The First World War Essay Example for Free

The First World War Essay In this report I intend to create a detailed report of Tescos. I want to see what they have done to get to where they are today and to try to evaluate why what they did worked. I want to get as much information as possible, although some information may not be accessible to the public as it could be sensitive. After the First World War, Jack Cohen received a i 40 gratuity. With this he set up his own East end fruit and veg store. Later he joined with another man T. E Stockwell to create a partnership. They then formed a limited company and now Tesco is a public limited company (PLC) with an annual turn over of around i 30,814 million pounds. When Cohen set up Tesco, he was a sole trader, he would have had unlimited liability. This means that if he went bust and unable to pay his debts he would have his personal belongings sold by the bank to pay off his debts. His only source of finance was his i 40 war gratuity. However nowadays there are many different sources of finance from bank loans to business angles to loan sharks as well as personal savings and family and friends. Being a sole trader has many advantages as there arent many forms to fill in. You can take holidays when you want and all the money that is made in the form of profit is yours for the keeping. Being a sole trader means that he had total control over his business all profit made goes straight to him and doesnt need to be split up. When he merged to form a partnership he would have had to sign a deed of partnership. This outlines all main points about the partnership from money salaries to working hours. He would now have to consult his partner before making any decisions about the business. However there are good points about being in a partnership. It means that there are two or more people to help think a way around a problem should one occur. It would bring added finance as the other partner would have personal savings and maybe family money. If the partnership were to go bust the deed of partnership would outline who had to pay what debts. After the partnership became successful Cohen and Stockwell became an ltd company. This means that they had shares which could be sold to employees and friends and family of the owners. They effectively own a small part of the company. They now have Limited liability this means that should the business go bust their private possessions are now safe and wouldnt be sold to level debts. Yet all the share holders would loose the amount of money they put in. There are also disadvantages to go with the benefits; these are that accurate accounts now have to be published for company house. This means spending money on an accountant. Tescos then became a plc or public limited company, it floated on the stock market in 1947 the share price was 25p. The business is now controlled by the share holders as every share gives you a say in the company. The profit is also split so that a dividend can be given to the share holders; this is a small percentage of profit given to share holders, and the more shares the more money they will receive. The legal liabilities are the same as when they were an ltd. The main difference is that shares can be bought and sold by the public on the stock exchange. On the way up Tescos has been through many of the different types of businesses. It has been a sole trader business a partnership an ltd company and now its a plc. However there are a few types of business that Tescos hasnt been. * A charity: this is obviously because Tescos is a profit organisation and wouldnt want to give away all there profit.