Assignment 1

Name: Nguyen Ngoc Linh Anh

Student number: 200868

Question 1: (1 point)
An advantage of a Private Public Company over a Public Limited Company is:

a) You can invite more owners who bring more skills to the company
b) You can bring more funding into the company
c) You limit ownership to a closed circle of investors and do not run the risk of
takeovers
d) The company will become more famous as its now registered on the stock market

Question 2: (3 points)
Explain why suppliers in the same industry would want to start a cooperative
- Because it’s not making profit for shareholders but creating value for customers and
securing employment for workers and also each member of a cooperative has a single vote,
everyone has equal rights in the business, no matter how many shares they own.
- The members are also the owners, they have a financial interest in the success of the
cooperative, trying to give it their full support.

Question 3:

Imagine you started a company some years ago in healthy foods for supermarkets.
Unfortunately, your company isn’t doing so well, and you start to think if the form of your
business might be the cause. Maybe a different form would suit the market better and
finally bring success to your business.
 a) Explain why a sole trader would grow into a public limited company (3 points)
- It can have limited liability
- It can easily buying and selling share for shareholders to raise capital
- It also continuity and separate legal identity

b) Explain why a sole trader would grow into a partnership (3 points)

- A partner can provide capital to grow the business
- Partnership means a shared responsibility: financial and operational responsibility
- Business losses are shared between partner

You decide to form a public limited company. Now you have to sell shares on the stock
market and attract investors. Since your company is relatively unknown, you decide a vision
and mission of the company is needed.

Question 4:
Define:
a) Mission statement (1 point):
- Outlines the overall purpose, aims or main goal of the organization
- To organize the world’s information and make it universally accessible and useful

b) Vision statement (1point)

- Outline what the future will look like when the mission is achieved

- Provide an important service to the world – instantly delivering

Question 5: (2 points)
Design a mission statement and vision statement for your company. (Remember, you
produce healthy foods which are sold in supermarkets)
 a) Mission statement: to serve the most healthy and cleanest foods and approach to all
customers including children.

b) Vision statement: increase the amounts of healthy products that are contributed in
our community and decrease some of chronic disease such as diabetes, obesity and
delayed cognitive development in children. Furthermore, it can improve the quality
of people’s life.

Question 6: (1 point)
Investors usually want to see a plan which can tell them how much return they can expect
on their investment. What method can you use to ensure that your goal has all the elements
needed to be effective?
- We can use SMART criteria to make a clear and effective goal.

Question 7: (3 points)
Formulate a goal which could motivate investors and explain why your goal has all the
criteria mentioned in the previous question.
- The company set an objective of increasing 5% sales of all healthy products an 3% of each
product in this summer period
+ Specific: Sales should be increased.
+ Measurable: 5% of all products and 3% of each product.
+ Achievable: raise the quality of the healthy foods and distribute products to more
supermarket to make people know more about the products.
+ Realistic (Relevant): an imported source of quality assurance with the reasonable price
and sales goals for a marketing department are relevant.
+ Time – specific: this summer period.