Btec First Buisness Unit1 M1

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Unit 1: Business Purposes


Introduction: In this task I am required to contrast the ownership and purpose of two different businesses organizations.

Today I will be talking about Tesco PLC (Public Limited Company) and Meghna Tandoori (sole trader) which is a partnership between two brothers. I will be comparing and contrasting the similarities and differences between these two businesses, including type of ownership, size, scale and profit.

Tesco is a PLC (Public Limited Company) owned by private shareholders, who then appoint directors to run and oversee the day to day management of the business. Tesco is publicly owned by thousands of people. The reason for Tesco being a PLC is due to its mammoth size (a single owner would be unable to cope). Due to its size it would be hard to raise enough funds for Tesco if it was owned by a sole trader or by partners whereas in a PLC (the company is owned by shareholders who fund the company. This occurs on the basis of people buying shares within the company and becoming shareholders through the stock market. This differs from Meghna Tandoori because it is a sole trader partnership between two brothers who privately own the business, which makes them self-employed (they effectively become their own boss). The owners have the ability to employ helpers as and when required. This type of ownership is viable towards the sustenance of the business, due to the fact it is a local business serving the residents of Upton Lea (Slough) and requires requisite are of the needs of the local residents. This intern allows decisive marketing, contributing towards the growth of the business in terms of profit.

Another difference between the two businesses, is the fact that Tesco as public limited company has limited liability. Limited liability is the act(declared in 1885) where; if a business has debt and fails to pay this off and goes bankrupt, the shareholders only lose whatever they invested in the business this is...
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