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Types of businesses - Marks and Spencer is a (PLC) Public Limited Company.

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Introduction

Task 2- Types of businesses Marks and Spencer is a (PLC) Public Limited Company, it offers its shares to the general public, often through the Stock Exchange. It is the share prices of these types of companies that are displayed in the daily press. Most of the larger companies are public limited companies, so they keep Household names like Marks and Spencer. The first owner of Marks and Spencer was Michael Marks; he started the company as a sole trader until 1894 Michael formed a partnership with Tom Spencer, a former wholesale company IJ Dewhirst, from the partnership the company started to expand. ...read more.

Middle

He had to carry out all the functions of the business. For Michael Marks this meant purchasing in bulk and reselling quickly. If the sole trader employees other people (usually family and friends) the structure is likely to be simple hierarchy with a sole trader being responsible for them. The successful culture in this situation is likely to be informal. To grow, the business will need extra capital. It would borrow funds or take on partners or private shareholders and set up a private limited company. With Marks and Spencer this process took nearly 13 years. Second move of marks and Spencer was partnership with Tom Spencer; most partnerships are likely to have a flat structure. ...read more.

Conclusion

Up until this time Michael had operated almost entirely as a cash business with almost no formal records or accounts. Finally, the last aim was to become a public limited company, done by adopting the revolutionary policy of buying directly from its suppliers. And in 1926, the business had reached to its final stage. Few businesses reach this stage of development. The business will need to be large and successful with continued prospects for growth and be capable of generating sufficient profits to satisfy the demands of its shareholders if it is to become a public limited company. In contrast to Marks and Spencer it took nearly 26 years to reach this stage, internet and e-commerce businesses have 'gone public', within a few years of starting up, mainly to cash in on the dramatic rise in share prices. ...read more.

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4 star(s)

**** Many good points in here and evidence of good research. It really does need an introductory paragraph to explain its purpose and some of the terms need much further development which I have added in my notes.

Marked by teacher David Salter 01/12/2012

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