Grade 7 Combined Business Studies - First Term Test Review

Vocabulary flashcards covering the key concepts for the Grade 7 Combined Business Studies exam, including business fundamentals, accounting principles, and entrepreneurship.

Needs

Essential items that are required for survival.

Wants

Desires for goods and services that are not essential for survival but improve the quality of life.

Resources

The inputs used in the production of goods and services to satisfy needs and wants.

Choice

The process of selecting one option from several alternatives when resources are limited.

Opportunity Cost

The value of the next best alternative that is given up when a choice is made.

Consumption

The use of goods and services by households to satisfy their needs and wants.

Market Forces

The interaction of demand and supply that determines the price and quantity of goods in a market.

Factors of Production

The resources used to produce goods and services, traditionally classified into land, labour, capital, and enterprise.

Stakeholders

Individuals or groups who have an interest or concern in a business and its operations.

Book-keeping

The systematic recording of financial transactions in a business.

Accounting

The process of identifying, measuring, and communicating financial information to help users make informed decisions.

Assets

Resources owned or controlled by a business that have economic value.

Liabilities

The debts and obligations that a business owes to external parties.

Capital

The owner's investment in the business, representing the owner's claim on the assets after liabilities are deducted.

Accounting Equation

The mathematical relationship where $\text{Assets} = \text{Capital} + \text{Liabilities}$.

Double Entry System

A bookkeeping method where every transaction is recorded in at least two accounts, with at least one debit and one credit.

Ledger Account ('T' account)

A visual representation of an account used to record debits on the left and credits on the right.

Debit

The entry made on the left-hand side of a ledger account.

Credit

The entry made on the right-hand side of a ledger account.

Drawings

The withdrawal of cash or other assets from a business by the owner for personal use.

Resource Allocation

The process of deciding how to distribute limited resources among competing uses to answer basic economic questions.

Economic Systems

The framework or set of structures a society uses to manage the production, distribution, and consumption of goods and services.

Production

The process of converting inputs (factors of production) into finished goods or services.

Sectors of Production

The categorization of economic activities into primary, secondary, and tertiary stages of production.

Division of Labour

The process where a production task is broken down into small, specialized parts, with each part performed by a different worker.