinguishbetweenProduceExchangeandStockExchange.UsePakistanasa
reference.ANSWER:
Exchangeinanothernamefoeanorganizedeconomicmarket.AnEconomicMarketcanbe
classifiedinto:
a).CommodityMarket
andb).CapitalMarket.
ACommodityMarketcanfurtherbegroupinto;
1) ProduceExchangeormarket.
2) ManufacturedandPartymanufacturedGoodsMarket.
3) BullionMarket.
Similarly,aCapitalMarkethasitsgroups,namely:
1) MoneyMarket.
2) ForeignExchangeMarket.
3) StockExchange.
AProduceExchange/Marketisamarketdealinginrawproduces,e.g.,Wheat,Rice,Iron,etc.Such
exchangeinPakistanislocatedinKarachi,LahoreandFaisalabad.
ProduceExchange/Market isanorganizedmarketforinvestment.Itfacilitiesthemovementof
StockandSharesfromanindustryorregiontoanother.KarachiStockExchangeandLahoreStock
Exchangedoallsuchbusiness.
Wecancomparethetwotypesofexchange,via,ProduceExchangeandStockExchangewiththe
helpoftheirrelevantfeatures.
ProduceExchange
1. Itprovidesrawproductstodealine.g.,
Rice,WheatandCottonetc.at
importantproducecenterslikeLahore
andFaisalabad.
2. Itissensitivetopoliticalandeconomic
change.
3.Ithelpstostandardizethepricesofraw
product.
4. Thefixationofpricesofrawproducts
dealinthismarketaffectscommon
mandirectly.
5.
Ithasmoretodowiththe
country/concerned
than
any
internationalsituation.

StockExchange
1. ItprovidesCapitaltoindustryand
commercebyinvestors,bankers,
tradersandgovernmentinthecentral
cities,likeKarachiandLahore.
2. Itisthenervecentreofpoliticsand
finance.
3. Ithelpstoregulatetheindustrialand
commerciallife.
4. Thedealinginsharethesecuritiesdoes
notgenerallyaffectthecommonman
directly.
5. Itislinkedwiththeworldmarketin
generalandacountryparticular.
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PreparedByProf.M.Aqil

CLASSIFICATIONOFECONOMICREPORT
Q.Describebrieflytheclassificationofeconomicmarkets.
ANSWER:
AnEconomicMarketcanbeclassifiedondifferentbasisvia,onthebasisoftime.Onthebasisof
areacovered,onthebasisofdegreeofcompetition,onthebasisofcommodityormerchandisedealt
in, etc. taking the last base as pressured to be the required one for our market report, the
classificationrunsasfollows;
1.ECONOMICMARKET:
a)CommodityMarket
b)CapitalMarket
a)COMMODITYMARKET:
ThefirstandthewellknowntypeofaneconomicmarketareaCommodityMarket.Asthetermit
selfexplanatory,itdealsincommoditythatmaybeusedfordirectconsumptionortobeutilizedfor
production,e.g.,rice,wheat,oilseeds,cotton,leather,goldandsilveretc.
TheCommodityMarketorganizedinPakistanmaybesubdividendintofollowing:

1)Produce Exchange is a market dealing in raw produced, e.g., wheat, cotton, iron, etc. Such
marketorexchangesareinKarachi,LahoreandFaisalabad(Lyallpure)etc.
2) Manufacturing&PartyManufacturedGoodsMarketisamarkettodealinmanufacturedand
partlymanufacturedgoods,e.g.,cotton,cottonyarn,leather,leathergoods,sugar,etc.
iv)BullionMarketisamarkettosellpreciousmetals,e.g.,gold,silver,etc.
b)CAPITALMARKET:
Thesecondimportanttypeofmarketiscapitalmarket.Capitalisthelifebloodofanindustry.Itis
requiredtostartanewbusinessortoexpandtheoldones.CapitalMarkethelpstogetfinance.Itis
themarketofhomecurrency,foreignexchangeandstocksandshares.
CapitalMarketmaybesubdividedintothefollowing:

1) MoneyMarket:Itisthemarketwhereincertainagenciesareengagedinfinancingbusinessand
industriesthroughinvestments,e.g.,banks,financialinstitutions,etc.
2) ForeignExchangeMarket:Itisaspecialmarketforinvestments.Itfacilitatesfreemovementof
stocksandsharesfromanindustryorregiontoanother,e.g.,KarachiStockExchange,Lahore
StockExchangeetc.
4) Stock&SharesMarket:itisanorganizedmarketforbuyingforinvestments.Itfacilitatesfree
movement of stocks and shares from an industry or reign to another, e.g., Karachi Stock
Exchange,LahoreStockExchangeetc.
ORGANIZED&UNORGANIZEDMARKET
Whatdoyoumeanbyorganizedandunorganizedmarket?ItProduceExchange
anorganizedMarketExplain.
ANSWER:
Amarketissaidtobeaplacetobuyorsellgoodsandservices.Itmayalsomeananassemblyof
people,anareaofoperation,anorganization,etc.AnEconomicMarketistoexistwheneverand
whenever the buyers, and sellers of goods and services meet in each of opportunities for the
adjustmentoftheremutualinterestbusinessinanatmosphereoffreeandopencompetition.

17

AMarketbyfeaturemaybe:
a)Organizedand b)Unorganized
AnOrganizedMarketisactuallyanEconomicMarkethavingthefollowingessentials:

1) Groupofbuyersandsellers.
2) Directandeffectivecompetitionand
3) Onepriceforonecommodity.

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PreparedByProf.M.Aqil

In this sense, a Commodity Market and a Capital Market is organized market. To be specific
produce, exchange, money market, and stock exchange are organized markets. They have set
practiceandrulestofollowintheconductoftheirdaytodayaffairs.
AProduceExchangeisanOrganizedMarketinthesensethatthereisasetgroupofbuyersand
sellerswhoareaallowedtotransactbusiness.Inanunorganizedmarketanybodycanenterinto
business activities. In a Produce Exchange there is direct and effective competition and the
transaction,readyorfuture,cantakeplaceaccordingly.Suchamarketisverysensitivetochange
economicorpolitical.Also,aProduceExchangehasonlyonepriceonaday.Thisisnotnecessary
foranunorganizedlocalorvillagemarket.
CLASSIFICATIONOFECONOMICMARKET
QExplainbrieflythedifferentEconomicMarketsforwhichreportsareprepared.
ANSWER:
Marketingeneralusageisaplacewherethingsareboughtandsold.Ineconomics,marketisnot
necessarilythenameofaplaceorbuildingbuiltofbricksandmotors.Marketisasituationinwhich
buyersandsellersofacommoditymeetataparticularpointoftimeandthepriceisfixedbythe
interactionoftheforcesofdemandandsupply.
EconomicMarketcanbeclassifiedonthebasisoftime,onthebasisofareacovered,onthebasis
ofcommodityormerchandise,etc.Generally,wecanclassifyoneconomicmarketasfollows:
Themarketsforwhichreportsarepreparedarenottoomany.Inourcontext,StockExchangeand
ProduceExchangearecommonformsofmarketforwhichreportsareprepared.BullionMarketis
unevenlyreported.ItislocatedinKarachi,Hyderabad,LahoreandPeshawar.
StockExchangeisandorganizedmarketforlongterminvestments.Itfacilitatesfreemovement
ofstocksandshares,e.g.,KarachiStockExchangeandLahoreStockExchange.
ProduceExchangeisanorganizedmarket dealinginrawproducesuchaswheat,cotton,rice,
pulse,oilseeds,etc.locatedinKarachi,Lahore,Faisalabad,etcinPakistan.

ECONOMICMARKET

1.CommodityMarket

a.ProduceExchange

2.CapitalMarket

c.Bullion
Market

a.MoneyMarket

c.Stock
Exchange

b.Foreign
ExchangeMarket

b.Manufactured&Partly
manufacturedGoodsMarket

SPECIMEN
REPRODUCTIONOFMARKETREPORT
RECOVERYINCOTTONEXCHANGE
Q.Reproducethefollowingmarkerreportinnotechnicallanguage:
KarachiApril22,2002improvedconditionwereobtainableintheCottonMarket.Yesterdayand

admitsmoderatescaletradingfuturefinishedtheday45paisahigherfortherulingMaycontactand20

6
7

PreparedByProf.M.Aqil

paisadearerforthedistantJulydelivery.Theotherfactorwhichhelpedthemarkettostagesector
andspotrateswasalsohundredtotheextentof60paisaforallthestapleverities.
ANSWER:
ThisisanextractfromKarachiExchange.Thebusinessconditionisreportedtobefavorableon
April21,2002.Therewastoomuchofactivityandriseinpriceafterallcreatingdullsituation.A
gooddealofbusinesswastransactedtendencyinthemarketandMaydeliveryisexpectedtobe45
paisahigherwhereas20paisahigherforJulydelivery.
Atthecloseofthemarket,thepriceofCottonwas60paisahigherthanthepreviousday.Thefuture,
however,isexpectedtobebright.
BEARISHCONDITIONCONTINUES
Reproducethefollowingmarkerreportinnotechnicallanguage:
KarachiJune02,2002Bearishconditionscontinuedtobewitnessedinthemarket.Withthe
buyinginterestremainedatlowandthesellingpressurecontinuedtomount.However,asagainstlast
closethe4FJanuary,2002hedgecontractopened15paisaupatRs.166.40butonrenewedHeavy
liquidationitslumpeddowntoRs.161.25atwhichlevelabearishhellatobeunforced.
ANSWER:
ThisisanextractfromKarachiStockExchangebothforfutureandreadydelivery.
Q.

Thedecliningtendencyofpricescontinuedtoprevailthemarket.Thespeculatorsexpectedafallin
price.Buyerswereleastinterestedindoinganyactivity.Sellers,therefore,showedmoreandmore
interestinselling.
4FJanuary,2002contracttocoveruprisksthroughacounterdealopenedatRs.166.40i.e.,15paisa
thantherateattheendofthepreviousday.
HeavysellingactivityfurtherpulleddownthepricetoRs.161.25.thiswasthepointwhenthemarket
hadtobepostponedtemporarilybydeclaringaBearishHella.
MARKETREPORTINTECHNICALWORDS
QDrawup,inproperform,aMarketDayReportintechnicalwordsrelatingtoKarachiStock
Exchangeusingimaginaryfactsandfigures.Youaretoreportmixedtendencyinprices
andexplainthemaincausesresponsibleforit.
ANSWER:
Karachi,March13,2002:
AmixedfeelingcontinuedintheKarachiStockExchange/MarketonTuesdaywithinterestcentered
round..Gainsandlosseswereevenlymatched.Turnovertotaled56,240Sharesagainst80,000shares
transactedinthelastperiod.
IntheforwardsectionAdemjeeCottonwhichstartedsteadyat16.75againsttheirpreviouscloseat
16.60declinedtoaslowas16.50tocloseround16.55I.C.P.afteropening50paisabetterat102.50
touchedthedayshighestat104.50.This,however,couldnotbemaintainedduetoofferings,and
closedat104.00.
Inthespotsectiontheratesprevailedwereas:
AdamjeeFabric
KarimSilk
GulAhmedTextile
AtlasAutos
ZealPakCement
HabibInsurance
AdamjeePaper
Sandoz(Pak)

10
10
10
10
10
05
10
10

Rs.
24.25
08.85
15.55
14.50
17.95
14.80
13.85
05.50

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PreparedByProf.M.Aqil

IMPROVEDMARKETCONDITIONS
17 ReproducethefollowingMarketReportinnontechnicallanguage:
KarachiAugust02,200:improvedconditionswerevisibleintheCottonMarketyesterdayand
admitsmoderatescaletradingfuturefinishedtheday50paisafortherulingSeptembercontractand
30paisadearerforthedistantDecemberdelivery.Theotherfactorshelpingtherecoveryofthe
marketweredemandinreadysectorandexpectedincreaseintradingwithIslamicJamhuriaBangla
Desh.Spotrateswerealsohardenedtotheextantof65paisaeachofallDesivarities.
ANSWER:
ThisextractistakenfromKarachiCottonExchangeforAugust01,2001.Thereporterhasdiscussed
thefactorsthatledtotheimprovementinthemarketconditionsonthedayreportedforthemarket
has taken a turn from the downward sewing to an upward spiral. The cause appears to be the
presenceofmorebuyersthanthesellers.Theprices,asaresult,arerisingandhaverecordedtheday
with50paisahigherforSeptemberdeliveryand30paisaforDecemberdelivery.
Theotherreasonsappearingtocontributetotheoptimisticfeelingwasexpectedincreaseintrading
withIslamicJamhuriaBanglaDesh.Ratesforreadydeliveryshowedthetendencyofpricerisetothe
extentof65paisaeachforalldesivarities.
DOWNWARDTENDENCYINPRICES
Q.Drawup,inproperformamarketdayreportintechnicalwordsrelatingtoKarachiStock
Exchangeusingimaginaryfactsandfigures.Youaretoreportadownwardtendencyin
pricesandexplainthemaincausesresponsibleforit.
ANSWER:
SPECIMEN
KARACHISTOCKEXCHANGE
th

Karachi,May30 2002
Generally,asaggingtendencywasnotedintheKarachiStockExchangeonTuesdaywithinterest
centeredroundmostlybluechips.Gainsandlosseswerenotevenlymatched.
Intheforwardsection,AdamjeeCottonwhichstartedsteadyatRs.17.75againstthepreviousclose
atRs.17.60declinedtoRs.17.50tocloseroundRs.17.55.
I.C.Pafteropening50paisahigheratRs.103.50camedowntoRs.103.25thishowever,could
hardlybemaintained.
Inthespotsectiontheratesprevalentwereasfollows:
1. KarimSilk
2. SandozPak
3. SaifiDevelopment
4. SaifiTextile
5. KhaiberTobacco

10
10
10
10
10

Rs.
8.90
6.60
6.50
6.40
9.25

Inshort,bearishconditionscontinuedtobewitnessedinthemarketwhilebuyingremainedatloss
ebbthesellingpressurecontinuedtomount.Thereasonforsuchfallisobvious.Politicaluncertainty
hasshakenthefaithindynamicsteps.Nobodyispreparedtorisk.Naturally,easyconditionsprevail
inthemarket.Afirmtonecannotbedisplayedinthissituation.
RISINGTRENDOFPRICESONTHEDAY

17 Reproduce the following extract of market report in nontechnical


language:KarachiDecember09,2001:

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PreparedByProf.M.Aqil

TheStockMarketgaveanimprovedperformanceyesterdayonamidrelativelyincreasedactivity
sharevaluesstagedmodesrecoveryacrossabroadfrontfollowingrevivalofdemandatthelower
levelsaidedmainlybygooddividendnews.
TradingintheforwardcounterwashighlightedbyasharpspurtinNationalMotorsfollowingthe
announcementofhandsomedividend.Afteropening55paisaupagainsttheovernightclosewhich
provedtobethedayslowestbid,itsteadilyadvancedtohidthedayspeakRs.29.00butfinished
somewhatreactedroundRs.3.15Bullishhellawas,however,notdeclaredduetoclearingBarringa
few,allissuessufferedfalls.
ANSWER:
a)Comments:
ThisisanextractfromKarachiStockExchangeasonDecember08,2001,showingonimproved
performanceascomparedtotheyesterdaysbusiness.Themainreasonfortheincreaseinpricewas
agooddividendnewsmostofthecompaniesdecidedtodeclareahandsomeamountofdividendto
theirshareholders.
Thedemandforthepurchaseofshareswashigh.Thiswasanotherreasonforcheerfulstartsas
comparedtodullbusinesspreviously.
b)Interpretation:
Duringthedayunderreviewbusinessonfuturesettlementbecamequitecheerfulonaccountofthe
announcementofhandsomedividendfromNationalMotors.Intheveryopeningoftheexchange
Shareswere55paisaup,butlookingthoughthedaystransactionstheywerethelowestpriceof
Sharesfortheday.TheytouchedthepeakofRs.29.00butclosedonRs.27.90owingtosubsequent
profitselling.Onanaggregate,itshowedariseof.

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