2.1 State any THREE examples of non-insurable risks - NSC Business Studies - Question 2 - 2020 - Paper 2

1. It provides opportunities for companies to raise funds through the issuance of shares.
2. It serves as a barometer for economic conditions in South Africa.
3. It acts as a platform for investors to buy and sell securities.
4. It helps in price discovery by determining the value of listed securities.
5. It provides a transparent environment for trading in stocks.
6. It contributes to the regulatory framework ensuring market integrity.

The average clause.

To calculate the compensation, apply the average clause formula:

Where:

• Insured Amount = R300,000
• Market Value = R400,000
• Loss = R30,000

Substituting in the values:

Limited liability means that the owner's financial responsibility for debts is strictly limited to the amount they invested in the business. In contrast, unlimited liability means that an owner is personally responsible for all of the business's debts, putting personal assets at risk. This means that in a limited liability company, creditors cannot claim the personal assets of the owners, whereas in an unlimited liability scenario, they can.

Personal attitude significantly influences leadership effectiveness. A positive attitude can inspire and motivate team members, fostering a collaborative work environment. Conversely, a negative attitude can lead to a toxic workplace, reducing morale and productivity. Successful leaders often exhibit traits like optimism, resilience, and confidence, which can help them navigate challenges and guide their teams toward achieving goals.

The leadership style used by Mohammed is democratic leadership. This is evidenced by his request for employee input regarding production costs, indicating that he values collaboration and team contributions in decision-making. His approach not only enhances team morale but also fosters a sense of ownership among employees.

1. When teams are required to brainstorm ideas for project improvement.
2. In situations where feedback is essential for decision-making processes.
3. During change management, where employee concerns need to be addressed.

Video conferencing has numerous impacts, such as:

• Positive: Enhances communication by allowing participants to visually engage with one another, making discussions more interactive.

• Reduces travel costs and time by allowing meetings to occur remotely.

• Ensures accessibility for global team members, breaking down geographical barriers.

• Negative: Potential technical issues can disrupt meetings.

• Lack of personal interaction may lead to misunderstandings and reduced rapport among colleagues.