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

1. Diversification: Unit trusts allow investors to spread their funds across different asset classes, reducing risk.
2. Professional Management: Managed by professionals who buy and sell shares on the stock exchange.
3. Accessibility: Investors can access a wider range of investments easily without needing substantial capital.
4. Liquidity: Units can be bought or sold easily, providing flexibility to investors.

1. Sihle encourages employee participation and creates a positive work environment by showing that he values their input.
2. He demonstrates a commitment to learning, which inspires his employees to also embrace continuous improvement.

The democratic leadership style can enhance job satisfaction and motivate employees to contribute ideas, fostering creativity. However, it may result in slower decision-making due to the need for consensus, and some employees may feel overwhelmed by the involvement expected from them.

Insurance is crucial for businesses as it protects against potential financial losses from unforeseen events such as natural disasters or accidents. It ensures business continuity by providing funding for recovery and can enhance credibility with clients and investors, demonstrating professionalism and responsibility.

1. Return on investment: Investors assess the expected returns against the initial outlay.
2. Liquidity: Refers to how easily the investment can be converted to cash without significant loss.