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The directors of a public limited company have decided to reduce the size of the workforce to increase profits - OCR - GCSE Business - Question 6 - 2022 - Paper 1
Question 6
The directors of a public limited company have decided to reduce the size of the workforce to increase profits. Which stakeholder is most likely to benefit from thi... show full transcript
Worked Solution & Example Answer:The directors of a public limited company have decided to reduce the size of the workforce to increase profits - OCR - GCSE Business - Question 6 - 2022 - Paper 1
Step 1
Which stakeholder is most likely to benefit from this decision?
Answer
In this scenario, the stakeholders involved include customers, employees, owners, and the local community. The decision to reduce the workforce aims to increase profits, which suggests that the owners of the company are most likely to benefit. Reducing labor costs can lead to higher profit margins, directly affecting the owners' returns. Therefore, the correct answer is C. Owners.