Business Studies June exam P2 (Hard)
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Questions and Answers

What distinguishes unit trusts from direct business investments?

  • Unit trusts involve pooling money into a single fund managed by professionals. (correct)
  • Direct business investments have lower risks than unit trusts.
  • Direct business investments offer higher returns compared to unit trusts.
  • Unit trusts provide investors with ownership of a specific business.

    • Which type of shares offers shareholders voting rights in the company's decisions?

  • Preference shares
  • Founders' shares
  • Bonus shares
  • Ordinary shares (correct)

    • How does the Johannesburg Securities Exchange (JSE) contribute to businesses and investors?

  • It provides a platform for trading stocks and bonds to raise capital for businesses and offer ownership to investors. (correct)
  • It only focuses on trading bonds for businesses' capital needs.
  • It acts as an insurance platform for businesses and investors.
  • It manages mutual funds for investors' diversification.

    • What financial opportunities beyond stocks and bonds are highlighted in the text?

    <p>Assurance and insurance (D)</p> Signup and view all the answers

    In business investments, what is the primary purpose of purchasing shares?

    <p>To have ownership in the company and receive potential returns. (D)</p> Signup and view all the answers

    What feature distinguishes preference shares from ordinary shares in business investments?

    <p>Preference shares offer fixed dividends before ordinary shareholders receive dividends. (B)</p> Signup and view all the answers

    What is the fundamental relationship between risk and return in investment decisions?

    <p>Higher risks are usually linked to higher potential returns. (A)</p> Signup and view all the answers

    What distinguishes compound interest from simple interest in investment returns?

    <p>Compound interest is calculated on the principal amount only, while simple interest is the interest on interest. (A)</p> Signup and view all the answers

    Which investment option offers a low-risk savings alternative with slightly higher returns than regular savings accounts?

    <p>32-Day Notice Accounts (A)</p> Signup and view all the answers

    What type of investments are endowments and retirement annuities considered to be?

    <p>Long-term, low-risk investments (A)</p> Signup and view all the answers

    Which investment vehicle provides diversified investment managed by professionals to reduce risk through diversification?

    <p>Managed Portfolios (B)</p> Signup and view all the answers

    How do government retail bonds compare to stocks in terms of risk and return?

    <p>Government retail bonds offer lower returns but are more secure than stocks. (B)</p> Signup and view all the answers

    Which factor should inform investment decisions alongside return on investment (ROI), according to the text?

    <p>Risk tolerance (D)</p> Signup and view all the answers

    'Fixed-interest securities issued by companies' refer to which type of investment?

    <p>'Debentures' (C)</p> Signup and view all the answers

    'Stocks can provide high returns but with increased risk.' This statement primarily highlights the importance of:

    <p>'Risk tolerance' (D)</p> Signup and view all the answers

    'Understanding these aspects is vital for both individuals and businesses to make informed decisions.' What aspects are being referred to in this statement?

    <p>'Investment environment factors' (C)</p> Signup and view all the answers

    What is the primary purpose of ethical behavior in business?

    <p>To ensure transparency and trust with stakeholders (C)</p> Signup and view all the answers

    Which of the following is an example of unethical business practices mentioned in the text?

    <p>Misleading advertising (A)</p> Signup and view all the answers

    How does professionalism differ from ethical behavior in business?

    <p>Professionalism involves industry-specific standards, while ethical behavior is universal. (D)</p> Signup and view all the answers

    What is a key strategy that organizations can use to foster ethical and professional environments?

    <p>Leadership by example (D)</p> Signup and view all the answers

    Why is it essential for businesses to regularly review their ethical codes?

    <p>To ensure alignment with current laws and societal expectations (C)</p> Signup and view all the answers

    In the context of business, what does transparency in operations and decision-making refer to?

    <p>Being open and honest about business processes (A)</p> Signup and view all the answers

    Which of the following is an example of unprofessional behavior in business according to the text?

    <p>Negligence in fulfilling job responsibilities (C)</p> Signup and view all the answers

    How can organizations demonstrate their commitment to effective performance in a given field?

    <p>By ensuring continuous professional development and skill enhancement (A)</p> Signup and view all the answers

    What role do ethics committees play in addressing challenges related to ethical and professional standards?

    <p>Review practices, resolve ethical dilemmas, and oversee compliance (D)</p> Signup and view all the answers

    Why is compliance with legal and environmental regulations considered part of ethical behavior in the business context?

    <p>To adhere to established standards and protect stakeholders (A)</p> Signup and view all the answers

    What is one of the characteristics of successful teams mentioned in the text?

    <p>Organized work processes and a balance of skills (B)</p> Signup and view all the answers

    Which model is used for conflict management as per the text?

    <p>The Thomas-Kilnmann model (B)</p> Signup and view all the answers

    What is a key aspect of encouraging creative thinking in organizations according to the text?

    <p>Regularly evaluating and refining creativity-promoting strategies (A)</p> Signup and view all the answers

    What is one way to effectively interact with difficult personalities in a team setting as suggested in the text?

    <p>Seeking authoritative input when necessary (C)</p> Signup and view all the answers

    How can conflict be managed within a team according to the text?

    <p>By using grievance and disciplinary procedures (D)</p> Signup and view all the answers

    What is an important reason for structuring self-assessment and team performance assessment as per the text?

    <p>To ensure effective contribution to team objectives (B)</p> Signup and view all the answers

    What is a common method for dealing with grievances in the workplace according to the text?

    <p>Using structured approaches and escalating through hierarchies if needed (A)</p> Signup and view all the answers

    What is an important element mentioned for effective team performance according to the text?

    <p>'Individual development opportunities' within the team (C)</p> Signup and view all the answers

    Which approach did the text suggest for maintaining a productive team environment through conflict management?

    <p>Implementing problem-solving techniques like the Thomas-Kilnmann model (D)</p> Signup and view all the answers

    Why should organizations regularly evaluate and refine their strategies for promoting creativity?

    <p>To better navigate challenges and seize opportunities for innovation and growth (D)</p> Signup and view all the answers

    What is the main difference between problem-solving and decision-making?

    <p>Problem-solving involves identifying and resolving issues, while decision-making is choosing between different solutions. (B)</p> Signup and view all the answers

    Which problem-solving step involves brainstorming possible solutions?

    <p>Evaluate Alternatives (A)</p> Signup and view all the answers

    What technique combines individual idea generation with collective decision-making to solve problems?

    <p>Nominal Group Technique (D)</p> Signup and view all the answers

    Why is creative thinking important in the workplace according to the text?

    <p>To maintain a competitive edge (A)</p> Signup and view all the answers

    Which technique involves iterative rounds of questionnaires to reach a consensus?

    <p>Delphi Technique (A)</p> Signup and view all the answers

    What is the final step in the problem-solving process according to the text?

    <p>Evaluate the Outcome (D)</p> Signup and view all the answers

    How can businesses foster creative thinking in the workplace?

    <p>Acknowledge and reward creativity (B)</p> Signup and view all the answers

    What is the primary purpose of insurance as mentioned in the text?

    <p>To provide indemnity for financial losses (B)</p> Signup and view all the answers

    Which insurance type is specifically designed to provide relief to workers who are unemployed or unable to work?

    <p>Unemployment Insurance Fund (UIF) (A)</p> Signup and view all the answers

    What is the purpose of the Compensation for Occupational Injuries and Diseases Act (COIDA)?

    <p>To offer compensation to employees injured at work (A)</p> Signup and view all the answers

    Which insurance concept ensures that the insured is compensated for the loss suffered, to the exact extent of the financial loss?

    <p>Indemnity (A)</p> Signup and view all the answers

    What legal or financial interest must the insured have in the object of insurance according to 'Insurable Interest'?

    <p>Interest in suffering a financial loss if an insured event occurs (D)</p> Signup and view all the answers

    What does 'Over-insurance' refer to in the context of insurance?

    <p>When the value of insurance coverage exceeds the value of the insured item (B)</p> Signup and view all the answers

    Which clause is used to calculate compensation when an asset is under-insured?

    <p>Average Clause (A)</p> Signup and view all the answers

    'Utmost Good Faith' in insurance requires both parties to do what?

    <p>Act honestly and disclose all material facts relevant to the insurance policy (B)</p> Signup and view all the answers

    'Product Liability Insurance' primarily covers claims related to what?

    <p>Bodily harm caused by defective products (D)</p> Signup and view all the answers

    'Liability Insurance' primarily protects against claims resulting from what?

    <p>Damage to people or property (A)</p> Signup and view all the answers

    What distinguishes venture capital from other investment opportunities?

    <p>Involvement in startups and high-risk ventures (C)</p> Signup and view all the answers

    Which type of shares offers priority in dividend payments and asset distribution upon liquidation?

    <p>Preference shares (C)</p> Signup and view all the answers

    How do mutual funds differ from direct stock investments?

    <p>Mutual funds involve pooling money from multiple investors (C)</p> Signup and view all the answers

    What is the primary purpose of the Johannesburg Securities Exchange (JSE) for businesses?

    <p>Providing a marketplace to raise capital (A)</p> Signup and view all the answers

    What distinguishes unit trusts from traditional stock market investments?

    <p>Unit trusts involve pooling money into a single managed fund (A)</p> Signup and view all the answers

    Why is understanding the distinctions between different types of shares crucial for investors?

    <p>To make informed decisions based on rights and returns offered (C)</p> Signup and view all the answers

    What is the role of insurance in the context of businesses?

    <p>Offering protection against potential losses (A)</p> Signup and view all the answers

    Which factor plays a pivotal role in making informed investment decisions?

    <p>Inflation rate (B)</p> Signup and view all the answers

    In insurance, what is considered crucial for maximizing benefits?

    <p>Understanding policy terms and conditions (D)</p> Signup and view all the answers

    What does compound interest entail in investment returns?

    <p>Interest on interest resulting in exponential growth (B)</p> Signup and view all the answers

    What distinguishes government retail bonds from stocks in terms of risk?

    <p>Lower risk for government retail bonds (C)</p> Signup and view all the answers

    What is the primary role of venture capital in investment opportunities?

    <p>Investing in expanding startups or businesses with high risk (B)</p> Signup and view all the answers

    In investment decisions, what relationship underpins the decision-making process?

    <p>Risk and return (A)</p> Signup and view all the answers

    "32-Day Notice Accounts" are characterized by which feature compared to regular savings accounts?

    <p>Higher liquidity (D)</p> Signup and view all the answers

    "Managed Portfolios" aim to reduce risk by:

    <p>'Diversifying' investments across various assets (A)</p> Signup and view all the answers

    "Endowments/Retirement Annuities" are best suited for individuals seeking:

    <p>'Long-term' wealth-building with low risk (C)</p> Signup and view all the answers

    What principle ensures that both the insurer and the insured are expected to act honestly and disclose all relevant facts?

    <p>Principle of Utmost Good Faith (A)</p> Signup and view all the answers

    Which clause is utilized to calculate compensation when an asset is under-insured?

    <p>Average Clause (D)</p> Signup and view all the answers

    In insurance, what term refers to a situation where the value of the coverage exceeds the value of the insured item?

    <p>Over-insurance (A)</p> Signup and view all the answers

    Which insurance concept ensures that the insured party has a financial stake in the object of insurance?

    <p>Principle of Insurable Interest (B)</p> Signup and view all the answers

    What is the purpose of the Compensation for Occupational Injuries and Diseases Act (COIDA)?

    <p>To compensate employees for work-related injuries or illnesses (B)</p> Signup and view all the answers

    Which type of insurance is NOT mandated by law but is essential for businesses to protect against various risks?

    <p>Product Liability Insurance (A)</p> Signup and view all the answers

    What role does insurance play in business sustainability according to the text?

    <p>A tool for effectively managing risks and ensuring operational continuity (D)</p> Signup and view all the answers

    'Property Insurance' primarily covers damages or losses due to which type of events?

    <p>Natural disasters, fire, and theft (D)</p> Signup and view all the answers

    What is the key difference between problem-solving and decision-making as discussed in the text?

    <p>Problem-solving involves identifying and resolving issues, while decision-making is choosing between solutions. (A)</p> Signup and view all the answers

    Which problem-solving step involves evaluating the feasibility and potential impact of various solutions?

    <p>Evaluate Alternatives (D)</p> Signup and view all the answers

    What is the primary purpose of the Delphi Technique discussed in the text?

    <p>Reaching a consensus among experts (B)</p> Signup and view all the answers

    Why is creative thinking considered crucial in a business context?

    <p>To adapt to change and maintain competitiveness. (D)</p> Signup and view all the answers

    How does the Force Field Analysis method contribute to problem-solving as described in the text?

    <p>By analyzing driving and restraining forces for change initiatives. (A)</p> Signup and view all the answers

    In what way does fostering open communication contribute to creative thinking in the workplace?

    <p>It promotes a safe environment for sharing innovative ideas. (C)</p> Signup and view all the answers

    'Recognize and Reward Creativity' in fostering creative thinking primarily aims to:

    <p>Acknowledge and incentivize innovative solutions. (D)</p> Signup and view all the answers

    'Provide Resources and Time' for creative thinking in the workplace includes allocating:

    <p>'Sufficient resources and dedicated time for exploring creative solutions.' (D)</p> Signup and view all the answers

    'Encourages innovation and flexibility' as a benefit of creative thinking primarily aims to:

    <p>'Promote new ideas and adaptability.' (A)</p> Signup and view all the answers

    'Evaluate the Outcome' in problem-solving processes serves to:

    <p>'Review the effectiveness of chosen solutions.' (C)</p> Signup and view all the answers

    What is a potential drawback of the Nominal Group Technique, as mentioned in the text?

    <p>It reduces idea generation (D)</p> Signup and view all the answers

    Which conflict resolution strategy involves using the Thomas-Kilmann model, according to the text?

    <p>Collaboration (D)</p> Signup and view all the answers

    What is a key element of effective team performance based on the text?

    <p>Regular progress reviews (D)</p> Signup and view all the answers

    What type of personalities can pose challenges within a team setting, as outlined in the text?

    <p>Expert and aggressive (B)</p> Signup and view all the answers

    Which strategy is recommended for dealing with indecisive personalities in a team setting according to the text?

    <p>Seeking authoritative input (D)</p> Signup and view all the answers

    What is a key characteristic of successful teams based on the information provided?

    <p>Individual responsibility towards team values (D)</p> Signup and view all the answers

    How can conflict within a team be addressed according to the text?

    <p>By using grievance and disciplinary procedures (B)</p> Signup and view all the answers

    Which step is crucial for effective self-assessment and team performance assessment, as per the text?

    <p>Defining clear boundaries and roles (C)</p> Signup and view all the answers

    'Balancing skills, knowledge, and expertise' is highlighted as important for which aspect of teams in the text?

    <p>Characteristics of Successful Teams (C)</p> Signup and view all the answers

    What is the fundamental difference between ethical behavior and professional behavior in business?

    <p>Ethical behavior is universal, while professional behavior is industry-specific. (B)</p> Signup and view all the answers

    How do organizations contribute to fostering ethical and professional environments?

    <p>By engaging stakeholders in discussions about ethical practices. (D)</p> Signup and view all the answers

    What differentiates unprofessional behavior from unethical business practices?

    <p>Unprofessional behavior concerns conduct, while unethical practices involve moral standards. (B)</p> Signup and view all the answers

    What is the primary goal of reviewing ethical codes regularly in businesses?

    <p>To ensure alignment with current laws, regulations, and societal expectations. (C)</p> Signup and view all the answers

    How do leadership behaviors influence ethical and professional conduct within organizations?

    <p>By setting a standard for ethical and professional behavior that employees follow. (B)</p> Signup and view all the answers

    In what way does professionalism extend beyond ethical behavior in business?

    <p>Professionalism emphasizes adherence to industry-specific codes of conduct. (B)</p> Signup and view all the answers

    What role does transparency play in ethical business practices?

    <p>To provide accurate and honest information in operations and decision-making. (B)</p> Signup and view all the answers

    How does fair treatment of employees contribute to ethical business conduct?

    <p>It fosters a positive work environment based on moral principles. (A)</p> Signup and view all the answers

    What is the significance of compliance with legal and environmental regulations in the context of ethical business behavior?

    <p>It showcases a commitment to responsible business practices. (D)</p> Signup and view all the answers

    What negative impact can exploitation of labor have on a business?

    <p>It could damage the company's trust with stakeholders and tarnish its reputation. (D)</p> Signup and view all the answers

    What distinguishes founders' shares from ordinary shares in business investments?

    <p>Founders' shares have higher voting rights. (B)</p> Signup and view all the answers

    How do mutual funds assist investors in reducing risk?

    <p>By pooling funds for diversified investments. (A)</p> Signup and view all the answers

    What is the main objective of Unit Trusts as mentioned in the text?

    <p>To pool investors' money for professional management. (B)</p> Signup and view all the answers

    How do government retail bonds differ from stocks in terms of risk?

    <p>Government retail bonds have lower capital gains potential. (C)</p> Signup and view all the answers

    'Product Liability Insurance' primarily covers claims related to what?

    <p>Defective products causing harm. (B)</p> Signup and view all the answers

    'Compensation for Occupational Injuries and Diseases Act (COIDA)' primarily focuses on providing compensation for:

    <p>Work-related injuries and illnesses. (D)</p> Signup and view all the answers

    What is the primary role of insurance in business?

    <p>Protecting against potential losses from unforeseen events (A)</p> Signup and view all the answers

    How does compound interest differ from simple interest in investment returns?

    <p>Simple interest does not consider any interest earned over time, unlike compound interest. (D)</p> Signup and view all the answers

    What relationship underpins the decision-making process in investment opportunities?

    <p>Positive correlation between risk and return (D)</p> Signup and view all the answers

    Which investment opportunity offers low-risk savings with slightly higher returns than regular savings accounts?

    <p>Government Retail Bonds (B)</p> Signup and view all the answers

    What factor is crucial in making informed investment decisions according to the text?

    <p>Inflation rate (B)</p> Signup and view all the answers

    Why should investors understand their risk tolerance before making investment decisions?

    <p>To align investments with financial goals and time horizons (B)</p> Signup and view all the answers

    What distinguishes mutual funds/Stokvels from managed portfolios in terms of risk management?

    <p>Lower risk through diversification in mutual funds/Stokvels (D)</p> Signup and view all the answers

    Which type of investment provides a diversified portfolio managed by professionals to lower risk?

    <ul> <li>Mutual Funds/Stokvels (B)</li> </ul> Signup and view all the answers

    What is the primary purpose of the Average Clause in insurance policies?

    <p>To calculate compensation for under-insured assets (C)</p> Signup and view all the answers

    What differentiates Indemnity from Utmost Good Faith in insurance principles?

    <p>Indemnity ensures compensation for the exact financial loss, while Utmost Good Faith involves honesty and disclosure of information. (A)</p> Signup and view all the answers

    In the context of insurance, what does 'Insurable Interest' refer to?

    <p>The financial stake the insured must have in the object of insurance (B)</p> Signup and view all the answers

    How does 'Over-insurance' in insurance policies impact claims processing?

    <p>It may require reinstatement instead of cash settlements (D)</p> Signup and view all the answers

    What is the main function of an insurance policy?

    <p>To transfer risk from the insured to the insurer (C)</p> Signup and view all the answers

    How does Compensation for Occupational Injuries and Diseases Act (COIDA) benefit employees?

    <p>By offering compensation for work-related injuries or illnesses (C)</p> Signup and view all the answers

    What distinguishes Unemployment Insurance Fund (UIF) from Road Accident Fund (RAF) in terms of coverage?

    <p>UIF offers relief for unemployment, while RAF compensates road accident victims. (C)</p> Signup and view all the answers

    'Liability Insurance' primarily protects against what type of claims?

    <p>Claims resulting from injuries and damage to people or property (B)</p> Signup and view all the answers

    Why are Non-Compulsory (Voluntary) Insurance policies essential for businesses?

    <p>To manage a variety of risks not covered by compulsory insurance (C)</p> Signup and view all the answers

    What is a key feature of Property Insurance as mentioned in the text?

    <p>Coverage for damage or loss due to specific events like fire (C)</p> Signup and view all the answers

    What is the primary difference between ethical behavior and professional behavior in a business context?

    <p>Ethical behavior is rooted in universal moral principles, while professional behavior is industry-specific. (C)</p> Signup and view all the answers

    How do managed portfolios aim to reduce risk in investments?

    <p>By providing diversified investment managed by professionals. (D)</p> Signup and view all the answers

    What distinguishes product liability insurance from other types of insurance?

    <p>It primarily covers claims related to defective products. (B)</p> Signup and view all the answers

    Why is compliance with legal and environmental regulations considered part of ethical behavior in business?

    <p>To avoid penalties imposed by regulatory bodies. (D)</p> Signup and view all the answers

    What is the significance of fostering open communication in promoting ethical and professional behavior?

    <p>To create an environment where concerns can be voiced without fear of retaliation. (C)</p> Signup and view all the answers

    How do ethics committees contribute to maintaining ethical practices within organizations?

    <p>By resolving ethical dilemmas and reviewing practices. (B)</p> Signup and view all the answers

    What is a key characteristic of successful teams based on the information provided?

    <p>Respectful and courteous interaction with colleagues. (D)</p> Signup and view all the answers

    How does leadership behavior influence ethical and professional conduct within organizations?

    <p>By setting an example of ethical and professional behavior for all employees. (A)</p> Signup and view all the answers

    What does 'Over-insurance' refer to in the context of insurance?

    <p>Insuring against losses that exceed the actual value of the insured property. (C)</p> Signup and view all the answers

    What does the Force Field Analysis technique primarily aim to evaluate?

    <p>Viability of a change initiative (C)</p> Signup and view all the answers

    Which step in the problem-solving process involves executing the chosen solution effectively?

    <p>Choose the Best Solution (B)</p> Signup and view all the answers

    Why is recognizing and rewarding creativity important in fostering a creative environment?

    <p>To acknowledge and encourage innovative ideas and solutions (B)</p> Signup and view all the answers

    Which technique combines individual idea generation with collective decision-making?

    <p>Nominal Group Technique (A)</p> Signup and view all the answers

    What is the primary benefit of fostering creativity in the workplace?

    <p>Enhances problem-solving capabilities (D)</p> Signup and view all the answers

    Which of the following techniques is best suited for gaining insights from external experts but may be time-consuming?

    <p>Delphi Technique (A)</p> Signup and view all the answers

    'Encourage Open Communication' in fostering creativity aims to:

    <p>Foster an atmosphere where employees feel safe to share their ideas (B)</p> Signup and view all the answers

    'Provide Resources and Time' for fostering creative thinking includes:

    <p>'Allocate resources and dedicated time for employees to explore creative solutions' (C)</p> Signup and view all the answers

    What differentiates problem-solving from decision-making?

    <p>Problem-solving identifies problems, while decision-making selects from various solutions. (B)</p> Signup and view all the answers

    Why is creative thinking crucial for maintaining a competitive edge in the modern marketplace?

    <p>To devise innovative solutions and adapt to change (B)</p> Signup and view all the answers

    What is a key characteristic of successful teams, as emphasized in the text?

    <p>Openness and mutual respect (D)</p> Signup and view all the answers

    Which conflict resolution model is mentioned in the text as a strategy for effective conflict management?

    <p>Thomas-Kilmann model (A)</p> Signup and view all the answers

    What is one suggested approach for dealing with difficult personalities within a team?

    <p>Seeking authoritative input when necessary (A)</p> Signup and view all the answers

    How can organizations handle grievances effectively according to the text?

    <p>Addressing grievances in a timely manner (D)</p> Signup and view all the answers

    Which of the following does NOT contribute to successful team performance based on the text?

    <p>Work overload and role ambiguity (A)</p> Signup and view all the answers

    What is the primary purpose of self-assessment in team performance assessment according to the text?

    <p>Identifying behavioral strengths and weaknesses (A)</p> Signup and view all the answers

    Why is conflict management crucial in maintaining a productive team environment?

    <p>'Conflict can disrupt teamwork.' (A)</p> Signup and view all the answers

    What is an essential element of successful teams mentioned in the text?

    <p>'Individual responsibility towards team values.' (C)</p> Signup and view all the answers

    'Understanding intentions and establishing personal connections' are strategies for dealing with what types of personalities within a team setting?

    <p>'Indecisive and negative personalities.' (D)</p> Signup and view all the answers

    What is a crucial difference between problem-solving and decision-making?

    <p>Problem-solving analyzes and resolves issues, while decision-making chooses between solutions. (A)</p> Signup and view all the answers

    Which problem-solving step involves brainstorming possible solutions?

    <p>Evaluate Alternatives (D)</p> Signup and view all the answers

    What is the primary focus of the Force Field Analysis technique?

    <p>Evaluating driving and restraining forces (B)</p> Signup and view all the answers

    What distinguishes the Nominal Group Technique in problem-solving processes?

    <p>It combines individual idea generation with collective decision-making. (B)</p> Signup and view all the answers

    Why is creative thinking crucial for businesses?

    <p>To enhance problem-solving capabilities (B)</p> Signup and view all the answers

    What is a key benefit of fostering open communication in the workplace for creative thinking?

    <p>Improving team collaboration and morale (C)</p> Signup and view all the answers

    Which technique is known for utilizing iterative rounds of questionnaires to reach a consensus?

    <p>Delphi Technique (A)</p> Signup and view all the answers

    'Encourage Open Communication' in fostering creativity aims to:

    <p>Foster an atmosphere for sharing ideas (C)</p> Signup and view all the answers

    'Recognize and Reward Creativity' in fostering a creative environment primarily aims to:

    <p>Acknowledge and reward innovative ideas and solutions (B)</p> Signup and view all the answers

    What distinguishes creative thinking from other types of thinking?

    <p>Involves looking at challenges from fresh perspectives (C)</p> Signup and view all the answers

    What is the fundamental relationship between risk and return in investment decisions?

    <p>Higher risks are usually associated with higher potential returns. (C)</p> Signup and view all the answers

    Which investment option provides a low-risk savings alternative with slightly higher returns than regular savings accounts?

    <p>32-Day Notice Accounts (D)</p> Signup and view all the answers

    How do managed portfolios aim to lower risk for investors?

    <p>By providing diversified investment managed by professionals (C)</p> Signup and view all the answers

    What is the primary characteristic of debentures as mentioned in the text?

    <p>Low-risk investments (D)</p> Signup and view all the answers

    Which investment vehicle offers a way to invest collectively but is susceptible to risks of mismanagement or fraud?

    <p>Mutual Funds/Stokvels (D)</p> Signup and view all the answers

    What distinguishes endowments/retirement annuities as long-term, low-risk investment options?

    <p>Long-term, low-risk investment aimed at building wealth over time (C)</p> Signup and view all the answers

    What does compound interest entail in investment returns?

    <p>Interest calculated on interest, leading to exponentially growing returns (C)</p> Signup and view all the answers

    '32-Day Notice Accounts' offer a savings option with slightly higher returns and _____ liquidity compared to regular savings accounts.

    <p>Less (A)</p> Signup and view all the answers

    'Managed Portfolios' aim to lower risk by providing _____.

    <p>'Managed Portfolios' aim to lower risk by providing diversified investments managed by professionals. (C)</p> Signup and view all the answers

    What distinguishes unit trusts from direct investments in businesses through purchasing shares?

    <p>Unit trusts provide ownership in multiple assets, while direct investments provide ownership in a single business. (B)</p> Signup and view all the answers

    Why is it crucial for businesses to understand the distinctions between ordinary shares and preference shares?

    <p>Ordinary shares and preference shares have different priority levels in terms of dividends and liquidation. (B)</p> Signup and view all the answers

    What is the primary advantage of investing in founders' shares compared to bonus shares?

    <p>Founders' shares have voting rights, while bonus shares do not provide any rights. (D)</p> Signup and view all the answers

    In what way do direct investments in businesses differ from investing in mutual funds?

    <p>Direct investments involve individual decision-making, while mutual funds are managed collectively. (C)</p> Signup and view all the answers

    Why is it essential for investors to understand the various types of securities offered on the Johannesburg Securities Exchange (JSE)?

    <p>To make informed decisions about which securities align with their investment goals. (B)</p> Signup and view all the answers

    Which insurance concept aims to ensure that the insured is compensated for the loss up to the extent of the financial loss suffered?

    <p>Indemnity (D)</p> Signup and view all the answers

    What does 'Over-insurance' in the context of insurance refer to?

    <p>Insurance coverage exceeding the value of the insured item (B)</p> Signup and view all the answers

    Which insurance policy provides compensation to employees injured or diseased through their employment?

    <p>Compensation for Occupational Injuries and Diseases Act (COIDA) (D)</p> Signup and view all the answers

    What is the main goal of Property Insurance in business?

    <p>Cover damage or loss of business property due to specific events (D)</p> Signup and view all the answers

    Which principle in insurance expects both parties to act honestly and disclose all material facts relevant to the policy?

    <p>Utmost Good Faith (Uberrima Fides) (A)</p> Signup and view all the answers

    What does 'Under-insurance' in insurance entail?

    <p>Insurance coverage less than the value of the insured item (C)</p> Signup and view all the answers

    Which type of insurance provides protection against claims arising from injuries or damage to people or property?

    <p>Liability Insurance (C)</p> Signup and view all the answers

    'Indemnity' in insurance ensures that:

    <p>The insured is compensated fairly for their financial losses (A)</p> Signup and view all the answers

    'Utmost Good Faith' in insurance requires:

    <p>'Honesty and disclosure of all material facts by both parties (C)</p> Signup and view all the answers

    What characteristic distinguishes 'Compulsory Insurance' from 'Non-Compulsory Insurance'?

    <p>Mandatory for businesses and individuals by law vs. optional protection chosen by businesses. (A)</p> Signup and view all the answers

    What is the fundamental difference between ethical behavior and professional behavior in business?

    <p>Ethical behavior is universal, while professional behavior is industry-specific. (A)</p> Signup and view all the answers

    How can organizations foster ethical and professional environments according to the text?

    <p>By developing and enforcing codes of conduct. (D)</p> Signup and view all the answers

    Why is it crucial for businesses to engage stakeholders in discussions about ethical practices?

    <p>To involve stakeholders in ethical decision-making processes. (A)</p> Signup and view all the answers

    What does the implementation of ethics committees within organizations aim to achieve?

    <p>To resolve ethical dilemmas and oversee compliance. (C)</p> Signup and view all the answers

    Which challenge do businesses face in maintaining ethical and professional standards according to the text?

    <p>Overcoming dynamic and competitive markets. (B)</p> Signup and view all the answers

    How can organizations demonstrate their commitment to effective performance in a given field?

    <p>Through adherence to industry-specific codes of conduct. (A)</p> Signup and view all the answers

    What is considered unprofessional behavior in business according to the text?

    <p>Breach of confidentiality and misuse of sensitive information. (B)</p> Signup and view all the answers

    Why is compliance with legal and environmental regulations part of ethical behavior in the business context?

    <p>To fulfill responsibilities to society and the environment. (C)</p> Signup and view all the answers

    How does fostering open communication contribute to maintaining ethical and professional standards within organizations?

    <p>By encouraging employees to report unethical behavior without fear of retaliation. (C)</p> Signup and view all the answers

    What role do leaders within an organization play in fostering ethical and professional behavior?

    <p>They exemplify ethical and professional behavior, setting a standard for all employees. (C)</p> Signup and view all the answers

    What are the key criteria for successful team performance mentioned in the text?

    <p>Openness, mutual respect, trust, and commitment (C)</p> Signup and view all the answers

    Which conflict resolution model is referred to in the text for effective conflict management within teams?

    <p>Thomas-Kilmann model (D)</p> Signup and view all the answers

    What approach does the text recommend for dealing with difficult personalities in a team setting?

    <p>Establishing personal connections and showing respect (D)</p> Signup and view all the answers

    What is the primary focus of 'Self-assessment and Team Performance Assessment' as outlined in the text?

    <p>Identifying behavioral strengths and weaknesses for effective roles (A)</p> Signup and view all the answers

    What characteristics are mentioned as essential for successful teams in the text?

    <p>Clear purpose, defined missions and objectives, organized work processes (B)</p> Signup and view all the answers

    Which aspect is crucial for maintaining a productive team environment through conflict management according to the text?

    <p>Using grievance and disciplinary procedures effectively (D)</p> Signup and view all the answers

    What types of difficult personalities are highlighted in the text as potential challenges within a team?

    <p>Complainer, indecisive, over-agreeable, negative personalities (B)</p> Signup and view all the answers

    'Characteristics of Successful Teams' in the text include all but which one of the following?

    <p>'Individualistic focus' (A)</p> Signup and view all the answers

    What do 'Conflict Management' strategies in the text focus on?

    <p>Resolving issues effectively to maintain a productive team environment (D)</p> Signup and view all the answers

    What is highlighted as a crucial factor for successful team performance in the text?

    <p>Positive interpersonal relationships (C)</p> Signup and view all the answers

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