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

Excess refers to the amount the insured party must pay upfront when they make a claim. It represents a portion of the claim that the insurer is not responsible for. It protects the insurer against fraudulent claims and discourages negligence on the part of the insured. By having an excess, it encourages policyholders to avoid minor claims, ultimately keeping the insurance premium lower.

Dumisani used slides that were projected on a screen.

He provided the audience with hard copies of his presentation.

Limited liability protects the personal assets of the owners/shareholders, ensuring they are only liable for the company's debts up to their investment amount. In contrast, unlimited liability means that owners are personally liable for all business debts, risking personal assets in the event of bankruptcy.

The JSE provides opportunities for financial institutions to invest surplus funds in shares and serves as a barometer of economic conditions in South Africa. It acts as a platform for buying and selling shares, providing liquidity to investors. Furthermore, it facilitates access to capital for companies and contributes to overall economic growth by funding new ventures.

The formula for simple interest is:

$ext{Interest} = P imes R imes T$

Where:

• $P$ = principal amount = R7,000
• $R$ = interest rate = 10% = 0.10
• $T$ = time in years = 2

Calculating:

$ext{Interest} = 7000 imes 0.10 imes 2 = R1,400$

Thapelo will receive R1,400 in interest after two years.

Fixed deposits offer guaranteed returns and are less risky compared to other investments. They provide a fixed interest rate, which ensures financial stability. However, they may not keep pace with inflation over the long term, and investors may face penalties for early withdrawal.

Insurance protects businesses against unforeseen losses, such as damage to property or loss of income due to events like theft or accidents. It provides financial security and allows for business continuity during tough times. Additionally, insurance can protect against liability claims, which can be financially devastating.

The presenter should remain calm and respectful throughout the feedback process. They should actively listen, acknowledge the feedback, clarify any misunderstandings, and respond politely. It’s important to create an environment where all feedback is welcomed and viewed as an opportunity for improvement.