Majority of shareholders are interested in investing their money into a company which is successful or has the potential to be successful in the near future. There is also liquidity – the shareholders are able to buy and sell their shares. Also being a PLC gives the company a more prestigious name/profile therefore banks would be more willing to give them loans. There is also limited liability for the shareholders and the business has separate legal entity meaning the business will continue even if any of the shareholders die. Some disadvantages of Tesco being a PLC is that the original owner may lose control of the business. Also due to its immensely large size they may face management problems such as slow decision making and industrial relations problems. These companies also have to publish their accounts in order to protect the interest of the ordinary investor so therefore competitors can see if they are doing well or bad. Initially Tesco had a market chain of only food supplies, but over the years its business has broadened in the fields of clothes, consumer electronic goods, and customer related financial services, internet service, consumer telecoms, and they even ventured into the field of selling and renting DVDs.
Tesco store types: Extra,