Assignment 1 : The Ownership Of Tesco PLC And Tesco

1702 Words7 Pages
Unit 1 Assignment 1: Exploring Business
For this assignment, the two contrasting businesses where both businesses have different types of ownership and liability such as one being a for-profit business and the other one being a not-for-profit business. The two businesses are Tesco PLC and RSPCA which Tesco PLC is the for-profit business and RSPCA is the not-for-profit business.
Tesco PLC
The Tesco PLC website link is: https://www.tescoplc.com/.
RSPCA
The RSPCA website link is: https://www.rspca.org.uk/findapet#onSubmitSetHere.
Features
Ownership of Tesco PLC
The ownership of Tesco PLC is being a public limited company where a business is large and well-known which is what Tesco PLC is. This is a chain of retailers with some sort of branch in city centres. Being a public limited company means that shares are traded on the stock exchange which is where businesses such as Tesco PLC shares are traded on a centralised market. Shares from public limited companies such as Tesco PLC are offered to the public. Furthermore, shares are sold publicly to anyone.
An advantage of being a public limited company is having limited liability because of only being responsible to amount invested into Tesco PLC. Another advantage of a public limited company is being able to liquidate. This is when shares are bought or sold to shareholders if on the stock exchange it’s quoted. An additional advantage of a public limited company is the share value as Tesco PLC’s value will be shown by the market capitalisation from being the share price being what it’s based on. An extra advantage of a public limited company is having better access to capital because of the existing and new investor are raising share capital.
However, a disadvantage of a public limited company is that Tesco PLC has more chance to gain a much greater number of external shareholders. The company directors will be accountable for the external shareholders when listed on the stock exchange. Another disadvantage of a public limited company is that Tesco PLC has more greater scrutiny from the public of the financial performance and actions.
Ownership of RSPCA
The ownership of the RSPCA is being a charitable trust because the RSPCA is a registered charity that helps

More about Assignment 1 : The Ownership Of Tesco PLC And Tesco

Get Access