3.1 Identify the form of ownership which is applicable to each of the following statements below - NSC Business Studies - Question 3 - 2017 - Paper 1

The ownership form relevant to this statement is 'Public Company'. A public company is one that trades its shares openly in the stock market.

This refers to a 'Non-profit Company'. Non-profit entities often rely on donations and grants to fund their operations.

The ownership type here is 'State-owned Company'. These companies have significant government ownership and often serve public interests.

Excess is the amount that the insured must pay out of pocket before the insurance coverage begins to pay for a claim. It reduces the insurer's risk.

A premium is the amount paid periodically to the insurer for coverage under the insurance policy. This amount is set according to the risk profile insured.

Insurance is crucial for businesses as it protects against financial losses that arise from unforeseen events such as theft, fire, or liability. It ensures business continuity and boosts stakeholder confidence by minimizing risk exposure.

Insurance is a contract that covers potential losses, while assurance covers events that are certain to occur, such as death. For example, car insurance is insurance, while life assurance is an example of assurance.

The type of investment is a 'Fixed Deposit'. This is a low-risk investment where the bank guarantees a return for a specified period.

The primary risk factor involves inflation, which may erode the real value of returns. Additionally, while fixed deposits are generally secure, they provide lower returns compared to riskier investment options.

Using the formula for compound interest:
$A = P(1 + r)^n$
where
$A$ = final amount,
$P$ = principal amount (R25,000),
$r$ = annual interest rate (0.10),
$n$ = number of years (3),
we find:
$A = 25000(1 + 0.10)^3 = R33,275$

Simple interest is calculated only on the principal amount over time, while compound interest is calculated on the initial principal and also on the accumulated interest from previous periods. This generally results in a higher interest earned with compound interest.

The leadership style is 'Bureaucratic'. The quote from the scenario highlights that Gavin Moore follows all organizational rules and policies systematically, which is characteristic of bureaucratic leadership.

Bureaucratic leadership provides stability and clarity, ensuring procedures are followed. However, it may stifle creativity and adaptability, making the workplace less dynamic, which could hinder responsiveness to change.

Transactional leadership is effective for achieving specific goals through clear rewards and penalties. It fosters a structured environment where employees understand their job expectations and outcomes, which can lead to increased efficiency and productivity.

Capital is crucial as it determines the company's ability to invest in growth and sustain operations. Insufficient capital can lead to inadequate resources, impacting the company's viability and potentially leading to failure.

Management is key to strategic decision-making and operational efficiency. Poor management may lead to a lack of direction, diminish employee morale, and ultimately result in poor performance and failure of the company.