An Analysis of Richer Sounds PLC

Rich Sound Analysis PLC 0 Report on how rich sounds work 1 A classifies businesses based on ownership and explains the advantages and limitations of such ownership Richer Sounds is trying to profit Part of the private sector including companies to do. Julian Richer is the sole owner of Richer Sounds. In other words, he can fully manage the business, but the board of directors is responsible for the management. Richer Sounds is an unlisted regional private company. That is, it is not listed on the stock exchanges.

Richer Sounds was a private sector, but in 1987 they decided to become a private unlisted company (PLC) which has become an unlisted company since 1990. Richer Sounds is 100% owned by Julian Richer, founder and managing director. Also, Richer does not want to disclose shares, he claims to be an unlisted PLC. Richer Sounds is a midsize company with 48 stores in London, 10 stores and 38 stores outside London. It has about 500 employees, 180 offices or administrators, and 320 employees working in the retail and warehousing industry. In addition, 2003 sales of Richer Sounds were close to $ 87 billion and its pre-tax profit was $ 5 million. In short, Richer Sounds sales reached nearly 280,000 items (2003).

Richer Sounds is an unlisted public limited company (Plc.). They will receive a limited liability benefit to become a public limited company. Therefore, Julian Richer does not take personal responsibility for company debt. But they did not put shares on the stock market. This is because they do not need to get extra money by hand over to people outside the business. Advantages and disadvantages of Plc. As listed below: due to limited liability, the owner's personal property (eg his / her house, car etc) can not be used to repay the company's debt. Many owners prefer to choose this type of responsibility. There are unlimited responsibilities. This applies to individual business owners, SMEs, etc. If their business is in debt, their personal will can be obtained from them.