Question: SECTION B 70 Marks Answer all questions QUESTION 2 2.1 Explain the meaning of the term 'stakeholder', providing examples of stakeholders in your answer. (10

SECTION B 70 Marks Answer all questions QUESTION 2 2.1 Explain the meaning of the term 'stakeholder', providing examples of stakeholders in your answer. (10 marks) 2.2 Outline what a director's 'duty of skill and care' entails. (10 marks) (20) QUESTION3 (25) Pastells plc ('Pastells') is a listed company. It has been given a substantial fine by a court for a serious breach of environmental regulations and, in the same month, the company reported that it had suffered large losses as a result of unauthorised dealing in financial derivatives by a manager in its treasury department. As a result of these losses, the company's reported profits for the previous financial year were over-stated. Questions have been raised in the financial press about the financial Page 3 of 4

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