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 making a claim on an insurance policy. This means:

• The insured is responsible for a portion of the claim, thereby reducing the amount the insurer will pay.
• Excess assists in managing insurance costs by discouraging lower-value claims that could burden the insurer. Therefore, higher excess amounts can lead to lower premiums, but also a greater upfront cost for the insured during a claim.

2.3.1 Dumasini used slides that were projected on a screen, which help to visualize key points and engage the audience.

2.3.2 He provided the audience with hard copies of his presentation at the beginning of the session to ensure that they had access to detailed information and could follow along.

Limited liability refers to a situation where the owners' financial responsibility is limited to the amount they have invested in the business. This protects personal assets in case of business debts. Conversely, unlimited liability means that business owners are personally responsible for all debts incurred by the business, which can lead to personal assets being used to settle business obligations.

The Johannesburg Securities Exchange operates as a marketplace for the buying and selling of shares and securities:

• It provides opportunities for financial institutions to invest their surplus funds and encourages economic growth.
• The JSE serves as a barometer of economic conditions and company performance in South Africa.
• It acts as a link between investors and public companies, facilitating the flow of capital.
• The exchange also helps regulate and ensure that trading is orderly and transparent.

The simple interest can be calculated using the formula:

$I = P imes R imes T$

Where:

• $I$ = Interest
• $P = R7,000$
• R = 10 ext{%} (expressed as 0.10)
• $T = 2$ years

Calculating:

$I = 7000 imes 0.10 imes 2 = R1400$

Thapelo will receive R1,400 after two years.

Fixed deposits offer several advantages and disadvantages:

Advantages:

• Interest is earned at a fixed rate, providing predictable returns regardless of economic changes.
• They are considered a safer investment option compared to stocks as they guarantee the principal amount.
• Fixed deposits are often used by risk-averse investors looking to save over short or medium terms.

Disadvantages:

• The investor cannot access their funds before maturity without incurring penalties.
• They usually offer lower returns than more volatile investments like stocks and can be affected by inflation.

Insurance offers numerous benefits to businesses:

• It protects against financial losses due to unforeseen events such as accidents, theft, or natural disasters.
• Insurance provides peace of mind, allowing businesses to operate with less worry about potential financial ruin.
• It may also be a requirement for securing loans or investments, as creditors often want to ensure their interests are protected.

To handle feedback effectively, the presenter should:

• Maintain a calm and polite demeanor throughout the feedback session.
• Be receptive to questions and clarifications, confirming understanding before responding.
• Ensure that the feedback environment is respectful, making it clear that all opinions are valued.
• Address each piece of feedback thoughtfully and thank the audience for their input.