Book 9 Account for 2077_final

4 Chapter CORRESPONDENCE Learning Objectives After studying this chapter, the readers will be able to :  state the meaning of correspondence,  describe the need or importance of correspondence,  state and describe the qualities of a good letter,  explain the different parts of a letter,  explain the types of letter on the basis of use and priority,  describe about the handling of mail,  draft the different types of letter,  define notice, circular and mandatory order as an official information. Introduction An office has to perform a number of functions daily. It has to perform various information related functions. Communicating with different parties is one of the routine functions of an office. Correspondence is concerned with the exchange of written documents for communication purpose. It provides formalities to the official policies and programs. Handling correspondence is one of the regular functions of office. It facilities to promote understanding between the individuals and departments of the organization. The written documents like letter, notice, circular, mandatory order etc. are the examples of correspondence. It takes place inside the organization and even with outsiders. Hence, correspondence with various parties such as government, business firms, social organizations etc. helps to promote the prestige and goodwill of the organization. Correspondence 51

Concept and definition All types of offices need to communicate with insiders and outsiders for various purposes. The offices can use oral, written and other means of communication. Though the oral means of communication like telephone, mobile etc. are the fastest means of communication, they are regarded as less authentic than written means. Thus, to give it authenticity, offices can communicate with different parties in written form which is called correspondence. The process of correspondence takes place in the form of written means like notice, circular, letter, application, quotation, order etc. The correspondence is used to keep contact and maintain good relationship between the offices and different individuals. Among various means of communication, correspondence is one of the most popular, easiest, authentic and easily available means. It makes a good impression and creates a positive attitude of the customers, employees, general people, suppliers and government towards the office. It supports for earning goodwill in a long run. It may be internal or external for conveying the ideas, thoughts or official information without personal touch. Some definitions of correspondence are given below: “Office correspondence is the process of exchanging information through letters or other written ways between the individuals and organizations of different places for achieving the definite objectives.” James Stephenson “Correspondence is a means of communication in writing on the subject of mutual interest either within the organization or with the outsiders. S. P. Arora Correspondence is the formal means of communication used for exchanging the ideas, thoughts or official information between individuals or organizations using written means. Short Notes to Remember (SNR 4.1)  Correspondence takes place in the form of letter, notice, circular, application, memorandum, quotation, order, telegram etc.  A letter is a good example of correspondence.  Electronic mail (E-mail) and fax are the developed and modern form of correspondence. Objectives of correspondence The main objective of correspondence is to create the written record of any event, transaction or official dealing. Most of the official functions are performed on the basis of correspondence because oral communication does not provide written proof 52 Office Management and Accountancy

for the future. Thus, the objectives of correspondence can be listed as follows:  To create and maintain the record of important matters such as agreement, business dealing, rules and regulation, contracts etc.  To fulfill the legal formality to the decisions and actions taken in an office as per prevalent rules and regulations.  To facilitate the various official and business dealings such as purchase of goods, payments and other activities.  To provide legal evidence for settlement of disputes and misunderstanding between or among the persons or parties.  To provide important information to the concerned authorities whenever required.  To facilitate for planning, policy making, controlling and decision making process in an office. Need and importance of correspondence Correspondence is important for all types of office. It is equally important for private individuals. As it is a written means of communication, it is used by business and non-business offices to inform others about the activities and recent messages. It is important due to the following reasons: a. Means of written communication Correspondence is the written means of Memory Tips communication. All types of information and messages are exchanged in written form under  Means of written communication this means. It provides the written record of  Collection of information all types of activities done in an office and the  Maintain public relation decisions taken from time to time. Thus, it is  Proof for the future important for individuals and organizations.  Cheaper means of communication  Reliable means of communication b. Collection of information  Good impression to the readers Correspondence is the suitable means of communication for collecting information. It helps the individuals and organizations to collect varieties of information. The business firm can collect valuable and secret information from customers and suppliers regarding the plan, policy and future strategy of the firm. It helps to get valuable suggestions about their products, services, and the decisions past. It helps to make necessary correction in the future. c. Maintain public relation Public relation is very essential for private individuals and other organizations. It helps to get support from the public to achieve the targeted goal. The business organizations should maintain the regular relationship with its customers, suppliers, banking and financial institutions and various governmental bodies. Correspondence 53

In order to gain public faith and confidence, the best means of communication is needed. So, the correspondence may be the best and strong means of communication to maintain a good public relation. d. Proof for the future Correspondence means the written matters exchanged between two parties. Thus, it can be presented in the court of law whenever required. It also can be produced as a proof in case of debate or misunderstanding between two parties. Thus, the correspondence acts as a true evidence in future to settle disputes created in and outside of an office. e. Cheaper means of communication Correspondence is a cheaper, easier and reliable means of communication. It is used in written form. So it is more reliable than other means of communication where all the information can be sent clearly and effectively in a descriptive manner. Thus, due to its easy availability, cheapness and reliability, it has been popular among the individuals and organizations. f. Reliable means of communication Correspondence is a widely accepted means of communication. It is the most reliable means for collecting valuable information. It is also regarded as an authentic source of communication. Thus, in order to give formality and authenticity to the various activities and decisions, correspondence is improtant. g. Good impression to the readers The exchange of ideas, views or information in the written form through correspondence makes good impression to the readers. It helps to draw the attention of others towards the matters. It builds up a positive attitude towards the organization. As a result, a good impact upon public can be observed that increases the goodwill of an office. Qualities of a good letter A letter is an example of correspondence. It is written to fulfill the certain objectives that can be achieved only by a good letter. A good letter is one that creates positive impression to others and fulfils the objective as the sender desires. Thus, the writer should attempt to write an impressive letter. The essential qualities of a good letter are described below: a. Simplicity A letter should be written using simple language. The receiver can read and understand the letter written using simple words and sentences. she may send the reply quickly only when it is understood easily. Thus, the letter should be 54 Office Management and Accountancy

written in simple way as far as possible. It must not contain quotations, proverbs, poetic or literary words. b. Clarity Memory Tips Clarity simply refers to the state of maintaining the neatness and cleanliness  Simplicity and clear expression of the intention of the  Clarity writer. A letter should be written in a clear  Originality way so that it can reflect the intention of the  Conciseness writer and spirit of the letter. Thus, the letter  Completeness should express the words in clear way using  Politeness direct and easily understandable language.  Correctness Moreover, overwriting, crossing or rubbing  Attractiveness etc should be completely avoided in the letter.  Effectiveness c. Originality Originality refers to the way of writing letter in the writer’s own style and expression. It is a major quality of a good letter. Since the letter is written as per the condition and matters, it should have creation and originality in writing. The writer should not copy the sentence, phrase, language and style from others. Only the creative and original letter can draw the quality of attention of others and makes good impression. Thus, the writer should maintain the originality in writing a letter. d. Conciseness Conciseness means briefness. The letter should not be too long. Nowadays, people are very busy and have no time to read the lengthy letter. Thus, the writer should write the letter in brief as far as possible. But, in the name of conciseness, required information should not be missed in the letter. Thus, the writer should maintain the quality of conciseness in the letter. e. Completeness Completeness is one of the important qualities of a good letter. A letter should be complete so as to give the full meaning. The writer should include all the information and references to make the letter complete. Only the complete letter becomes effective that facilitates to get positive response. An incomplete letter creates confusion, wastes time and puts the reader in tension. f. Politeness The letter should be written using polite words and language. The due respect and honour to the reader should be given according to the status and nature of correspondence. So the proper language, words and expression should be used in the letter. While writing a letter, emotional expression, threatening words and rough language must be avoided. The word of politeness and courteousness helps to increase the good relationship between the correspondents. Correspondence 55

g. Correctness The letter should be written correctly. It means the letter should be correct in terms of information, language, words, spelling and grammatical structure etc. While writing the letter, the important decision, date, data and figure etc. should be mentioned exactly. The incorrect data, fact and information may cause negative meaning in the letter. Thus, the letter should be written correctly to avoid confusion and misunderstanding to the reader. h. Attractiveness The letter should be attractive. First of all, it should be drafted and typed on a computer neatly and clearly. If the letter is being sent without typing, handwriting should be neat and attractive in the letter pad. The setting of the matter, font, style and size, line spacing, arrangement of the paragraphs etc. should also be attractive. A ready letter should be delivered by putting in a proper sized envelope. i. Effectiveness The letter which involves all the above mentioned qualities becomes effective. An effective letter is one which fulfills its objectives. Thus, the writer must make it as effective as possible. It can draw the attention of the reader and impels him to respond what the writer desires. Parts of a letter A letter is an important means of correspondence. Most of the official dealings and business transactions are performed through letter. Every letter contains different parts. If such parts are not well structured, the letter does not look effective and attractive. Thus, they must be arranged orderly and properly in their fixed position on the paper. The style and formatting of the letter may differ according to the nature and type. Even though, every letter contains the common parts which are described below: a. Heading Heading in the first and top most part of the official letter. It consists of name and address of correspondent, contact number, e-mail and website address, post box number, fax number etc. It also contains the date and reference number of the letter. Generally, the heading is available in printed form in the letter pad of office. It makes the letter attractive and saves time. The following is an example of heading : Ref No : Readmore Publishers & Distributors Kathmandu, Nepal Tel: 5187211, Fax : 977-1-4672073 Date : 56 Office Management and Accountancy

b. Inside name and address Inside name and address is the second part of M Tthe letter. It consists of name and address of emory ips the receiver. It should be exactly the same as  Heading the address of the receiver to be mentioned on  Inside name and address the envelope. It is written generally at the left  Subject hand side just below the reference number.  Salutation The name of the person or firm mentioned  Body in the inside address requires the words of  Complementary closing honour and respect such as Mr, Miss, Mrs, Dr,  Signature, name and post  Enclosures Prof. etc. Nowadays, most of the offices use  Carbon copy the envelope having plastic window so that  Post script inside address mentioned in the letter can be seen and used from outside. While writing the inside address, proper attention should be given regarding its correctness. Following are the examples of inside name and address of individual and name of office:  Inside name and address for individual Dr. Subhasish Basnet 15/25, Balaju  Inside name and address for office M/S Readmore Publishers & Distributors Kathmandu, Nepal c. Subject Subject is the third part of the letter. It is also understood as main theme of the letter. The subject part helps the receiver to know about the main purpose of writing the letter at a glance. The subject can be mentioned in the letter below the heading or below inside address as per the intention of the writer. Following is an example of subject: Subject: Application fot the post of Assistant Accountant d. Salutation Salutation refers to the initial respect, greeting or honour given to the receiver by the sender. The words to be used as the salutation in the letter depends upon the relationship between sender and receiver along with the rank and position of the receiver. Thus, the proper words for salutation should be used in the letter as per the relationship, title and position. In order to respect the receiver, the words like Dear Sir, Dear Madam, Respected Sir, Dear Mr Basnet, Ladies and gentlemen etc. should be used as salutation in the letter. e. Body Body is the fifth and important part of the letter. Actually, the body reflects the whole message of the sender to the receiver. It should be written in simple, clear, Correspondence 57

concise, complete and correct way so that the reader will be impressed. The quality of effectiveness should be maintained in the body of the letter. The well structured body makes the reader impressed and draws the positive attention. Generally, the body should be divided into three paragraphs such as introductory paragraph, main body paragraph and concluding paragraph. Thus, the first paragraph should be started with the friendly expression like “We are glad to…………” “ We are pleased to….,” etc. The second paragraph should be dealt with the detail explanation or main theme of the letter. Finally, the third paragraph should be concluded with the words like “ We look forward to ………,” “ Thank you for your kind cooperation” etc. f. Complementary closing Complementary closing is the final greeting or respect given to the receiver. It is the sixth part of the letter. After completion of the body of the letter,complementary closing should be made using polite words as per the rank or position of the receiver. It should be matched with the words of salutation. Thus, it is the polite and courteous way of ending the letter by paying due greeting to the reader. If the salutation is Sir, Madam, Dear sir etc, the complementary closing like “ Yours faithfully “ can be used. If the salutation Dear Mr. Karki, Dear customer etc is used, the complementary closing like “Yours sincerely” can be used. If the salutation like “ Dear Salina” is used, the complementary closing like “Yours ever” can be used. g. Signature, name and post The signature name and post is another part of the letter. It should be made below the complementary closing. It contains the authorized signature, name of the sender and his/her position. Mainly the signature is made to give validity to the letter and name and post should be mentioned to disclose the identification. An example of this part in the letter is as follows: Signature Anjana Pathak (Managing Director) h. Enclosures If any document, draft or cheque etc is enclosed to the letter, it must be mentioned with the number and name at the left hand side to the letter. It may be below or straight to the complementary closing under the particular head which is called enclosures. It is written as Encls in brief. It appears in the letter as follows: Encls : a) Curriculum Vitae – 1 b) Photocopy of citizenship certificate – 1 58 Office Management and Accountancy

i. Carbon copy If it is necessary to send the copies of letter to two or more individuals or offices to inform the decision or for recording and implementation, its information is mentioned in the letter under the particular part at the end. It is indicated by carbon copy. It appears as follows: CC To : National Examination Board, Sanothimi, Bhaktapur Department of Education, Sanothimi, Bhaktapur j. Post script If the important message is omitted in the main body of the letter, it should be mentioned at the end under the heading post script. This part can also be used to give more stress on certain topic or matter for the reader’s memory. It appears as follows: PS : The last date for submission of exam form is 31st Magh. Short Notes to Remember (SNR 4.2)  The parts like enclosure, carbon copy and post script may not be used and included in all the letters as they are not compulsory parts.  The subject can be mentioned below the heading or inside name and address or even below the salutation as per suitability and intention of the writer. Following is the letter depicting all parts: Fishtail Book House Date : 3rd Chaitra 2073 Lakeside, Pokhara P.O. Box : 21165, Tel : 026430762 Ref No. 211/073 M/S Readmore Publishers & Distributors T.U. Road Kuleshwor, Kathmandu, Nepal Subject : Enquiry for the books Dear Sir/Madam, We shall highly appreciate if you please kindly send us your latest catalogue and price list of your publication for school and college level books along with the details of terms and conditions of trade, mode of delivery and means of payment etc. If we are satisfied with the price and terms and conditions of trade, we may place an order and fulfil our trade requirements from you. Please send us the catalogue and price list as soon as possible. Yours faithfully ...................................... Arun Maskey (Purchase Manager) Correspondence 59

Readmore Publishers & Distributors Kathmandu, Nepal Tel: 4672073, Fax : 977-1-4672071 Ref No : 277/073/74 Date : 17th Magh 2073 M/S Munal Book House Subject : About quotation for books Gaighat, Udayapur Dear Sir, We are very much pleased and thank you for receiving your enquiry letter dated 12th Magh 2073 with reference No. 060/73/74. It is our great pleasure to meet your kind request. Thus, we are sending you a latest catalogue and price list by post. We allow you 15% discount on Indian publications and 30% discount on our own publications. Besides, we allow 5% cash discount on payments within the month of delivery of goods. This is the most favorable offer that we can make but you will accept yourself that none of our competitors can meet these. We assure you that the orders are executed on the same day they are received. Similarly, we do not charge for the cost of packing materials and free delivery will be provided to your place of business i.e. Gaighat bazaar in your case. Hoping for your valued order. Yours faithfully Madan Rai (Sales Manager) Encls : a) Price list – 1 b) Catalogue – 1 PS: You need to send 40% of the total amount while ordering goods. Types of letter on the basis of objective or use Different individuals and offices write letter for different purposes. The letter can be classified into different types according to the purpose, nature or importance. The classification of letter on the basis of objective and nature of work or priority is given below: Figure 4.1 Types of letter on the basis of objective or use Letter on the basis of use Government letter Business letter Application letter Business letter Government letter Government letter is one which is written by a government unit to other persons and offices to inform about governmental activities and decisions. It helps to perform the administrative functions of the government. The government letters are exchanged between central level offices and operating level offices. The central level offices write 60 Office Management and Accountancy

letter to the operating level offices to inform about decision, rules and regulation, instruction, order etc. Similarly, operating level offices also write and forward letter to the central level offices to report about the budget expenditure, performance, achievements and current problems. They also write such letter to make complaints and provide suggestions and recommendations on certain matter or issues. The letter which is written by a government office to other government offices or individuals to inform about the governmental decision, rules and regulation or other administrative procedures is called government letter. Following is the specimen of a government letter : Ref. No. 201/073/74 Government of Nepal Date: 2073/09/25 Ministry of Education Curriculum Development Centre Sanothimi, Bhaktapur Tel: 6630558 To, Subject: Regarding the dispatch of materials District Education Office, Solukhumbu The following teaching materials published by the curriculum development centre have been released to that district for distributing to all the secondary schools. It is requested to maintain the official record and inform to this office accordingly after receiving such materials. Enclosures: 1. Specification grid-Grade 10 - 200 copies 2. Student evaluation booklets - 150 copies ....................................... Basanta Raj Adhikari Total 350 copies (Section Officer) Business letter Business letter is one which is written by a business firm to another firm, customers, creditors or government agencies regarding the business matter. It may be written to perform the business dealings between two business organizations. It is written to continue the business activities such as buying and selling of goods or services. It include the matters like making enquiry, giving quotation, placing order, giving acknowledgement or confirming order, making complaint and making payment etc. According to the types of business letter, it includes the different subjects and bodies. The letter which is written by a business organization to another business organization, individual or other officies to inform about the various business matters is called business letter. Correspondence 61

The major types of business letter are as follows: Figure 4.2 Types of business letter Business letter Enquiry Quotation Order Confirmation Confirmation Adjustment letter letter letter letter letter letter a. Enquiry letter The business dealing starts with an enquiry made for various business matters. Enquiry letter is written by a probable buyer or importer to the supplier or exporter to make enquiry about goods. In this letter, the buyer or importer asks to know about the quantity, quality, price, terms and condition, payment system, discount and other business matters. He/she requests the seller to provide the catalogue from his organization. The buyer or importer may write and send the enquiry letter to many suppliers from whom the competitive business information can be obtained. Enquiry letter helps the buyer to choose the best supplier who can provide him goods and services at reasonable price and the most favorable terms and condition. The buyer may get the address of the seller from trade diaries, advertisement, internet, business magazines etc. The letter written by the probable buyer or importer to the different sellers making enquiry about the quality, price, terms and conditions, discount, payment system etc is known as enquiry letter. Following is the specimen of an enquiry letter: Fishtail Book House Lakeside, Pokhara P.O. Box : 21165, Tel : 026430762 Date : 3rd Chaitra 2073 Ref No. 211/073 M/S Readmore Publishers & Distributors T.U. Road Kuleshwor, Kathmandu, Nepal Subject : Enquiry for the books Dear Sir/Madam, We shall highly appreciate if you please kindly send us your latest catalogue and price list of your publication for school and college level books along with the details of terms and conditions of trade, mode of delivery and means of payment etc. If we are satisfied with the price and terms and conditions of trade, we may place an order and fulfil our trade requirements from you. Please send us the catalogue and price list as soon as possible. Yours faithfully ...................................... Arun Maskey (Purchase Manager) 62 Office Management and Accountancy

b. Quotation letter After receiving the enquiry letter from the probable buyer or importer, the seller or exporter sends a letter stating the reply of enquiries which is known as quotation letter. It includes the supply of information about price, types of product, quality, discount, modes of payment and other terms and conditions required for the trade. It is a greater opportunity to attract the buyer or importer. Thus, the quotation letter should be written very carefully and skillfully with real facts and information. The price list and catalogue can be sent along with the quotation letter. It is also known as reply to enquiry. The letter written by the seller or exporter to the importer or buyer for giving reply of the enquiries made in the enquiry letter is known as quotation letter. Following is the specimen of a quotation letter: Ref No. 165/073 Readmore Publishers & Distributors Date : 22nd Chaitra 2073 Kathmandu, Nepal Tel : 4672073 Fax : 977-01-4672071 M/S Fishtail Book House Lakeside, Pokhara Subject : Reply to enquiry for the books Dear Sir/Madam, We are very much glad to receive your enquiry letter dated 3rd Chaitra 2073 reference number 211/073. We feel great pleasure to fulfill your kind request. Thus, we are giving reply to the enquiry and dispatching our latest catalogue with new price list in a separate cover through post. Regarding the terms and conditions, we provide 15% discount on Indian publications and 30% on our own publications. We also provide 4.5% cash discount if the payment is made within a month after receiving the delivery of goods. In addition to this, we provide you the special discount of 3.5% if your monthly dealing exceeds Rupees Ten Lakh. Similarly, we assure you that the orders are executed on the same day they are received and no charge is levied for packaging of goods. We provide free delivery up to your destination. We look forward to receiving your valuable order. Yours faithfully ................................... Rabin Pradhan (Sales Manager) c. Order letter When a buyer or importer receives the various quotations from different suppliers, he studies and analyses them for the purpose of selecting a best one. If he/she is satisfied with the quotation of any supplier, he sends a letter to the supplier for giving the details of goods to be purchased which is known as order letter. It is written only after the approval of quotation submitted by the exporter or supplier. The order letter is actually a contract between the buyer or importer and seller/ exporter. While writing the order letter, the buyer should mention the detailed description of the goods like type, price, model, quantity, discount, terms of payment, date and place of delivery etc for the effective implementation of the Correspondence 63

order. In case of any mistake in order letter, it creates confusion to the exporter for dispatching the goods. The letter written by the buyer or importer to the seller or exporter after approval of quotation stating the detailed description of the goods to be purchased is known as order letter. Following is the specimen of an order letter: Ref No. 15/074 Fishtail Book House Date : 8th Baisakh 2074 Lakeside, Pokhara P.O. Box : 21165 Tel : 026430762 M/S Readmore Publishers & Distributors Kuleshwor, Kathmandu, Nepal Subject : Purchase order for the books Dear Sir, Thank you very much for your quotation dated 22nd Chaitra 2073, reference number 165/071. We are satisfied with your price, trade policy, terms and conditions and therefore forwarding our purchase order for the following items. S.N. Books Author Qty. 1. Office Management and Accountancy JR Khanal & DK Basnet 150 200 2. Social Studies CP Bhusal, Matrika Pd Lamsal & Ram Rai 100 250 3. Maxim Grammar D N Mukhiya 4. Mirror English D N Mukhiya Please deliver our goods to Siwani Transport, Pokhara and send us a bill. We assure you that the payment will be made by electronic transfer immediately after the receipt of goods. We would be grateful, if you could send us an acknowledgement of delivery at earliest possible. Yours faithfully .................................... Arun Maskey (Purchase Manager) d. Confirmation letter After the receipt of order for goods from the buyer or importer, the seller or exporter writes a letter in order to give confirmation of receiving order which is called confirmation letter. It is also known as acknowledgement letter because the seller or exporter acknowledges the buyer for forwarding purchase order. In this letter, he/she provides assurance for the timely dispatch of goods and strict follow up of order letter. If the seller has any unclear matter or confusion regarding the order letter, it should also be mentioned in this letter. The letter written by the seller or exporter to the buyer or importer with a view to give confirmation for receipt of order is called confirmation letter. 64 Office Management and Accountancy

Following is the specimen of a confirmation letter: Ref No. 24/074 Readmore Publishers & Distributors Kathmandu, Nepal Tel : 5187211 Fax : 977-01-4672073 Date : 15th Baisakh 2074 M/S Fishtail Book House Lakeside, Pokhara Subject : Letter of confirmation Dear Sir, We are grateful to you for receiving your valuable order letter as per reference number 15/074 dated 8th Baisakh 2074. We appreciate your terms and conditions of payment mentioned in purchase order. All the goods shall be delivered to your destination within the last week of Baisakh through our own means of transportation. Any changes, if occurs shall be immediately informed. We anticipate your invaluable orders and make the trade relationship further better in the days to come. Yours faithfully ................................... Rabin Pradhan (Sales Manager) e. Complaint letter The buyer or importer sometimes has to write a letter making complaint against the goods delivered which is known as complaint letter. If the buyer finds out that the goods not as per the order and previous terms and condition, he should write a letter regarding such condition. The main reasons for making such complaints may be low quality goods, late delivery, high price, excess or less quantity, wrong calculation in invoice etc. The buyer should make complaint being confirmed about the case or fault. While making complaint through letter, the buyer should use polite and courteous language so as to get the positive response from the seller. If the goods are found defective or damaged, he has to return such goods and claim for the reduction in his account equal to the amount of goods returned. He may also claim for the replacement of similar goods. The letter written by the buyer to the seller for making complaint against the goods delivered due to any reason is known as complaint letter . Correspondence 65

Following is the specimen of a complaint letter: Fishtail Book House Lakeside, Pokhara P.O. Box 21165 Tel 026430762 Ref No. 134/74 Date: 15th Jestha 2074 M/S Readmore Publishers & Distributors Kathmandu, Nepal Subject: Complaint of the damaged books Dear Sir/Madam, We really appreciate the prompt delivery of our order dated 8th Baisakh 2074, but we regret to inform you that some of the books on Social Studies delivered from your publication are found fully damaged. Out of 150 pieces, 20 pieces are completely damaged as the middle four chapters are omitted in binding. Even in other 10 pieces, page numbers are not serially arranged. While going through the invoice, we also found that books on Office Management and Accountancy less in quantity by 10 pieces. We have returned the damaged books to you with a debit note. We hope you will make the necessary adjustments in our account and inform us as soon as possible. Yours faithfully .................................. Arun Maskey (Purchase Manager) f. Adjustment letter After receipt of complaint letter from the buyer, the seller must write a letter to inform about any action or adjustment made in favour of the buyer which is known as adjustment letter. It is actually the response to the complaint letter. According to the nature of complaint, the seller should adjust it and inform the buyer immediately. The seller should take the complaint positively. Otherwise, it may lead to discontinuation the trade relationship between the seller and the buyer. The adjustment may be reduction of amount, supply of additional goods or replacement of items etc as per the nature of complaint. The letter written by the seller in the name of the buyer informing him/her about the necessary adjustment of the complaint is known as adjustment letter. 66 Office Management and Accountancy

Following is the specimen of an adjustment letter: Readmore Publishers & Distributors Kathmandu, Nepal Tel : 5187211 Fax : 977-01-4672073 Ref No 34/074 Date: 27th Jestha 2074 M/S Fishtail Book House Lakeside, Pokhara Subject: Response to the complaint letter Dear Sir/Madam Thank you very much for your complaint letter dated 15th Jestha 2072. We are extremely sorry to know that altogether 30 books on Social Studies 10 were found in damaged condition that caused inconvenience in your trade dealing. We again apologies for delivering the less quantity of books on Office Management and Accountancy. We would like to inform you that we have already adjusted the price of such damaged and undelivered books as stated in your debit note. We assure you that such events will not pe repeated in the future. Yours faithfully .............................. Rabin Pradhan (Sales Manager) Differences between government letter and business letter Following are the major differences between a government letter and a business letter: Basis of Government letter Business letter difference 1. Meaning It is written by a government office to It is written by a business firm to individuals or other offices. another business firm or individuals 2. Purpose It is written to inform the It is written to perform the business concerned person or parties about activities and to maintain the trade governmental activities and relationship. decisions. 3. Style and It is prepared in the same style and It can be prepared in different styles format format by every government offices. and formats as per the need and intention of the sender. 4. Subject part It needs to mention the subject part It is not compulsory to mention the compulsorily in the letter. subject part in the letter. 5. Classification It can be classified as ordinary It can be classified as enquiry urgent, most urgent, immediate, quotation, order, complaint and confidential and very confidential adjustment letter etc. letter. 6. Involvement It involves the central level office It involves the head office and of offices and operating level office for branch office for exchange of exchanging information. information. 7. Influence It is not influenced by the personal It is greatly influenced due to the of personal relationship at all. personal relationship. relation Correspondence 67

Application letter An individual may write a letter to the organization for various purposes. He/she may write a letter in order to apply for the job, asking for leave, asking for information, asking for service etc. All those types of letter are called application letter. Job application letter is one of the important types of application letter. It is written by an individual to the employer as per the vacancy announcement requesting to get the job. Application letter for the post must be written very attractively, carefully, politely and effectively so that an employer may call the candidate for an interview. Thus, the applicant should write an application letter giving the details required to the employer. He/she should mention the personal description, academic qualification, training and experience, reason for applying to that post etc in sequential order. He/she should submit the bio-data and copies of testimonials along with the handwritten application. The letter written by an individual or employee to the organization requesting for job, leave, information, particular service etc. is known as application letter. Following is the specimen of a job application letter written for the post of receptionist: To, Date: 4th Baishakh 2074 The Managing Director Himalayan Travels (Pvt) Ltd. Thamel, Kathmandu Dear Sir/Madam Subject: Applying for the post of receptionist With reference to your advertisement published in Kantipur daily dated 22nd Chaitra 2073 for the post of receptionist, I would like to apply as a perspective candidate for the vacant post in your reputed institution. I am a young and energetic girl of 20 years with hardworking, punctual and pleasant personality. I completed my schooling from Valley Academy Secondary School in management and studying Bachelor of Business Studies. I have good knowledge of computer application specially in accounting package. At present, I am working at Ambition Travel Pvt. Ltd. Lagankhel which is very far from my residence. It would be suitable location for me to do the job with more devotion. Further, I could handle my responsibilities with perfect satisfaction. I have enclosed herewith a detailed Curriculum Vitae of my qualification, experience and training along with the copies to testimonials for your kind consideration. I would like to assure you that if I get chance to serve under you, I shall do my best to discharge the duties to your full satisfaction. Hoping for a favourable response. Yours faithfully ................................ Encls : Curriculum Vitae - 1 Sadhana Tiwari Copies of testimonials - 8 Balaju, Ktm. 68 Office Management and Accountancy

Personal letter The personal letter is one which is written by an individual to his family member, friend or relatives describing the personal matters. It is written to exchange the news and information and to maintain the good faith and understanding between or among the individuals. It is also written to inform about recent news about health, society, economic condition, job, problems, progress and achievement etc. Personal letter creates love and affection as well as maintains good personal and family relationship. If any family member has gone to foreign country for further education, employment, business or other specific purpose, it requires to keep in touch with him/ her. In such condition, letter may be an important means of communication to know about his/her status. Thus, it is written for various purposes. There is no any fixed style and format for writing the personal letter. It can be written in any format,style and structure as per the personal interest of the writer. Letter of congratulation, letter of regret, invitation letter, letter of gratitude etc are the examples of personal letter. The letter written by a person to his family member, relatives or friend describing about personal matter such as health, education, job, economic condition, current problems etc is known as personal letter. Following is the specimen of a personal letter written by a daughter to her father asking money for her study: Dear Father, Tarakeshwor-6, Kathmandu 10th Magh 2074 I am quite fine here and hope you all are fine there. I am very much pleased to inform you that I secured first position in this second term exam. Our final examination is going to be held from 15th of next month. At present, I need some money to buy some books and reference materials. I need some exercise books too. The money you sent last month through my friend is already finished. I may not be able to maintain my present position if I do not buy and study the additional books. Most of my friends have already bought the books. Thus, please send me Rs. 2,500 (Rupees Two thousand five hundred) as soon as possible. Please, convey my respect and love to my mother, sister and my friends too. I look forward to hearing from you soon. Yours affectionately Supriya Correspondence 69

Types of letter on the basis of importance or priority On the basis of importance or priority letters are classified into different kinds. According to administrative job clearance act 2026 and internal management procedure 2058, letters are classified in offices of government of Nepal as follows: Figure 4.3 Types of letter on the basis of importance Letters on the basis of importance Ordinary Urgent Most urgent Immediate Confidential Most confidential letter letter letter letter letter letter Ordinary letter The ordinary letter is one which is written for communicating the ordinary matters to perform the official job. It has no any indication on its envelope to denote the priority. The duration for clearance of ordinary letter is 3 to 7 days. It means if the receiver has right to process the letter himself, it has to be cleared within seven days. But, if it has to be forwarded to the upper level, it should be presented within 3 days. Notice, circular, memo, general business letter etc are the examples of ordinary letter. The letter which is concerned with the ordinary matter and written without any word of priority on its envelope is known as ordinary letter. Urgent letter The urgent letter is one which has the priority word “URGENT” marked on its envelope. The duration for clearance of such letter is 2 to 5 days. It means the action should be taken within 5 days if it has to be processed by the receiver himself or herself. But, if it is to be forwarded to the executive level for action, it should be submitted within 2 days. The letter which is written with the priority word “URGENT” mentioning in its envelope as per the nature of matter is called urgent letter. Most urgent letter The most urgent letter is one which has the priority word “MOST URGENT” marked on its envelope. Generally, red ink is used for marking the word most urgent. It should 70 Office Management and Accountancy

be cleared within the period of 3 days. It means the letter should be cleared by the concerned authority within 3 days. But, if the letter has to be forwarded to the upper level, it should be sent on the same day. The letter which is written with the priority word “MOST URGENT” marked on its envelope is known as most urgent letter. Immediate letter The letter which contains the word “IMMEDIATE” on its envelope is called immediate letter. The action of such letter should be taken immediately on the same day. However, due to any exceptional case, if is not possible to take the action on the same day, it has to be processed or forwarded to the upper level at the first hour of the following day. The letter which is written with the priority word “ IMMEDIATE” marked on its envelope is known as immediate letter. Confidential letter The letter which contains the word “ CONFIDENTIAL” on its envelope is called confidential letter. The action of such letter should be taken secretly. It should be submitted to the concerned authority immediately. The clearance of such letter should be made by the chief himself or by the subordinates secretly as per the instruction delegated by the chief. The matter, decision and action of such letter should not be brought into public knowledge for a certain period of time. The letter which is written with the priority word “CONFIDENTIAL” marked on its envelope for secret processing and clearence is known as confidential letter. Most confidential letter The letter which contains the word “MOST CONFIDENTIAL” on its envelope is called most confidential letter. Such letter should never be disclosed to the public and sealed on its envelope. Most confidential letter should be presented to the concerned authority as soon as possible. The executive should also process and clear such letter secretly. Such type of letters are related to law and legal matters. The letter which is written with the priority word “MOST CONFIDENTIAL” marked on its envelope for secret processing and clearance is known as most confidential letter. Correspondence 71

Handling of mail Mail refers to a written document containing some information. It includes letter, notice, circular, telegram and other written documents which are created in an office and received from outsiders. A mail can be received or sent through different means of communication like messenger, post office, courier service etc. All the incoming and outgoing mails should be systematically recorded in a book. Thus, the process of collecting, receiving and recording the incoming and outgoing mails in a systematic manner is known as handling of mail. The office may establish a separate department for this job which is called mailing department. Handling of mail is the process of recording the incoming mails and outgoing mails in a systematic manner by maintaining the separate books for receiving and dispatching of mail. Handling of incoming mail The act of receiving and recording the incoming letters and documents in a separate book in systematic manner is called handling of incoming mail. The book used for keeping the record of incoming mail is called ‘entry book ‘or ‘Darta Kitab’ in Nepali. The specimen of a entry book is as follows: Entry Book (Darta Kitab) Entry No Date of Incoming letter Name of Subject Receiving department Remarks Entry Ref. No. Date sender Name Signature Date 10 1 234 5 67 8 9 The information to be written in each column in the above specimen are as follows: Column Information to be written 1. Serial number of the letter or mail 2. Date of entry of the mail 3. Reference number of the mail 4. Date of writing the mail 5. Name of the sender 6. Subject of the mail 7. Name of the department or section to whom the mail is forwarded 8. Signature of the receiver of the mail 9. Date of receiving the mail 10. Other necessary information Handling of outgoing mail The act of drafting, preparing and sending various letters and documents to outsiders by recording them in a book is called handling of outgoing mail. The book to be used 72 Office Management and Accountancy

for keeping the record of outgoing mail is called ‘dispatch’ book or ‘Chalani Kitab’ in Nepali. The specimen of a dispatch book is as follows : Dispatch book (Chalani Kitab) Dispatch Date of Outgoing letter Sending section/ Post box No dispatch Ref. No. Date Name of Subject department or peon Remarks 1 2 34 receiver Name Signature book No. 56 78 9 10 The information to be written in each column in the above specimen are as follows: Column Information to be written 1. Serial number of the mail dispatched 2. Date of dispatching the mail 3. Reference number of the mail 4. Date of writing the letter 5. Name of the receiver to whom the mail has been sent 6. Subject of the letter 7. Name of the concerned department/ section sending the mail 8. Signature of the dispatching clerk 9. Post box or peon book number 10. Other necessary information Short Notes to Remember (SNR 4.3)  In government offices, a separate section or department is established for efficient handling of mails, which is known as “Darta Chalani Phant.”  The specimen and the columns used in the entry and dispatch book may vary from one office to another depending on the number of columns required and types of information to be recorded.  The procedures of handling the incoming mails are: receiving, recording, stamping, distributing, and clearing.  The procedures of handling the outgoing mails are: drafting, collecting, recording, stamping, and dispatching Official information An office receives the various types of information from other offices, branches and outsiders. Similarly, it sends the reply of such information or original message created in an office. Such information may be useful for the internal purpose or for external purpose i.e. public knowledge. Thus, official information consists of the following: Figure 4.4 Official information Official information Notice Circular Mandatory order Correspondence 73

Notice (Suchana) Notice is a kind of official information issued on a certain topic, matter or event. It may be related to the past, present or future activities of an office. It is issued for offices or outsiders for public knowledge. A notice may be given either in oral or written form by an office to the staffs, branches or other concerned parties. Thus, it is given through correspondence, newspaper, radio and television etc. Nowadays, notice is also given through e-mail, internet or website of any office or organization. It is issued for giving information about holiday, meeting, tender, social function, official rules and regulations, agreement etc. It may be issued by government, social organization, academic institute, business firm or other bodies to communicate the people on different matters. Notice is a kind of official information issued by an individual or office on a certain topic, matter or event using oral or written means of communication. Types of notice Notice may be issued by any office or individual. It may be issued for various purposes. According to the objective, importance of information and the types of organization issuing it, notice can be classified as follows: Figure 4.5 Types of notice Notice Government Educational Business Social Physical Geographical notice notice notice notice notice notice a. Government notice Government notice is a notice issued by any government office to the public or other offices regarding public welfare, government plan and policy or security. The offices issuing such notice may be central level offices or operating level offices. Central level offices include ministry, department, constitutional body etc and operating level offices include all the province, district and local level offices. Government notice is issued to the general public or organization to follow the instruction to do or not to do the specific task. b. Educational notice Educational notice refers to a notice issued by an educational institution like school, college, university and other similar types of organizations. It is 74 Office Management and Accountancy

issued targeting mainly the students, teachers, guardians, school and college management committee and other concerned parties. Educational notice may be related to academic, curricular and extra curricular activities of the institute. c. Business notice The notice issued by any business organization to inform about the business matters is called business notice. It may be issued to manufacturers, producers, suppliers or customers as well as other concerned parties. Such notice contains the matters like change in price, improvement in quality, launching new product, opening new branch, appointment of dealer and agent, modification of packaging and design, offering discount etc. d. Social notice The notice issued by any social organization informing about social, cultural, political and environmental matters is known as social notice. It may be issued by the social organizations like Nepal Scout, Red Cross Society, Paropakar Sanstha, Maiti Nepal, Netra Jyoti Sangh etc. It aims to improve the social status of the people and society as well. e. Physical notice The notice issued by sports council, hospital and other clubs to provide information about games, sports and physical fitness is called physical notice. It contains the information related to participation in games and sports, contests, physical fitness, health activities, environmental sanitation etc. f. Geographical notice The notice issued by any organization or related body covering only the specific geographical area like ward, rural musicipality, municipality, district, province etc is known as geographical notice. It includes the subject matter relating to different fields like trade, commerce, agriculture, education, health, governmental activities etc. Circular (Paripatra) A written document issued by the top level office to its branches or lower level offices to pass official information is known as circular. It is one of the important written means of communication to transmit the message or information by head office or central level office to its branch or operating level office. It is issued to pass the information about to do or not to do any job giving direction and written order. The original copy of circular is prepared and issued to a large number of persons and offices making several copies at the same time in same style, format and language. It is always issued by the upper level office to the lower level office. Thus, it is also called downward communication. Correspondence 75

Circular is the common means of correspondence in government offices. However, it is also used in business organization to inform about change in price, introduction of new product, change in quality and weight, admission of new partner, amendment of existing rules and policies etc. Circular plays an important role for the successful operation of official and business activities. Circular is a written order issued by the top level office to its branches or operating level offices to give direction for implementation of the certain decision over the subject or matter. Types of circular On the basis of channel used for sending information, circular can be divided into following two types: Figure 4.6 Types of circular Circular Direct circular Stepwise circular a. Direct circular The circular issued by head office or top level office to its branch office directly without using any level is known as direct circular. For example, circular sent from the Ministry of Education to all local level education offices. Following is the specimen of the direct circular: Basnet Handicrafts Thamel, Kathmandu Ref No. 107/073 Date : 25th Chaitra 2073 To all the branches Subject: Reduction in the price of products The circular is issued to all the concerned branches of this company that the meeting of board of directors’ has decided to offer the 25% reduction in the price of all the items on the auspicious occasion of New Year – 2075 with effect from 28th Chaitra to 3rd Baishakh, New Year. Therefore, all the branch managers are informed to execute the above decision and sell the products from 28th Chaitra till the 3rd Baishakh providing specified percentage of discount on usual price. Bimal Basnet (Chief Executive Officer) 76 Office Management and Accountancy

b. Stepwise circular The circular issued by the head office or top level office to its branch level or lower level offices indirectly through different levels or channel is known as stepwise circular. It passes the same information to the downward level until it reaches the concerned branch or level. For example, circular sent by Ministry of Education to Department of Education and again sent from Department of Education to all local level Education Offices. Following is the specimen of a stepwise circular: Step 1 Government of Nepal Date: 12th Mangsir 2074 Ministry of Education Kathmandu Ref No. 32/074/075 Department of Education, Sanothimi Subject: Regarding Secondary Education Examination (SEE) form This is to inform that the Ministry has decided to conduct the Secondary Education Examination of this year from 2074/12/08 to 2074/12/17 So, it is requested to inform all the local level Education Offices for further circulation to all schools regarding exam form to be filled up within last of Magh. .................................... Bishal Kafle (Joint Secretary) School Management Section Step 2 Ministry of Education Date: 17th Mangsir 2074 Ref No. 32/074/075 Department of Education, Local Education Officer All Local Education Offices Sanothimi, Bhaktapur Sub : Regarding Secondary Education Examination (SEE) form This is to inform that the Ministry has decided to conduct the Secondary Education Examination form of this year from 2074/12/08 to 2074/12/17. According to the circular letter received from the Ministry, all the District Education Offices should make the examination form filled up for all the examinees within the last of Magh. So, it is requested to inform all the secondary schools for timely fill up of SEE form and follow the circular of Ministry. Encls : The circular letter from the Ministry dated 2074/08/12 .............................. Puskar Thapa (Section Officer) Correspondence 77

Differences between notice and circular Following are the main differences between notice and circular: Basis of difference Notice Circular 1. Meaning It is the act of informing individuals It is the act of giving instruction or organizations about past, present or order by the top level office to or future. its branch or lower level offices about any decision. 2. Medium It is issued through oral or written It is issued using only the written means of communication. means of communication. 3. Parts It does not follow all the parts of a It generally follows all the parts letter. of a letter. 4. Number of copies It is prepared and issued only in It is prepared in one original copy single copy. and duplicated in many copies for issuing purpose. 5. Issuer It can be issued by any individual It is issued only by head or or office to others. central level office to its branch or operating level offices. 6. Classification It is classified into government, It is classified into direct and educational, business, social, stepwise circular. physical and geographical notice. Mandatory order (Tok Aadesh) Mandatory order is a kind of written instruction provided by the authorized officer to his/her subordinates about whether to do or not to do any job or action. After receiving the mandatory order, it becomes legal obligation to take necessary action by the lower level staff. The general people or other offices submit the number of letters or documents in government office requesting to do certain job or deciding upon the certain matter. The junior level staff who receives such letter and document may not have enough authority to take decision for implementation of certain job. Then, he/she forwards such written letter or document to make necessary action and decision. The office chief or concerned authority studies it and gives the written instruction on the face or bottom of the same letter or document generally with red ink. Then, it is again sent back to the subordinates for implementation purpose. It can also be submitted as the proof in the court of law. In context of Nepal, it is very popular to get the job done by taking mandatory order from the ministers. Mandatory order is a written instruction issued by an authorized officer to subordinates to take action as per the prevailing rules for the written request made by an individual or office regarding the subject matter. 78 Office Management and Accountancy

Key – legally valid. Terms – written instruction provided by upper level office to its branch Authentic or departments. Circular – act of exchanging written materials like letter. Correspondence Dispatch book – book used for keeping the record of outgoing mail. Entry book Handling of mail – book used for keeping the record of incoming mail. Notice – act of keeping the records of incoming and outgoing mail in separate books. Quotation – act of informing the concerned persons or parties through oral, written or symbolic means. – letter containing the replies of enquiry. A. Very short answer questions 1. What is correspondence? 2. Mention any two qualities of a good letter. 3. State any two types of letter on the basis of priority. 4. What is government letter? 5. Define business letter. 6. Mention any two types of business letter. 7. Define entry book and dispatch book. 8. What is meant by notice? 9. Mention the types of circular. 10. What is mandatory order? B. Short answer questions 1. What is correspondence? Explain its importance in brief. 2. What is meant by government letter? Differentiate between government letter and business letter. 3. Define business letter and briefly describe its types. 4. Give the classification of letter on the basis of use and explain them in brief. 5. How can you classify the letter on the basis of priority? Explain them in brief. 6. What is meant by handling of mail? Describe in brief about handling of incoming mail and outgoing mail. Correspondence 79

7. Define notice and describe its kinds. 8. What is meant by circular? Explain in brief about the types of circular.9. Write any five differences between notice and circular. 10. Write short notes on following: a) Handling of mail b) Application letter c) Mandatory order C. Long answer questions 1. List out the essential qualities of a good letter and explain them in brief. 2. How should a good letter be structured? Explain the various parts of a complete letter. 3. Write an enquiry letter to the Computer House, Putalisadak asking the price list of computer with its parts, items, condition of payment and delivery of computer. 4. Draft an imaginary quotation letter on behalf of Computer House, Putalisadak stating the details of computer to be supplied. 5. Write a letter to Readmore Publishers & Distributors, Kathmandu requesting to send 150 copies of “Office Management and Accountancy” books of grade nine for your school. 6. Write a job application letter to the Human Resource Manager of Himal Saving and Credit Cooperatives, Kathmandu for the post of Junior Accountant.  80 Office Management and Accountancy

5 Chapter RECORD KEEPING Learning Objectives After studying this chapter, the readers will be able to :  write the meaning of record and record keeping,  state the importance of record keeping,  describe the types of record on the basis of duration,  explain about the disposal of record. Introduction Records are the history of the organization. The success of every organization depends on the availability of past and present records. The records help to perform the day to day administration of office. They provide guidelines to the future the employees with the help of records can perform the various managerial functions easily and efficiently. Thus, record keeping function is one of the regular and important functions of all types of offices. Records involve bill, voucher, letter, notice, circular, files, books of account, personnel details, legal documents and other written documents. The systematic and scientific record keeping plays an important role for the successful operation of official activities. Record keeping involves the processes like creation, collection, classification, preservation, utilisation and disposal of written matters. Record Keeping 81

Concept and definition Record keeping is the systematic and scientific process of preserving the records in the form of file or electronic device. Record may be related to the plans and policies of the organization, different reports, daily correspondence, past activities and other business and official matters. It is the collection of facts, figures and experiences that act as a memory of past activities. Record includes all types of incoming and outgoing letters and documents such as bill, voucher, invoice, statement of employees, statement of trade, books of account, international treaties, court decision, decision of council of ministers etc. All the information collected from internal and external sources should be created and arranged in systematic manner and usable form which is the basic concept of record. It is a fundamental tool for planning, policy making, corresponding, decision making and reporting purpose. Record keeping is more associated with the proper retention of valuable written matters, their proper use and disposal after complete use. Following are the main definitions of record and record keeping: “Record refers to the informational documents utilized by an organization to carry out its various functions.” Z.K Quibble “Record keeping is concerned with the creation, distribution, maintenance, retention, preservation, retrieval and disposal of written materials.” S.P Arora Record keeping is the systematic and scientific process of creating, collecting, classifying, preserving, utilizing and disposing the written materials maintained in the form of paper or electronic devices. Short Notes to Remember (SNR 5.1)  Record is the collective form of written documents including bill, voucher, notice, circular, statement, report, contract, agreement etc. which are useful for future refrence. Objectives of record keeping Records are the history of past activities and guidelines for the future. It supplies the valuable information for smooth operation of an office. The main objectives of record keeping are as follows:  To collect the various information from different sources and classify them on the basis of their importance.  To supply the required information to the internal and external users.  To fulfill the legal formality by submitting the important records to the legal authorities.  To provide reliable and authentic data and information for planning, decision making, controlling and evaluating purpose.  To settle the disputes and misunderstanding between or among the persons or parties. 82 Office Management and Accountancy

 To provide guidelines in the future for smooth and efficient functioning of an office. Importance of record keeping Record plays an important role in a modern office to perform the official jobs smoothly and efficiently. Records are considered as the history of past activities that determine the future of an organization. In absence of record, we may forget all the things with passage of time. Thus, the importance of record can be explained in the following points: a. History of past activities Memory Tips Due to limited human memory, it is quite  History of past activities impossible to remember all the things or  Evidence for the future activities done in the past. We cannot recall  Guidelines for the future the voluminous transactions occured in the  Fulfillment of legal formality office. On the other hand, they cannot be  Detection and prevention of errors and utilized for various purposes in the future if they are not stored and preserved properly. frauds Thus, record collects, stores and preserves all  Preparation of progress report the past activities and reminds us about whole activities that were performed in the past. b. Evidence for the future Records may be related to various administrative and financial matters. It may help to settle the dispute or misunderstanding between or among the parties. The record of contracts, national and international treaties, minutes, books of account etc. can be presented as the evidence in the court. It helps to settle the disputes and claim regarding the relevant matters. c. Guidelines for the future Records can be used frequently by an office as reference in the future. It reflects the series of past activities and acts as guidelines for future on similar matters. Records also provide relevant information which are useful for planning, decision making, controlling, reporting and evaluating purpose. d. Fulfillment of legal formality An office has to submit various types of reports and statements to the concerned authority. It has to fulfill the legal requirement of the government. It is possible only by means of records. Record supplies the information relating to purchase, sales, income, expenditure and other matters. It also helps to determine the amount of tax. Thus, the record maintenance helps to fulfill the legal formality of an office. e. Detection and prevention of errors and frauds There may be some errors in the process of performing administrative and financial jobs. Records provide the day to day proof of any matter and helps to detect any Record Keeping 83

error, frauds and manipulation caused due to bad intention of any staff. Thus, record keeping also helps to detect frauds, errors and prevent them. f. Preparation of progress report The systematic and scientific preservation and maintenance of records supplies the relevant information to the office. The important paper, correspondence and documents help to evaluate the progress of an office. The progress report is the detailed statement prepared by disclosing the achievement of an organization. Thus, in order to evaluate the activities of an office, the progress report can be prepared with the help of records maintained in regular manner. Kinds of record On the basis of nature, records can be classified into the various types such as correspondence record, accounting record, legal record, personnel record etc. On the other hand, records can also be classified on the basis of their retention period, life or duration. According to “Record Disposal Regulation 2027” of Nepal government, records have been classified into following four kinds: Figure: 5.1 Types of record Record Very important Important Useful Useless record record record record Very important record Those records which are of permanent importance and required to be preserved over a longer period of time or even forever are known as very important record. Such records should be preserved for at least 15 or 20 years or as long as the existence of an institution. Such records should never be destroyed or disposed. The life of such records cannot be limited to a certain period or years. Records related to law and legal action such as national and international treaties, boarder map, country map, trade documents, documents of peace and security, documents of movable and immovable properties fall under this type. Very important records are those records which are of permanent importance and need to be preserved for unlimited period of time i.e. till the existence of the organization. 84 Office Management and Accountancy

Important record Those records which are to be preserved for 5 to 10 years or until the completion of job are known as important record. Those records are related to general and financial administration. It includes bill, voucher, bills of receivable, bills of payable, general agreements and contracts, financial documents, tender and quotation, budget speech etc. Some of the important records can be disposed off only after the completion of a certain project if they are related to any project. Important records are those records which need to be preserved for five to ten years or until the completion of certain job. Useful record Those records which are required to be preserved for maximum five years from the date of their creation are known as useful record. Such records are useful only for a certain period of time. As per the necessity and importance, such records can be disposed off between 1 to 5 years. Ordinary letter, inter office notice, circular, correspondence, short term agreements, bank statements and other ordinary documents fall under this type. Useful records are those records which need to be preserved for maximum five years and can be disposed off thereafter. Unuseful record Those records which are created only for general communicative purpose are known as unuseful record. Such records can be disposed off immediately after their creation and no longer required to preserve for future reference. Those records become useless after utilization. Letter of greeting, letter of congratulation, condolence, invitation card etc. are the examples of unuseful records. Unuseful records are those records which are related to the general matter and can be disposed off immediately after their creation and short term use. Disposal of record Disposal of record means the process of destroying the unnecessary records after their use when they are no longer required to the office. All types of records are not required to preserve for same period. Some of them are needed to preserve for longer duration whereas others may become useless and can be destroyed after certain use. The proper use and disposal of record facilitates the record keeping and reduces the cost. In order to dispose the record in government office of Nepal, a regulation called “Record Disposal Regulation 2027” has been passed. Under this regulation, records are classified according to their usefulness and unnecessary records are disposed off by Record Keeping 85

mentioning them in the record disposal book. Nowadays, very important records can be disposed off after preserving them in a computer program. In private sector, there is not a single regulation and thus, creation, preservation, utilization and disposal of records is done as per the necessity of the organization and nature of records. Disposal of record is the systematic process of destroying and removing the unnecessary official records by fulfilling the certain procedures. Key – act of destroying the official documents. Terms – act of ensuring safety to the documents. – official information created in written form. Disposal – act of creating, collecting, preserving, using and disposing the Preservation Record official documents. Record keeping – systematic act of keeping the documents. – agreement between the countries. Retention Treaties A. Very short answer questions 1. What is record? 2. What is record keeping? 3. State any two importance of record keeping. 4. Mention any two types of record. 5. Under which act has the provision of disposal of records been made for government offices? 6. How long are the very important records preserved for? 7. What do you mean by important records? 8. What is meant by disposal of record? 9. Give any two examples of very important record. 10. Mention any two examples of useless record. B. Short answer questions 1. What are records? State the main objectives of record keeping. 2. Explain in brief the importance of record for an office. 3. What is meant by disposal of records? How are the records disposed off in Nepalese government and non-government offices? Explain briefly. C. Long answer questions 1. Define record keeping and describe its importance in brief. 2. Explain the different types of records with examples.  86 Office Management and Accountancy

6 POSTAL AND ELECTRONIC COMMUNICATION SERVICE Chapter Learning Objectives After studying this chapter, the readers will be able to :  write the meaning of postal and electronic communication service,  explain the utility and importance of postal service,  trace out the development of postal service in Nepal,  describe the methods of sending letter through post office,  describe the major means of electornic communication. Introduction Today, the individuals and organizations use various means of communication. According to the availability, letter, e-mail, internet, fax, telephone etc are used as means of communication out of various means, letter is widely used among individuals and organizations. Sending letter or other related documents is concerned with the postal service. It is the oldest and easiest traditional facility in the field of communication provided by the government, It involves the transfer of letter and written documents from one person to another using post office. With the passage of time, postal services have also been modernised. Such facility is not limited to the transfer of written means like letter but extended to the modern service like express mail service. It has diversified its services to various sectors in and outside the country. Thus, postal service and electronic communication service play an important role in the field of communication. Such facilities are equally useful to the individuals, government, business offices and social service sector. Postal and Electronic Communication Service 87

Concept and definition Postal service is one of the important means of communication. It is used for exchanging the written materials like letter, notice, post card, parcel etc. It transfers the documents from one place to another for official and private purpose inside and outside the country. It is one of the oldest facilities provided by the government in the field of communication. In every country, postal service is provided by the governmental body. In Nepal, all these services are provided by a governmental institution known as post office. Though there are various modern means of communication, postal service is still popular among individuals, government offices, business firms and others. It is considered as the cheapest, convenient, popular and reliable means of communication among its users. Today, the postal services are not limited to its traditional communication and parcel service. It has extended its services to the modern functions such as insurance service, banking service and electronic communication service in the country. Thus, postal service is more popular and useful service to the developing countries like Nepal as other means of communication are not easily available in all the geographical places. While sending letter through the post office, one should write the name and address of the sender and receiver on it’s envelope clearly. The sender should mention his/her name and address on the left hand side and the name and address of the receiver on the right hand side. Besides this, the postage stamp should also be affixed on the top right hand corner to the letter. Postal service is the facility provided by the post office for transferring the written materials like letter, notice, post card, document and parcel from one place to another. Utility and importance of postal service Today, the postal service has become a popular, easier and reliable means of written communication. It is easily available in and outside the country. Using postal services, individuals and organizations can send written documents at a minimum cost. It is equally important for all types of organizations and individuals. Thus, it plays a significant role in the field of communication specially in developing countries like Nepal. The utility and importance of postal service to different parties can be explained under the following points: a. Importance to the general people Postal service is an important means of communication for general people to exchange their messages to each other. The general people may have to travel 88 Office Management and Accountancy

to different places for different purposes like further education, employment, study M Tor business etc. They want to receive and send the message regularly to and emory ips from their family members, relatives and friends. In such case, postal service will be  Importance to the general people a suitable means for exchanging messages  Importance to the government  Importance to the business firms  Importance to the social organizations between or among themselves. It brings the people closer and can maintain a positive relationship through different materials. During the occasion and festival also, it plays an important role for sending greetings at a minimum cost. Besides this, it also provides the banking service to the general people by collecting small saving and providing loan to the needy people. These all proves that the postal service plays an important role in the daily life of general people. b. Importance to the government The government establishes various central level and operating level offices in different places of the country for providing basic utility services to its citizens. The government provides directions and instructions to the operating level offices through its central level offices in a written form. Such directions or instructions may be about governmental plans and policies, administrative actions and future strategies. The operating level offices also have to submit the report to the respective central level offices about the progress, achievement, problem and suggestion etc for the effective performance of governmental jobs using written documents. Such written documents are exchanged and transmitted through postal service. It helps the government to bring uniformity in jobs and increase the efficiency of staffs. Postal service also assists the government to create and preserve the official records for future reference. Thus, a postal service is important to the government sector as well. c. Importance to the business firms Postal service also plays an important role in the business sector. After the establishment of a business organization, any means of communication is needed for the development, expansion and modernization of business. Postal service helps to carry out various business activities efficiently. The business organization may establish different departments and branches in different places in and outside the country. The various departments and branches have to communicate and exchange the business information through a reliable means. The postal service is a reliable means of written communication for transmitting Postal and Electronic Communication Service 89

various business information. A business organization can extend good business relationship with debtors, creditors and other concerned parties with the help of postal service. It also helps to pay the value of goods by providing the facility of transferring cash, cheque, draft, postal stamp etc. A business organization also writes different letters for different purposes and send to the concerned parties using postal service. Thus, for the promotion of business activities, postal service is very useful. d. Importance to the social organizations Different organizations may be established in a society to render various social services to the people. In order to perform the various social services by establishing branches and departments, a means of communication is needed. Postal service helps such organizations to collect the useful information in a written form and assists to contribute the different sectors of the country. Different written matters are exchanged with the help of postal service. Thus, postal service also helps the service oriented organizations to provide useful services. Development of postal service in Nepal There is no any dependable proof to say when exactly did the postal service start in Nepal. However, we can estimate that the concept of postal service was evolved from the very ancient time in Nepal. In ancient period, the people were used as messenger to transmit the message from one place to another. It is also heard that official message and documents were also carried by Rissalas’ (Horse soldiers) before the unification of Nepal. During medieval period, the development of postal service got shape when the king Prithvi Narayan Shah introduced two types of office in the history of postal service. Such offices were Thaple Hulak and Kagaji Hulak. Thaple Hulak was used for transferring fooding items and Kagaji Hulak was used for transferring letters and documents from one place to another. During that period, horses were used as means of transportation since the road facility was not available. The organized and systematic development of postal service began very lately in 1935 B.S. during the period of king Surendra with the establishment of post office (Hulak Ghar). In 1938 B.S. the first postal stamp was issued costing one anna, two annas and four annas each. The letters, documents etc were sent in different places using postage stamps since then. Such postage stamps had crown (Shreepech) and crossed knife (Khukuri) printed there. Till 2013 B.S., Nepal was not permitted to exchange the letters and documents outside the country. When Nepal got the membership of world postal union in 26th Aswin 2013 B.S, it was allowed to send written materials even outside the country. However until 2015 B.S., Nepal had to use Indian postage stamps to send the letters and documents to other 90 Office Management and Accountancy

countries. Since 1st Baisakh 2016 B.S., Nepal started sending letters and documents all over the world using her own postal stamps. In 2035 B.S., Nepal celebrated golden jubilee celebration on successful completion of 100 years. In modern days, the government has planned to develop the quality and quantity of postal service in the country by launching various modern facilities like e-mail and internet services. It has introduced postal saving bank and insurance service. In every five year plan period, the government formulates different strategic and operating policies to make the postal service reliable, effective and economically sustained. In different five years plan period, the government has been formulating the strategic and operating policies to operate the service as an autonomous organization to develop postal service as a reliable, effective and economically sustained. It sets the objective to encourage the offices established in private sector to provide qualitative postal service and continue their activities. It has the program of launching new services like e-post. Besides this, there is the objective of extending express mail service to different towns of the country and different countries. Similarly, the next objective is to provide e-mail and internet service to all the local areas of the country. The government has planned to hand over the local level postal service related jobs to the local bodies. Even though, all those objectives could not have been achieved, more progress has been felt in the field of postal service. At present after implementation of federal system in the country, the government is giving more priority for the development of information and communication sector. It has planned to develop and extend the different sectors of information and communication. It has focused to ensure the competitive and qualitative service with advanced technology to every citizen of the country. Short Notes to Remember (SNR 6.1)  The act of collecting postal stamps and performing the detailed study related to it is called philately.  Express Mail Service (EMS) is the advance and latest postal service in which the sensitive documents and merchandised items of the customer are dispatched with extra speed and without any procedural delay.  In Nepal, express mail service is available in major towns and cities of the country and countries of the world.  The advanced networking of computer and information technology which provides the postal service as per the demand of customer is known as electronic post. Methods of sending letter through post office The post office has introduced a number of methods and means for transferring the letters, documents or other postal materials from one place to another. The selection of method depends upon the nature, importance, urgency, length of the message and availability of the means. Following are the methods of sending letter through post office: Postal and Electronic Communication Service 91

Figure: 6.1 Methods of sending letter Methods of sending letter Ordinary Registered Aerogram Post letter letter card Ordinary letter The ordinary letter refers to the letter containing the general information or message. It can be sent at a minimum cost through post office. If the message or information to be sent is not urgent and confidential, individuals and offices can use this method of communication. In Nepal, ordinary letter can be sent using the postage stamp of Rs. 5 upto the weight of 20 grams. For more than 20 grams, additional postage stamp of Re 1 is needed for every additional 10 grams. The cost of postage stamp for sending ordinary letter to foreign countries depends upon the country, continent and the distance to be covered. The post office does not bear any responsibility for the loss or damage of this types of letter. It is also not recorded in the book of post office. The letter which is used for sending ordinary message through post office at minimum cost is called ordinary letter. Registered letter The letter which is sent through the post office by registering into the book is called registered letter. If the message to be sent is urgent and secret, the letters are sent by registering in the book of post office. The additional postal charge should be paid for the registration of letter. The charge depends on the weight of the materials. If the letter is registered, the post office will be responsible for the loss or damage of it. However, the cash and valuable materials are not allowed to enclose along with this letter. After registration of letter, the post office keeps the record of sender and receiver’s name and address including the date of sending letter. It provides a receipt to the sender as an evidence of the letter received and registered. If the sender wants the confirmation of the delivery of the letter, he can get the return receipt by paying additional charge as fixed by post office. Such return receipt is attached with the letter and sent to the receiver. The post office returns it back to the original post office after collecting the signature of receiver. Thus, the return receipt 92 Office Management and Accountancy

helps the sender to get confirmation regarding the receipt of letter. The specimen of return receipt is as follows: Return Receipt Received a registered letter of ............................................................................. weight (in words) ................................. (in figure) delivered in the name of ................................................. Signature of receiver ........................... Date of delivery received ..................... (To be returned back to the original post office for the delivery to the sender) The letter which is used for sending the message of urgent and confidential nature by registering into the book of post office with the payment of additional charge is called registered letter. Short Notes to Remember (SNR 6.2)  According to the provision of postal rules and regulation, cash, cheque, bank draft, postal stamps and other valuable items are not allowed to be sent through ordinary post or letter. If it is necessary to send them, the letter must be registered and insured. Aerogram Aerogram is a simple sheet of paper prepared and issued by the post office in printed form. It contains the space for writing the name and address of the sender and receiver along with the space for writing message. It is available at post office at minimum cost. It doesn’t require additional postal ticket since it is fixed there in printed form. After writing the message, it is folded so that it shapes in the form of envelope. Thus, the extra envelope is also not required if aerogram is used. However, it has limited space so that long message cannot be sent using aerogram. It does not allow to keep other documents. Thus, it may not be useful for the business purpose. However, it is cheaper and convenient means for exchanging the message for household purpose. Traditionally, it was sent through airway so it was called aerogram. But nowadays, it can also be sent through other means of transportation. Aerogram is a printed sheet of paper issued by the post office with the space for writing short message and name and address of both the sender and receiver. Post card Post card is a card issued by the post office having the space for writing name and address of the receiver and sender along with the place for writing short message. It Postal and Electronic Communication Service 93

does not have more space so the long message cannot be sent using it. It is an economical method for sending short message like best wishes, congratulation, greeting, invitation and condolence etc. It is also used to give reply to the questions to the competition organized by radio and television program. Generally, the post card is sent without using envelope so the secrecy cannot be maintained. The post card contains a postage stamp of the required value which is affixed on it. Post card is a printed paper issued by the post office having space for writing short message like greeting, best wishes, condolence, complaints, business replies, invitations etc. Differences between ordinary letter and registered letter Following are the differences between ordinary letter and registered letter: Basis of Ordinary letter Registered letter difference 1. Meaning The letter which is sent through The letter which is sent by ordinary post is called ordinary registering into the book of post letter. office is called registered letter. 2. Suitability It is suitable for sending ordinary It is suitable for sending message. and important, urgent confidential message. 3. Cost It is economical method of It is expensive method of sending 4. Receipt sending letter because it can be letter as it requires to pay sent at minimum cost. additional charge as fixed by post office. It has no provision of providing The post office provides a receipt receipt to the sender as evidence to the sender after its registration of delivery. as an evidence of delivery. 5. Recording The post office does not maintain The post office maintains the the record in the book. record in the book before delivery of letter. 6. Responsibility The post office is not responsible The post office is responsible for for the loss or damage of the the loss or damage of the letter. letter. Electronic communication service Communication is the act of exchanging news, views, experiences or information between or among the individuals, place or office using any means. The means 94 Office Management and Accountancy

of communication may be oral, written or symbolic. The process of exchanging the message or information through electronic device is known as electronic communication service. It is the latest and advanced technology in the field of communication. Most of the traditional functions of post office related to the paper works are being replaced by this technology. Electronic communication service is being more popular day by day because it provides fast and reliable service to the individuals and organizations for world wide communication. Electronic communication service is the act of exchanging message or information between or among the individuals and organizations using electronic means like e-mail, internet, fax etc. Means of electronic communication There are several means of electronic communication. However, the common electronic means used by persons and organizations to transfer written information are described below: E-mail (Electronic mail) Electronic mail is the modern technology through Memory Tips which written messages are received and sent through a computer with the help of a telephone  E-mail (Electronic mail) line. It is a modern and fastest as well as popular  Internet means of written communication. In order to  Fax  E-mail (Electronic mail) exchange a message through e-mail, a computer address is required which is called e-mail address. An e-mail address may be like supriya2016@gmail. com. Under this means, the person who wants to send the message through e-mail should type the matters in a computer and send it to the e-mail address of the receiver. Internet Internet is the latest and advanced technological invention in the field of communication. It is called international network of computers which is spread all over the world. Under this means, the computers are linked to each other through telephone line and satellite system or microwave channels and cable lines. It has the information centre known as website where varieties of information are collected, stored and used by the people and organizations worldwide. Thus, the website is the location or information centre which produces the information stored in it. The information stored in the internet can be made available to those people who have a website address of a particular organization. The person staying Postal and Electronic Communication Service 95

in any corner of the world can get the information with the help of this website address. Nowadays, with the help of it, we can also order the goods from any corner of the world using a credit card. The difference between e-mail and the internet is that e-mail is the process of transmitting a message to a particular person having an e-mail address whereas the internet is the worldwide network of computers where a large amount of information is collected, stored. It can be used by any person in the world using a code address of the organization like www.moecdc.gov.np. Fax Fax is the short form of ‘Facsimile’. It is an electronic device used to send the written or printed matters, pictures, drawings or photographs through a networking system of a computer and fax machine. Under this means, both the sender and receiver should have installed the same types of machine having connection with a telephone line. For sending the required information through fax, the sender should insert the printed or written matters in fax machine and should dial the fax number of the receiver. Then, the fax machine reads the data or information and sends it to the another fax machine whereby a copy of the same matters will be printed. It is more useful if the receiver needs to get the same message as sent by the sender. It has been popular in the present day world due to its promptness and affordable cost. Nowadays, a computer and internet can be used instead of fax machine to send the information from one place to another which is called e-fax. Usefulness of postal and electronic communication service The electronic communication service is more useful to the different individuals, community and the nation as well. It is due to the following reasons:  It provides the facility for exchanging message and information in easiest way.  It helps to improve living standard of the people by creating employment opportunities.  It unites the people and creates the feeling of belongingness among the family members and relatives.  It helps to increase the governmental revenue of the nation.  It provides safe and reliable services in the field of communication.  It helps to save the valuable time as the messages can be exchanged conveniently. 96 Office Management and Accountancy

Key Terms Aerogram – a printed sheet of paper issued by the post office having benefit of envelope and postal stamp for sending message. Confidential – secret. E–governance – act of providing service to the people using electronic device. Electronic post – an advanced networking of computer and information technology that provides postal service as per the demand of clients. Express mail service – an advanced postal service to dispatch the sensitive documents and merchandise items of the clients. Parcel – something which is wrapped in a paper or kept into a thick envelope so that it can be delivered by mail. Philately – act of collecting postal stamps and performing the detailed study related to it. Post card – a printed card of thick paper issued by the post office for sending short message. Post office – a government institution established for providing postal services to the public. Postal service – services provided by post office that include communication service, banking and insurance service. Return receipt – a printed paper which is sent by attaching to the letter to collect the signature of the receiver. A. Very short answer questions 1. What is postal service? 2. What is ordinary letter? 3. What is registered letter? 4. What is return receipt? 5. Write any two usefulness of aerogram. 6. Write the full form of EMS. Postal and Electronic Communication Service 97

7. What is meant by philately? 8. When did Nepal get the membership of World Postal Union? 9. Write any two methods that can be used for sending messages through post. 10. What is meant by e-governance? 11. What is an e-mail? 12. Write any two means of electronic communication. B. Short answer questions 1. What is postal service? Write in brief about the importance of postal service to the individuals and businessmen. 2. Describe in brief about the utility of postal service to the government and social organizations sector. 3. Show the differences between ordinary letter and registered letter. 4. State the reasons behind the popularity of aerogram in Nepal. 5. What is electronic communication service? Explain in brief the means of electronic communication. C. Long answer questions 1. Define postal service and trace the historical development of postal service in Nepal. 2. Explain the different methods used for sending letter through post office. 3. Introduce postal service and discuss its importance to the different parties.  98 Office Management and Accountancy

7 INTRODUCTION Chapter TO BUSINESS Learning Objectives After studying this chapter, the readers will be able to :  tell the meaning of business and explain its features,  explain the importance of business,  describe the types of business. Introduction Human beings are engaged in varieties of activities throughout their life. Some activities are performed with the inspiration of social, cultural and religious sentiment which are called non-economic activities. A housewife cooking food for her family, a person donating blood at a blood donation camp and a person visiting temple for worshipping god are the examples of non-economic activities. On the other hand, human may perform certain activities to earn money which are done to meet the demand of goods or services. The people gain monetary benefits by performing such activities. A person working in an office, a shopkeeper running a shop to sell goods, a doctor treating his/her patient at the clinic are the examples of economic activities. The economic activities performed by human can be classified into three groups. They are profession, employment and business. Thus, business involves economic activities relating to regular production and distribution of goods and services for earning profit by satisfying customers. The business plays an important role for the economic development of a nation. It contributes to improve the living standard of people by means of employment opportunities. At present, due to economic liberalization and open market policy, business has influenced the world economy through the concept of globalization. Introduction to Business 99

Concept and definition The literal meaning of business is the state of being busy. However, all types of activities done by human which make them busy cannot be said as the business. People may be busy in doing non economic activities and some other professions and employments. Such involvement does not mean business in broader sense. Thus, business refers to all those human activities which involve monetary character and directed towards acquiring wealth. Non-economic activities which are inspired by love, kindness, affection and patriotism are excluded from the subject business. Following are some of the definitions of business: “Business means the human activities directed towards producing and acquiring wealth through buying and selling of goods.” Prof. L.H. Haney “Business may be defined as an activity in which different persons exchange something of value, whether goods or services for mutual gain or profit.” Peterson and Plowman “Business includes all the activities of production, distribution and exchange performed to provide goods and services to fulfill wants of the society with an equitable adjustment of profit and public welfare.” Y.K. Bhusan On the basis of above discussion and definitions, it can be concluded that business means the economic activities which are operated regularly to earn money by producing and exchanging goods or services. Wholesale and retail shops, travel and trekking agencies, supermarkets, hotels, transport companies, tailoring houses etc. are some of the examples of business. Business means the human economic activities concerned with the production, and distribution of goods or services with the aim of earning wealth by satisfying customers. Short Notes to Remember (SNR 7.1)  The activities which are performed by rendering the professional services of an expert or specialist for the payment of a certain fees are called profession. The service provided by doctors, teachers, chartered accountants, engineers are examples of profession.  The economic activity of rendering the professional services under the agreement with the firm by taking certain remuneration as salary, wage etc is known as employment. If a doctor renders his services to the hospital under the agreement of certain remuneration, it becomes employment.  The economic activities like profession, employment and business are collectively known as occupations.  Besides production, purchase and sale of goods, other activities like transportation, banking, insurance and warehousing facilities also fall under business. Features of business Business is different from other economic activities like profession and employment due to its following features: 100 Office Management and Accountancy