3.1 State FOUR types of preference shares - NSC Business Studies - Question 3 - 2019 - Paper 1

1. Managed by experts who have knowledge of the stock market, unit trusts allow investors to benefit from professional management and advice.
2. They provide diversification, as investors can access a wide range of shares with a single investment.
3. Unit trusts often have lower investment minimums, making it accessible for small investors.
4. They offer liquidity, allowing investors to buy or sell units easily.

1. Positive Attitude: Sihle keeps a positive demeanor, encouraging employees to feel motivated and empowered.
2. Role Modelling: Sihle demonstrates behaviors he wishes to see in his followers, helping to build a collaborative environment.

1. Employee Empowerment: Employees are involved in decision-making, leading to increased morale and job satisfaction.
2. Enhanced Creativity: The democratic approach fosters a culture where input and ideas can be freely shared, enhancing innovation.

1. Risk Management: Insurance protects businesses from financial losses resulting from unforeseen events such as accidents or natural disasters.
2. Business Continuity: It ensures that a business can continue operating after a disaster by covering losses and damages.
3. Legal Protection: Insurance helps in protecting businesses from legal liabilities such as employee injuries or damages to third parties.

3.5.1 Return on Investment: This refers to the income generated from the investment relative to its cost. Investors seek to maximize their ROI for higher profitability. 3.5.2 Liquidity: This is the ease with which an investment can be converted into cash. Higher liquidity is preferred as it allows for quick access to funds when needed.

The average clause is calculated using the formula:

In this case:

• Market Value = R300 000
• Loss/Damage = R600 000

Thus, the average clause is: