Business terminology: Is a “fact” merely a word or phrase that has a specific business meaning?

Introduction / Context:
In business rules and data modeling, precise vocabulary matters. Terms and facts play different roles in capturing business knowledge that feeds database design, constraints, and integration.

Given Data / Assumptions:

• A term is a word or phrase with an agreed meaning (e.g., “Customer,” “Invoice”).
• A fact states something about those terms that can be true or false (e.g., “Each Invoice is issued to exactly one Customer”).
• We are focusing on conceptual modeling vocabulary (e.g., fact modeling, SBVR-style semantics).

Concept / Approach:
The statement actually defines a term, not a fact. Facts are assertions that connect terms and express business structure or constraints. In ER modeling, many facts become relationships with cardinalities and optionally with attributes; others become rules enforced by keys, checks, or triggers.

Step-by-Step Solution:
Identify the nouns/phrases with defined meanings → these are terms.Identify statements that relate terms or constrain them → these are facts.Map structural facts to ER relationships; map constraint facts to keys and validation rules.Document both terms and facts in a glossary to maintain shared understanding.

Verification / Alternative check:
Take the dictionary entry “Customer” (term) and pair it with “A Customer may place many Orders” (fact). Only the latter is evaluable as true/false and drives relationship modeling.

Why Other Options Are Wrong:
Limiting the concept to dimensional modeling is unnecessary; the term/fact distinction is universal. Industry lists do not change the definitions.

Common Pitfalls:
Using ambiguous everyday words without agreed definitions; embedding rules in application code but not documenting the underlying facts.

Final Answer:
Incorrect