1. A business letter acts as a representative of the organization. It is an inexpensive substitute for a personal visit. i
2. It seeks to provide information on subjects connected with business.
3. A business letter provides valuable evidence for a transaction and thus serves a legal purpose.
4. A business letter becomes a reference material to future transactions between organizations and individuals.
5. A business letter promotes and sustains goodwill.
6. A business letter motivates all the people involved in a business to a higher and better level of performance.
7. A business letter enlarges and enhances the business. We can elaborate each of the functions thus.