Comparing Tescos and Cadbury - limited liabilty company vs. soletrader.

Authors Avatar by andrewselvarajahyahoocouk (student)


Public limited company (Tesco)

The purpose of a public limited company is to sell goods and make profit. Also to satisfy our needs. Public limited company (Tesco) is Limited liability Company this means their personal possession won’t be taken to pay off debt. Tesco is a large business because they operate in different countries and have more than 5,000 staff members.

 Firstly, limited liability business shareholders are not liable for the business debt. This means they don’t have pay using they personal possessions if the business goes busted. Tesco is a limited liability company. Secondly unlimited liabilities means the owner have to take full responsibility over the business this means they have to  use their personal belongings to pay off any dept. Cadbury shop’s owner have unlimited liability. Sole trader have unlimited liability. Partnership have unlimited liability. Public limited companies have limited liability

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Tesco shareholders will not lose their personal belongings if the business goes lost in profit. Cadbury owner have to take full responsibility over business this means paying of any debt using their personal belongings. Tesco also sell shares on the London stock exchange market. This means you own some part of the business. This is how public limited such as Tesco Company starts the business  

Tesco have more capital because they sell shares to the public and they want to expand and Cadbury have less capital income because they don’t have shares and they don’t want to expand the ...

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