G3 Business vocabulary helps students understand why companies choose certain customers, hire particular people, set prices and manage cash. A shop may report a profit yet run out of money for salaries; a business can increase sales yet become less efficient; a promotion may attract buyers without protecting long-term loyalty. This guide explains 200 core Business terms with straightforward definitions, practical examples, calculations and parent-friendly study advice.

For the 2027 Singapore-Cambridge SEC, G3 Business is syllabus K344 (reference code 7085 for 2026 and earlier). It is offered only in schools approved to teach the subject. The six syllabus themes are business activity; people in business; marketing; operations management; financial information and decisions; and external influences. These 200 words are an original eduKate study glossary, not an officially prescribed SEAB list.

Quick answers:

• Identify the business, customers and affected stakeholders before recommending a strategy.
• Distinguish profit (an accounting result) from cash flow (money actually moving).
• For marketing, use the four Ps: product, price, place and promotion, chosen for a stated target group.
• For operations, consider costs, consistency, capacity, technology, quality and environmental impacts.
• In 2027, K344 has two compulsory 90-minute papers, each worth 50%.
• Strong evaluation compares alternatives with case-specific evidence, not generic business slogans.

1–10: Business activity and scarce resources

1. business activity — Organised provision of goods or services to meet needs and wants.
2. need — Something essential for living or functioning.
3. want — Something desired beyond basic necessities.
4. scarcity — Resources are insufficient to meet every possible want.
5. opportunity cost — Next best alternative sacrificed when making a choice.
6. added value — Selling price minus cost of purchased inputs under a simple measure.
7. goods — Physical products provided to customers.
8. service — Intangible activity or benefit supplied to a customer.
9. factor of production — Resource used to produce goods and services.
10. entrepreneurship — Starting and organising a venture while bearing uncertainty.

Quick transfer task: Use one term to explain a choice by a fictional neighbourhood business.

11–20: Economic sectors and business size

11. primary sector — Industry extracting or collecting natural resources.
12. secondary sector — Industry processing materials or making goods.
13. tertiary sector — Industry providing services.
14. private sector — Activity owned and run outside government.
15. public sector — Activity owned or directed by public authorities.
16. business size — Scale of operations measured by employees, revenue or another criterion.
17. market share — Business sales as a portion of total market sales.
18. business growth — Expansion of a firm’s size, activity or capacity.
19. organic growth — Expansion through the firm’s own operations.
20. external growth — Expansion through joining or buying other businesses.

Quick transfer task: Compare the term with a related idea and identify the key distinction.

21–30: Business ownership and organisation

21. sole trader — Business owned by one person.
22. partnership — Business owned by two or more partners.
23. private limited company — Company with shares not generally offered to the public.
24. public limited company — Company able to offer shares publicly subject to rules.
25. franchise — Right to run a business using another firm’s brand and operating system.
26. franchisor — Business granting the franchise rights.
27. franchisee — Person or company purchasing franchise rights.
28. limited liability — Owners generally risk their invested amount rather than all personal assets.
29. unlimited liability — Owners may personally owe business debts beyond their investment.
30. incorporation — Creation of a company with a separate legal identity.

Quick transfer task: Think about a decision that helps one stakeholder but creates a cost for another.

31–40: Objectives and stakeholders

31. business objective — Goal a business seeks to achieve.
32. survival — Continuing operations despite business pressures.
33. profit objective — Goal of earning revenue above relevant costs.
34. market expansion — Goal of reaching additional customers or locations.
35. stakeholder — Party affected by a business’s decisions.
36. shareholder — Owner of shares in a company.
37. customer — Person or organisation purchasing an output.
38. supplier — Business providing goods or materials to another.
39. employee — Person working under an employment arrangement.
40. stakeholder conflict — Situation where different groups want incompatible outcomes.

Quick transfer task: Identify one useful figure or observation needed before a manager could make a decision.

41–50: People and recruitment

41. human resource management — Managing the people working in a business.
42. recruitment — Process of attracting possible employees.
43. selection — Choosing a candidate for a role.
44. job description — Document outlining duties and responsibilities.
45. person specification — Statement of qualities and skills required for a role.
46. induction — Introduction of new employees to the organisation.
47. training — Activities developing useful job knowledge or skills.
48. on-the-job training — Learning while performing work tasks.
49. off-the-job training — Learning away from immediate routine work.
50. employee turnover — Rate at which employees leave and are replaced.

Quick transfer task: Use one term to explain a choice by a fictional neighbourhood business.

51–60: Organisation and leadership

51. organisational structure — Arrangement of authority and reporting relationships.
52. chain of command — Line through which instructions and authority pass.
53. span of control — Number of people directly managed by one supervisor.
54. delegation — Passing authority for a task to another worker.
55. centralisation — Major decisions concentrated at higher management levels.
56. decentralisation — Decision authority distributed closer to activities.
57. autocratic leadership — Manager makes most decisions with little consultation.
58. democratic leadership — Manager involves employees in making decisions.
59. laissez-faire leadership — Manager allows substantial employee autonomy.
60. management hierarchy — Levels of authority within an organisation.

Quick transfer task: Compare the term with a related idea and identify the key distinction.

61–70: Motivation and workplace communication

61. motivation — Factors encouraging people to act or work towards goals.
62. financial incentive — Monetary reward intended to motivate performance.
63. non-financial incentive — Reward such as recognition or development without direct pay.
64. piece-rate pay — Payment based on units produced.
65. bonus — Additional payment for meeting conditions or performance.
66. job rotation — Moving employees between different tasks.
67. job enrichment — Making roles more meaningful by adding responsibility.
68. internal communication — Exchange of information within a business.
69. external communication — Exchange of information with customers or outside parties.
70. communication barrier — Factor preventing a message being understood correctly.

Quick transfer task: Think about a decision that helps one stakeholder but creates a cost for another.

71–80: Marketing fundamentals

71. marketing — Identifying customer needs and offering value to attract buyers.
72. market — Buyers and sellers interacting for a product.
73. target market — Customer group a business deliberately serves.
74. market segmentation — Dividing buyers into groups with shared characteristics.
75. niche market — Relatively narrow customer segment.
76. mass market — Broad customer market with common demand.
77. customer loyalty — Tendency to choose a business repeatedly.
78. competitive advantage — Feature allowing a business to perform better than rivals.
79. unique selling point — Distinct benefit differentiating an offer.
80. brand identity — Recognisable attributes linked to a business or product.

Quick transfer task: Identify one useful figure or observation needed before a manager could make a decision.

81–90: Market research and data

81. primary market research — New information collected directly for a specific decision.
82. secondary market research — Information obtained from existing sources.
83. questionnaire — Prepared questions asked to respondents.
84. interview — Conversation used to obtain customer insights.
85. focus group — Small guided discussion with selected participants.
86. sample — Subset selected from a larger population.
87. sampling bias — Distortion caused by how respondents are chosen.
88. qualitative research — Descriptive evidence about attitudes and experiences.
89. quantitative research — Numerical evidence about quantities and patterns.
90. market research reliability — Dependability of information for a given decision.

Quick transfer task: Use one term to explain a choice by a fictional neighbourhood business.

91–100: Marketing mix: product and price

91. marketing mix — Coordinated decisions about product, price, place and promotion.
92. product — Good or service offered to meet a need.
93. product life cycle — Stages a product may pass through from launch to decline.
94. product development — Creating or modifying an offer.
95. packaging — Material and design enclosing or presenting an item.
96. cost-plus pricing — Price set by adding a markup to cost.
97. competitive pricing — Price chosen in relation to rivals.
98. penetration pricing — Low initial price designed to gain market entry.
99. price skimming — High initial price gradually lowered over time.
100. promotional pricing — Temporary price incentive intended to increase demand.

Quick transfer task: Compare the term with a related idea and identify the key distinction.

101–110: Marketing mix: place and promotion

101. distribution channel — Route through which products reach customers.
102. wholesaler — Business buying goods in bulk for resale.
103. retailer — Business selling to final consumers.
104. e-commerce — Buying and selling through digital channels.
105. advertising — Paid communication promoting a product or business.
106. sales promotion — Short-term incentive encouraging purchases.
107. public relations — Management of reputation and relationships with audiences.
108. personal selling — Direct communication intended to close a sale.
109. social media marketing — Promotion using online social platforms.
110. customer feedback — Information buyers give about their experiences.

Quick transfer task: Think about a decision that helps one stakeholder but creates a cost for another.

111–120: Operations and production

111. operations management — Managing activities converting inputs into outputs.
112. job production — Making one customised product or small order at a time.
113. batch production — Producing items in groups of similar units.
114. flow production — Continuous or sequential production of standardised items.
115. labour-intensive production — Method relying relatively more on workers than machines.
116. capital-intensive production — Method relying relatively more on equipment.
117. automation — Using machinery or software to perform tasks.
118. productivity — Output per unit of input.
119. capacity utilisation — Actual output as a percentage of potential output.
120. production efficiency — Obtaining useful output with minimal wasted resources.

Quick transfer task: Identify one useful figure or observation needed before a manager could make a decision.

121–130: Technology and sustainability

121. digital technology — Electronic tools for data processing and communication.
122. robotics — Use of programmable machines to perform tasks.
123. computer-aided design — Software supporting product design and drafting.
124. computer-aided manufacturing — Software-controlled production equipment.
125. sustainable production — Creating outputs while reducing long-term environmental harm.
126. renewable resource — Resource replenished naturally at a useful pace.
127. recycling — Processing used materials for further use.
128. waste minimisation — Reducing unnecessary discarded material.
129. energy efficiency — Using less energy for a given output.
130. circular economy — Keeping products and materials useful through reuse, repair or recycling.

Quick transfer task: Use one term to explain a choice by a fictional neighbourhood business.

131–140: Costs, scale and break-even

131. fixed cost — Cost not changing directly with output in a specified range.
132. variable cost — Cost changing with units produced.
133. total cost — Fixed and variable costs combined.
134. unit cost — Cost attributable to one output item.
135. revenue — Money earned from business sales.
136. contribution per unit — Selling price minus variable cost per unit.
137. break-even output — Quantity where total revenue equals total costs.
138. break-even chart — Graph showing costs and sales revenue across outputs.
139. margin of safety — Actual or planned output above break-even output.
140. economies of scale — Falling average costs as a firm grows.

Quick transfer task: Compare the term with a related idea and identify the key distinction.

141–150: Quality and business location

141. quality control — Checking completed products for defects.
142. quality assurance — Designing processes to prevent errors and maintain standards.
143. quality standard — Agreed requirement used to judge an output.
144. defect — Failure to meet a specified requirement.
145. customer satisfaction — Degree to which an offer meets buyer expectations.
146. location decision — Choice about where a business operates.
147. proximity to market — Closeness to target buyers.
148. transport infrastructure — Roads, ports, rail and services enabling movement.
149. labour availability — Supply of suitable employees in a location.
150. site cost — Expense of acquiring or occupying operating premises.

Quick transfer task: Think about a decision that helps one stakeholder but creates a cost for another.

151–160: Sources of business finance

151. start-up capital — Resources needed to establish operations.
152. working capital — Current assets minus current liabilities.
153. internal finance — Funds generated from within the business.
154. external finance — Funds raised from outside the business.
155. retained earnings — Profit kept for further business use.
156. bank loan — Amount borrowed under repayment terms.
157. overdraft — Permission to borrow through a bank account up to a limit.
158. trade credit — Buying goods now and paying suppliers later.
159. share issue — Raising finance by issuing ownership shares.
160. leasing — Paying to use an asset without buying it outright.

Quick transfer task: Identify one useful figure or observation needed before a manager could make a decision.

161–170: Cash flow and liquidity

161. cash flow — Actual movements of money in and out.
162. cash inflow — Money received during a period.
163. cash outflow — Money paid during a period.
164. cash flow forecast — Projection of future inflows and outflows.
165. opening balance — Cash amount at the beginning of a period.
166. closing balance — Cash amount after period inflows and outflows.
167. liquidity — Ability to meet obligations when due.
168. cash shortage — Insufficient immediately available funds for payments.
169. credit period — Time buyers or suppliers allow before payment.
170. late payment — Settlement after an agreed due date.

Quick transfer task: Use one term to explain a choice by a fictional neighbourhood business.

171–180: Profit, loss and financial statements

171. gross profit — Revenue minus cost of sales.
172. net profit — Revenue minus all recognised expenses under the stated measure.
173. cost of sales — Cost attributed to goods sold.
174. profit and loss statement — Report summarising income and expenses for a period.
175. statement of financial position — Report showing assets, liabilities and equity at a date.
176. asset — Resource controlled by a business with expected economic benefit.
177. liability — Present obligation requiring a future resource outflow.
178. equity — Residual owners’ interest after liabilities are deducted.
179. depreciation — Allocation of tangible asset cost over its useful life.
180. financial ratio — Calculation comparing financial figures to aid interpretation.

Quick transfer task: Compare the term with a related idea and identify the key distinction.

181–190: External economic influences

181. inflation — Sustained rise in the general price level.
182. unemployment — Lack of work for people seeking and available for employment.
183. economic growth — Increase in an economy’s output over time.
184. interest rate — Charge or return expressed as a proportion on funds.
185. exchange rate — Price of one currency in terms of another.
186. globalisation — Growing connections across national economies.
187. import — Good or service bought from another country.
188. export — Good or service sold to another country.
189. tariff — Tax placed on an imported product.
190. economic recession — Significant decline in economic activity over a period.

Quick transfer task: Think about a decision that helps one stakeholder but creates a cost for another.

191–200: Ethics, pressure groups and evaluation

191. business ethics — Principles guiding responsible commercial decisions.
192. corporate social responsibility — Business consideration of social and environmental effects.
193. pressure group — Organisation seeking to influence decisions or policy.
194. consumer protection — Measures intended to defend buyers’ rights and interests.
195. data privacy — Responsible handling of personal information.
196. fair employment — Treatment of workers without unfair discrimination.
197. environmental impact — Effects of activities on the natural world.
198. stakeholder analysis — Comparison of interests of affected parties.
199. recommendation — Proposed action supported by reasons.
200. evaluation — Judgement considering evidence, consequences and limitations.

Quick transfer task: Identify one useful figure or observation needed before a manager could make a decision.

How to read a Business case study without memorising an answer

Business exams often present a company, its aims, its customers and a specific problem. Before writing, identify the business context: What does it sell? Who pays? What constraints exist? Which people would be affected by a decision? What financial and non-financial evidence has been supplied? The same recommendation can be sensible for a growing neighbourhood café and unsuitable for a school-based start-up. Avoid generic phrases such as “advertising will increase profits” without explaining how and under what conditions.

In 2027 K344, Paper 2 is a case study paper. Four compulsory questions draw on the case, which is provided separately as an insert. Students who read the business information carefully have a stronger foundation for applying knowledge and making reasoned judgements. Paper 1 includes short answers and data response questions. Both papers examine the full syllabus, so revision should not isolate marketing from finance, or staffing from operations.

Worked example 1: added value versus business profit

Imagine a shop buys ingredients for $3 per sandwich and sells each sandwich for $8. The simple added value is $5 per sandwich, measured here as selling price minus purchased materials. That does not mean the shop earns $5 of net profit for every sandwich. It must also pay staff, rent, utilities and other costs. A higher selling price might increase added value per unit, but if customers buy fewer sandwiches the total result may be disappointing. Students should state what a figure includes and what it leaves out.

Choosing a business objective

A new shop may prioritise survival and stable cash flow, while a more established firm may aim for growth, profit or a larger market share. An owner seeking rapid expansion may prefer to reinvest earnings; an investor may prefer higher distributions. A customer may value lower prices, while workers seek reliable pay and safe conditions. These are stakeholder conflicts, not proof that one group is wrong. Evaluation should show how a proposal balances competing expectations.

Worked example 2: compare two marketing strategies

Suppose a fictional stationery retailer has $1,000 to promote a new range. Option A is a broad online campaign. Option B is a smaller campaign targeting students and families near the shop. Option B may reach fewer people overall but achieve a higher proportion of relevant enquiries. The student should compare the target market, reach, likely conversion, cost, brand message and ability to measure results.

For a product aimed at young learners, parents may influence purchases even when children use the product. A promotion should communicate clear truthful benefits, not exploit anxiety about examinations. A low introductory price may encourage trial, but a business should consider whether it can sustain the margin and whether customers will continue buying after the promotion ends. There is no universal “best marketing channel”: the suitability depends on the stated case.

Worked example 3: understand sample bias

Imagine a small bakery asks ten existing loyal customers whether its new muffin is popular, and all ten answer yes. This is encouraging feedback, but the sample does not represent people who have never visited the bakery. Sampling bias may arise because loyal buyers are overrepresented. The result cannot establish demand throughout Punggol. A better research design might include a wider range of potential customers and use consistent questions, but sampling size, cost, consent and privacy must still be considered.

Qualitative research can explain why people like a product, while quantitative research can estimate how many express a preference within the sampled group. Neither automatically proves future sales. Students who distinguish evidence from assumptions will write stronger case-study recommendations.

Worked example 4: why job and flow production suit different conditions

A small business making a customised birthday cake uses features of job production: a specific order, limited quantity and individual requirements. A factory making standard drinks in large quantities may use flow production. The factory can achieve consistency and high output, but equipment may cost more and changes to product design may be difficult. Customised production offers flexibility, but per-unit labour and time costs may be higher. Batch production lies between these approaches, making groups of similar items before changing setup.

When the question asks for a production method, identify product variation, required volume, available skills, equipment costs and delivery constraints. Saying “automation always saves money” is weak because initial investment, maintenance, training and demand all affect the result.

Worked example 5: calculate break-even

A fictional sports accessories business has monthly fixed costs of $2,400 and sells each item for $20. Each item has variable costs of $8. The contribution per unit is $12 ($20 − $8). The break-even output is 2,400 ÷ 12 = 200 items. If the business expects to sell 260 items, its simple margin of safety is 60 items. Assuming those figures are valid for the relevant range, selling 260 items gives contribution of $3,120 and profit of $720 before any omitted items.

Now ask what would happen if materials costs rose to $10 per unit. Contribution would fall to $10 and break-even output would rise to 240 items. A manager could respond by reviewing costs, pricing or the product—but each option has consequences for customer satisfaction, quality or demand. An accurate break-even chart shows relationships under stated assumptions; it is not a guarantee that all planned sales will occur.

Worked example 6: why cash matters even when profit is positive

Suppose a clothing retailer records credit sales today but will collect payment next month. Those sales may contribute to revenue and profit in the current reporting period, but the cash has not arrived. Meanwhile, rent and staff costs may be due immediately. A cash flow forecast predicts when money is expected to enter and leave. If a future month’s closing balance turns negative, management should investigate financing, collection terms or spending, rather than assuming reported profit will automatically pay the bills.

A business can improve cash flow by encouraging timely collection, managing inventory and negotiating realistic payment terms, but each measure has costs and risks. Extending supplier payments too aggressively can damage trust or supply reliability. Students must connect the timing of inflows and outflows with a reasoned recommendation.

Worked example 7: quality assurance versus quality control

At a food packaging business, quality control may involve checking finished products to see whether the seals meet a specified standard. Quality assurance focuses on designing and managing production processes to prevent defects in the first place. The two approaches can complement one another. Neither implies that food safety can be guaranteed from appearance alone. Good quality decisions consider training, clear specifications, equipment condition, testing and corrective action.

Similarly, a service business may monitor waiting times and complaints. Customer satisfaction involves more than counting how many transactions were completed; it also depends on whether the service matched customer expectations. Business decisions should be based on consistent evidence rather than a single enthusiastic review.

Worked example 8: choosing a location in Singapore

Consider a shop deciding between a location near a large transport interchange and a quieter lower-rent location. The busy site might offer greater foot traffic and better accessibility, but carry higher occupancy costs. The quieter site might reduce fixed costs but require targeted marketing or online delivery. A useful evaluation considers target customers, logistics, workforce access, lease conditions, neighbouring competitors and the type of product or service.

A Punggol food business and an online tutoring business may give very different importance to pedestrian traffic. The first may rely on frequent local purchases; the second may prioritise reliable internet, accessible meeting rooms and staff availability. A location decision is therefore not a universal ranking of neighbourhoods. It follows the operating model and evidence.

Worked example 9: technology and sustainable production

Digital inventory tracking can help a retailer identify low stock and reduce avoidable ordering errors. But the system requires staff training, data accuracy and maintenance. A factory replacing older machines may reduce energy use per item but incur significant capital spending and waste from discarded equipment. A claim of sustainability should consider the full product life cycle, repairability, materials and practical trade-offs rather than treating any new technology as environmentally harmless.

When evaluating automation, consider productivity, quality, capital costs, workers’ skills and the effects on employees. Technology may enable new roles while changing others. The benefit to the company is not automatically the same as the effect on every worker. A careful answer identifies stakeholder groups and likely consequences over time.

Worked example 10: external influences and uncertainty

A Singapore business importing goods may face higher costs if the supplier’s currency strengthens against the Singapore dollar, holding other factors constant. Changes in shipping costs, tariffs or demand can also affect profitability. An increase in interest rates may raise the cost of some loans, while inflation affects both sales prices and input costs. Business owners cannot control every external factor, so risk management may involve supplier diversification, realistic forecasts and contingency plans.

When writing about economic trends, students should distinguish a hypothetical case from reported current figures. Avoid presenting an uncertain prediction as an established fact. A strong business recommendation recognises what management can control and what must instead be monitored.

2027 K344 exam format: clear and exact

The official G3 Business K344 syllabus specifies Paper 1: Short Answer and Data Response, 1 hour 30 minutes, 80 marks, 50%. It contains four compulsory questions with mixed short and structured responses. Paper 2: Case Study, 1 hour 30 minutes, 80 marks, 50% contains four compulsory questions about a supplied business case. Assessment objectives are knowledge, application, analysis and evaluation. Both papers draw on the full syllabus.

The mark allocation should guide the depth of an answer. If a question asks for two reasons, do not replace those reasons with a general paragraph about the whole topic. If it asks for evaluation, weigh strengths and limitations and state an evidence-based final judgement. Use figures from the question accurately and check that the proposed action fits the actual organisation’s priorities.

A four-week Business vocabulary plan

1. Week 1 — Business foundations and people: learn 50 terms about sectors, ownership, objectives, stakeholders and human resources. Compare two fictional business structures and explain the trade-offs.
2. Week 2 — Marketing: practise target groups, research and the four Ps. Examine a fictional product and explain why the same promotion would not suit every customer.
3. Week 3 — Operations and finance: calculate contribution, break-even and margins of safety; analyse a cash flow forecast and distinguish liquidity from reported profit.
4. Week 4 — Integrated cases: read a new case with a marketing, staffing and financial choice. Identify three stakeholders, propose two options and justify which is more suitable with evidence and limits.

Students do not need to copy every definition every week. Choose a few weak terms, apply them in a calculation or business narrative and revisit after several days. Being able to explain why a business should make a decision is stronger evidence of understanding than memorising a glossary title.

Frequent mistakes worth repairing

• Profit equals cash: the two measures answer different questions.
• Added value equals net profit: added value does not deduct every operating expense.
• More sales always means more profit: selling more can also create higher costs.
• Marketing equals advertising: it includes product, price, place and more.
• Quality assurance is the same as inspection: prevention and checking are distinct activities.
• All stakeholders want the same thing: preferences can conflict.
• A large company is always better: scale can create both efficiencies and problems.
• One figure proves a recommendation: combine financial and non-financial evidence.

Frequently asked questions

Is this an official list of 200 K344 Business words?

No. It is an independently curated study aid. The official examination syllabus sets the subject’s actual assessed requirements.

Does every secondary school offer G3 Business?

No. K344 is offered only by approved schools. The student’s own school should confirm eligibility and availability.

Is K344 Business the same as K342 Principles of Accounts?

No. Business covers marketing, people, operations, finance and external influences. POA focuses on recording and interpreting accounting information. They overlap in financial language but are separately examined.

How much of the examination is case-study based?

Paper 2 is a 50%-weighted case-study paper; Paper 1 uses short-answer and data-response questions.

Will a generic business essay template work?

Not reliably. Answers should address the supplied company, its goals, data, constraints and the exact instruction.

Can a student practise using real Singapore businesses?

Yes, if publicly available facts are used responsibly. Do not invent private figures, claim knowledge of confidential company decisions or present speculation as fact.

How is Business useful after secondary school?

The subject introduces decision-making, communication, finance and operations concepts that support later business or entrepreneurship study. Professional competence requires further knowledge and experience.

Official and next reading

Confirm subject codes using SEAB’s 2027 G3 school-subject list, then consult the K344 Business syllabus. Continue with the G3 Economics glossary to understand markets and macroeconomic forces, and the G3 Principles of Accounts glossary to deepen financial literacy. Strong business analysis begins with the specific context, not an attractive but unsupported answer.

eduKate Punggol educational resource, November 2026. Not a prescribed SEAB word list, financial advice or a representation of any named business’s confidential information.