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Sears Holding begain as a sole proprietorship in 1886 known as R.W Sears Watch Company. Sears wanted to establish the company in Chicago and needed a partner to do so. Together Sears and Roebuck formed a corporation and expanded the business's to offer more product lines through mail order catalogs. Sears became a public corporation in 1901 to secure financing growth. The company's Craftsman and Kenmore brands became popular, and soon retail sales outperformed mail orders. However, lack of investment has resulted in less than pristine retail locations. In 2004, Kmart acquired Sears for $11 billion and adopted the name Sears Holdings Company. The merged company continues to struggle with losses and is selling off its best-known business units and underperforming stores.
1. Why did Sears become a public corporation? What benefits does this form of organization have to offer Sears?
2. Describe some reason for why the firm is struggling.
3. What is Sears doing to bounce back from its losses?
Life Situation Single Age 21 No dependents College student Financial Data Monthly Income $1,750 Living Expenses $1,210 Personal property $7,300 Savings $2,000 Student loan $3,000 Credit card debt $2,400 Shelby Johnson has been working at a local pet ..
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