CHONS is a public limited company. The directors want to open a new coal mine. All the coal will be exported. The Managing Director is hopeful that the Government will allow the coal mine to be opened. She said: ‘CHONS always meets legal controls. In an area of high unemployment surely creating jobs is more important than protecting the environment. Most stakeholder groups including shareholders and suppliers are happy. CHONS will not be asking for any Government support.’ Table 3: Information about the proposed coal mine 50m tonnes per year Planned output 60 years Number of years coal mine will operate Jobs created High Level of waste products causing pollution High Risk of traffic problems What is meant by a ‘stakeholder group’? Identify two ways (other than legal controls) that a government might use to influence business decisions. Way 1: Way 2: Identify and explain one advantage and one disadvantage of CHONS being a public limited company. Advantage: Explanation: Disadvantage: Explanation: 1 8 Identify and explain two ways in which legal controls might affect CHONS. Way 1: Explanation: Way 2: Explanation: Do you think the Government should allow CHONS to open the coal mine? Justify your answer using the information in Table 3. 1 8 0450_w17_qp_11 THEORY 2017 Paper 1, Variant 1 View
GOP is an oil producer based in country X. It is a public corporation. GOP plans to build a 200km pipeline across the country using retained profits to pay for it. The pipeline will need planning permission from the Government. Environmental pressure groups are concerned. A spokesperson for GOP said: ‘GOP’s objectives are different to businesses in the private sector. This pipeline will create 2000 skilled construction jobs and reduce the need for other businesses to import oil.’ What is meant by ‘public corporation’? Identify two economic objectives of country X’s government. Objective 1: Objective 2: Identify and explain two ways a pressure group might try to influence the actions of GOP. Way 1: Explanation: Way 2: Explanation: 1 15 Identify and explain two ways in which the objectives of GOP might be different if it was in the private sector. Way 1: Explanation: Way 2: Explanation: Do you think the Government should allow GOP to build the pipeline? Justify your answer. [ 1 15 0450_w19_qp_12 THEORY 2019 Paper 1, Variant 2 View