2.1 State any FOUR examples of insurable risks - NSC Business Studies - Question 2 - 2022 - Paper 2

1. Guaranteed returns: The interest on these savings bonds is guaranteed by the government, ensuring a safe investment.
2. Low risk: They are considered low-risk investments compared to other forms.
3. Fixed interest: Interest rates are fixed, providing predictability in income.
4. Accessible: Easily available for ordinary citizens, promoting savings.

Average Clause

To calculate the compensation:

1. Identify the insured amount and the market value:

   • Insured amount = R400,000
   • Market value = R600,000

2. Amount of loss = R90,000

3. Using the average clause formula:

   $Compensation = \left( \frac{Insured Amount}{Market Value} \right) \times Amount of Loss$

   $= \left( \frac{R400,000}{R600,000} \right) \times R90,000$

   $= R60,000$

Thus, AT will receive R60,000 as compensation.

Debentures are financial instruments used by companies to raise capital. They represent a loan made by the investor to the issuer (usually a corporation) and are secured against the company’s assets. They pay regular interest to the holder until maturity, at which point the principal amount is returned. Investing in debentures is relatively safe as they often have fixed returns and can be less risky than stocks.

The democratic leadership style promotes collaboration and inclusivity in decision-making. Benefits include:

1. Enhanced employee morale: Employees feel valued and engaged.
2. Improved innovation: Diverse input leads to creative solutions.

However, it may also lead to:

1. Slower decision-making processes: Consensus may take time.
2. Conflicts: Differences in opinions can lead to disputes.

1. Maintained eye contact with her audience throughout the presentation.
2. Managed her time effectively to allow for questions.

1. Setting clear objectives for her presentation to ensure all points are covered.
2. Including visual aids for better engagement.

Success factors include:

• Effective management can lead to streamlined operations and accountability.
• Skilled directors can guide the company strategically.

Failure factors include:

• Poor decision-making can lead to financial loss.
• Lack of communication within management can create confusion.

Success factors include:

• Compliance with legal requirements can build trust with stakeholders.
• Adequate understanding of laws promotes operational efficiency.

Failure factors include:

• Non-compliance can lead to fines and legal issues.
• Ignorance of changes in legislation can impact operations negatively.