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Introduction to Business Communication MCQs

Business communication involves the exchange of messages in a commercial environment. The reasons for exchanging messages include:

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Introduction to Business communication MCQs

Business communication involves the exchange of messages in a commercial environment. Here on MCQs.club you will find easy understandable Multiple-Choice Questions (MCQs) on Business communication. These MCQs are useful for Business management exams, Competitive exams and Professional accountancy exams.

Business communication involves the exchange of messages in a commercial environment.

1. The above statement is true
2. The above statement is false

The reasons for exchanging messages include:

1. to promote a product, service, or the organization itself
2. to inform and share information within a business
3. to request a decision; and persuade the recipient of something.
4. All of the above

The effectiveness of an organisation depends to a large extent on the effectiveness of communication by its managers and employees.

1. True
2. False

Organization – An organisation is a social arrangement for the controlled performance of collective goals that has a boundary separating it from its environment.

1. False
2. True

The characteristics that differentiate organisations include:

1. 1. Ownership – public or private
  2. Control
  3. Activity
  4. Geographical location
  5. Legal status – incorporated, partnership, sole trader

1. (II) and (III) only
2. (I) and (V) only
3. All of the above
4. None

The common benefits of organisations include:

1. They can overcome individual limitations.
2. They can enable specialisation.
3. Synergies can be identified that save both time and money.
4. They can enable the accumulation and sharing of knowledge as well as the pooling of expertise.
5. All of the above

A stakeholder is a ______________ that has a stake in the organisation – i.e. an interest to protect in respect of what the organisation does and how it performs.

1. Person
2. Group
3. Organization
4. All of the above

Fundamentally the organisation will need financial systems containing information that needs to be shared and communicated to support:

1. 1. Planning – resource and timing
  2. Control – has the implementation proceeded as planned?
  3. Recording transactions
  4. Performance measurement – comparison of actual versus planned
  5. Decision making

1. All of the above
2. (I) and (II) only
3. (I) (IV) and (V) only
4. None

Which of the following are levels at which messages are communicated?

1. Operational
2. Tactical
3. Strategic
4. All of the above

Strategic level:

1. Day to day activities e.g. weekly ordering of new supplies.
2. Short-term issues and opportunities e.g. 1-year plan including switching a key supplier in 6 months time.
3. Long-term decision making e.g. 3-5 year plan including opening a new factory in 3 years time.
4. None

Tactical level:

1. Day to day activities e.g. weekly ordering of new supplies.
2. Short-term issues and opportunities e.g. 1-year plan including switching a key supplier in 6 months time.
3. Long-term decision making e.g. 3-5 year plan including opening a new factory in 3 years time.
4. None

Operational level:

1. Day to day activities e.g. weekly ordering of new supplies.
2. Short-term issues and opportunities e.g. 1-year plan including switching a key supplier in 6 months time.
3. Long-term decision making e.g. 3-5 year plan including opening a new factory in 3 years time.
4. None

Information must actually be used for it to be worth communicating, otherwise the time and effort invested into the communication was wasted.

1. False
2. True

Factors that contribute to how valuable information is when communicated include:

1. Source
2. Ease of assimilation
3. Accessibility
4. Relevance
5. All of the above

The sender should always check that information included in communications has the following qualities:

1. 1. Accurate
  2. Complete
  3. Cost-beneficial
  4. User-targeted
  5. Relevant
  6. Authoritative
  7. Easy to use and timely

1. (I) (II) and (VII) only
2. (I) (IV) and (VII) only
3. All of the above
4. None

Information can originate from numerous different sources which might include:

1. Internal
2. External
3. Both A&B
4. None

Financial information is critical to the operation of virtually all organisations. Information is needed at varying degrees of aggregation for varying levels of users covering elements such as revenue, costs and capital.

1. The above statement is correct
2. The above statement is incorrect

Good financial information embedded in communication should demonstrate which of the following fundamental characteristics:

1. Relevant – i.e. it will impact decisions by either helping forecast the future or confirming past activity
2. Complete
3. Neutral – i.e. unbiased
4. Free from material error
5. All of the above

Effective communication is essential so that:

1. 1. Instructions and guidelines are properly understood.
  2. Individuals know what they are expected to do.
  3. There is better co-ordination between people and groups in the organisation.
  4. Managers are able to plan and control operations more effectively.
  5. Individuals are more willing to work together in teams or groups because they are being told what is happening and where their contribution fits in.
  6. Secrecy, misunderstanding and mistrust are eliminated. Open communication increases trust.
  7. Arguments and conflicts in the work place are reduced.

1. (I) (V) and (VII) only
2. (I) (VI) and (VII) only
3. All of the above
4. None

Business messages are distinguishable from social communications between friends through a number of characteristics including:

1. Lack of spontaneity (deliberation)
2. Impersonality
3. Formality and Brevity (short)
4. All of the above

The key elements of communication planning are:

1. Objectives – what are you trying to achieve
2. Audience – consider situations specific to the audience that may impact how they interpret the message
3. Structure – consider the content – order, format and emphasis
4. Style – given the audience factor, what language, sentence structure and visual aids will best achieve the purpose of the message
5. All of the above

The general purpose of most business communications will fall into which of the following categories:

1. 1. to build a relationship – mutual trust, respect and loyalty
  2. to confirm
  3. to request
  4. to persuade
  5. to inform

1. All of the above
2. (I) and (V) only
3. (I) (III) and (V) only
4. None

A Message can be critically analyse to judge whether it is likely to achieve its objective by considering which of the following:

1. Check that each element of your message is relevant and suitable to the audience.
2. Have you made all the points you need to and in a logical order?
3. Is there a mechanism for checking whether your message achieves its objective?
4. All of the above

Structuring a message involves deciding what you are going to say and how you say it. Key considerations include:

1. Volume – avoid information overload
2. Selection and grouping of material (relevance and importance)
3. Ordering the message
4. All of the above

Communication style can be described as using the right words in the right order to achieve your message objective.

1. True
2. False

Components of style include:

1. Tone – the overall effect that is created
2. Vocabulary and syntax – the phrases and words actually used plus the type of sentence structure used
3. Interest and personality
4. All of the above

Within the business context there are a number of key factors that will drive the most appropriate selection of media and channel. Identify such factors:

1. 1. Time – Urgency and time available to prepare and transmit
  2. Complexity – Use of diagrams and combination of media
  3. Written record – Consider the need for an audit trail
  4. Sensitivity – How would a letter be received compared to face to face discussion, particularly when delivering bad news
  5. Cost – Employee time is expensive
  6. Interaction – Is there a need for instant feedback and spontaneity?

1. All of the above
2. (II) and (VI) only
3. (V) and (VI) only
4. None

The benefits of effective face to face communication include:

1. Generation of new ideas
2. Instant feedback and exchange of views
3. Co-operation and the rapid dissemination of information
4. All of the above

Listening skills, presentation and body language all impact on face to face communication, particularly between unfamiliar people.

1. True
2. False

From the following identify the characteristics Good listeners

1. 1. Retain an open mind avoiding bias and judgment.
  2. They try to avoid distractions and are aware that attention is typically greatest at the start and end of discussions.
  3. They are interested and make an effort.
  4. Have a radar for picking up the main ideas by distinguishing between supporting evidence and the key issue.
  5. They wait before interruption.
  6. Critical listening – i.e. assess what the other person is saying by identifying potential bias, omissions and assumptions.
  7. They are prepared to listen and have made an active decision to focus on grasping the main concepts.
  8. They often take notes, although be careful as this can distract from the listening.

1. All of the above
2. (II) (IV) and (VI) only
3. (II) (V) and (VIII) only
4. None

From the following identify the most common forms of face-to-face business communication.

1. Meetings, Committees, Team briefings
2. Conferences and Interview
3. Both A&B
4. None

Team briefings are common in the modern working environment as an aid to increasing commitment and understanding of the workforce. The characteristics of team briefings include:

1. They are used to communicate management decisions
2. They reduce disruption and limit rumors with respect to policies, plans, progress and personnel issues.
3. Many teams will have a weekly team meeting.
4. All of the above

Interviews is a form of face-to-face business communication commonly employed for uses such as grievance and disciplinary interviews, staff appraisal meetings and recruitment and selection.

1. False
2. True

The advantages of oral communication include:

1. it’s timeliness (swift and immediate), interaction, flexibility
2. Generates instant feedback
3. Combines non-verbal signals with verbal signals
4. All of the above

The disadvantages of oral communication can include:

1. Misperceptions and lack of audit trail
2. The need for spontaneity (less planning time)
3. Both A&B
4. None

Organisations employ a broad range of written communication media the most common include:

1. Reports, Memo, Letters
2. organisation manual, In-house newsletter/ magazine
3. Notice board, Standard forms
4. All of the above

Visuals can be more memorable and clearer than a wall of words and blocks of text and figures. Identify the various types of visual aids to encounter in business communications:

1. 1. Blackboard and whiteboard
  2. Handouts
  3. Flipcharts
  4. Overhead projectors
  5. Slides, Film and video
  6. Props and demonstrations

1. All of the above
2. (I) and (V) only
3. (V) and (VI) only
4. None

A message might fail to prompt the intended response because of:

1. The recipient of the message was not paying proper attention
2. The recipient does not have the knowledge or experience to understand the message
3. The recipient has a personal dislike of the sender, or is in conflict with the sender
4. The recipient receives the message but then forgets it
5. All of the above

Argument –

1. this involves the resolution of differences through discussion. For example, deciding which new product to launch first.
2. this represents rival pursuit of a common prize, for example when two managers are fighting to win budget for new investments.
3. this is the behaviour that occurs between groups when participants of one group perceive that other groups may block their goal. I.e. a harmful expression of difference. An example could be trade union action in response to management plans to cut costs.
4. None

Competition –

1. this involves the resolution of differences through discussion. For example, deciding which new product to launch first.
2. this represents rival pursuit of a common prize, for example when two managers are fighting to win budget for new investments.
3. this is the behaviour that occurs between groups when participants of one group perceive that other groups may block their goal. I.e. a harmful expression of difference. An example could be trade union action in response to management plans to cut costs.
4. None

Conflict –

1. this involves the resolution of differences through discussion. For example, deciding which new product to launch first.
2. this represents rival pursuit of a common prize, for example when two managers are fighting to win budget for new investments.
3. this is the behaviour that occurs between groups when participants of one group perceive that other groups may block their goal. I.e. a harmful expression of difference. An example could be trade union action in response to management plans to cut costs.
4. None

Conflict ultimately requires managing through effective communication. How it is managed may depend on whether it is considered constructive or destructive in nature.

1. True
2. False

Constructive conflict –

1. Introduces new information to a discussion
2. Helps define a problem
3. Encourages creativity
4. Releases hostile feelings
5. All of the above

Destructive conflict –

1. Distracts attention from the organisation’s goals
2. Inhibits communication
3. Results in blame, denial and scapegoats
4. All of the above

Identify the tactics that might generate symptoms of conflict:

1. 1. Withholding important information
  2. Deliberately distort information
  3. Empire building
  4. Office politics
  5. Fault finding

1. All of the above
2. (I) and (IV) only
3. (I) (IV) and (V) only
4. None

Managers will need to judge the best medium and channel for handling the conflict resolution which may incorporate an incremental approach as:

1. Informal face-to-face conversations
2. Formal verbal warning and Formal written warning
3. Fines, demotion or dismissal
4. All of the above

Tactics for addressing general organisational conflict may also include:

1. Alter the individuals
2. Alter the context
3. Alter the relationship and the issue
4. Change the attitudes and behaviour of individuals
5. All of the above

The purpose of vertical communication is typically:

1. To give instructions and directions
2. To delegate responsibilities
3. To control activities of subordinates
4. All of the above

The purpose of horizontal (lateral) communication is typically:

1. To co-ordinate the activities of different individuals and groups
2. To develop and maintain social relationships at work
3. Both A&B
4. None

From the following identify the key points to consider in communicating a negative message:

1. Use a buffer
2. Offer an explanation
3. Avoid emphasizing the refusal
4. Present an alternative or compromise
5. End with a positive statement

All of the above
(II) and (IV) only
(IV) and (V) only
None

52. Non-verbal communication describes the conveyance of a message without using words or symbols. Non-verbal communication includes body movements, gestures, posture, eye contact, facial expressions and personal space etc.

Introduction to Business Communication MCQs

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