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

1. Managed by experts: Unit trusts are managed by professional fund managers who have extensive knowledge and experience.

2. Diversification: Investing in unit trusts allows individuals to invest in a range of shares and assets, which spreads risk.

3. Accessibility: Investors can start with small amounts compared to direct investment in stock markets.

4. Regular Income: Many unit trusts provide regular income in the form of dividends or interest.

1. Sihle's positive attitude encourages employee engagement, making them feel valued and empowered.

2. His belief in continuous learning influences his followers to seek improvement and innovation in their roles.

The democratic leadership style enhances employee satisfaction as team members feel included in decision-making. This can lead to improved productivity and morale. However, the downside may include slower decision-making processes as consensus is sought, which can impact the speed of operations.

Insurance protects businesses from unexpected losses that can arise from accidents, theft, or natural disasters. It helps ensure that businesses can recover financially and continue operations even after significant mishaps. Furthermore, insurance contributes to the stability of the business, allowing it to invest and grow with less fear of financial ruin due to unforeseen events.

3.5.1 Return on investment: Analyzing the potential income compared to the investment cost.

3.5.2 Liquidity: Assessing how easily an investment can be converted to cash without significant loss in value.