Business 7115 · O Level · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
SBG produces a variety of items, including specialist paints. It operates 6 factories and employs 700 workers. Every one of SBG’s employees is encouraged to take part in decision-making. SBG’s products are exported to 16 countries, with wholesalers forming its main distribution route. The Managing Director stated: “Our objectives are to grow and make a profit.” He also understands that every business activity generates externalities for SBG’s stakeholder groups.
(a)[2]
Define the term ‘externalities’.
(b)[2]
Define the term ‘stakeholder groups’.
(c)[4]
Outline two reasons why profit may be important to SBG.
(d)[6]
Explain two ways SBG can get its employees involved in decision-making.
(e)[6]
Do you think using wholesalers is the best method for a large business to distribute its products? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Effects on third parties arising from production or consumption without compensation” …