AICE Business AS
Vocabulary 2026 | Study
Guide, Key Terms,
Definitions, Practice
Questions & Exam Review
| Complete Ethics Study
Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Consumer Goods The physical and tangible goods sold to the general public. They include durable
consumer goods, such as cars and washing machines, and non-durable consumer
goods such as food, drinks and sweets that can be used only once
Consumer Services The non-tangible products sold to the general public. They include hotel
accommodation, insurance services, and train journeys
Capital Goods The physical goods used by industry to aid in the production of other goods and
services, such as machines and commercial vehicles
Added Value The difference between the cost of purchasing raw materials and the price the
finished goods are sold for
Entrepreneur Someone who takes the financial risk of starting and managing a new venture
Social Enterprise A business with mainly social objectives that reinvests most of its profits into
benefiting society rather than maximizing returns returns to owners
Tripple Bottom Line The three objectives of social enterprises: economic, social, and environmental
Opportunity Cost The benefit of the next most desired option which is given up
Primary Sector Business Activity Firms engaged in farming, fishing, oil extraction and all other industries that extract
natural resources so that they can be used and processed by other firms
Secondary Sector Business Activity Firms that manufacture and process products from natural resources, including
computers, brewing, baking, clothes making, and construction
Tertiary Sector Business Activity Firms that provide services to consumers and other businesses, such as retailing,
transport, insurance, banking, hotels, tourism, and telecommunications
Private Sector Comprises of businesses owned and controlled by individuals or groups of
individuals
, Public Sector Comprises of organizations accountable to and controlled by central or local
government
Mixed Economy Economic resources are owned and controlled by both private and public sectors
Free-Market Economy Economic resources owned largely, by the private sector with very little state
intervention
Command Economy Economic resources owned, planned, and controlled by the state
Sole Trader A business in which one person provides the permanent finance and, in return, has
full control of the business and is able to keep all of the profits
Partnership A business formed by two or more people to carry on a business together with
shared capital investment and, usually, shared responsibilities
Private Limited Company A small to medium sized business that is owned by shareholders who are often
members of the same family. This company cannot sell shares to the general public
Shareholder A person or institution owning shares in a limited company
Share A certificate confirming part ownership of a company and entitling the shareholder
owned to dividends and certain shareholder rights
Public Limited Company A limited company, often a large business, with the legal right to sell shared to the
general public-share prices are quoted on the natural stock exchange
Memorandum of Association This states the name of the company, the address of the head office through which
it can be contacted, the maximum share capital for which the company seeks
authorization and declared aims of the business
Articles of Association This document covers the internal working and control of the business. For
example, the names of directors and the procedures to be followed at meetings will
be detailed
Vocabulary 2026 | Study
Guide, Key Terms,
Definitions, Practice
Questions & Exam Review
| Complete Ethics Study
Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Consumer Goods The physical and tangible goods sold to the general public. They include durable
consumer goods, such as cars and washing machines, and non-durable consumer
goods such as food, drinks and sweets that can be used only once
Consumer Services The non-tangible products sold to the general public. They include hotel
accommodation, insurance services, and train journeys
Capital Goods The physical goods used by industry to aid in the production of other goods and
services, such as machines and commercial vehicles
Added Value The difference between the cost of purchasing raw materials and the price the
finished goods are sold for
Entrepreneur Someone who takes the financial risk of starting and managing a new venture
Social Enterprise A business with mainly social objectives that reinvests most of its profits into
benefiting society rather than maximizing returns returns to owners
Tripple Bottom Line The three objectives of social enterprises: economic, social, and environmental
Opportunity Cost The benefit of the next most desired option which is given up
Primary Sector Business Activity Firms engaged in farming, fishing, oil extraction and all other industries that extract
natural resources so that they can be used and processed by other firms
Secondary Sector Business Activity Firms that manufacture and process products from natural resources, including
computers, brewing, baking, clothes making, and construction
Tertiary Sector Business Activity Firms that provide services to consumers and other businesses, such as retailing,
transport, insurance, banking, hotels, tourism, and telecommunications
Private Sector Comprises of businesses owned and controlled by individuals or groups of
individuals
, Public Sector Comprises of organizations accountable to and controlled by central or local
government
Mixed Economy Economic resources are owned and controlled by both private and public sectors
Free-Market Economy Economic resources owned largely, by the private sector with very little state
intervention
Command Economy Economic resources owned, planned, and controlled by the state
Sole Trader A business in which one person provides the permanent finance and, in return, has
full control of the business and is able to keep all of the profits
Partnership A business formed by two or more people to carry on a business together with
shared capital investment and, usually, shared responsibilities
Private Limited Company A small to medium sized business that is owned by shareholders who are often
members of the same family. This company cannot sell shares to the general public
Shareholder A person or institution owning shares in a limited company
Share A certificate confirming part ownership of a company and entitling the shareholder
owned to dividends and certain shareholder rights
Public Limited Company A limited company, often a large business, with the legal right to sell shared to the
general public-share prices are quoted on the natural stock exchange
Memorandum of Association This states the name of the company, the address of the head office through which
it can be contacted, the maximum share capital for which the company seeks
authorization and declared aims of the business
Articles of Association This document covers the internal working and control of the business. For
example, the names of directors and the procedures to be followed at meetings will
be detailed
