Business 0450 · IGCSE · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
CHONS is a public limited company. The directors plan to open a new coal mine. All of the coal would be exported. The Managing Director is hopeful that the Government will permit the coal mine to open. She said: ‘CHONS always complies with legal controls. In an area with high unemployment, surely creating jobs is more important than protecting the environment. Most stakeholder groups, including shareholders and suppliers, are satisfied. CHONS will not be asking for any Government support.’
(a)[2]
What does the term ‘stakeholder group’ mean?
(b)[2]
Identify two methods, apart from legal controls, that a government could use to influence business decisions.
(c)[4]
Identify and explain one benefit and one drawback of CHONS being a public limited company.
(d)[6]
Identify and explain two ways legal controls could affect CHONS.
(e)[6]
Do you think the Government should permit CHONS to open the coal mine? Justify your answer using the information in Table 3.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Any person or people who have a direct interest in a business’s performance and activities” …