A business entity is an entity that is a group of people organized for some profitable or
charitable purpose. Business entities include organizations such as corporations, partnerships,
charities, trusts, and other forms of organization. Business entities, just like individual persons,
are subject to taxation and must file a tax return. Some business entities are exempt from
federal income tax. These include non-profit charities, S-corporations, and partnerships.
Business entities may be subject to state income tax, depending on the laws of the state or
states where they conduct business.
A business (also known as enterprise or firm) is an organization involved in the trade of goods,
services, or both to consumers.
Business communication is nothing but, the communication between the people in the
organisation for the purpose of carrying out the business activities. It may be oral, verbal,
A business can flourish when all the targets of the organization are achieved effectively. For
efficiency in an organization all the people (within and outside) of the organization must be able
to convey their message properly. The exchange of ideas, understanding, within and outside the
organization to achieve the business goals is known as business communication.
How to improve business communication?
Effective communication is an essential part of running a successful business. Communication –
both internal and external – enables smooth operations, increases effectiveness and efficiency,
and helps to avoid catastrophes.
Unfortunately, the communication connection is where things have a tendency to go wrong.
Whether it’s verbal misunderstandings, lost emails, confusing texts or poorly-worded email
messages, breakdowns in communications can be costly.
With this in mind, here are 17 easy ways you can improve your business communication skills to
keep things sailing smoothly:
Treat Email Like Real Mail – It’s okay to skimp on the text when you’re sending a grocery list to
your spouse or an invite to an old college friend, but when dealing with business associates,
partners and clients, it’s always better to err on the side of formality. Treat your email
communications as if they were real letters – not just digital missives.
Edit for Clarity – It’s tempting to just jot down a note and send it without a second thought, but
you should always go back and edit for clarity. What you think sounds perfect in your head
could be confusing to whoever receives your memo.
Archive Communications – Create folders in which to save old emails that you may need again in
the future. Having a “lost” email conveniently backed up in an archive can save you a ton of
time when that email suddenly becomes relevant again.
Check your Facts – You don’t ever want to have the wrong information, as this makes you look
like you haven’t done your homework! For this reason, it’s important to always check your facts
before you hit that “Send” button.
Stay Away from Emoticons, Slang and Colloquialisms – Business communications should be
direct and to the point. They should also be written so that a person on the other side of the
country could instantly understand what you’re talking about. If you have even the slightest
suspicion that something you’ve written could be lost in translation, skip it.
Always Use the Subject Line – The subject line is not only your recipient’s first introduction to
the content of your message, it’s also one key to keeping your message out of the spam box.
Always fill out this crucial field – even if it’s with something as simple as “Hello.”
Avoid the Spam Box – If your messages aren’t getting through to your intended recipient, it
could be that they’re being marked as spam. To prevent this, be sure that the person on the
other end of the line is looking for your email and has your email address and domain in their list
of “safe” senders.
Meet in Person – Sometimes, an email or a text just isn’t enough. Putting a face to a name and
a palm to a palm is still the best way to communicate complex ideas and make a good
impression, so don’t shy away from person-to-person meetings.
Listen Attentively – Good communication begins with an understanding of what the other party
is talking about. Always listen and give your undivided attention, instead of trying to interject
too quickly with your own thoughts.
Focus Your Speech – Think before you open your mouth. When your speech patterns are
cluttered with “umms” and “ahhs,” you defeat the purpose of meeting face-to-face.
Stay on Target – Don’t get distracted by topics that are irrelevant to why you chose to meet in
the first place. It’s easy for your train of thought to derail, but business communication is
different than interpersonal communication. There’s always a point you’re trying to get across,
so stick to it!
Avoid Making Communications too Personal – Keeping professional boundaries sacred is
important in business communication. It’s good to become friendly with the people with whom
you’re working, but you don’t necessarily have to become friends. Be polite and engaging, but
avoid too much personal drama.
Thank People for Their Input – People always want to feel that their opinions are important –
even if you don’t agree with them. It’s your job to keep the conversation on track. If the person
you’re talking with expresses a contrary opinion or offers an alternative you feel won’t be
beneficial, thank them and then explain why you’re not going to use what they’ve suggested.
Tell ‘em, Tell ‘em, Tell ‘em Again – Tell people what you’re going to say, say it and tell them what
you’ve told them. This age old adage about good communication is based on human
psychology. The brain is set up to remember things in a specific order. Items with primacy (the
first in a list) and items with recency (the newest items) will always be remembered above
anything else. So by introducing your “big ideas” in the beginning of your talk and at the end,
you’re doubling your chances that your recipient will remember what you’ve told them.
Ask Questions – It’s not all about engaging your listener’s pride. Questions generate ideas and
helpful tangents in discussions that allow you to bring out aspects of a topic that would have
otherwise gone unnoticed, so make it a habit to pose at least 1-2 probing questions in every
Follow Up – Whether in-person or in writing, always follow up a day or two after you’ve
discussed an issue to ensure that the person on the other end of the conversation understood
your points and is able to undertake any further tasks that your communication necessitated.
A Sense of Humor is Good, but Not Essential – Humor is often touted in speech books and
communications manuals as an important conversational tool, but it’s not essential. If you’re
stressed about being seen as the “funny guy,” keep in mind that clarity of thought and simplicity
of presentation are far more important than opening with a joke.
Major Types of Business Communication
Types of Business Communication
There are two types of business communication in an organization:
Communication within an organization is called “Internal Communication”.
It includes all communication within an organization. It may be informal or a formal function or
department providing communication in various forms to employees.
Effective internal communication is a vital mean of addressing organizational concerns. Good
communication may help to increase job satisfaction, safety, productivity, and profits and
decrease grievances and turnover.
Under Internal Business Communication types there come;
a) Upward Communication
b) Downward Communication
c) Horizontal/Literal communication
a) Upward Communication
Upward communication is the flow of information from subordinates to superiors, or from
employees to management. Without upward communication, management works in a vacuum,
not knowing if messages have been received properly, or if other problems exist in the
By definition, communication is a two-way affair. Yet for effective two-way organizational
communication to occur, it must begin from the bottom.
Upward Communication is a mean for staff to:
Achieve job satisfaction
b) Downward Communication
Information flowing from the top of the organizational management hierarchy and telling
people in the organization what is important (mission) and what is valued (policies).
Downward communication generally provides enabling information – which allows a
subordinate to do something.
e.g.: Instructions on how to do a task.
Downward communication comes after upward communications have been successfully
established. This type of communication is needed in an organization to:
Transmit vital information
Encourage 2-way discussion
Both Downward & Upward Communications are collectively called “Vertical Communication”
c) Horizontal/Literal communication
Horizontal communication normally involves coordinating information, and allows people with
the same or similar rank in an organization to cooperate or collaborate. Communication among
employees at the same level is crucial for the accomplishment of work.Horizontal
Communication is essential for:
Communication with people outside the company is called “external communication”.
Supervisors communicate with sources outside the organization, such as vendors and
It leads to better;
It should improve
Ultimately, it helps to achieve
In businesses there are a few main forms of communication. The most common and used is
phone communication, where you speak to someone else. The second most common is e-mail,
this is what is used to send a letter from one computer to another. Email in many ways has
replaced faxes. Memos are another form that are sometime just simple notes, updates, changes
or other items. Other forms include training manuals, bulletins and face to face.