Dixie could talk for hours about paper for business letters, but you would probably not find much of it useful. After all, you are here to learn about business correspondence, not paper peculiarities.
Major recommendation Dixie does need to mention though is that paper for business letters should be GOOD. That's all there is to it: when the company decides what stationery to use, it needs to choose the paper of a high quality! So, think QUALITY, the rest is up to the company's preferences.
Now there's a catch... Did you know that the US, Canada and a few other countries use for their business letters a totally different paper format from that used in Europe? And all this mess humans have created is due to metric versus foot/inch-based system. So, if you are from the US or Canada you use Letter format (8½×11 in or 215.9×279.4 mm) for your business letters.
And if you are from practically any other country, A4 is the standard paper format for official business letters. A4 is defined by the international standard as 210x297 mm (roughly 8.27×11.69 in). If you'd like to know more about paper standards, Wikipedia has a very detailed article about them (be warned though that there are LOTS of technical peculiarities and terms in it. To be honest, Dixie hasn't read half of it herself).
This one's easy... White is always the best choice! On the other hand, if your company wants to stand out, it may use very neutral colors like light grey or tan for its letterhead stationery.
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