Boots is a public limited company Essay
Boots is a public limited company. This means it’s permitted to sell its shares to the general public. A company with this type of ownership must carry the words ‘public limited company’ or initials ‘PLC’ and must have authorised share capital over 50,000; they must also have at least two shareholders. One advantage of setting up this sort of business is the fact that it gives a business the ability to raise share capital however, a huge disadvantage is that a PLC has to face being subject to the scrutiny of the financial media and city analysis.
Since Boots is a publicly Limited Liability Company, the owners of the company are responsible for all the debts of the business and the directors may be asked to give personal guarantees of loans to the company. This could result in them having to sell personal possessions so they can pay out these debts. Because of this, the business could have many problems.
There could be some risks prior to the fact that, the owners could end up loosing money. Despite this, the owners could still be up for taking risks in hope of taking complete control over the business and being rewarded after.
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Boots have located their business in most of the busy areas. They have situated their stores in the market place so they attract many potential in-going customers. There are many other reasons for Boots locating their business where they have. A Plc like Boots itself will have several stores located in different areas because it’s such a large business. Boots would know it would have to be located near to other pharmacies to ensure that these pharmacies aren’t taking in more customers than they are.
Boot’ Plc is located in many areas in London such as, Clapham junction, Brixton, Putney, Streatham, oxford circus and many more. These areas are all the centres of attention and so they tend to be full of activity and are usually extremely busy. Other than this, Boots is also located in most of the main train stations like: Victoria and Euston. This mains that wherever a person goes they are more than likely to find a Boots near them.
Other possible reasons for Boots’ choice of location: Market-The nearness of the market and the cost of delivering the goods are likely to be important factors Transport Costs-The two major influences are the pull of the market and the pull of the raw materials and these are determined by whether or not the industry is bulk-increasing or bulk-decreasing.
Land-Land costs vary considerably nationally and places such as Boots, might need a large square-footage. They might, therefore, be influenced by the cheaper rents and property prices found in some areas. Labour-The availability of labour might well attract firms to an area, particularly if that labour force has the skills they require. Safety-Some industries have to locate their premises well away from high density population levels and their choice of location is limited.
Waste disposal-Certain industries produce considerable waste and the costs associated with the disposal of this might affect their location. Government-Government provides special assistance to areas of high unemployment. This takes place within the UK, and is also a feature of wider European Union regional policy. Price Waterhouse Coopers is a limited company and so goes by the name of Pwc Ltd.
To break this down briefly, it can be said that Ltd is short for limited. This means that as mentioned for Boots, all the owner can be asked to loose is the amount of money that they originally invested. Saying that Pwc is a company, means that, this business has a separate legal existence from its owners. It has been created as something completely different form its owners and, can be bought, sold and passed from one owner to another as if it was a product.
It can be said that some smaller private limited companies could have similarities to sole traders and partnerships. This can be things involving, survival, security and a reasonable income. As for, Pwc being a limited company, they are reducing their own financial risk. And since Pwc is a larger business, they could be looking to raise money for expansion and could be trying to make sure that its shareholders receive the best possible return for their investment.
As mentioned for Boots, because Pwc contains limited liability this means that the owners of the business can only be asked to loose the amount of money that they have originally invested. They are again, responsible for all the debts of the business.
This form of liability could affect the business because the company might have to sell their possessions. Plus, they have the disadvantage of having their affairs being made public and of being more complicated and more expensive to set up than sole traders and partnerships. And Pwc would also be liable for different types of taxation. However most would agree that the advantages of having a limited company outweigh the disadvantages.
Pwc has located their business in offices in many countries. Pwc has chosen to situate their business in offices because they focus on handing out advice and dealing with the accounts. They offer certain services and that is the main focus for them. Unlike Boots, Pwc does not sell millions of products to members of the public. Instead, they do office work and hold meetings which don’t involve selling goods.
This is partly the reason for Pwc having their business placed in an office rather than a shop on the high street. Plus, there is the right kind of assistance where they have chosen to locate their business. By this, I mean that in the area of field work that Pwc is based at, there are many different kinds of assistance. These include: the County Councils, District councils, Learning and skills councils and the rural development commission. There are many other reasons.