This question is related to Rio Tinto, a mining company in WA. (You can use some information from the internet. However, your discussion must demonstrate valid and logical flow ideas).

(a) Identify at least one positive and one negative externality generated by the organization, and identify the stakeholders affected by the externalities.

(b) Would these externalities directly affect the income or expenses (and therefore, profit) of the organization? Explain your answer.

(c) In your opinion, is the failure to recognize externalities a fundamental limitation of our current financial reporting requirements?