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 [Table 3] Planned output: 50m tonnes per year Number of years coal mine will operate: 60 years Jobs created: 10000 Level of waste products causing pollution: High Risk of traffic problems: High

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [2] Clear understanding [2]: any person or people with a direct interest in the performance and activities of a business
2. Some understanding [1]: someone affected by what a business does
3. [2] Knowledge [2 × 1] award one mark per way
4. Points might include: cheaper rents; loans OR grants OR subsidies; training; interest rates; taxation; build infrastructure
5. [4] Knowledge [2 × 1] award one mark for each advantage and disadvantage
6. Application [2 × 1] award one mark for each relevant reference to this business
7. Advantages: Able to sell shares on stock market [k] so no limit to potential number of shareholders [app]; Access to more sources of finance [k] so do not have to ask for support from Government [app]; Limited liability [k]; Separate legal identity [k] of mining business and owners [app]; Better status OR seen as lower risk [k] so suppliers more willing to offer credit [app]
8. Disadvantages: Have to disclose accounts [k] so less able to keep expansion plans secret [app]; Many legal requirements/regulations [k]; Selling shares expensive [k]; Risk of loss of control [k] for the original shareholders [app]
9. [6] Knowledge [2 × 1] award one mark for each way identified
10. Application [2 × 1] award one mark for each relevant reference to this business
11. Analysis [2 × 1] award one mark for each relevant explanation
12. Points might include: Need to provide safety equipment [k] such as helmets for miners [app] increasing costs [an]; Limit working hours [k] so cannot obtain 50 m tonnes [app]; Minimum wages [k] so cannot afford to create 10 000 jobs [app]; Pollution restrictions/permits [k] as coal burning could damage environment [app] so stakeholders become unhappy [an]; Where business is located [k] as need Government to allow mine to be built [app] without it they cannot start operations [an]; Restrictions on what OR how much can be produced [k]; Increase costs [k]; Banning/restricting exports [k] CHONS would not be able to operate because they are planning to export [an] coal [app]; Banning/restricting imports [k]
13. [6] Knowledge [1] – award 1 mark for identification of relevant issue(s)
14. Application [1] – award 1 mark for relevant reference made to this business
15. Analysis [2] – award up to 2 marks for relevant development of point(s)
16. Evaluation [2] award up to 2 marks for justified decision as to whether the Government should allow CHONS to open the coal mine
17. Points might include: Jobs created [k] for 10 000 people [app] so more money to spend in community [an]; Use up local coal [k] as plan to export it all [app]; Impact on environment [k]; Traffic problems created [k] which could discourage people OR other businesses setting up in area [an]; Other businesses will benefit [k] e.g. Suppliers [app]