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Purpose of Ownership

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Submitted By sophsickels
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In this assignment I will describe the type of business,purpose and ownership of Asda

an educational institution which provides a service in the form of education and skills for everyone looking to study. It helps people succeed in what they want to pursue as a career.

Where as Asda is a supermarket which provides products and services which falls under the private sector. Asda is a limited company which means that it is made up of people who know each other. In this case Asda's parents are Walmart. Shares cannot be brought by the public however it is possible to buy shares in the company but the owners control who buys the shares. The shareholders own Asda which means that the liability is limited. This means the shareholders will only lose the amount they invested in the business if anything was to go wrong. With limited companies it is essential to comply with the companies Act and register with registrar of companies. Asda will have to have the following documents: Memorandum of Association as well as Articles of Association.

The Memorandum of Association is just a document which includes the companies name and the address of its registered offices it also states that shareholders have limited liability, It will also include the companies purpose.

On the other hand the Article of Association will state the name of the directors and their roles. It will also declare how profits will be distributed and the internal rules for running the business and the voting rights of the

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