Question

Item C

BMR plc

BMR plc knocks down unwanted buildings and prepares the land for construction when a site is being redeveloped for a new use. The company recently started to salvage, recycle and sell building materials that can be used in other construction projects.
Many of its demolition jobs take several months to complete and BMR plc can wait for over a year before it is paid. BMR plc receives the money from its sale of salvaged building material within 2 months.
Demolition businesses often deal with dangerous and heavy materials that need to be disposed of well away from the building site. The demolition industry has received a lot of criticism in recent years for damaging the environment. Some demolition businesses have even tried to reduce costs by operating in ways that put site workers and the public at risk. BMR plc wants to be known as an ethical business and has set itself the objective of operating in an environmentally friendly way.

Extract from BMR plc’s statement of financial position (balance sheet):



All figures are in millions of pounds (£m).
Current ratio = Current assets/Current liabilities.
The current ratio at the end of 2015 was 1.25.

Unit 2 - May 2017

BMR plc has said that it wants to be known as an ethical business and one thing it has done is to set an environmental objective. Explain whether you believe that this is a sensible thing for BMR plc to do. Use Item C to support your answer.
[9 marks]

PLEASE HELPP I DONT GET THISSS

Answer 1

BMR plc's decision to set an environmental objective is prudent because it aligns with increasing consumer demand for ethical and sustainable business practices, can lead to additional revenue and operational efficiencies, and helps to mitigate potential legal and reputational risks associated with environmental damage.

Step-by-step explanation:

Setting an environmental objective is a sensible thing for BMR plc to do for several reasons. Firstly, it aligns with public sentiment that increasingly favors ethical business practices and environmental sustainability. The demolition industry has faced criticism for environmental damage and unsafe practices, and by focusing on environmentally friendly operations BMR plc can differentiate itself from competitors and potentially attract customers who prioritize sustainability.

Secondly, it may lead to operational efficiencies through recycling and reusing building materials, which can also create an additional revenue stream. Lastly, adopting ethical practices could minimize the risk of fines or legal action from environmental infractions and improve the company's public image. By being proactive in this area, BMR plc is likely to build long-term goodwill with stakeholders and the community at large, which is valuable for sustainable business growth.

Answer 2

I think it has to be A