Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: Lower Interest Rates Economies Of Scale - 798 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

Introduction to Business Environment Assignment 1 1) PLC is the Public Limited Company. Raise capital by selling shares and debentures to the public. Needs two directors and two shareholders. A member can appoint more than one proxy who can vote but can not address meetings. The secretary must be qualified and posses the requisite knowledge and experience. Public scrutiny over accounts aids performance and efficiency.

Large market for shares. No restriction on share transfers on stock exchange, but must keep track of who has shares. Encourages investment into company by share ownership by paying dividends. Can be exempt from the statutory requirement to have its year end accounts audited. Has legal requirement concerning allotted share capital must be equal or greater than fifty thousand pounds. Can not exercise its borrowing powers or enter business transactions until the registrar has granted it a section 117 certificate.

High degree of legislation, rule and formalities it must conform to, e. g. directors retiring at 70 years of age, minimum of two directors, voting for directors individually at a general meeting, share allotment. Must publish its accounts in full. Can not give financial assistance to a person to enable him to purchase the companys shares. In order to outline the four factors that would affect share price of Tesco plc, we should look at its performance in the previous years.

Having in 2001 posted record profits of some 1 bln pounds sterling, Tesco saw profits at the half-way stage hit 417 mln pounds sterling, an increase of 14 % compared to the same period previous year. Turnover was also up, recorded at 11. 5 bln pounds sterling compared to 10. 1 bln pounds sterling for the 24 weeks. In Tesco's core market, the UK, sales grew by 10 % to 9. 8 bln pounds sterling compared to 8. 9 bln pounds sterling in 2001, of which 7. 0 % came from existing stores and 3. 0 % from net new stores. Existing store growth was driven by strong volumes of 6. 9 %. UK operating profit was 12. 1 % higher at 501 mln pounds sterling up from 447 mln pounds sterling. Tesco, along with other mega-businesses, have in the past come under criticism, especially having posted record profits while the UK's farmers were struggling with foot-and-mouth disease.

However, the UK firm says it compared prices every week on over 66 % of its total sales, which revealed that its prices are 12. 5 % cheaper than they were five years ago. (1) Based on those facts, I can suggest the four factors that could affect the share price of Tesco plc. Further expansion is one of them, and probably the most important. The more stores Tesco has, the higher the share price would raise. The thing here is not only in maximizing the profits, but also in the simple fact that ordinary small investors who buy and sell shares would perceive company as growing and would buy its shares, which would mean accordingly the raise in the share price. The second factor is efficient management, since it is one of the most vital components if the company wants to operate in the most profitable way.

Still another factor is acquiring good will of the population, and Tesco have to do something in this direction, since the described below situation with the British farmers could ruin all the goodwill accumulated previously by the company. The last factor here is the tendencies in the market where Tesco operates, for instance, if two of its major competitors merge, Tesco shares might go down due to tat fact. 2) Economies of Scale can be used to reduce unit costs for the company. There are four types of Economies of scale, these are: 1) Financial economies: Big businesses can borrow money more easily and as they are big their strength will able them to bargain with banks for lower interest rates. 2) Administration economies: As the production increase the management costs do not increase at the same rate saving the firm administrative costs. 3) Buying economies: Firms buy in big bulk to obtain a discount on the goods they have bought. 4) Distribution economies: Firms save money as the transport of their goods are made to run more efficiently. Financial economies of scale could be advantageous to Tesco if they wanted to expand even to a greater extent, and thus needed some borrowed funds. Since Tesco is a fairly large company already and has good credit history and is known at both English and international markets, they could borrow money at the English banks at the lower interest rates than those given to regular borrowers and small companies. Taking into consideration Tesco's expenditures, even small decrease in the interest rates would mean a lot of mone


Free research essays on topics related to: lower interest rates, borrow money, economies of scale, share price, four factors

Research essay sample on Lower Interest Rates Economies Of Scale

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com