2.1 State any FOUR examples of insurable risks - NSC Business Studies - Question 2 - 2022 - Paper 2

1. Safety: Government bonds are considered low-risk investments as they are backed by the government.
2. Steady Income: They provide regular interest payments, offering a predictable income stream.
3. Liquidity: Retail savings bonds can be easily bought and sold in the market.
4. Tax Advantages: The interest earned may be exempt from certain taxes.

The applicable insurance clause is the Average Clause.

To calculate the compensation, use the formula:

Where:

• Insured Value = R400,000
• Market Value = R600,000
• Loss = R90,000

Calculating:

Debentures are long-term securities that companies issue to raise capital. They are essentially loans made by investors to the issuing company, which agrees to pay back the principal amount along with interest over a specified period. Debentures offer a fixed rate of return and are less risky compared to stocks, making them attractive to investors looking for steady income.

Democratic leadership fosters a participative environment, encouraging employee involvement in decision-making. This can lead to enhanced creativity, increased morale, and higher job satisfaction. However, if not managed properly, it may also result in slower decision-making processes and potential conflicts if consensus is difficult to achieve.

1. Maintaining eye contact with her audience throughout the presentation.
2. Managing her time effectively to allow for questions.

Mary should aim to:

1. Clearly state objectives at the beginning of the presentation to guide her audience.
2. Incorporate visual aids that reflect the information presented to enhance understanding.

Proper management is crucial for personal liability companies as it ensures accountability and responsible decision-making. Effective management can lead to improved operational efficiency and employee motivation, while poor management may result in costly errors and a lack of direction.

Compliance with legislation is essential for legal operation. Companies that adhere to laws avoid penalties and legal issues, enhancing their reputation. Conversely, failure to comply can lead to business closure and significant financial setbacks.