2.1 Give any FOUR examples of long-term insurance - NSC Business Studies - Question 2 - 2024 - Paper 2

• Shareholders have a right to:
  • attend the Annual General Meeting to learn about the company's performance.
  • vote on company matters in accordance with ordinary shareholders' rights.
  • claim on company assets in the event of bankruptcy after all other creditors.
  • receive dividends when declared by the company.

Government/RSA Retail Savings Bonds.

• Guaranteed returns, as the interest rate is fixed for the whole investment period.
• The investment is secure and attracts more investors.
• The funds can be conveniently managed, as they can be obtained electronically with no transaction fees.

• Limited liability means losses are limited to the amount invested in the business, while in unlimited liability, the owner is personally liable for all debts beyond their investment.

• In the case of limited liability, the owner's personal assets are protected; however, this is not applicable in the case of unlimited liability.

• Positives include:

  • Employees are empowered, as they can motivate themselves and take responsibility for their work.
  • Encourages innovation and creativity as individuals contribute ideas freely.

• Negatives include:

  • Lack of clear direction, leading to confusion among employees.
  • Potential for a lack of control over tasks, which may lead to missed deadlines.

• Interactive whiteboard/Smartboard: Sam used a special pen to make notes while images were being displayed.
• Hand-outs/Flyers/Brochures: The audience were given hard copies of his presentation for future reference.

• Principle of indemnity: The insured is compensated for the actual loss suffered as per the prescribed terms of the insurance contract.
• Principle of utmost good faith: Both parties must be honest and disclose all relevant information regarding the insurance policy.