What type of company is Coca Cola?
What type of company is Coca Cola?

What type of company is Coca Cola?

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  • Pages: 6 (2810 words)
  • Published: November 15, 2018
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his unit is based on Business at work. The company I have chosen to write my report on is Coca Cola.

Coca Cola is a well-respected company and one of the biggest companies in the world. Coca Cola was founded in 1886, which is over a century ago. The company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups used to produce more then 230 beverage brands. Coca Cola corporate headquarters are located in Atlanta, with local operations in over 190 countries worldwide.What type of company is Coca Cola? Coca Cola is a public limited company.

A public company has its shares bought and sold in the stock exchange. The main advantage of selling shares through the stock exchange is that large amounts of capital can be raised very quickly. The main disadvantage is that the original shareholders can lose control of the business if large quantities of shares are purchased in a big take over (51% of the entire shares) Coca Cola and its community Coca Cola has a promise to their customers. Their promise is short and very simple.

“The Coca Cola Company exists to benefit and refresh everyone who is touched by their business. Fulfilling the promise means that everyday we have to live up to our values so that people continue to invite us into their lives we have to maintain our special place in local cultures, recognizing the difference between countries and regions. We must operate as model business citizens, shaping the business decisions we mak

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e to improve the quality of the life of our communities in which we do business. We feel that we should supply the thirsty people in this world with what they want. “Ownership of Coca Cola Coca Cola has a public ownership. Coca Cola is a public limited company.

This means that its shareholder owns it. Coca Cola is under both sectors; secondary and tertiary. The reason for this is they produce their own products such as ‘Fanta’ and provide services to their consumers. Other public limited companies could include Tesco’s British airways, HMV, and First Sport.

Public limited companies are companies where you can buy and sell shares in a stock exchange market without having to ask permission of a shareholder like you do in a private limited company.This is the largest type of privately owned enterprises. Coca Cola is a large company and one reason being this could have been by the amount of capital they had raised and they way they would do that is by selling shares throughout the stock exchange market, you will receive large amounts of capital very quickly. If someone makes a takeover bid and takes more then 50% of the shares then they would be made the new owner of the company but that is very unlikely because Coca Cola is worth a lot of money as it is one of the biggest companies in the world.Money brought in by the shareholders is spend on things like improving quality and machinery.

If Coca Cola was to make a major decision or investment they would have to inform their

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shareholders of what they are doing There are different types of ownership like sole trader and partnership. A sole trader is a business, which is owned by one person for example an off license. There are different types of sole traders like plumbers, hairdressers and an accountant could be a sole trader unless they work for a company.Sole traders have unlimited liability which means that they are personally liable for the firms debts and will have to pay them out of their own pocket. The advantages of a sole trader are that the firms are usually small and easy to set up. Only a small amount of capital needs t be invested to start up the business.

There will be not many employees working for you; sometimes none so there will be no wage cost for the company. The owner can make decisions without consulting someone else.The disadvantages for being a sole trader will often work long hours and find it difficult to take time off if they want to take a holiday or if they are ill. If you want to make the business bigger then it is it will be difficult due to the amount of limited capital you will have. There will be the risk of limited liability where the sole trader can be forced to sell his or her personal assets to cover any debts. Advantage of this type of ownership -The shareholders have limited liability which means Their owners are not personally liable for the firm’s debts-Public limited companies benefit from economies of scale which is money savings made by large companies, they make these savings buy buying in bulk and getting a cheaper average cost for each product because it will be cheaper for them to buy in bulk.

The Shares in the company can be freely bought and sold, the reason for this is A Public Limited Company can sell its shares on the Stock Market, while a Private Limited Company cannot. Unlike a sole trader or a partnership, the owners of a Limited Company are not involved in the running of the business, unless they have been elected to the Board of Directors-The company can easily raise capital for expansion and development buy selling its shares to the public. -Banks and other financial institutions are more willing to lend the company money because of the company’s reputation and profits, usually at preferential rates of interest because they have a high expectancy of getting their money back. -The companies continue existence does not depend on the founders of the business because anyone can take over the business as long as they have bought enough shares on the stock market of the business. Disadvantages of this type of ownership-The founder owners can lose control of the company because its shares can be readily bought on the stock exchange -Starting a public limited company is expensive compared with other types of business and requires a great deal of documentation To become a public limited company, applicants have to submit a Memorandum of Association which states the business’ name, address and main purpose. It also describes

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