Company Overview Of The Company Essay

734 Words Mar 8th, 2015 3 Pages
Company Overview It in the retail industry and it is one of the largest among retailers in its industry. The company operates in three segments and they are US, International and Sam Club. Fiscal year ended January 31, 2014, Walmart increased net sales by 1.6% to $473.1 billion and returned $12.8 billion to shareholders through dividends and share repurchases. The company is customer driven and has the ability to set a low price of each of its products product.
Form of Organization
The company was established in 1962 as proprietorship from of business. This form from of business has the following benefits:
1. The business is run by only one person, so all of the losses will fall in that one person.
2. It’s easier to make business decision when it is run by one person.
But it has the following disadvantages:
The liability of the owner is unlimited.

1. In business entity concept of accounting. The owner and its business are separate from each other, in an accounting point of view and also in a legal point of view.

1. As the shareholders are the investor of the business but it is not managed by them, the professional management makes better decision regarding the activities of the business, on a short and long term basis.
2. The liability of the owner is also limited to the extent of amount invested as paid up capital. If suppose, the owner of Wal-Mart has invested $2 million in the business and the company makes a loss of $2 billion, then the owner does…

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