Business Studies June Exam P2 (Medium)
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Questions and Answers

What is the main purpose of the Johannesburg Securities Exchange (JSE)?

  • To exclusively deal in mutual funds
  • To provide venture capital to start-up businesses
  • To provide a platform for trading in various financial instruments (correct)
  • To offer insurance services to individuals and businesses

What distinguishes ordinary shares, preference shares, bonus shares, and founders' shares from each other?

  • The geographical location where they are traded
  • The rights and returns they offer (correct)
  • The industry sector they belong to
  • The level of risk associated with each type

What is the main function of unit trusts in the realm of investments?

  • Allow investors to pool their money into a professionally managed fund (correct)
  • Provide loans to businesses in need of capital
  • Offer insurance against investment losses
  • Provide tax benefits to individual investors

How do direct business investments through purchasing shares differ from unit trusts?

<p>Direct investments give shareholders more control over their investments (A)</p> Signup and view all the answers

In the context of securities investments, what role do bonus shares play?

<p>Providing additional shares to existing shareholders for free (B)</p> Signup and view all the answers

Why is it important for individuals and businesses to understand different investment opportunities like venture capital?

<p>To maintain financial growth and stability (C)</p> Signup and view all the answers

What is the main purpose of insurance in business?

<p>Managing risks effectively (B)</p> Signup and view all the answers

Which insurance type compensates individuals injured in road accidents?

<p>Road Accident Fund (RAF) (C)</p> Signup and view all the answers

What does the 'Average Clause' help determine in insurance claims?

<p>Compensation for under-insured items (C)</p> Signup and view all the answers

What principle ensures that the insured is compensated for the loss suffered, no more and no less?

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

Which insurance type covers legal and court costs in defending claims of bodily harm from defective products?

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

What role does the 'Reinstatement Value' play in insurance?

<p>Replacing damaged property instead of cash payout (D)</p> Signup and view all the answers

'Compulsory Insurance' is mandated by law to provide what level of protection?

<p>Minimum protection for employees or public or both (B)</p> Signup and view all the answers

'Non-Compulsory (Voluntary) Insurance' is important for businesses because it:

<p>Is crucial for protecting against various risks (B)</p> Signup and view all the answers

What is the significance of 'Insurable Interest' in insurance?

<p>Ensuring a financial interest in the insured object (D)</p> Signup and view all the answers

In cases of over-insurance, what option may the insurer choose regarding damaged property?

<p>Reinstate or replace the damaged property (B)</p> Signup and view all the answers

What distinguishes compound interest from simple interest?

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

Which investment option is characterized as a low-risk savings choice with slightly higher returns than a regular savings account?

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

What is the primary factor influencing the risk associated with investment opportunities?

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

In what way do mutual funds and Stokvels differ from managed portfolios in terms of risk management?

<p>Mutual funds/Stokvels offer lower risk through diversification. (D)</p> Signup and view all the answers

What is the primary reason for the high risk associated with venture capital investments?

<p>Involvement in startups or expanding businesses (B)</p> Signup and view all the answers

Which type of investment offers low-risk opportunities aimed at building wealth over time?

<p>Endowments/Retirement Annuities (B)</p> Signup and view all the answers

What guides the choice of investment according to the text?

<p>Financial goals, risk tolerance, and investment horizon (D)</p> Signup and view all the answers

'Government Retail Bonds' are suitable for investors primarily looking to ___.

<p>Preserve capital while earning interest (C)</p> Signup and view all the answers

'Debentures' are described as being issued by companies and considered ___.

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

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

<p>Problem-solving identifies, analyzes, and resolves issues, while decision-making involves choosing a course of action. (A)</p> Signup and view all the answers

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

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

What is the essence of fostering creative thinking in the workplace?

<p>Encouraging innovation and flexibility (C)</p> Signup and view all the answers

How can businesses create a conducive environment for creativity?

<p>Recognizing and rewarding creativity (C)</p> Signup and view all the answers

Which step in the problem-solving process involves brainstorming possible solutions?

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

What does Force Field Analysis examine to evaluate the viability of a change initiative?

<p>Driving and restraining forces (D)</p> Signup and view all the answers

Why is providing resources and dedicated time important in fostering creative thinking?

<p>To allow employees the opportunity to explore innovative solutions (C)</p> Signup and view all the answers

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

<p>Ethical behavior is guided by moral principles, while professional behavior involves adherence to industry-specific standards. (D)</p> Signup and view all the answers

Which of the following would be considered an example of professional behavior in business?

<p>Continuous professional development and skill enhancement. (C)</p> Signup and view all the answers

What is a key aspect of fostering ethical and professional environments in organizations?

<p>Regular review of ethical codes to ensure alignment with laws and regulations. (A)</p> Signup and view all the answers

How can unethical business practices impact a company's reputation?

<p>They can damage trust and credibility with customers and the community. (B)</p> Signup and view all the answers

What role do ethics committees play in maintaining ethical and professional standards within an organization?

<p>They resolve ethical dilemmas and review practices. (C)</p> Signup and view all the answers

Why is transparency in operations considered an example of ethical behavior in business?

<p>To maintain trust with stakeholders through open communication. (B)</p> Signup and view all the answers

How do professional behaviors differ from unprofessional practices in a business setting?

<p>Professional behaviors include continuous skill enhancement. (B)</p> Signup and view all the answers

Why is adherence to industry-specific codes of conduct considered an example of professional behavior?

<p>To demonstrate commitment to effective performance in a given field. (D)</p> Signup and view all the answers

What is the significance of leadership by example in promoting ethical and professional behavior within an organization?

<p>It sets a standard for all employees and reinforces ethical and professional values. (D)</p> Signup and view all the answers

How can unethical business practices impact stakeholder relationships?

<p>They can damage trust and rapport with stakeholders, including customers and investors. (B)</p> Signup and view all the answers

What is essential for effective team performance according to the text?

<p>Clear objectives and mutual respect (A)</p> Signup and view all the answers

Which approach could help in managing conflicts within a team?

<p>Promoting open communication and understanding (C)</p> Signup and view all the answers

What is a characteristic of successful teams as mentioned in the text?

<p>Balanced skills, knowledge, and expertise (A)</p> Signup and view all the answers

Which personality type poses challenges in a team setting according to the text?

<p>Aggressive and confrontational personality (C)</p> Signup and view all the answers

How can conflict be addressed effectively within a team based on the text?

<p>Using structured conflict resolution models (A)</p> Signup and view all the answers

What is the purpose of self-assessment and team performance assessment as described in the text?

<p>To identify behavioral strengths and weaknesses for effective contribution (C)</p> Signup and view all the answers

Why is conflict management considered crucial in a team environment?

<p>To maintain a productive team environment (A)</p> Signup and view all the answers

Which method can be employed to handle grievances effectively in an organization?

<p>&quot;Structured approach&quot; with timely resolution of reported grievances (C)</p> Signup and view all the answers

What action can help in dealing with difficult personalities in a team setting?

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

What is the primary function of the Johannesburg Securities Exchange (JSE)?

<p>Selling various financial instruments like stocks and bonds (D)</p> Signup and view all the answers

What distinguishes preference shares from ordinary shares in business investments?

<p>Preference shares yield higher returns compared to ordinary shares (A)</p> Signup and view all the answers

What role do unit trusts play in the realm of investments?

<p>Pooling investors' money into a single fund managed by professionals (C)</p> Signup and view all the answers

In what way do bonus shares differ from founders' shares in business investments?

<p>Bonus shares are offered to existing shareholders for free (D)</p> Signup and view all the answers

How do mutual funds differ from venture capital in terms of investment opportunities?

<p>Mutual funds are low-risk with moderate returns, while venture capital carries high risk for potentially high returns (A)</p> Signup and view all the answers

What distinguishes managed portfolios from unit trusts in terms of investment management?

<p>'Managed portfolios' are managed by individuals, while 'unit trusts' are self-managed by investors (D)</p> Signup and view all the answers

What distinguishes ethical behavior from professional behavior in a business context?

<p>Ethical behavior is based on individual moral values, while professional behavior focuses on organizational guidelines. (A)</p> Signup and view all the answers

How can businesses promote ethical and professional conduct among employees according to the text?

<p>By having leadership demonstrate ethical and professional behavior as a standard. (A)</p> Signup and view all the answers

What is the primary function of codes of conduct in fostering ethical and professional environments within organizations?

<p>To provide clear guidelines on expected behaviors and consequences of unethical actions. (C)</p> Signup and view all the answers

Why is transparency considered an example of ethical behavior in business practices?

<p>To provide clear and truthful information about operations and decision-making. (C)</p> Signup and view all the answers

How does professionalism differ from unprofessionalism in a business setting?

<p>Professionalism embodies adherence to codes of conduct, while unprofessionalism encourages negligence in fulfilling job responsibilities. (B)</p> Signup and view all the answers

How can organizations address challenges in maintaining ethical and professional standards?

<p>By establishing ethics committees to oversee compliance and resolve dilemmas. (A)</p> Signup and view all the answers

Why is honesty in advertising crucial for businesses practicing ethical behavior?

<p>To build trust with customers by providing accurate information. (C)</p> Signup and view all the answers

What role does respect play in fostering a professional environment within a business?

<p>'Respect' encourages courteous interactions and effective collaboration among stakeholders. (B)</p> Signup and view all the answers

'Continuous professional development' entails which of the following actions?

<p>'Continuous professional development' requires ongoing skill enhancement throughout one's career. (D)</p> Signup and view all the answers

'Negligence in fulfilling job responsibilities' is considered an example of which kind of conduct?

<p>'Negligence' falls under unprofessional behavior as it violates expected duties. (D)</p> Signup and view all the answers

What is the primary purpose of government retail bonds?

<p>Offer low-risk investments with fixed returns (A)</p> Signup and view all the answers

What distinguishes compound interest from simple interest?

<p>Compound interest leads to exponentially growing returns (C)</p> Signup and view all the answers

What is the key factor that determines the relationship between risk and return in investments?

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

What makes debentures attractive as investment options?

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

Why are endowments and retirement annuities considered long-term investment options?

<p>To build wealth over time (A)</p> Signup and view all the answers

In what way do mutual funds differ from managed portfolios?

<p>Mutual funds are less susceptible to the risks of mismanagement or fraud (B)</p> Signup and view all the answers

What is essential when choosing an investment opportunity that aligns with one's financial goals?

<p>Aligning with financial goals, risk tolerance, and investment horizon (B)</p> Signup and view all the answers

Why should understanding economic indicators be a part of making informed investment decisions?

<p>To navigate the complexities of financial markets better (B)</p> Signup and view all the answers

How do 32-Day Notice Accounts compare to regular savings accounts?

<p>Higher liquidity but lower returns (B)</p> Signup and view all the answers

What is the significance of understanding the risk and return relationship in investment decisions?

<p>To make informed decisions based on individual risk tolerance (C)</p> Signup and view all the answers

What distinguishes problem-solving from decision-making?

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

Which problem-solving step involves assessing the feasibility and potential impact of each solution?

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

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

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

What is the essence of fostering creative thinking in the workplace?

<p>Involves looking at situations from fresh perspectives to devise innovative solutions (C)</p> Signup and view all the answers

Which factor is crucial for adapting to change, enhancing productivity, and maintaining a competitive edge?

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

How can businesses create a conducive environment for creativity?

<p>Recognizing and rewarding creativity (A)</p> Signup and view all the answers

What is the primary function of insurance in business?

<p>To manage risks effectively and ensure operational continuity (C)</p> Signup and view all the answers

What principle ensures that the insured is compensated for the loss suffered, no more and no less?

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

Why is 'Utmost Good Faith' important in insurance policies?

<p>To ensure honesty and full disclosure between the insurer and insured (D)</p> Signup and view all the answers

What type of insurance compensates individuals injured in road accidents?

<p>Road Accident Fund (RAF) (B)</p> Signup and view all the answers

In insurance, what does 'Reinstatement Value' refer to?

<p>Replacing damaged property instead of cash settlement (D)</p> Signup and view all the answers

Why is 'Insurable Interest' crucial in insurance?

<p>To ensure a legal or financial stake in the insured item (A)</p> Signup and view all the answers

What is the main purpose of 'Average Clause' in insurance claims?

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

Why is 'Compulsory Insurance' mandated by law for businesses and individuals?

<p>To provide a minimum level of protection for employees and the public (D)</p> Signup and view all the answers

'Liability Insurance' primarily protects against claims resulting from:

<p>Injuries and damage to people or property (B)</p> Signup and view all the answers

'Over-insurance' occurs when:

<p>'The value of coverage exceeds the value of the insured item' (C)</p> Signup and view all the answers

What is a key element for successful team performance according to the text?

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

Which technique is recommended in conflict management for resolving issues?

<p>Implementing grievance and disciplinary procedures (C)</p> Signup and view all the answers

How can teams effectively handle grievances based on the information provided?

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

Which type of personality could potentially disrupt team cohesion according to the content?

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

What is a characteristic of successful teams as outlined in the provided material?

<p>Balanced skills, knowledge, and expertise (B)</p> Signup and view all the answers

Why is conflict management essential in a team setting based on the information given?

<p>To maintain a productive team environment (C)</p> Signup and view all the answers

Which approach is recommended for dealing with difficult personalities in a team based on the text?

<p>Respecting the individual's opinions and intentions (B)</p> Signup and view all the answers

Why is self-assessment important in team performance assessment according to the content?

<p>To identify behavioral strengths and weaknesses for effective contribution (A)</p> Signup and view all the answers

What role does openness play in successful team performance as mentioned in the text?

<p>Promoting collaboration and effective communication (B)</p> Signup and view all the answers

How does conflict arise in a team setting according to the provided information?

<p>Arising from differences in background, opinions, and personalities (C)</p> Signup and view all the answers

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

<p>To offer a platform for trading stocks and bonds (A)</p> Signup and view all the answers

Which type of shares offers different rights and returns compared to ordinary shares in business investments?

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

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

<p>Unit trusts are managed by professionals (D)</p> Signup and view all the answers

In the realm of securities investments, what role do bonus shares typically play?

<p>Acting as an incentive to existing shareholders (D)</p> Signup and view all the answers

Which investment opportunity provides a way for businesses to raise capital and allows investors to own a share of those businesses?

<p>Securities like stocks and bonds (C)</p> Signup and view all the answers

What role does insurance play in ensuring business sustainability?

<p>Providing strategic risk management (C)</p> Signup and view all the answers

In insurance, what does 'Indemnity' principle aim to achieve?

<p>Compensating to the extent of the financial loss suffered (A)</p> Signup and view all the answers

What is the legal or financial requirement that an insured must have in an insurance policy?

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

What distinguishes over-insurance from under-insurance in insurance coverage?

<p>Over-insurance exceeds the value of the insured item, under-insurance falls short (D)</p> Signup and view all the answers

What is the purpose of 'Average Clause' in insurance claims?

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

Which type of insurance is designed to compensate individuals for injuries and medical expenses in road accidents?

<p><strong>Road Accident Fund (RAF)</strong> (B)</p> Signup and view all the answers

What important ethical and legal expectation do both parties in an insurance contract need to adhere to?

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

Why are non-compulsory insurance policies crucial for businesses?

<p><strong>They help manage risks effectively</strong> (A)</p> Signup and view all the answers

'Liability Insurance' primarily protects businesses against claims resulting from which scenarios?

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

What kind of insurance compensates employees who are injured through their employment?

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

Which process involves identifying, analyzing, and resolving problems through a structured sequence of steps?

<p>Problem-solving (B)</p> Signup and view all the answers

What distinguishes problem-solving from decision-making?

<p>Problem-solving involves resolving issues through a series of steps. (C)</p> Signup and view all the answers

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

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

What is the primary purpose of the Delphi Technique?

<p>Utilizes expertise to reach a consensus (A)</p> Signup and view all the answers

Which step in the problem-solving process involves assessing the feasibility and impact of potential solutions?

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

What distinguishes Brainstorming as a problem-solving technique?

<p>Quick generation of a wide range of ideas (D)</p> Signup and view all the answers

In problem-solving, what is the significance of implementing the chosen solution effectively?

<p>Executing the chosen solution properly (B)</p> Signup and view all the answers

Which technique examines driving and restraining forces to evaluate change initiatives?

<p>Force Field Analysis (A)</p> Signup and view all the answers

What is a distinguishing feature of the Force Field Analysis technique?

<p>Examines driving and restraining forces for change initiatives (C)</p> Signup and view all the answers

How does the Delphi Technique differ from Brainstorming?

<p>Utilizes external experts to reach agreement (D)</p> Signup and view all the answers

What distinguishes compound interest from simple interest?

<p>It involves interest on interest (A)</p> Signup and view all the answers

Which investment option is characterized by providing diversified investment managed by professionals to lower risk?

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

What is the primary purpose of debentures as investment options?

<p>Low-risk returns (B)</p> Signup and view all the answers

Which factor should individuals consider to align their investment choices with their financial goals?

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

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

<p>Stocks offer higher returns with lower risk than government bonds. (A)</p> Signup and view all the answers

Why are endowments and retirement annuities considered low-risk investment options?

<p>They offer fixed returns over time (B)</p> Signup and view all the answers

What is the fundamental principle underlying most investment decisions?

<p>Relationship between risk and return (B)</p> Signup and view all the answers

Why are mutual funds and stokvels susceptible to risks according to the text?

<p>[They are often subject to mismanagement or fraud] (A)</p> Signup and view all the answers

What factor plays a crucial role in making informed investment decisions according to the text?

<p>Economic indicators (C)</p> Signup and view all the answers

What is the main distinction between managed portfolios and 32-Day Notice Accounts?

<p>Managed portfolios are professionally diversified (C)</p> Signup and view all the answers

What distinguishes ethical behavior from professional behavior in a business context?

<p>Ethical behavior is rooted in moral principles, while professional behavior is influenced by organizational codes. (D)</p> Signup and view all the answers

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

<p>By regularly updating ethical codes and engaging stakeholders. (A)</p> Signup and view all the answers

What is the primary purpose of codes of conduct in a business setting?

<p>To outline expected behaviors and consequences of unethical actions. (B)</p> Signup and view all the answers

Which factor influences the conduct of professional behavior in a given field?

<p>Skills and attributes that demonstrate commitment to effective performance. (B)</p> Signup and view all the answers

Why is transparency essential in business operations?

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

What contributes to professionalism in business beyond ethical behavior?

<p>Continuous professional development along with skills enhancement. (A)</p> Signup and view all the answers

How can unethical business practices impact an organization's reputation?

<p>Damage credibility and trustworthiness. (C)</p> Signup and view all the answers

What can organizations do to address challenges in maintaining ethical standards?

<p>Regularly review ethical codes and involve stakeholders. (D)</p> Signup and view all the answers

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

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

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

<p>To resolve differences and maintain productivity (A)</p> Signup and view all the answers

What is the primary purpose of self-assessment in team performance evaluation?

<p>To identify behavioral strengths and weaknesses (B)</p> Signup and view all the answers

Which approach is recommended for dealing with difficult personalities in a team setting?

<p>Establishing personal connections and understanding intentions (B)</p> Signup and view all the answers

How can conflict resolution strategies contribute to effective teamwork?

<p>By addressing and resolving issues constructively (C)</p> Signup and view all the answers

What role does continuous evaluation play in fostering creativity within an organization?

<p>Encourages refinement of creativity strategies (C)</p> Signup and view all the answers

Why is trust considered a vital element for successful team performance?

<p>To foster collaboration and respect among team members (D)</p> Signup and view all the answers

What differentiates successful teams from unsuccessful ones based on the text?

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

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

<p>To provide a marketplace for trading stocks and bonds (B)</p> Signup and view all the answers

What distinguishes unit trusts as investment options?

<p>They involve pooling money into a managed fund (D)</p> Signup and view all the answers

Which type of shares offers different rights and returns to investors?

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

Why do businesses invest in securities like stocks and bonds?

<p>To raise capital (A)</p> Signup and view all the answers

What is the main purpose of direct investments in businesses through share purchases?

<p>To gain ownership stakes in those businesses (C)</p> Signup and view all the answers

How do business ventures benefit from securities like stocks and bonds?

<p>By offering a marketplace to raise capital (D)</p> Signup and view all the answers

What distinguishes compound interest from simple interest in investment?

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

What factor plays a crucial role in determining the viability of investment opportunities?

<p>Return on investment (ROI) (C)</p> Signup and view all the answers

Which investment option provides slightly higher returns than a regular savings account but has less liquidity?

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

What principle is fundamental in the relationship between risk and return in investments?

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

Why are government retail bonds suitable for individual investors preserving capital?

<p>They have very low chances of default and provide fixed returns. (A)</p> Signup and view all the answers

Which type of investment involves investing in startups or expanding businesses with high risk and high potential returns?

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

What should an investor consider when choosing between government bonds and stocks?

<p>'Government bonds are secure with lower returns, while stocks offer high returns but with increased risk.' (A)</p> Signup and view all the answers

'Endowments/Retirement Annuities' aim at building wealth over time by providing what kind of return?

<p>'Long-term, low-risk options offering a fixed return.' (C)</p> Signup and view all the answers

'Managed Portfolios' are known for what characteristic that contributes to lowering investment risks?

<p>'Diversified investments managed by professionals.' (A)</p> Signup and view all the answers

What should investors primarily focus on when considering mutual funds/Stokvels as investment options?

<p>The potential risks associated with mismanagement or fraud. (D)</p> Signup and view all the answers

What is the critical role of insurance in business sustainability?

<p>A strategic tool for managing risks effectively. (A)</p> Signup and view all the answers

What does the principle of 'Indemnity' ensure?

<p>Compensation to the extent of the financial loss suffered, no more, no less. (A)</p> Signup and view all the answers

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

<p>To calculate compensation when an asset is under-insured. (A)</p> Signup and view all the answers

Why is 'Utmost Good Faith (Uberrima Fides)' important in insurance policies?

<p>To encourage honesty and full disclosure between both parties. (D)</p> Signup and view all the answers

What differentiates compulsory insurance from non-compulsory insurance?

<p>Compulsory insurance is mandated by law, while non-compulsory isn't. (C)</p> Signup and view all the answers

How does 'Over-insurance' differ from 'Under-insurance'?

<p>'Over-insurance' means the coverage value exceeds the item's value, while 'Under-insurance' means the opposite. (A)</p> Signup and view all the answers

What does 'Insurable Interest' require of the insured?

<p>To have a legal or financial interest in the insured object. (C)</p> Signup and view all the answers

'Reinstatement Value' in insurance policies refers to:

<p>The option for insurers to reinstate damaged property instead of cash payouts in cases of over-insurance. (B)</p> Signup and view all the answers

'Liability Insurance' primarily protects against claims related to:

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

What is one of the key principles guiding insurance policies?

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

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

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

In the context of unethical business practices, what does 'Misleading advertising or product misrepresentation' exemplify?

<p>Exploitation of labor (B)</p> Signup and view all the answers

What strategy can organizations use to promote ethical and professional environments by setting clear guidelines?

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

What contributes to professionalism in business beyond ethical and professional standards?

<p>Continuous professional development (C)</p> Signup and view all the answers

Which aspect is crucial for maintaining trust with stakeholders in a business environment?

<p>Transparency in operations (C)</p> Signup and view all the answers

What differentiates unethical business practices from professional behavior?

<p>Exploitation of labor (B)</p> Signup and view all the answers

Which measure can help address challenges related to maintaining ethical and professional standards in dynamic markets?

<p>Regular review of ethical codes (B)</p> Signup and view all the answers

Why should businesses involve stakeholders in discussions about ethical practices and corporate responsibility?

<p>To ensure the alignment of ethical practices with societal expectations (A)</p> Signup and view all the answers

What can organizations implement to foster transparency in operations and decision-making?

<p>Compliance with legal and environmental regulations (A)</p> Signup and view all the answers

How can businesses uphold fair treatment of employees and safe working conditions?

<p>Compliance with legal and environmental regulations (A)</p> Signup and view all the answers

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

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

Which problem-solving step involves reviewing the solution's effectiveness and making necessary adjustments?

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

Which problem-solving technique utilizes a panel's expertise through iterative questionnaires to reach a consensus?

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

What is the essence of creative thinking in the workplace?

<p>Devise innovative solutions by looking from fresh perspectives (C)</p> Signup and view all the answers

Which factor is crucial for fostering creative thinking in the workplace?

<p>Recognizing and rewarding creativity (A)</p> Signup and view all the answers

In problem-solving, what does the 'Evaluate Alternatives' step entail?

<p>Assessing the feasibility and impact of each solution (B)</p> Signup and view all the answers

What technique examines driving and restraining forces to evaluate the viability of a change initiative?

<p>Force Field Analysis (C)</p> Signup and view all the answers

What is a key characteristic of successful teams according to the text?

<p>Balancing skills, knowledge, and expertise (B)</p> Signup and view all the answers

What is an essential aspect of conflict management in a team environment based on the information provided?

<p>Resolving issues using disciplinary procedures (A)</p> Signup and view all the answers

How can organizations promote creativity effectively based on the text?

<p>Implementing structured approaches to problem-solving (D)</p> Signup and view all the answers

Which of the following is a recommended method for handling grievances in the workplace?

<p>Escalating grievances through organizational hierarchies (B)</p> Signup and view all the answers

What is a common challenge in dealing with difficult personalities within a team setting?

<p>Understanding intentions of difficult personalities (B)</p> Signup and view all the answers

Why is self-assessment important for team performance according to the text?

<p>To identify behavioral strengths and weaknesses for effective contribution (B)</p> Signup and view all the answers

What is a critical factor in effective team performance based on the information provided?

<p>Regular progress reviews to track team objectives (C)</p> Signup and view all the answers

Why is mastering creative thinking essential for businesses in dynamic environments?

<p>To navigate challenges effectively and seize innovation opportunities (A)</p> Signup and view all the answers

What does ensuring open communication and trust contribute to in successful teams?

<p>Fostering positive interpersonal relationships and mutual respect (C)</p> Signup and view all the answers

What should organizations do regularly to adapt to evolving business landscapes?

<p>Regularly evaluate and refine strategies for promoting creativity (C)</p> Signup and view all the answers

What is a critical aspect of maintaining trust within a team environment?

<p>Fostering open communication (B)</p> Signup and view all the answers

Why is self-assessment important in identifying roles within a team?

<p>To ensure each member contributes effectively to the team's objectives (D)</p> Signup and view all the answers

What is a common characteristic of difficult personalities within a team setting?

<p>Inability to adapt to changing circumstances (A)</p> Signup and view all the answers

Which model is commonly used for conflict management in a team environment?

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

What is an essential characteristic of successful teams according to the text?

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

How can conflict be beneficial in a team setting?

<p>By bringing underlying issues to the surface for resolution (A)</p> Signup and view all the answers

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