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Chapter 8 business summary R79,33
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Chapter 8 business summary

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With the lengthy and detailed extensive business textbook, it's often difficult to pinpoint and study what's important and of actual relevance, there notes have been made summarising everything that is important in the business chapter, and will assist you to achieve a distinction.

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  • January 5, 2025
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  • 2024/2025
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To evaluate the most suitable investment option
Risk:
High ROI if investment succeeds, big loss if investment fails (ie. gambling).
[Diversification=combination of investment options to spread risks]

ROI:
Tool that measures efficiency of the investment (indicator of what investor will get back
above original investment made)

Timelines (period of investment):
Long period of investment , more risks able to be taken (starting retirement fund at 20yrs vs
50yrs)


Investment strategies include
Chapter 8: Investment




Growth Investment Strategy Balanced Investment
-High risk Strategy
-Long-term capital growth (no -Medium risk
monthly income) -Capital Grosth/Monthly Income
-Shares on JSE, but blue-chip -Equities, interest bearing
reduces risk investment: fixed deposit, property
investment (monthly rent income)




Conservative Investment
Defensive Investment Strategy
-low risk Strategy
-Monthly Income + some Capital -preferably Low risk
Growth -Monthly income+Capital amount
-Property investments+ money in invested
the bank (smaller investment in -Property=monthly income+capital
equities) growth
-Cash instruments= monthly income


Investments also include: Equities/Shares, Debentured, Retirement Annunities+Pension Funds,
Endownments, Offshore Investments, Unit Trusts, Collectibles, Notice Deposits, Fixed Property

1.Equities/Shares
Owners of these own a portion of the business :
-Shares bought from company for 1st time (owner contributes to business capital)
-Shares bought on JSE from prev. shareholder (no impact on business capital)

Company is JSE listed Company is JSE unlisted
Shares/Equities performance Financial position NOT AVALIABLE around
is regularly avaliable public except shareholders, banks,
SARs,creditors. Public can’t measure ROI

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