This document discusses business correspondence and provides guidelines for effective business letters. It defines business correspondence as the written communication between organizations or individuals for business purposes. Some key benefits of business correspondence mentioned include exchanging information, establishing relationships, creating markets, maintaining secrecy, and increasing goodwill. The document then lists 11 qualities of an effective business letter, such as clarity, conciseness, completeness, correctness, courtesy, cheerfulness, promptness, appropriateness, concreteness, convincing power, and ensuring the letter is well-integrated.

1. Business Correspondence
Prepared by
Mr.P.Benjamin Rozario
Assistant Professor
PG & Research Department of Commerce
St. Joseph’s College of Arts & Science,
(Autonomous)
Cuddalore

2. Learning Objectives
• Business correspondence meaning
• Importance or Merits of Business
correspondence
• Qualities of good business letter

3. Business Correspondence
Exchange of information in a written format for
the process of business activities. Business
correspondence can take place between
organizations, within organizations or between
the customers and the organization. The
correspondence refers to the written
communication between persons

4. Merits
1) Drafting at convenience
A letter can be composed at leisure and
over a period of time, revised and edited
before presentation
2) Reaches far and wide
Within town or out of it, within the country
or abroad, a letter reaches the target with
much convenience

5. 3) Exchanging business information
Letters are the most economic and
convenient means of exchanging information.
With the help of letters, executives can easily
exchange information with customers, suppliers,
investors, government offices; regulatory
authorities etc.
4) Establishing business relationship
Business letter play important role in
establishing and maintaining relationship with
various parties. Business letters reduce the
distance between a business and its customers,
suppliers, creditors and other public groups.

6. 5) Creation of markets
Circular letter a form of business letter, helps
to create new markets for goods and services.
6) Create and Maintain Goodwill
It helps in creating and maintaining goodwill
between a business and a customer. Any letter to
enquire, complaint, suggestion or feedbacks helps
a company to grow and maintain goodwill.
7) Helps to expand business
Apart from the convenience of reaching
remote places, letters enable the writer to explore
new prospects in new territories

7. 8) Saving cost and time
Business letters relieve the busy executives from
visiting personally their clients and other concerned
parties. Therefore, valuable time and costs can be
saved.
9) Maintaining secrecy
Business letters also help to maintain secrecy
of information. Non one other than the sender and
receiver can know the message contained in the
letter.
10) Increasing goodwill
Business letters, like inquiry letter, circular letter,
order acknowledgement letter, adjustment grant
letter etc help to increase good will of a business
with the customers.

8. 11) Use as reference
Information exchanged through letters can be
preserved permanently and used as reference
when need arise.
12) Legal acceptance: Business letter is an
acceptable document in the eye of law. It can be
stored and produced as a documentary proof and
for clarifying matters in the event of a dispute.
13) Convenient for giving unpleasant news
A letter can explain the full situation of the
‘no’, which helps to cool tempers. A letter also
gives the recipient the time to think before
reacting, which is a major courtesy.

9. Qualities of good business letter
1) Clarity
Clear thinking and simple expression are the
two important virtues of effective writing. A
good letter should show its idea directly and
clearly. Each sentence should be as simple as
possible.
2) Conciseness
Transmission of maximum information by
using minimum words should be the aim of
letter-writing. Unnecessary details should be
avoided.

10. 3) Completeness
The letter should contain all the essential
points a reader is expected to know. For example, a
sales letter should include the description of the
goods, price, quality, how and where to buy, the date
of delivery, discounts etc.
4) Correctness
The correctness demands no error at all in
grammar, idiom, spelling, and punctuation.
5) Courtesy
Courtesy means politeness. It always pays to be
courteous in business. It softens the sting of an
unpleasant piece of information, creates goodwill and
produces a favourable response.

11. 6) Cheerfulness
There should be no negative approach in a letter. It
must begin with a positive and optimistic note. The
approach should be friendly and convincing.
7) Promptness
Promptness in replying a letter is absolutely
necessary. The general practice is to reply a letter the
same day it is received.
8) Appropriateness
Appropriateness refers to writing or replying
letters keeping in mind the relation and psychology
of the reader as well as the need of the occasion.

12. 9) Concreteness
A business letter has to avoid approximate
statements when exact ones can be given or are
expected.
10) Convincing power
Every letter sells an idea and is, to that extent, a
kind of sales letter. To get appropriate action is the
aim of the letter, for which all the skills of a good
sales letter are to be applied.
11) Integral
The purpose of business communication is to
create understanding, bring about cooperation and
initiate constructive action.