Investments & Analysis

Term Deposit Definition

Money locked in a bank account for a fixed period to earn a set interest rate

Term Deposit Pros

Extremely safe, guaranteed fixed return.

Term Deposit Cons

Low interest rates, money is locked up and cannot be accessed early without penalties.

Shares Definition

Units of ownership in a company that give the buyer a claim on part of its profits and assets

Shares Pros

Offers high potential returns through dividends and capital growth, and is highly liquid for easy buying and selling

Shares Cons

High risk, market value fluctuates daily, you can lose your money.

New business Definition

A recently launched commercial enterprise created by an entrepreneur to offer goods or services to the market

New Business Pros

Highest potential profit, you are your own boss, control over decisions.

New Business Cons

Massive time commitment, highest risk of failure, requires a lot of capital to start

Extended Response: The Formula

Analyse: Define it, plus pros and cons

Evaluate: Compare options to show why one is better Recommend: Make a final choice based on time and risk