Business 7115 · O Level · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
CHONS is a public limited company. The directors are planning to open a new coal mine. All of the coal will be exported. The Managing Director is optimistic that the Government will permit the coal mine to open. She commented: ‘CHONS always complies with legal controls. In an area with high unemployment, surely creating jobs matters more than protecting the environment. Most stakeholder groups, including shareholders and suppliers, are satisfied. CHONS will not be seeking any Government support.’
(a)[2]
What does the term ‘stakeholder group’ mean?
(b)[2]
Identify two methods, other than 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 in which legal controls could affect CHONS.
(e)[6]
Do you think the Government should permit CHONS to open the coal mine? Justify your response 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: “a person or people with a direct interest in the performance and activities of a business” …