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Advantages and disadvantages of a public limited company

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Introduction

TASK A - OWNERSHIP AND OBJECTIVES ADVANTAGES AND DISADVANTAGES OF A PUBLIC LIMITED COMPANY The business organisation that I have decided to study during the course of the assignment is 'Tesco'. Tesco is a public limited company and there are numerous benefits and constraints when forming a public limited organisation. Many organisations start of as a private limited company and later become a PLC to raise capital in order to expand and develop the company which can play a pivotal role in the competitive retail market. Tesco is under the control of several shareholders who have purchased the company shares through the stock exchange. The advantage of a limited company is that shares can be sold to the general public unlike a private limited company and can help to raise substantial amounts of capital easily and are able to advertise in newspapers and on television whereas private limited companies are unable to do this. Majority of shareholders are interested in investing capital into a company which is successful or has the potential to be successful in the near future. ...read more.

Middle

There are two legal requirements which the company needs to meet before it can begin trading under the name public limited. One of which is the Article of association and the other is the memorandum of association. MEMORANDUM OF ASSOCIATION * The company name * The main business address * What the business will produce * A statement of limited liability of the members * The number and face value of the shares ARTICLE OF ASSOCIATION * Procedures for calling shareholder meetings * The number, rights and obligations of directors * Shareholder voting rights * Details of how accounts will be kept and recorded These two documents need to be completed by the company and sent off to the companies of house where they will assess if the organisation meets the requirements to trade under the name PLC. The companies of house will provide the organisation of a certificate of incorporation which gives them the legal right to start trading. ...read more.

Conclusion

2. To earn the respect of our staff for these values and to appreciate their contribution to achieving them. Tesco PLC not only wants to appreciate the contribution of their external customers but also the internal one. Tesco want to show that it cares for the needs and expectations of it staff. 3. To recognise that we have brilliant people working for us and to use this strength to make our customers shopping enjoyable in a way that no competitor can. Tesco PLC want to appreciate what their staff are doing for them and that will increase the staff moral and motivate them to continue with the work so potential competitors are kept at bay. HOW SUCCESSFUL TESCO PLC IS IN MEETING ITS OBJECTIVES Tesco PLC have been very successful in meeting their objectives, but have not yet been able to meet their aim. The have improved their customer service system considerably and the number of complaints placed has been lowered. SAKHAWAT HUSSAIN ANDREA YOUNG 1 ...read more.

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