1. Denotation/ extension: it is stating the meaning of a term by pointing to the thing or individual or by giving examples.e.g. In order to say what a car is, we give the meaning denotatively by pointing to a vox, a limozin, a pajero or a taxi. It is extension.
2. Connotation/ intention: it is the deeper meaning of a term. It is a statement of the essential attributes of a term. It is like intention which states the inner meaning as given by experts usually the lexical meaning of a term.

Significance/ importance of terms

1. Terms clarify meaning when a vague word is used.
2. Meaning of terms helps eliminate ambiguity or confusion.
3. Terms and their meanings call for precision in discourse.
4. Terms and their meanings call for consistency in thought and argumentation.