2.1 Name any FOUR examples of long-term insurance - NSC Business Studies - Question 2 - 2022 - Paper 2

Excess refers to the amount that the insured must pay upfront when taking out a policy. This concept ensures that the insurer does not bear the full cost of small claims, as the insured is responsible for a portion of the claim costs. By doing this, insurers also discourage unnecessary or fraudulent claims, thus making insurance more sustainable.

2.3.1 Dumasini used slides that were projected on a screen. 2.3.2 He provided the audience with hard copies of his presentation.

Limited liability protects the personal assets of the owners from the debts of the business. This means that in the event of the business failing, owners can only lose their investment in the company. Unlimited liability, on the other hand, means that owners are personally liable for all business debts, and their personal assets can be used to settle such debts.

The JSE serves several key functions:

• It provides a platform for companies to raise capital by issuing shares.
• It facilitates trading of shares, ensuring liquidity for investors.
• The JSE maintains a regulatory framework to ensure transparency and protect investors.
• It acts as an economic indicator, providing insights into the performance of the economy.

Using the formula:

Interest = Principal × Rate × Time

Where:

• Principal = R7,000
• Rate = 10% or 0.10
• Time = 2 years

Calculating:

Interest = R7,000 × 0.10 × 2 = R1,400

Fixed deposits offer several advantages as an investment option. They provide a guaranteed return on investment, ensuring financial security against market volatility. However, they also come with limitations such as less liquidity, as funds are locked in for a specific period. Investors may also miss out on potentially higher returns from other investment forms during economic upswings.

Insurance provides essential protection for businesses against unpredictable events, such as property damage or liability claims. It allows for risk management, enabling businesses to continue operations with financial safety nets. Furthermore, having adequate insurance can build trust with clients and stakeholders, as it shows preparedness for unforeseen circumstances.

The presenter should respond calmly and courteously to feedback, showing appreciation for audience input. They should practice active listening, allowing for open dialogue, and should maintain a positive tone throughout. Additionally, it's important to reflect on the feedback constructively and seek clarification when needed, ensuring all questions are addressed.