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Terry

0450-19-F-M-12-2d

Chan

TOPIC QUESTION - PAPER 1

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Chan

January 21, 2021 at 12:22:21 PM

Feb/Mar 2019

Version 2

1.0 Understanding Business Activity

1.5 Business Objectives and Stakeholders Objectives

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YOUR ANSWER

Stakeholder Group 1: GXC Employees

Explanation: The employees of GXC would be directly effected should GXC invest in the new machinery, as it would take over 100 of GXC's employees job, making them redundant. These employees may have to find another job.

Stakeholder Group 2: GXC owners

Explanation: Investing in new machinery may increase production of car components but may incur additional cost. The capital may be funded by retained profits. This may reduce the profit distributed to GXC's owners.

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6/6

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