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Business Ownership

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Background History of Sainsbury's plc's The Business I have chosen is Sainsbury, Sainsbury Supermarkets was established in 1869 by John James and Mary Ann Sainsbury and is's longest-standing major food retailing chain, their vision or their mission statement is "Sainsbury plc's vision is to improve the performance of the core supermarket chain. Whilst doing so we will continue to explore and develop growth opportunities in other markets. Through implementing 'Managing for Value' we will stretch our ambitions and challenge the conventional wisdom within the Company, thereby unlocking our potential and delivering value." Source: Sainsbury Web site There are several different business ownerships: ? Franchise ? Sole Trader ? Public Sector ? Co-operative ? Partnership ? Company ? Public Limited Company ? Private Limited Company Public limited company The type ownership that I have chosen is a "Public Limited Company." This means it is a type of limited company whose shares may be offered for sale to the public on the Stock Exchange. As a shareholder in a limited company, if it were to become bankrupt you would only be liable to contribute the amount remaining unpaid on the shares this is like limited liabilities. ...read more.


You might need enough to buy a piece of plant, for example, to pay back a venture capital investor who wants to realise their investment, to expand your team or to launch a product overseas. In most cases a private limited company would like to expand their business and floats their company on the London Stock Exchange Market, doing this may come with many advantages, but doing it could also come with drawbacks e.g. the owner of the Virgin group Richard Branson opted to change his company into a plc to expand his business keeping 65% of the shares until the control off Virgin group slowly diluted and his shares soon being concentrated into the hands of his major shareholders, after all the negativity he brought back his shares and changed his company back to a private limited company. Setting u a public company is a very long process you must go through a series of steps to do it correctly, you will need to: ? ...read more.


? It can advertise for capital from the public in the form of shares and debentures, so that funds are almost limitless. ? Management and ownership (i.e. shareholders can be quite separate. The shareholders can exercise some control over management at the annual general meetings. As in all limited companies, the shareholders' liabilities are limited to the amount of their investment. ? The company has legal identity-it can be almost treated almost as a real person under the law. By changing to a public limited company you will also face drawbacks: ? It's extremely expensive and complex to set up. ? Management can be criticised at annual general meetings by shareholders, who do not always have a complete knowledge of the situation. This may even hinder the progress of the company. ? Management in the large companies can become impersonal, inflexible and sometimes inefficient. This can lead to expensive and wasteful overstaffing. ? Much material, which the company would like keep confidential, has to be made public. This absorbs may staff and could make the company liable to take-over bids and to political pressures. ...read more.

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