Business Studies_Gr.12_ Investments | Lameez Mushfieldt_218159528

Introduction

What is an investment?       

An investment is a financial asset or a physical asset that is bought in the hope that it will increase in value and/or generate an income in the future!

Business investments are usually divided into capital investment and financial investment.

When a business buys property, buildings, or machinery it is investing money in these items which is referred to as capital investment.

When a business puts money into a bank account that will earn interest then it is investing this money, which is referred to as a financial investments 

 

Task

1. Read the case study carefully!

2.Learners is required to write an in-detail essay answering the below:

  • Task 1: Explain each investment option listed.
  • Task 2: Describing the risk involved
  • Task 3: Calculate the return-on-investment (show ALL calculations).
  • Task 4: Recommend the best investment option to your client and motivate your recommendation!

 

Process

1. The learners will read the case study with understanding.

                                                                                CASE STUDY

You are the financial advisor who must assist a client who wants to invest R5 million for three years in ONE of the following investment options:

  • A fixed-deposit bank account for three years at simple interest of 8,5% per year.
  • Shares in well-known listed company at R5 per share. Dividends of 95 cents per share have been paid out in the past two years. The directors have indicated that this amount will not change for the next three years.
  • Government retail bonds for three years at 8% per year, compounded annually.
  • A small shopping centre with 10 shopping outlets (units). Rent per unit will be fixed at R60 000 per year for the next three years.

2.  Essay Writing:  

Layout: 

INTRODUCTION 
BODY 
CONCLUSION 

Learners is required to be able to identify the investments mentioned in the case study.

  • The learners will open the link, that is provided. They will have the option to read it online or download the document as a pdf.  https://wcedportal.co.za/eresources/13606
  • This link will present to them all the valid and relevant information needed in order to answer: - task 1, -task 2,-task 3,-task 4

3. Below I have attached YouTube links, that will be explaining all the important facts relevant to the tasks.

Evaluation

                                                                                               

Evaluation Rubric: Guidelines for the learners

 

15-20 marks

10-15 marks

10-5 marks

5-4 marks

0-1 marks

Comprehension of text

Shows a thorough and thoughtful understanding of the text.

Shows a comprehensive understanding of the text.

Show basic understanding of the text.

Shows a limited understanding of the text.

Shows little understanding of the text.

Organization

Essay is well-organized including a strong intro, that directly connect to the body paragraphs and thought-provoking conclusion

Essay is organized, and all necessary elements are presented. Conclusion is not well-supported.

Essay is somewhat organized. Intro is weak and body paragraphs do not connect well to the topic.

Essay needs to be better organized. Includes fewer information that is required in the body.

Essay is one paragraph or does not have any appearance of organization.

Conclusion

My aim for you to benefit from this lesson is to become a savvy investor. You must be wondering, teacher! we still learners how do this benefit us, we not financial stable, GUESS WHAT ! You can become an investor with the pocket money you receive.

You confuse and want to know HOW? You know your budget and by learning the types of investments you know what investment suits you best.

                                                                                        SCENARIO

If you start 1st of February and you save as little as R5 everyday, how much will you save for the year until 31st December ? Which equivalent 334 days you saving.

                                                                            Calculation:   

                                                                                    you will be saving R1670

 

Credits

Nkosi, H. (2020). Grade 12 -Business Studies | JSE, Investment Decisions. Available at: https://youtu.be/S14FvSecic8. (Accessed: 18 May 2021)

Nkosi, H. (2020). Grade 12 -Business Studies | Investment Decisions, Investment Types,. Available at: https://youtu.be/7ev0xR88hnE. (Accessed: 18 May 2021)

Nkosi, H. (2020). Grade 12 -Business Studies | Investment Types, Forms of Investments. Available at: https://youtu.be/2bqaKjux4o8. (Accessed: 18 May 2021)

Nkosi, H. (2020). Grade 12 -Business Studies | Forms of Investments,. Available at: https://youtu.be/n7PKRV-HZ2M. (Accessed: 18 May 2021)

Pinnock, A., 2014. Business Studies. 1st ed. Cape Town: The Answer.

Anon., 2020. Western Cape Government Education. [Online] Available at: https://wcedeportal.co.za/eresources/131606 [Accessed 18 05 2021].

Teacher Page

The reason for letting you do this lesson is for you to benefit from it and become successful investors. 

You should now understand the following:

  • You will now be able to analyse the risk factor for each type of investment opportunity.
  • Understand the types of shares (by being able to: name, describe, explain, and discuss)
  • Calculate the return on investment.

With you being able to learn, this section of the content, I hope you understand the importance of business studies as a subject, because this is a subject you will be able to use beyond the classroom but also in real life situations.

 

MS LAMEEZ MUSHFIELDT 

218159528