SLG No.

1: Introduction to Accounting
Subject Code/Number: ABM 06
Subject Description: This is an introductory course in accounting, business, and management data
analysis that will develop students’ appreciation of accounting as a language of business and an
understanding of basic accounting concepts and principles that will help them analyze business
transactions
Time Frame: 1 Week

I. Introduction
1. Review the definition of accounting.
2. Ask the learners whether they want to be in a business. Then ask what business they want
to put up and why.
3. Introduce the learning objectives.

A. Learning Competency
1. Differentiate the forms of business organizations in terms of their purpose and role in socio-
economic development.

B. Learning Outcomes
At the end of the lesson, the learners will be able to:
1. identify forms of business organizations and their characteristics
2. explain the purpose of business organizations and their role in socioeconomic development.

II. Learning Content

SOLE/SINGLE PROPRIETORSHIP
- A form of business is owned by one person; the simplest, and the most common form of business
organization.
- It is not separate from the owner. The business and the owner are inseparable.

PARTNERSHIP
- A form of business owned by two or more persons. The details of the arrangement between the
partners are outlined in a written document called articles of partnership.
- Profits are divided among partners based on their agreed sharing.
- The owner is called a partner.

CORPORATION
- A corporation is a business organized as a separate legal entity (artificial person) under the
corporation law with ownership divided into transferable shares of stocks
- Emphasize that it is the law (Corporation Code of the Philippines) that creates a corporation.
- The corporation begins its existence from the date the Articles of Incorporation is approved by the
Securities and Exchange Commission (SEC).
- The SEC (Securities and Exchange Commission) is the government agency primarily tasked to
regulate private corporations in the Philippines.
- The owners are called stockholders or shareholders.
- The word ‘Corporation/Incorporation/Corp./Inc.’ appears in the name of the entity.
- The voting rights of a shareholder is generally based on the percentage of ownership.
- The management of the business is delegated by the shareholders to the Board of Directors.
 - The ownership is divided into shares and the value of one share may be denominated at a smaller
amount, for example at PHP10 per share.
- The proof of ownership is evidenced by a stock certificate.

COOPERATIVES
- A cooperative is a duly registered association of persons with a common bond of interest, voluntarily
joining together to achieve their social, economic and cultural needs.
- The owners are called members who contribute equitably to the capital of the cooperative.
- The members are expected to patronize their products and services.
- The word ‘cooperative’ appears in the name of the entity.
- This form of business organization is regulated by the Cooperative Development Authority (CDA).
- CDA is the government agency regulating the cooperatives.

BUSINESS ORGANIZATIONS ADVANTAGES DISADVANTAGES

SOLE/SINGLE -The owner keeps all the -The life of the business is
PROPRIETORSHIP profits. limited to the life of the
-The owner makes all the owner. Once the owner dies,
decisions. the business will cease to
-It is easy to form and operate under the name of
operate. the proprietor.
-The amount of capital is
limited only by the wealth of
the proprietor.
PARTNERSHIP -Higher capital because two -The profits are divided
or more persons will among the partners.
contribute to the common -A partner can be held liable
fund. for the acts of the other
-It is easy to operate like a partners.
sole/single proprietorship. -In a lawsuit, the personal
properties of the partners
can be held beyond their
contributions and may be
used to answer for any
liability of the partnership.
CORPORATION -Can easily raise additional -It is relatively complicated to
funds by selling shares of set up.
stocks to the public. -Subject to several legal
-Shareholders are not restrictions as listed in the
personally liable for the Corporation Code of the
debts of the corporation. The Philippines.
extent of their liability is
limited to their equity
(ownership) in the
corporation.
COOPERATIVE -Enjoys certain tax -Limited distribution of
exemption privilege. surplus.
-Promotes the concept of -Requires continuous
sharing resources education programs for
 members.
-The members have active
and direct participation in the
business of the cooperative.

WHAT IS THE ROLE OF BUSINESS IN THE SOCIETY?

1. Only business can create prosperity.
Healthy businesses need a healthy community.
Government and NGO’s lack sufficient resources and capabilities to fully meet these challenges.
– Professor Michael E. Porter
Harvard Business School

2. Good firms bring innovation to the marketplace, which facilitates their growth. Innovative, growing
firms generate economic growth and employment, which, in turn, greatly improves people's lives. 
-David Ahsltrom
Academy of Management

PURPOSES OF ESTABLISHING BUSINESS ENTERPRISES

III. Self-Learning Activities

 ITEM Sole Partnership Corporations Cooperatives
Proprietorship
1. Number of
Possible Owners
2. Management
(who manages the
business)
3. Termination of
the business
4. Government
agency assigned
primarily to
regulate
5. Transfer of
ownership
6. Liability of
owners

IV. Assessment

1. Enumerate all the forms of business organizations by nature of ownership.

2. Compare and contrast a corporation from a partnership according to the number of owners and their
liabilities.
3. Compare and contrast a corporation from cooperative.

V. Extension of Learning
1. Give two examples of corporations in the Philippines.
2. Give two examples of cooperatives in the Philippines.

VI. REFERENCES
 https://www.academia.edu/36905139/The_Role_of_Business_in_Social_and_Economic_Develop
ment
 https://commons.deped.gov.ph/melc
 https://journals.aom.org/doi/abs/10.5465/amp.24.3.11#:~:text=Profits%20do%20matter%2C
%20but%20today,turn%2C%20greatly%20improves%20people's%20lives.
 https://www.hbs.edu/faculty/Publication%20Files/20120802%20-%20Michael%20E.%20Porter
%20-%20World%20Bank%20CSV%20Presentation%20-%20For%20Distribution_cc041191-301a-
4816-9166-3f885f36650a.pdf

Submitted by:
 MS. CRISLY MAE L. VILLARIN.LPT
Senior High School Teacher

Reviewed by:

MS. APPLE JOY L. RUPEREZ, LPT

Academic Program Coordinator

Noted by:

MRS. ANDRESA S. BULAWAN, LPT

Assistant Principal

Approved by:

BERHN VINCENT DOSDOS

Senior High School Principal