Semester 1 Business
Terms 2026 | Study Guide,
Key Definitions, Practice
Questions, Answers &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Sustainability meeting the needs of the present without compromising the ability of future
generations to meet their own needs
private sector the part of the economy that involves the transactions of individuals and businesses
public sector the part of the economy that is controlled by the government
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. Unincorporated and
has unlimited liability
Sole trader advantages Owner keeps all the profit
Owner can make decisions quickly
No boss arguments do not occur
Sole trader disadvantages Unlimited liability
Difficult to take holidays
High risk so hard to borrow from banks
Partnership a business organization owned by two or more persons who agree on a specific
division of responsibilities and profits
ordinary partnership a firm that has between 2 and 20 joint owners, each of whom is personally
responsible for the firm's actions and debts. Unincorporated, one partner has
unlimited liability
Partnership Advantages Two or more owners
More capital available
Relatively easy to start
Income taxed once as personal income
Partnership Disadvantages Unlimited liability
Disagreements between partners
Partnership dissolves when one partner dies or wishes to sell
Difficult to transfer ownership
Companies (corporations) This refers to any business organisation that is owned by its shareholders, who
have limited liability. They comprise of privately held companies and publicly held
companies. Has a BOD
Memorandom of association short doc that records the name of the business, its registered business adress,
share capital, and outline of company operations
, aritcles of association long doc with details; director duties, shareholder voting, shares, distribution of profit
Factors of Production land, capital, labor, entrepreneurship
Land all natural resources used to produce goods and services
labor the physical and mental effort used to produce goods and services
capital non-natural resources (manufactured resources to further the production process)
Enterprise/Entrepreneurship Individuals who take the factors of production and convert them into goods and
services which can be sold for profit. The payment for enterprise is profit.
adding value The process of producing a particular good or service that is worth more than the
cost of the resources used to produce it.
Form Utility Changing raw materials or putting parts together to make them more useful
time utility having a product available at a certain time of year or a convenient time of day
place utility Adding value to products by having them where people want them.
information utility Adding value to products by opening two-way flows of information between
marketing participants.
Possession Utility Doing whatever is necessary to transfer ownership from one party to another,
including providing credit, delivery, installation, guarantees, and follow-up service.
Terms 2026 | Study Guide,
Key Definitions, Practice
Questions, Answers &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Sustainability meeting the needs of the present without compromising the ability of future
generations to meet their own needs
private sector the part of the economy that involves the transactions of individuals and businesses
public sector the part of the economy that is controlled by the government
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. Unincorporated and
has unlimited liability
Sole trader advantages Owner keeps all the profit
Owner can make decisions quickly
No boss arguments do not occur
Sole trader disadvantages Unlimited liability
Difficult to take holidays
High risk so hard to borrow from banks
Partnership a business organization owned by two or more persons who agree on a specific
division of responsibilities and profits
ordinary partnership a firm that has between 2 and 20 joint owners, each of whom is personally
responsible for the firm's actions and debts. Unincorporated, one partner has
unlimited liability
Partnership Advantages Two or more owners
More capital available
Relatively easy to start
Income taxed once as personal income
Partnership Disadvantages Unlimited liability
Disagreements between partners
Partnership dissolves when one partner dies or wishes to sell
Difficult to transfer ownership
Companies (corporations) This refers to any business organisation that is owned by its shareholders, who
have limited liability. They comprise of privately held companies and publicly held
companies. Has a BOD
Memorandom of association short doc that records the name of the business, its registered business adress,
share capital, and outline of company operations
, aritcles of association long doc with details; director duties, shareholder voting, shares, distribution of profit
Factors of Production land, capital, labor, entrepreneurship
Land all natural resources used to produce goods and services
labor the physical and mental effort used to produce goods and services
capital non-natural resources (manufactured resources to further the production process)
Enterprise/Entrepreneurship Individuals who take the factors of production and convert them into goods and
services which can be sold for profit. The payment for enterprise is profit.
adding value The process of producing a particular good or service that is worth more than the
cost of the resources used to produce it.
Form Utility Changing raw materials or putting parts together to make them more useful
time utility having a product available at a certain time of year or a convenient time of day
place utility Adding value to products by having them where people want them.
information utility Adding value to products by opening two-way flows of information between
marketing participants.
Possession Utility Doing whatever is necessary to transfer ownership from one party to another,
including providing credit, delivery, installation, guarantees, and follow-up service.
