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Functions of a business letter

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Functions of a business letter,Purposes of a business letter

Briefly discuss the functions or purposes of a business letter

Business people have to communicate with the suppliers, debtors, creditors, customers and with other concerned parties to exchange information. Business letters are basically used to communicate with the above parties.

According to Ricks and Gow, “The primary purposes of business letters are to inform, instruct, request, inquire, remit, order, advice, correct and to question.”

Functions or purposes of business letter are as follows:

1. Convey information:
The basic purpose of any business letter is to convey information regarding business activities. Information can be transmitted through business letter to customers, suppliers, debtors, government authorities, financial institutions, bank and insurance companies and to any other parties related with the business.

2. Conclude transaction:
This is one of the specific purposes of business letter. To conclude in completed transactions business letters are frequently used.

3. Creation of demand:
Business letters especially circular letters used to create demand for new products. Circular letters can communicate many people in the same time.

4. Creation of goodwill:
In this electronic era messages can be sent within few seconds through electronic media but a well decorated business letter has its own importance in creation positive image of the company.

5. Expansion of business:
Through goodwill messages and through circular letters existing market can be expanded.

6. Establishment of relationship:
Another important purpose of business letter is, it helps to establish mutual relationship with the customers, suppliers and with the other interested parties.

7. Evidence:
Business letters are also used to maintain documentary evidence. Letters can be preserved for future reference.

8. To inquire:
A business concern not only sends messages but also receive information from the outside. To run the business any firm need different types of information from outside. Through business letters firms can inquire regarding necessary matters.

9. Placing order:
It is a very common purpose for using business letter. Both trading and manufacturing concerns need to place orders for finished goods or raw-materials to run the business.

10. Problem solving:
In the course of business, disputes and misunderstanding may arise. Business letters play vital role in solving such misunderstandings.