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In this video tutorial, viewers will learn how to properly set up business letters using Microsoft Word. The first step involves changing the top margin from 1 inch to 2 inches. This is done by going to the page layout, selecting margins, and then choosing custom margins to input the new measurement. After adjusting the margin, the cursor will automatically move down to reflect the change. The next step is to modify the font style, size, and spacing options, preparing the document for the letter's content. These adjustments are essential for creating a professional-looking business letter.