There are two types of businesses, private and public. The difference between public companies and private companies is their ownership. Private held companies are under control of a single or group of shareholders when public companies are owned by the government.
Ownership of the business
Top shop is operating in private sector. It is a Public Limited Company this means they sell their shares on the stock exchange and that it’s available to the public to purchase shares. Every public limited business is regulated by law to include a plc at the end of their brand name. Since top shop is a public limited company it has a limited liability. Limited liability is when the business goes bankrupt; the owner is not responsible for its debt. Top shop is a British chain of clothing stores that operates in more than 20 countries. It is part of the Arcadia Group, which also owns a number of other retail outlets including Burton, Dorothy Perkins, Miss Selfridge and Wallis. Brand was founded in 1964 by Jessie Pearman (formed within a department store). There are many benefits and drawbacks of the system operating. The major benefit it is easier to generate funds. By selling their shares on the stock exchange they make money; however, due to that they loose control of the business. Another advantage is the corporation tax which is lower comparing to other types of ownership. This is because they have to pay income tax.
Top shop is a global brand operating world wide. Global means that it produces goods and develops selling outlets across the globe. They offer competitive prices – the prices are lower than the competitors. It allows them to maintain current market position. The business operates within the public sector in addition; it’s also a tertiary sector. This sector provides services to individuals and businesses, (bringing the finished product to your local supermarket). They sell already produced products...