Communication involves the exchange of information between two or more parties to create understanding. It can be written, oral, formal through official channels, or informal through unofficial connections. Effective communication requires understanding the audience, conveying the appropriate information clearly and concisely, and providing feedback. Both written and oral communication have advantages like creating records and allowing interaction, but can also pose challenges in interpretation and lack of clarification without feedback. Formal communication flows through official reporting lines while informal communication occurs through personal relationships. Developing strong written and oral skills is important for business interactions and relationships.