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Limited company Essay

Since the business has managed to maintain it’s specific aim of maximizing profit that has enabled the business to have a higher turnover and sales. This has provided the business an opportunity to explore new market segments in which the business can emerge in. Currently, Tests alongside their core business activity providing groceries operate in the finance sector, electronics, clothing, furniture and petrol efficiently. Business Sector: Tests can be perceived as being a private sector business. This is partially because it’s financially controlled and owned by private individuals that tend to invest their none into the business.

Most businesses which operate in this sector are likely to take risks in order to ensure that their business will succeed. This is evident as Deco’s main priorities are to: Maximize profits Retain their position as being the Auk’s number 1 grocery retailer. Further, as suggested earlier the business isn’t operating to provide a service but their specific aim is to make a profit. They perceive this as being a critical component of their business success because if the business had a decline in sales figures then that would have implications on the amount of revenue the business is able to generate.

This wouldn’t be

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beneficial for a well established business like Tests as poor performances in sales could lead to a decrease in number of customers the business may attract. In order, to ensure that the business isn’t in a position in which they can’t thrive due to a decline in customers. Therefore, they tend to make their customers the focal point by targeting existing and potential customers through providing offers in stores so that their competitors can’t have a competitive advantage on them financially.

Hence, the importance of generating more revenue is hat it enables the business to be able to remain financially strong so that they can use that money to improve on existing services they provide, at the same time to explore new market segments in which their competitors haven’t emerged and aren’t well established in; if the business only managed to generate low levels of revenue then that would have limitations on where the business can spend their money for Instance to upgrade technology, explore new mar test K or to enhance ten services offer. Size: Tests can be perceived as being a large business in the I-J.

It has 5,380 stores, currently, has 472,000 employees. The stores that operate in the UK can be teeny categorized into different formats: for instance, Tests Express, Tests Metro, Tests home plus, Tests Extra, Tests Superstores and Tests Compact; what sort of products these stores provide and what elements differentiates them from each other like, Tests homeless doesn’t sell fresh meat nor does Tests Express. Tests Homeless is a large store which consists of broad range of non food products. Whereas, Tests Express are stores placed in bustling places like in city centers as they provide food which can be considered as being a quick snack.

As Tests Superstores can be received as being the only stores which tend to provide a broad range of groceries and a small range of non -food products like Electrical goods. Overall, as a business Tests is an international business which doesn’t only have stores operating in the I-J but in South East Asia as well in places like: China, Malaysia, South Korea etc but they also do have stores in Japan unfortunately their brand has suffered greatly due to widespread competition which has made the business want to sell their remaining stores in order to recoup most of the money they had invested in Japan.

The below gurus show the sales the business had managed to generate in the 2010/11 financial year. The outcome shows positive signs for the business as they had managed to make a profit more than what they had predicted at the start of the financial year. They have managed to generate revenues of EYE. Ban which was more than what they had managed to generate in the previous financial year. There operating income before tax showed that the business had made E. 81 ban and net income after paying the VAT was E. ban. Industrial Sector: Tests can be considered as a business that operates mainly in the tertiary sector arterially because core of their business activity involves providing a service. A prime example of services that Tests might provide is finance and retail. Financial Information about Tests: This financial chart shows that Tests from underlying profit before tax made a profit of 2. Ban in 2008; this figure however represents the profit Tests made altogether before tax was included in the figure.

This figure is crucial for Deco’s as it helps them realism the amount of profit they have made annually so that they could predict their next years profit margin. There was an improvement from a financial respective because they made a profit of E. 1 ban in 2009. There was an increase from the amount they had managed to generate in 2009 because in 2010 they manage to make a De den In pronto In tans Atlanta year teen teeny would nope to increase this profit next year through more marketing campaigns.

This would allow Deco’s to identify area’s which they believe are perceived as being weak by developing new financial strategies that would help the business to boost their annual turnover more than they had predicted. This is evident in 2011 the business recorded underlying profit before taxes at E. ban. The second chart shows the trading profit figures internationally. As the business recorded trading profits off. Ban which demonstrates that the business through trading had managed to generate 56% of the revenue through their I-J operation.

That 25% of this amount came from Asia, European and USA operation. Lastly, 7% of the trading profit they had managed to generate through their financial service offered like the Tests Bank. The last chart looks at the sale figure as they made EYE. Ban as that shows that the business managed to gain some success financially. In the second year the business engaged to make a sales of 59. Ban as that was again a good year financial progress by the business. In 2010 the business had managed to make EYE. ban worth of sales and in 2011 there was again improve sales wise for the business because they made staggering sales figure of EYE. Ban as that shows an 8. 1+% profit margin; this elaborates the fact that Deco’s made more profit then they estimated. This may be because their launch strategy was strong which allowed them to attract customers which helped them boost their sales. The below figures all contribute to help the business to achieve the staggering figure of EYE. ban as EYE. Ban comes from sales in the I-J market, Oleo. Ban from sales in the European market, E. ban of the sales made by the business come from the Tests bank as well as that El 1. Ban of it comes from the Asia market and E. Ban from the USA market. B) Type of Ownership: Tests can be perceived as being a public limited company (PL) which tends to have limited liabilities meaning that they’re able to offer shares to the public. This is useful for those that are investing into the business because when a business has limited liability that means the investors will only lose the amount they’re investing into the equines and the rest of the money which hasn’t been invested is secure.

If the business had unlimited liabilities then that wouldn’t be

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useful for an investor because they would be in danger of losing all their assets including the amount they had invested into the business but this form of liability usually applies to a partnership or sole trader business. Currently, Deco’s shares are worth IEEE. Up all the money that is generated by the business through issuing shares goes directly to the business itself whereas; those investing their money would receive a dividend at he end of the financial year depending on how many shares the individual has.

A PL business like Tests would be expected to create an annual report and set of accounts so those investing into the business can review how well the business has performed financially and sales wise. Further, evidence exemplifies that a business wanly Is consolable as Delve a PL Tort Instance lesson toner snares are likely to De brought and sold on the London stock exchange. Whereas, in a private limited company there shares can’t be traded on the London stock exchange and no one outside the business like the public is able to buy the shares so therefore, the erectors of the business are likely to purchase the shares.

A private limited company would only be expected to provide basic accounts, and they don’t need to issue an annual report for each financial year like Tests. From the above points raised that brings to my attention that the business of Tests is considered as being a public limited company as most of the things the business does represent that they’re a PL than a private limited company which are usually medium sized businesses. One advantage of Tests being a PL is that as they’re a successful grocery business, he value of their shares will increase.

This would be beneficial for them as that would increase the overall value of there business. Atonally, more capital can be raised by Tests as a PL than any other form of business. This would be useful for a business like Tests as this would provide them an opportunity to expand and emerge into other markets. In contrast, a limitation of Tests being a PL is that each shareholder has minimum say in how the business should operate unless the shareholder has a lot of shares in the business.

Another disadvantage is that as shareholders at Tests would expect to chive a dividend for their investment into the business, as the shares they possess in the business they would prefer them to increase in value. However, if a business like Tests faces financial difficulty then the value of the shares will fall which means the shareholders may opt to sell their shares in the business which will lead to a further decrease in how much the shares of the business are worth.

This would make the business vulnerable to a takeover bid because those who were interested in buying the business would become objective to the view of taking over as they would e reluctant to take the risk as this would bring to their attention that the business isn’t financially in a strong position, that they would have to invest a lot of money into the business in order, to enhance the businesses financial position. C) Explain the purpose of Tests being in business: Tests can be perceived as being an international business which operates in South East Asia and Europe including UK.

There main purpose of operating as a business is to make a profit. The way they’re able to attain this is by providing broad range of products to customers to buy. Each product (food, drink, home and garden, electrical appliances and entertainment etc) or service (finance like insurance and banking) that Tests are able to sell to their customers is valuable because in return that allows them to be able to increase their sales and profit figures. This is critical for them because if they didn’t make enough sales or generate revenue then that would give their competitors competitive advantage over the business in terms of making money and sales.

This further assists them with their second purpose of being in business which is making sure that they’re able to provide their customers with cheap and affordable products or service than their competitors. Moreover, the above mentioned products are provided to the customers with the quantity of profit added to ten Orlando price wanly Turner Increases toner pronto I Nils again contributed towards their main specific purpose which is to make sure that as a business they’re able to maximize profit.

In addition, this is a crucial factor for them as they would like to be successful with the products they provide, if the demand of their products increases then that can contribute towards helping the business to grow further and to become the market leaders of that competitive market. As mentioned earlier in he essay about shareholders they play a major role in helping the business to boost their revenue levels.

By this I mean the more shares that are issued by them the more inflow of cash they would have which they can perhaps, use to move the business further. Those that would be investing in the business would be given financial recognition at the end of the annual financial year were the business would give the investor a share of the money which is known as dividend. This would also, contribute towards their business purposes because the more money they have the more financially stable the business would be.

For instance, if Deco’s Scofflaws exemplified that the business has more inflow than outflow of cash that would be beneficial because if they opted to use a sum of the money to either open new stores nationally or internationally or Just wanted to explore new market segments they would be able to because they wouldn’t be

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financially in a scenario were if they had spend some money they could end up going out of business because the expenditure levels of the business were high in contrast, to the amount of revenue the business was able to bring in.

Lastly, as well as, making sure that they’re able to roved most of the products in stores they quickly as a business are managing to establish themselves effectively as an online business. By that I mean customers are able to use the online service offered by the business to be able to order products which will directly be supplied to them within half an hour by the business. This also, contributes towards their purposes of making profit, being able to establish itself as being the market leaders.

Further by offering an online service that enables the business to double their revenue because in this contemporary world this form of hopping is growing swiftly with Tests operating in this sector as well that is useful. However, another advantage for the business is that since their competitors have managed to emerge into the online market but they haven’t managed to establish themselves effectively like Tests.

For instance, as suggested earlier that Tests in Japan were recording losses in sales and profits as they’re reluctant to sell their stores which isn’t an ideal dilemma for a business which is doing well as a market leader in the I-J grocery market. However, this could have implications on the entire infrastructure of the business financially since they have excelled with the online service internationally that allows the business to be able to cover up the costs meaning that as a business they don’t have to worry financially. The second business which I have chosen operates in the public sector Bradford College.

A) About Bradford College: Bradford College has been operating as an established educational institution for 175 years. Currently, the college has about 25, 000 students ranging from school leavers to those who would like to return back into education. The college offers a road range of courses such as, introductory to level 3 for part or full time basis. Not only does ten college prove I TTS students ten chance to study Tort a level 3 course Duty it has also, managed to emerge into new markets in which none other college institutions operate in.

The growing reputation of the college has meant that it has managed to establish itself effectively nationally as being the only college institution that realistically provides approximately 170 undergraduate programmer; postgraduate courses in association with Leeds Metropolitan University. The college is considered as being a public sector institution. This is partially due to the fact that most of the institutions activities are financially funded and controlled by the government. There specific aim isn’t to make a profit but to provide a service which involves teaching students.

Further evidence illustrates that if there were any changes made by the government in the educational curriculum or in funding the college would have to implement those changes. Bradford College don’t tend to make substantial amount of sales like Tests as they only are able to raise limited amount of cash themselves as an institution from places eke exam fees, tuition fees from international and most of the sales explained below tend to come from government funded agencies. The college is a large institution in the I-J because it’s perceived as being the 4th largest educational institute which provides quality teaching up to level 3.

Further, they are perceived as being the 1st college in the region that offer higher education with about 170 degree courses in partnership with Leeds Metropolitan University and the college is exploring new opportunities in which it would allow them to offer their own degrees than Leeds Metropolitan offering them. Scofflaws (Appendix 1) The red figures in the Scofflaws show the areas in which the business made losses and the areas were there are no signs suggest that the business had done well financially. Balance Sheet (Appendix 2) In the balance sheet it looks at the 2009/10 year again the figures that are red show that the business is making a loss and were there is no color coding that shows the college is making no losses The college operates mainly in the tertiary sector because they are funded by the government to provide a service. The form of service the institution provides fraternities from other business activities like Deco’s because they have been set- up to prove teaching to cocoons leavers Ana tense Tanat would Like to return to education in order to gain a qualification.

C) Explain the purpose of the college being in business: Bradford College operate as a further educational institution because they’re a well- known institution nationally. In actual fact, the college is based locally by that I mean they don’t have a college in other places but anyone who would be interested of studying at this college would have to come to Bradford. There main purpose is to roved quality teaching to school leavers and those that would like to gain a qualification within the community.

They’re able to attain that purpose through hiring employees that are considered as being experts in that field. This is beneficial because if the tutors with the up to date resources are able to deliver their lessons accordingly then that would lead to an increase in pass rate which would help the college to work towards their other purposes which are to make sure that they’re able to establish themselves as a Top 4 college nationally and to be able to perceive homeless as being a higher education institution as well.

Most of the income the college makes isn’t through providing teaching service but are provided by the government led agencies like central government departments, regional government grants, British council and European Commission and other grants and contracts. The other ways in which the college is able to raise revenue is through examination charges and college nursery etc. Conclusion: I believe that the above information provided is important for a business because it enables them to be able to provide a service in the sector they provide in effectively.

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