Business 0450 · IGCSE · Internal and external communication
Internal and external communication — practice question
DNG supplies electricity to 16 million customers. It is a limited company, so DNG’s shareholders enjoy limited liability. DNG plans to end the use of coal when generating its electricity. Pressure groups had an effect on this choice. The Managing Director understands that changing in this way will involve an opportunity cost. She is weighing up the most effective way to pass this important information on to DNG’s 6500 employees.
(a)[2]
Define ‘opportunity cost’.
(b)[2]
Identify two drawbacks of using the number of employees to measure the size of a business.
(c)[4]
Outline how limited liability could help DNG’s shareholders.
(d)[6]
Explain two ways in which a pressure group could affect DNG’s decisions.
(e)[6]
Explain two internal communication methods a large business could use to pass important information to its employees. Justify which method ought to be used.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The next best alternative that is forgone or sacrificed” …