150+ Business Communication MCQs [Business Communication Multiple Choice Questions and Answers 2026]

Introduction to Business Communication

The term communication is derived from a Latin word „communis‟ which means common. This means establishing a common ground. Now whatever is common is shared by all. But what is that which is shared by all in communication? It is fact, ideas, understanding, opinions, information etc.

In the words of Newman, Summer & Warren, “communication is an exchange of facts, ideas, and opinions by two or more persons.”

According to Keith Davis, “Communication is the process of passing information and understanding from one person to another.”

Communication should not be interpreted as merely sending or receiving messages. It involves a systematic and continuous process of telling, listening and understanding. It is a two-way process and is complete only when there is some response from the receiver of information. 

Usefulness of Business Communication

Communication is the life blood of business. It is an all pervasive function of management. Today the organizational structure is designed on the basis of specialization and division of labour. Large number of people work together who are functionally related to each other. Thus, co-ordination is must amongst the workmen. Co-ordination can be achieved only when there is mutual trust and understanding between them. This understanding is created by effective communication. Thus communication is an essential ingredient for effective management.

Usefullness for This MCQs

These MCQs are usefull for Various Competitive Exams for Commerce Stream Students and BCOM NEP Course.


1. Business Communication MCQs

1.  __________is the response given by the receiver to the sender’s message.

(a) Encoding

(b) Decoding

(c) Feedback

(d) Medium

Ans: (c) Feedback

2.  ________gives legal validity to a letter.

(a) Subject line

(b) Signature

(c) Confidential notation

(d) Enclosure block

Ans: (b) Signature

3. _________is a form of non-verbal communication.

(a) Letter

(b) Circular

(c) Report

(d) Facial expressions

Ans: (d) Facial expressions

4. Notices and circulars are examples of _________communication.

(a) Upward

(b) Downward

(c) Grapevine

(d) Horizontal

Ans: (b) Downward

5. Moodle is a tool for __________.

(a) Twitter

(b) E-learning

(c) WhatsApp

(d) Facebook

Ans: (b) E-learning

6. ------------- is converting your ideas into message.

(a) Decoding

(b) Listening

(c) Encoding

(d) Observing

Ans: (c) Encoding

7. ------------- is an online communication system.

(a) Word

(b) E-mail

(c) SMS

(d) None of these

Ans: (b) E-mail

8. ------------ is an example of non-verbal communication.

(a) T.V

(b) Body language

(c) Singing

(d) Teleconferencing

Ans: (b) Body language

9. Suggestion scheme encourages -------------- communication.

(a) Upward

(b) Downward

(c) Horizontal

(d) Diagonal

Ans: (a) Upward

11.  ------------- is a physical barrier.

(a) Listening

(b) Closed mind

(c) Time and distance

(d) Resistance to change

Ans: (c) Time and distance

12. ______________ is an optional part of business letters.

(a) Date

(b) Inside address

(c) Letter head

(d) Identification initials

Ans: (d) Identification initials

13. Resistance to change is a ______________ barrier to communication.

(a) Physical

(b) Psychological

(c) Semantic

(d) Cross- Cultural

Ans: (b) Psychological

14. ______________ Communication takes place across the organizational hierarchy.

(a) Upward

(b) Downward

(c) Diagonal

(d) Horizontal

Ans: c) Diagonal

15. The Latin term ______________ is the source for the English word communication.

(a) Communis

(b) Communist

(c) Communal

(d) Community

Ans: (a) Communis

16. The process of giving an abstract idea a concrete form is called ____________.

(a) Planning

(b) Encoding

(c) Medium

(d) Decoding

Ans: (b) Encoding

17. Meetings, Speeches, Interviews are examples of _______________.

(a) Non Verbal communication

(b) Proxemics

(c) Oral communication

(d) Written communication

Ans: (c) Oral communication

18. ________________ is a two-way process.

(a) Order

(b) Command

(c) Warning

(d) Communication

Ans: (d) Communication

19. ______________ is a psychological barrier.

(a) Closed mind

(b) Noise

(c) Language

(d) Environment

Ans: (a) Closed mind

20. _______________ is an informal channel of communication.

(a) Paralanguage

(b) Grapevine

(c) Upward communication

(d) Written communication

Ans: (b) Grapevine

21. The Latin term_________ is the source for the English word communication.

(a) Communis

(b) Communist

(c) Communal

(d) Community

Ans: (a) Communis

22. Communication that moves from a superior to a subordinate is an example of _________communication.

(a) Upward

(b) Downward

(c) Horizontal

(d) Circular

Ans: (b) Downward

23. _________is a psychological barrier.

(a) Noise

(b) Abstracting

(c) Unfamiliar language

(d) Multiplicity of meaning

Ans: (d) Multiplicity of meaning

24. ___________communication has reference value.

(a) Written

(b) Oral

(c) Face-to-Face

(d) Non-verbal

Ans: (a) Written

25. _________ is a non-verbal feature of Oral Communication.

(a) Paralanguage

(b) Colour

(c) Map

(d) Symbol

Ans: (a) Paralanguage

26. Signs and __________ were mainly used when language did not exist.

(a) Telegrams

(b) Letters

(c) Symbols

(d) Cell phones

Ans: (c) Symbols

27. Visual communication happens through _________.

(a) Sound

(b) Pictures

(c) Language

(d) Music

Ans: (b) Pictures

28. Noise and distance are considered to be ________ barriers.

(a) Cultural

(b) Physical

(c) Mechanical

(d) Semantic

Ans: (b) Physical

29.  ______________ gives legal validity to a letter.

(a) Subject line

(b) Signature

(c) Enclosures

(d) Date

Ans: (b) Signature

30. ____________ scans incoming mails

(a) Virus protection software

(b) CD

(c) Filter

(d) Censor

Ans: (a) Virus protection software

31. Feedback involves:

a) Telling the speaker what you think of him/her

b) Finishing what you have to say, before listening to what the other person has in mind

c) Checking with the speaker if you understood correctly what was said.

32. “Communication path is circuitous”. In this context, the word circuitous means:

a) Begins and ends of the sender

b) Circumstantial demand

c) Message and import of message

33. In effective communication, the encoder becomes a decoder when there is

a) Noise

b) Audience

c) Feedback

d) Channel

34. Identify the correct sequence of the following:

a) Source, Channel, Message, Receiver

b) Source, Receiver, Channel, Message

c) Source, Message, Receiver, Channel

d) Source, Message, Channel, Receiver

35. Listening is badly affected by

a) Message overload excess of listened material

b) High speed of speaking

c) A sizable hearing loss physiological problem

d) All of the above

36. Who cannot write a business letter to you?

a) Restaurant

b) Shopping mall

c) Friend

d) Sports team

37. Prior to giving a response, the receiver decodes the perceived message and then frames the response, which is also termed as

a) Strategic reply

b) Feedback

c) Endorsement

38. Interaction with peers or colleagues is referred to as

a) Vertical communication

b) Diagonal communication

c) horizontal / lateral communication

39. The essence of any speech is

a) Content

b) Choice of words

c) Style

40. Biased listening is a result of

a) Prejudices

b) Semantic problems

c) Arguments

41. Encoding is the process in which

a) The sender writes down the message in Morse code.

b) The sender converts the ideas into a message.

c) The receiver writes the message in brief.

42. Mental turbulence refers to

a) Inability to understand.

b) Confusion in the mind of the receiver.

c) Confusion in the mind of the sender.

43. Seminars are a popular instance of ____ forum in modern-day business world.

a) Interactive.

b) Non-interactive.

c) Experimental.

44. The choice of the strategy for writing a sales letter is contingent upon

a) The product.

b) The market segment.

c) Both the product and the market segment.

45. Ability to communicate effectively

a) Is inborn.

b) Can be developed.

c) Cannot be developed.

46. Interaction among members of the same organization is called:

a) Formal communication.

b) Internal communication.

c) External communication.

47. Multinational corporation with global operations employ people from:

a) Western countries.

b) Developed countries.

c) Different countries.

48. To excel in Group Discussion, it is important to develop

a) Listening skills.

b) Interactive skills.

c) Speaking skills.

49. Communication network in any organization is

a) Internal and external.

b) Verbal and written.

c) Oral and non-verbal.

50. Interactive meetings can be held through videoconferencing by a group of people and individual’s in

a) Same location.

b) Distant location.

c) Different locations.

51. Sales presentations are designed and delivered with a view to

a) Inform about the products.

b) Build goodwill.

c) Persuade the prospective buyers.

52. Multinational corporation with global operations employ people from

a) Western countries.

b) Developed countries.

c) Different countries.

53. Grapevine is a kind of ____ communication.

a) lateral

b) formal

c) informal

54. The difference between a memo and letter is in the

a) tone and style

b) message

c) addressee

55. The live telecast of budget and the analysis that follows in an example of

a) Teleconferencing

b) Videoconferencing

c) news broadcasting

56. Upward flow aid downward flow of messages constitute

a) Vertical Communication

b) Horizontal Communication

c) Diagonal Communication

57. The first and foremost objective of any communication is

a) To Inform

b) To Motivate

c) To facilitate decision-making

58. For successful presentation, the first stage is

a) Taking control of the audience

b) Exercising self-control

c) Preparation of the material

59. For effective listening, it is necessary to have

a) Positive attitude

b) Ability to concentrate

c) Positive attitude and ability to concentrate

60. Interaction among members of the same organization is called

a) formal communication

b) Internal communication

c) External communication

61. Sales presentations are designed and delivered with a view to

a) inform about the products

b) build goodwill

c) persuade the prospective buyers

62. Nonverbal Communication relies on

a) appearance

b) observation and interpretation

c) body language

63. Multinational Corporations with global operations employ people form

a) western countries

b) developed countries

c) different countries

64. In writing business messages, the maximum period of time should be spent on

a) Writing the first draft.

b) Collecting materials/data.

c) Revising the final draft.

65. A resume appended to a job application is

a) Goal oriented.

b) Job specific.

c) Both goal oriented and job specific.

66. A participant in a group discussion should

a) Dominate the discussion.

b) Make personal remarks.

c) Listen to the views of others intently.

2. Business Communication Fill in the Blanks

1. Communication is derived from the Latin word “Cummins” which means share

2. The sender encodes the message which is decoded by the receiver according to the perception of what has been communicated.

3. The message must be designed keeping the needs of the audience in mind.

4. Ideas must be encoded in a message from, keeping the requirement of the audience in mind.

5. The process by which the receiver confirms the message and comprehends the intent of the sender is called feedback.

6. Intent of the message is referred to as the objective of the sender underlying the words.

7. Communication can be at two levels: voluntary and involuntary.

8. Message send and message received can never be identical.

9. Awareness can improve existing situation/relationship and make communication more effective.

10. Meaning lies not in words, but in our perception of the same.

3. Business Communication True or False Type Questions

1.        Anyone who talks communicates a message. False

2.        Communication is the exchange of ideas. TRUE

3.        Communication is the transmission of verbal and non-verbal ideas, feelings and attitudes that produces a response. FALSE

4.        Verbal communication includes both spoken and written language. True

5.        The objective of any communication is just to receive or convey a message. False

6.        Modern business operations and organizations are not confined to local limits. True

7.        The encoder is the receiver of ideas. FALSE

8.        Input is another word for channel. FALSE

9.        Encoding is the process of interpreting the message. False, Decoding

10.    The receiver and the decoder are the one and the same person. TRUE

11.    Feedback is the message sent by the decoder to the encoder. TRUE

12.    Feedback must always be carefully interpreted. TRUE

13.    Shannon and Weaver were the first two scholars to propose a simple model of communication comprising a sender, a receiver and a message. True

14.    Communication models are multi-dimensional. TRUE

15.    Disturbance/distractions in the environment are a result of physical noise. True

16.    A major barrier to the communication process is the tendency to evaluate on the part of the receiver. True

17.    Effective speaking rests on three pillars – verbal, visual and vocal. TRUE

18.    There are three main elements of nonverbal communication: appearance, body language, and sounds. True

19.    Nonverbal communication relies on Appearance. True

20.    Kinesics – Body Language, Proxemics – spatial/space language, Para language – Verbal language.

21.    Kinesics is the spatial nonverbal language. FALSE, PROXEMICS

22.    Body language always speaks the truth while the speaker may play with words to hide the truth. FALSE

23.    Listening is a significant part of any communication process. True

24.    The physical presence but mental absence can be defined as active listening. False, Passive

25.    The channels of communication are vertical, horizontal and diagonal. TRUE

26.    Upward and downward flows of messages constitute vertical communication. True

27.    The vertical channel of communication is used much more frequently in most organisations than the horizontal channel. TRUE

28.    Informal communication takes place beyond organizational hierarchy. True

29.    Grapevine is a credible and reliable channel of communication. FALSE

30.    Advertising, media interaction and public relation fall mainly within the domain of corporate communication. True

31.    Data transmission through e-mail is both instantaneous and cost-effective. TRUE

32.    E-mail communication can be stored and retrieved as and when required by the sender only. FALSE

33.    A memo is used for both internal and external communication in business organizations. False, Memo used for internal communication only and business letter used for external communication.

34.    A sales letter is an advertisement. True

35.    The guiding principle of writing collection letters is to collect and amount and lose the customer. FALSE

36.    For success of communication, it is necessary to make audience analysis and to adapt the message to their goals, interests and needs.

37.    The initial audience can accept or reject a sender’s message. FALSE, HE CAN GUIDE ONLY

38.    In the context of business communication, a speech refers to a talk by a designated speaker. TRUE

39.    In the context of business communication, a presentation refers to a talk by a designated speaker. FALSE

40.    Presentations are neither goal-oriented nor made with a specific purpose. False

41.    Monologue presentations are made without interruption and at the end the speaker answers the questions of the audience. True

42.    Body language is not effective in presentation. False

43.    Every presentation normally ends with a question and answer session. True

44.    Seminars and presentations are same. FALSE

45.    The main purpose of a seminar is to share knowledge and to get the viewpoints of equally informed persons. True

46.    In a seminar, the result of original research or advanced study is presented through written reports. True

47.    A main purpose of a seminar is to share knowledge and to get the view-points of equally well-informed persons. True

48.    It is not necessary to have polite manners for a leader. FALSE

49.    A job application letter is written to sell one’s services. True

50.    A resume appended to a job-application is both goal-oriented and job-specific. True

51.    A chronological ordering pattern is followed in listing educational qualifications and work experiences in a resume. True

52.    The resume to be enclosed with an application letter need not give the details of academic qualification, achievements and experiences. False

53.    The resume to be enclosed with an application letter need not give all the details of academic qualifications, achievements and experience. True

54.    Interview is a Formal conversation between the interviewer and the interviewee.

55.    The need for interview arises because there are unlimited vacancies for a limited number of aspirants. False

56.    In any interview, Knowledge-related areas apart, appearance, body language and temperament of the candidate, too, help create a positive impression. True

57.    A participant in a group discussion should try to dominate the discussion. False

58.    A participant in a group discussion should not try to dominate the discussion. True

59.    A participant in a group discussion should Listen to the views of others intently. True

60.    For effective participation in a group discussion one must present one’s views with pride, vigour and excitement. True

61.    In recruitment of candidates, a group discussion is used as a strategy of both Selection and elimination process. True

62.    A report is a presentation and summation of facts and figures either collated or derived. It is a logical and coherent structuring of information, ideas and concepts. True

63.    A report usually has descriptive, expository or narrative sentences. True

64.    The basic requirements of a good report are clarity, conciseness, continuity and objectivity. True

65.    In an informational report, the structure is always in the form of introduction, text and conclusion. True

66.    In an analytical report, there is identification of the problems, analysis and interpretation. Interpretation of data is followed by conclusions. True

67.    The skill of report writing can be acquired by mastering the craft of writing and Learning the scientific process of investigation, analysis and presentation. True

68.    Proposals and reports are same. False

69.    An Unsolicited proposal is prepared to - Attract the potential customer.

70.    A solicited proposal is prepared to - Meet a specific demand.

71.    The most important section of a proposal is Technical section/Management section/Cost estimate.

72.    Sales presentations are made to - Persuade the buyers to buy their product.

73.    Oral presentation is made to – persuade, inform and build goodwill.

74.    Training Presentations are made to - Inform.