he drawbacks of forming a PLC are for example Shareholders expect a dividend in return for their investments and will also want the shares to increase the value. If for example Nike would be in difficulties and their share values fall, then many shareholders may sell, which the company vulnerable to a take over bid. Also a public limited company is registered as such with the Registrar of Companies and must comply with many external regulations. The financial affairs of the company the discussions and votes at the annual general meeting are often reported in the media.
Because Nike is such a big company and they have for example financial difficulties, this quickly becomes public knowledge. So it is another drawback of forming PLC. Nike chooses this type of ownership because as they are PLC they can sell their shares globally. This will increase their profit so they can for example build for those money new factory or new store. Also if there are more shareholders then the value of shares increases and then Nike will get more money.
This type of ownership affects the responsibilities and involvement of the owners in CCE because as they are LTD the owner for example can decide if he wants to sell CCE to someone else or not so, it means that owner controls the company and basically he makes decisions. * Unlimited Liability means that the owners are responsible for all debts. If the business struggles, then the owners may have to sell personal possessions to pay the debts. If they cannot do this, they are declared bankrupt. * Limited liability restricts this responsibility. The owners are liable to pay debts only up to the limits of their investment.
They would not usually have to sell their personal possessions. Comparison and Suggestions of business ownership Nike is PLC company so it means they can sell shares to the public, CCE is Ltd company so it means that they can’t sell their shares to the public. The two differences between my two businesses ownership are that firstly as Nike is a PLC they can sell their share to shareholders this increases their amount of capital. But CCE cannot sell their shares because they are Ltd Company. Secondly in Ltd company shares cannot be transferred to other people unless all the shareholders agree, and cannot be bought by members of the public.
In PLC company shares can be transferred to other people unless all shareholders agree, so it shows also that PLC Company can lose their control over the company if they sell a big amount of shares to people, when in LTD Company the owners get direct control of the business. The two similarities between Nike’s business ownership and CCE business ownership are that firstly both companies must not choose a name which is the same as an existing company because this would cause confusion to suppliers or customers.
Secondly, additional finance for example for expand the company, my both business can borrow from a range of financial institutions to ask for special loans called debentures from e. g. bank The reasons that CCE located their factory in Edmonton are for example in Edmonton there are many transport links so, if trucks are collecting CCE’s goods then they can move easily to their customers because the links of transport. This map shows how coca-cola enterprise is spread out across the UK. Also this map shows how CCE distribute their products.
The sales techniques (telephone, internet and mail order) have influenced on my businesses location because for example if Nike and CCE would locate their factories where there is no telephone and internet then it would influenced company and customers because, company would not communicate with distributors so for example CCE could not sale their goods because they could not contact with their distributors and this would influenced on company because they will not get money for their products because they did not sale it.
The same thing is with Nike. Financial help (local, national or European funding) have influenced on my business location because Nike and CCE need some extra money for example to expand. So they would locate their factories where for example government is more likely to give out money.
Local government charges have influenced where the business is located because for example Nike would wants to locate their factory where TAX is low so then they would pay less money for it and save money to use for other things such as expand. Also Nike would not locate their factory where for example TAX is extremely high. So local government charges have a big influenced where to locate business. The Cost of labour have influenced where the business is located because Nike and CCE need people to for their factories.
So for example if CCE locate their factory where accommodation and life is very expensive and also if transport from each labour’s house to CCE is expensive then if they would like employ a labour from that place then that person would expect to get more money from CCE for his work because where he lives in place where life is So it means that CCE locate their factories in places where accommodation and life is cheap so they may pay less for labour.
The number of people with appropriate skills available to work in a particular area have influenced where Nike and CCE is located because they need actually a big amount of numbers of people to work for their factories because. They also need a people with appropriate skills to work for them. So, firstly they would locate their factories where there is enough amounts of people to work of them. For example they would not locate their factories in small village because there aren’t enough amounts of people to work for CCE, without workers CCE would not survive.
Secondly if CCE needs people with appropriate skills then they need to locate their factories where there are many very good skilled people. Comparison and Suggestions of Business Location- Nike and CCE are located in different location and also they are spread out differently. The two similarities between location of Nike and CCE are that they locate their factories near good transport links because of better distribution their goods.
The other similarity between location of Nike and CCE is that local government charges really influenced on location on my both businesses because they both locate their for example factories where they would pay e. g. TAX less than the other places. So, they would not locate their factories for example in Central London because the Tax would be extremely high. The two differences between location of Nike and CCE are that Nike locates differently their factories and their stores or headquarters. So for example Nike don’t locate their factories where their stores.