Tesco PLC
Just like any other business, Tesco started of as a sole trader which was founded by Jack Cohen in 1919. Jack sold only groceries from a small stall at the time in East London. He knew that being a sole trader would mean that he would be responsible for what ever action he took. His actions made what Tesco into what it is today, a household name for shopping.
Being a sole trader could only mean that Jack was his own boss. He was able to keep all his hard earned profits to himself as well being privileged enough to have total independency which resulted in Jack not being disturbed by anyone or being told what to do. In fact he was able to make his own decisions based on what he thought would be right for moving the business in the right direction. He was also able to open and close the shop on his own free will as no one advised him on what to do.
However being your own boss was not always an advantage. Jack faced a number of problems such as having too much responsibility. He had to meet the customers demands of when to open and close the stall, he had to make sure that he ordered the right stock at the right time and he was not able to take many days of as the customers relied on his to provide them with their needs. One could say that this work load is too much for just one person. Also a financial disadvantage was that he was eligible to face unlimited liability if he had unpaid debts. Unlimited liability is when a business that is not able to repay debts, has to pay back using personal possessions equivalent to the amount of debt they owe.
Jack knew that if he were to remain as a sole trader, either he would get ill from the work load or his profits would remain constant. Jack knew that he would have to expand his store sooner or l ...