• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...


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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Here's what a teacher thought of this essay

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

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. British Airways ownership. British Airways is a public limited company, which means that ...

    There are also many conflicts between shareholders and the board directors. Public limited companies can also become too large resulting in poor labour relations. * The disadvantages are it is Costly and complicated to set up as a plc - you need to employee specialist bankers and lawyers to help organise British Airways converting to the plc.

  2. Business Studies Edexcel Coursework

    as profit maximisation - trying to make the most profit possible, e.g. utilising effective promotional campaigns. After this, Errol could aim to try to make a sufficient amount of profit to keep him comfortable - this would an ideal aim of a small business such as Errol's, as he would not want to work longer hours.

  1. Operational Risks for Online Businesses

    They may even misjudge the popularity of their website and many other mistakes may occur. A business that is less successful then what it was expected to be may have unsold stock and find it difficult to pay any money borrowed for website development.

  2. Functional Areas within McDonalds

    Marketing department will also have sales representatives which try and find the right product for that customer. If someone for example wanted to buy a computer but they needed on that computer some specific specs then the sales representative will listen to the customer then find the appropriate computer required for the job they need it for.

  1. Different types of teams within the Public Services and how they benefit themselves.

    The group works together to solve a problem or handle a situation that requires capabilities, knowledge, and training. Regiment A regiment is a military unit, composed of numbers of battalions, commanded by a Colonel. A regiment can be broken into two categories; One being an administrative unit which is responsible for non-operational management of battalions.

  2. Advantages of a Public Limited Company (Plc)

    the decisions * Keep all profits * Can be set up with relatively little capital * Personal contact with customers can encourage consumer loyalty Disadvantages of a Sole Trader * Owner have limited funds and may find it difficult to borrow money from banks * Owner have to work long

  1. Tesco Activity

    No, and any managers can afford to travel further Yes, needs to be easy to get to by bus or walking as most workers will not have a car. Outside town so it is much cheaper and they have room to expand.

  2. Case Study of the "Life is Good" clothing company.

    These simple words, People connect with it instantly.? 3. Another important facet of Life is good is their commitment to good causes. And those aren?t just ?words? to Bert and John; they act on their words. They are passionately involved with Project Joy, which is a nonprofit organization that fosters

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work