Grade 9 Business Studies: Checkpoint 2 Review

Comprehensive vocabulary flashcards covering Unit 1 (Introduction to Business Activity), Unit 2 (Business Structure), and Unit 3 (Business Objectives & SMART) for Grade 9 Business Studies Checkpoint 2.

Need

Something a person cannot live without, such as water, food, shelter, air, sleep, medicine, or warm clothes, which rarely changes.

Want

Something a person would like to have but can live without, such as a games console, perfume, or sports car, which changes often.

Goods

Physical objects that can be seen and touched, such as televisions, mobile phones, shoes, and books.

Services

Non-physical actions that customers pay for, such as a taxi ride, haircut, car wash, or dental treatment.

Products

The collective term for both goods and services provided by businesses to satisfy needs and wants.

Land

A factor of production consisting of the physical location of the business and all natural resources, such as water, oil, trees, and farmland.

Labour

A factor of production consisting of human work, representing everyone who works for the business.

Capital

A factor of production consisting of money, tools, machines, and buildings used to produce goods and services.

Enterprise

A factor of production that involves the entrepreneur combining land, labour, and capital to create and run a business.

Profit

The money a business makes from selling products after all costs have been paid.

The Economic Problem

The issue that people have unlimited wants, but resources are limited, meaning businesses cannot make enough products to satisfy everyone.

Trade-off

What an individual or a business gives up when they make a choice between alternatives.

Chain of Production

All the businesses involved in making and selling a product, from extracting natural resources from the land, to manufacturing the product, to selling it to consumers.

Interdependence

The reliance of businesses on each other to survive and succeed, meaning if one business in the supply chain fails, every business after it is affected.

Primary Sector

The stage of business activity that takes natural resources directly from the land or sea, including farming, fishing, oil drilling, and mining.

Secondary Sector

The stage of business activity that manufactures goods using raw materials, including factories, refineries, and construction.

Tertiary Sector

The stage of business activity that provides services to consumers and other businesses, such as shops, banks, cinemas, and airlines.

Public Sector

Organizations owned and run by the government with the main goal of providing a service to the community, such as police, postal service, and public schools.

Private Sector

Businesses owned by individuals or groups whose main goal is to make a profit, such as bakeries, gyms, and supermarkets.

Social Enterprise

A private sector business that operates with a specific social or environmental aim as one of its main goals alongside trading.

Unincorporated Business

A business structure (such as a sole trader or partnership) that has unlimited liability, no separate legal identity, and no shareholders.

Incorporated Business

A business structure (such as a private limited company or public limited company) that has a separate legal identity, limited liability, and is owned by shareholders.

Unlimited Liability

A legal condition where owners are personally responsible for all business debts and may lose personal property to settle them.

Limited Liability

A legal protection where owners only risk losing the money they have invested in the business if it fails.

Separate Legal Identity

A legal status where the company itself exists separately from its owners, meaning the business can sue or be sued in its own name.

Sole Trader

A business owned and run by one person, offering full control and retention of all profit, but carrying unlimited liability.

Partnership

A business owned by two or more people who sign a legal agreement to share capital, work, and profits, with unlimited liability.

Shares

Equal units of ownership of a company sold to raise money for growth.

Shareholders

People or organisations that own shares in an incorporated company.

Dividends

The portion of company profit paid out to shareholders in return for their investment.

Private Limited Company (Ltd)

An incorporated business owned by a few shareholders (maximum $50$) whose shares can only be sold privately and whose financial accounts remain unpublicized.

Public Limited Company (PLC)

An incorporated business that can sell shares to the general public to raise large amounts of capital, with no maximum number of shareholders, and must publish its accounts yearly.

Franchisor

An established business that sells the legal right to use its brand name, logo, and products to another business.

Franchisee

A business or person that pays fees to a franchisor to use its existing name, products, and operational format.

Joint Venture

An arrangement where two or more businesses collaborate and establish a separate new business together to share costs, risks, and skills.

Business Objective

A specific goal or target that a business wants to achieve in order to provide clear direction.

Market Share

The proportion of total sales in a market achieved by one business compared with its competitors.

Business Growth

An objective centered on expanding operations by finding new customers, opening new branches, making new products, or expanding into new countries.

Survival

The objective of continuing to exist and operate, which is the most critical objective for a new business during its first year.

Corporate Social Responsibility (CSR)

A business objective that involves considering the impact of business activities and decisions on society, employees, and the environment.

SMART Objectives

Goals that are defined as Specific, Measurable, Achievable, Relevant, and Time-bound.