P1 – Describe the type of business, purpose and ownership of two contrasting businesses
Walmart
Walmart is an American business that
specialises in retail. The company is the biggest
retail business in the world with current
revenue of ‘482.1 billion USD (2016)’. The
company was founded in ‘1962’ by ‘Sam Walton’ with the aim being that the businesses
industry would be retail. Walmart is an extremely large business as they are a ‘multinational
retail corporation’ which means that they have stores and various locations countries across
the world; the most recent number of locations that company has was taken on ‘July 31,
2016’ at a staggering number of ’11.539’ locations around the world all linked to Walmart.
Walmart as a company also have many
subsidiary retail stores in order to match the
market around the world. This is also done in
order to class the business as a different
business in that part of the world, meaning
the tax for the different businesses will be
different, for example a very large company
in the UK known as ‘ASDA’ is owned by
Walmart. Walmart is a public company,
which means that despite the company earning revenue up to 482 billion the business itself
is owned among the public, as various people will have stocks and shares. These are
displayed all across the stock exchange meaning the business is not owned by just one
person but is technically owned by 1000s of people who all have a very small share of the
company.
Companies are classified into various sectors depending on their specific operation;
Walmart would fall into the tertiary sector as they do not extract raw materials or process
them, they simply sell the consumer goods to the general population using the various
stores across the world. This means the business is just for profit by selling stock of which
they will have obtained for a much cheaper price making them as big of a company as they
are today.
Walmart
Walmart is an American business that
specialises in retail. The company is the biggest
retail business in the world with current
revenue of ‘482.1 billion USD (2016)’. The
company was founded in ‘1962’ by ‘Sam Walton’ with the aim being that the businesses
industry would be retail. Walmart is an extremely large business as they are a ‘multinational
retail corporation’ which means that they have stores and various locations countries across
the world; the most recent number of locations that company has was taken on ‘July 31,
2016’ at a staggering number of ’11.539’ locations around the world all linked to Walmart.
Walmart as a company also have many
subsidiary retail stores in order to match the
market around the world. This is also done in
order to class the business as a different
business in that part of the world, meaning
the tax for the different businesses will be
different, for example a very large company
in the UK known as ‘ASDA’ is owned by
Walmart. Walmart is a public company,
which means that despite the company earning revenue up to 482 billion the business itself
is owned among the public, as various people will have stocks and shares. These are
displayed all across the stock exchange meaning the business is not owned by just one
person but is technically owned by 1000s of people who all have a very small share of the
company.
Companies are classified into various sectors depending on their specific operation;
Walmart would fall into the tertiary sector as they do not extract raw materials or process
them, they simply sell the consumer goods to the general population using the various
stores across the world. This means the business is just for profit by selling stock of which
they will have obtained for a much cheaper price making them as big of a company as they
are today.
