2.1 Name any TWO factors that should be considered when making investment decisions - NSC Business Studies - Question 2 - 2021 - Paper 2
Question 2
2.1 Name any TWO factors that should be considered when making investment decisions.
2.2 Identify the form of investment chosen by Tebogo in EACH statement below:
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Worked Solution & Example Answer:2.1 Name any TWO factors that should be considered when making investment decisions - NSC Business Studies - Question 2 - 2021 - Paper 2
Step 1
Name any TWO factors that should be considered when making investment decisions.
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Answer
Risk: Understanding the potential for loss is essential when evaluating any investment.
Return on Investment (ROI): It is crucial to assess the expected financial returns from the investment.
Step 2
Identify the form of investment chosen by Tebogo in EACH statement below: 2.2.1 Tebogo invested a small amount of money in a financial institution where it is managed by a fund manager.
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Tebogo selected a managed fund, which allows for investment by professionals who manage the portfolio.
Step 3
2.2.2 He chose an investment listed on the JSE with no charges and commission payable.
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Tebogo opted for a direct investment in stocks, as it typically incurs lower fees when no charges or commissions are involved.
Step 4
Identify TWO leadership theories applied by HQD. Motivate your answer by quoting from the scenario above.
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Transformational Leadership: HQD encourages and motivates employees to adapt to change, which reflects transformational leadership principles.
Situational Leadership: Management applies the leadership style that is at hand, demonstrating adaptability to varying situations.
Step 5
Discuss the role of personal attitude in successful leadership.
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Personal attitude is vital in leadership as it influences how leaders interact with their team and face challenges. A positive attitude fosters an empowering environment, promotes team engagement, and enhances problem-solving capabilities.
Step 6
Explain how the following factors could contribute to the success and/or failure of a public company.
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2.4.1 Capital: Adequate capital is necessary for growth and operational effectiveness. Insufficient capital can hinder progress and affect shareholder confidence.
2.4.2 Legislation: Compliance with laws can ensure operational continuity. Conversely, non-compliance may result in penalties, which can jeopardize the company's reputation and financial standing.
Step 7
Discuss any TWO principles of insurance.
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Utmost Good Faith: Both parties in an insurance contract must disclose all relevant information to ensure transparency and protect interests.
Insurable Interest: The insured must have a genuine interest in the subject of insurance to prevent moral hazards.
Step 8
Quote TWO advantages of insurance for RM from the scenario above.
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Financial Protection: RM was compensated when a key personnel member died, securing their financial stability.
Business Continuity: Compensation for loss of income during a strike helped RM maintain operations and financial health.
Step 9
Explain other advantages of insurance for businesses.
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Insurance mitigates risk by providing financial support against losses, enhances credibility, helps in regulatory compliance, and protects against unforeseen events, ensuring business sustainability.
Step 10
Aspects that should be considered when designing a multimedia presentation.
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Clarity of Content: Ensure that the message is clear and well-structured for the audience.
Visual Appeal: Utilize graphics, colors, and animations effectively to enhance engagement without overwhelming the audience.