Future Business Leaders of America (FBLA) Business Management Practice Test

Which form of written communication is less formal than a business letter but still widely used?

1. Report

2. Memo

3. Proposal

4. Contract

The correct answer is: Memo

A memo is a form of written communication that is less formal than a business letter but still maintains a professional tone. Memos are typically used within an organization to convey information, updates, or reminders to staff or colleagues. They often focus on specific topics and serve to facilitate internal communication efficiently. The structure of a memo is straightforward, usually including headings like "To," "From," "Date," and "Subject," making it easy to identify the purpose of the communication quickly. This contrasting simplicity and directness give memos a practical appeal in workplace communication. In contrast, reports are more formal documents that present detailed information and analysis, often requiring extensive research and typically directed to a broader audience. Proposals, on the other hand, are formal documents that outline suggestions or plans for projects or initiatives, usually necessitating a persuasive approach and structured presentation. Contracts are highly formal legal agreements that bind parties to specific obligations and terms, emphasizing the need for precision and legal language. Thus, a memo effectively fills the role of informal yet professional communication within a business context.