Business 7115 · O Level · Internal and external communication
Internal and external communication — practice question
DNG supplies electricity to 16 million customers. It operates as a limited company, so DNG’s shareholders have the protection of limited liability. DNG plans to end the use of coal in generating its electricity. Pressure groups have helped shape this decision. The Managing Director understands that changing to this approach will involve an opportunity cost. She is thinking about the most suitable way to pass this key information on to DNG’s 6500 employees.
(a)[2]
Define the term ‘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 be an advantage for 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 that 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 alternative that is next best and is foregone / given up” …