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Unlock This CourseGetting your business terminology right is absolutely crucial for iGCSE success. Think of business terms as your toolkit - without the right tools, you can't build a proper answer. This session will arm you with the key definitions you need and show you how to use them effectively in your exams.
Many students lose marks not because they don't understand business concepts, but because they can't explain them clearly using the right terminology. We'll fix that problem today!
Key Definitions:
Using precise business language shows examiners you understand concepts deeply. It's the difference between saying "the company made more money" and "the business increased its profit margin through cost reduction strategies."
Let's tackle the most important business terms that appear regularly in iGCSE papers. These aren't just words to memorise - they're concepts that connect to real business situations.
Money makes the business world go round, so financial terminology is absolutely essential. Here are the terms that trip up most students:
Revenue: Total money received from sales before any costs are deducted. Profit: Money left after all costs are subtracted from revenue. Remember: Revenue - Costs = Profit
The movement of money in and out of a business over time. Positive cash flow means more money coming in than going out. Negative cash flow is the opposite - and can kill a business!
The level of sales where total revenue equals total costs. The business makes neither profit nor loss. It's the minimum target for survival.
When Tesco reports "revenue of £57.9 billion but profit of £2.1 billion," they're showing the difference between money coming in (revenue) and money left over after costs (profit). This massive difference shows why understanding terminology matters - revenue sounds impressive, but profit tells the real story of business success.
Marketing terminology helps you understand how businesses attract and keep customers. These terms appear in almost every business paper:
The specific group of customers a business aims to sell to. For example, Nike targets sporty teenagers and young adults, not elderly people who prefer comfort shoes.
When customers repeatedly choose the same brand over competitors. Apple has strong brand loyalty - customers often upgrade to new iPhones rather than switching to Samsung.
The percentage of total market sales that one business controls. If the UK chocolate market is worth £4 billion and Cadbury sells £1 billion, Cadbury has 25% market share.
These terms describe how businesses actually run day-to-day. They're particularly important for questions about business efficiency and organisation.
Quality Control: Checking products after they're made to spot defects. Quality Assurance: Building quality into the production process to prevent defects happening. QA is proactive, QC is reactive.
People are a business's most important asset, so HR terminology is crucial for understanding how businesses manage their workforce:
Command words are the secret code of exam success. They tell you exactly what type of answer the examiner wants. Get this wrong and you'll lose marks even if you know the content perfectly.
Give a clear, precise meaning. Keep it short and accurate. Example: "Define profit" - "Money left after all costs are subtracted from revenue."
Give reasons why something happens. Use "because" or "this means that." Example: "Explain why cash flow is important" - needs causes and effects.
Break down information and examine relationships. Look at advantages, disadvantages, causes and effects. Show your thinking process.
Point: Make your main argument. Evidence: Support it with facts, figures, or examples. Explain: Show why this evidence supports your point. This structure works for most business exam questions and helps you use terminology effectively.
Knowing terms is one thing - remembering them under exam pressure is another. Here are proven techniques to make business terminology stick in your memory:
Simply reading definitions doesn't work. Your brain needs to actively retrieve information to remember it properly.
Write the term on one side, definition on the other. Test yourself regularly. Digital flashcards like Anki use spaced repetition to show you terms just before you forget them.
Learn from other students' errors. These mistakes cost marks in every exam session:
Don't say "profit is when a business does well." Be specific: "Profit is revenue minus total costs." Precision matters.
Revenue ≠ Profit. Marketing ≠ Market Research. Quality Control ≠ Quality Assurance. Learn the differences clearly.
Always relate your definitions to the specific business scenario in the question. Generic answers get generic marks.
You've learned the terminology - now use it effectively under pressure:
Sarah struggled with business terminology until she started creating mind maps linking terms to real companies. She connected "market share" to Coca-Cola vs Pepsi, "cash flow problems" to small local businesses and "economies of scale" to Amazon. This context made abstract terms concrete and memorable. Her grade jumped from C to A*.
Remember: business terminology isn't just about passing exams - it's about understanding how the business world actually works. Master these terms and you'll not only ace your iGCSE but also speak the language of business with confidence.