FORMS OF BUSINESS

ORGANIZATION
for Business Ethics and Social Responsibility
Senior High School (ABM)
Quarter 1 / Week 2

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 FOREWORD

This Self Learning Kit for Business Ethics and Social Responsibility
is an innovative tool designed exclusively for ABM students in the
Senior High School. It assists in understanding various business
concepts by providing students with real-life business applications
through a variety of realistic examples. It serves as a guide in
identifying the examples of the forms of business organizations.
It is aligned with the BEC of the Department of Education
following the prescribed MELCs (Most Essential Learning
Competencies.

This Self Learning Kit is divided into three parts.

What happened

This section contains pre-activities that serve as the beginning

point and a pretest to determine the learners knowledge baseline.

What I Need to Know (Discussion)

This section includes the examples of the forms of business

organizations.

What I have Learned (Evaluation/Post Test)

The exercises contained in this section measures student’s

understanding of examples of the forms of business organizations are
guaranteed to build skills and competence. These serve as a
diagnostic tool to identify the learners’ areas of strengths and
difficulties.
 OBJECTIVES:
At the end of the lesson, the learners are expected to:
K: identify the examples of the forms of business organizations;
S: give examples of the forms of business organizations; and
A: appreciate the importance of the forms of business
organizations.

LEARNING COMPETENCY:
Give examples of the forms of business organizations
(ABM_ESR12IIIa-d-1.2)

I. What Happened

Let us have a recall!

A business is an activity that is part and parcel of human society: it is
an entity in which economic resources or inputs, such as materials and labor,
are put together and processed to provide goods or services or outputs to
customers.

Forms of Business Organization

These are the basic forms of business ownership:
Sole Proprietorship

A sole proprietorship is a business owned by only one person. It is the

simplest form of business organization. It is easy to set-up and is the least
costly among all forms of ownership.

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 Partnership

A partnership is a business owned by two or more persons who

contribute resources into the entity. The partners divide the profits of the
business among themselves.

Corporation

A corporation is a business organization that has a separate legal

personality from its owners. Ownership in a stock corporation is represented
by shares of stock.

Cooperative

A cooperative is a business organization owned by a group of

individuals and is operated for their mutual benefit.

PRE-TEST:
Multiple Choice. Choose the letter that corresponds the correct answer. Write
your answers in your notebook.
1. A sari-sari store is an example of a corporation.
A. true B. false C. both D. neither A or B
2. Which of the following is not an example of a single/sole proprietorship?
A. ABC Bakeshop B. Ana’s Sari-sari Store
C. Lee Super Plaza D. XYZ Motor Repair Shop
3. NORECO is an example of _______________________.
A. Single/Sole Proprietorship B. Partnership
C. Corporation D. Cooperative
4. Zycy owns a beauty supply store in the town where she resides. Which form of
business organization is being described by the statement?
A. Single/Sole Proprietorship B. Partnership
C. Corporation D. Cooperative
5. Which of the following is not an example of partnership?
A. West Elm & Casper B. Lee Super Plaza and Lp Hypermart
C. Louis Vuitton & BMW D. Spotify & Uber

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II. What You Need To Know
DISCUSSION

Example of the Forms of Business Organization

Sole Proprietorship Examples

Jane owns a beauty supply store in the town where she resides. Business
has picked up for Jane so she decides to order several months’ worth of supplies
in advance, at a cost of about P12,000.00, which is to be paid in monthly
installments.

A couple of months after Jane purchased the large order of inventory, the
mill in her town closed down, laying off more than 200 employees. Suddenly the
town is experiencing an economic recession, and Jane can’t sell her products
quickly enough to make her payments.

In this example of a sole proprietorship of the business, Jane is personally

liable for the debt. This means that the supply company, and any other
creditors, can file a civil lawsuit against Jane and go after her business assets, as
well as her personal property, including her home. (Sole Proprietorship n.d.)

Other examples of Single/Sole Proprietorship

 ABC Bakeshop

 Ana’s Sari-sari Store

 XYZ Motor Repair Shop

 Santillan Optical

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Partnership Business Examples: Everything You Need to Know

There are many partnership business examples. One type of partnership is

co-branding, which is an advertising partnership and strategic marketing that
exists between two brands. The success of one company depends on the
success of the other. This can be a good way to get into new markets, build
more business, and increase awareness. A partnership needs to be a win-win
situation for both sides in order for it to be successful.

Red Bull & GoPro

One example of a partnership business is the relationship between Red Bull

and GoPro. GoPro sells more than portable cameras, while Red Bull sells more
than energy drinks. They are both lifestyle brands that have similar goals. They
have the following in common:

 Fearless

 Adventurous

 Extreme

 Action-packed

These make them the perfect fit to pair up for campaigns, particularly when it
comes to action sports. GoPro gives adventurers and athletes the tools they
need to capture their stunts, sports events, and races from the athlete's
perspective. In turn, RedBull puts on and sponsors the events.

Sherwin-Williams & Pottery Barn

One of the largest advantages of doing a co-branding campaign is

having the opportunity to showcase a service or product to a new audience.
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That's what Sherwin-Williams and Pottery Barn did when they got together in
2013. They created an exclusive line of paints together, and then put a new
section up on Pottery Barn's website to allow customers to easily pick which
paint colors they wanted so it would go with their furniture choices. This was
mutually beneficial for both brands, and they wrote articles to show how
customers could decorate and paint on their own.

West Elm & Casper

Casper is an online bedding and mattress store that is known for selling
mattresses in a box. They have popular YouTube videos that show the mattress
unboxing process and even have a 100-day return policy. However, some
shoppers might not want to buy the mattress if they can't test it for themselves
first. Casper decided to partner with West Elm so people could try out the
mattress in person before they bought it. West Elm was also able to show off their
stylish bedroom furniture.

Dr. Pepper & Bonne Belle

Bonne Belle first launched the first flavored lip balm in the world, Lip
Smacker, in 1973. The original flavors included lemon, strawberry, and green
apple. In 1975, they decided to partner with Dr. Pepper to create one of the
most popular flavors of lip balm ever, the Dr. Pepper lip balm. They even
teamed up for their new slogans to promote the lip balm.

Louis Vuitton & BMW

Louis Vuitton and BMW may seem like a strange partnership initially.
However, they have several traits in common. They both promote travel, as Louis
Vuitton is known for their elegant luggage lines. They both consider luxury to be
important, and they're both popular brands that are known for their high-quality
products. BMW created a car named the BMW i8, and Louis Vuitton created a
four-piece set of bags and suitcases that seamlessly fit into the rear parcel shelf

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in the BMW. This partnership showed the shared values of technological
innovation, creativity, and style.

Spotify & Uber

Spotify partnered with Uber because they both had the same goal of
getting more users even though they had different products. Uber riders can
pick out a Spotify playlist to choose what they'll listen to during their ride. This
helps both Spotify and Uber fans have a better experience during their ride in
the car. (Business Partnership Examples)

Corporation Examples

Corporation example includes General Motors Corporation or GMC an

icon of American craftsmanship, Apple Corporation as one of the famous tech
companies, Amazon Corporation founded by Jeff Bezos is the world’s leading
eCommerce and innovation company, Domino’s Pizza is a global food chain
company delivering quality food worldwide.

Amazon was founded in 1994 and is a world leader in e-commerce. It has

taken massive business away from the brock and mortar stores by providing the
facilities to order products at home. Amazon.com provides millions of products
on its website which can be ordered by the consumers and delivered at their

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doorstep. The Company has become the largest retailer and one of the favored
stock on the exchanges.

J.P. Morgan Chase & Co. is one of the oldest financial institutions in the
United States of America started in 1799. It’s one of the biggest financial
institutions with annual revenue of more than ₱105 billion. The firm boasts of
maximizing shareholders’ value, and a return of asset ratio at 1.01% maximum in
the financial sector. The firm caters to the needs of the customers both retail
banking and corporate banking, trading desks, investment management,
underwriting, risk management, etc.

Microsoft was started by Bill Gates in 1975 and built a software Windows.
The Company went on to build Ms. Office – Ms. Word, Ms. Excel, Powerpoint,
Outlook, and much other software which are used on a day to day basis by
professionals and almost every Company. The Company is currently led by
Satya Nadela and earned a revenue of ₱110 billion in 2018 with revenue
growth of 14.28%. The Companies founder Bill Gates and his spouse Melinda
Gates are involved in many social causes around the world through their
foundation called Bill and Melinda Gates Foundation. They work to uplift people
from poverty, hunger, health problems.

Google is a multinational tech company mainly known for its search

engine. The Company is the biggest Corporation in internet services with a web
of its apps like the search engine, Gmail, google maps, youtube, etc. It has
varied products including advertising services, cloud computing, software, etc.
The Company was founded by Sergey Brin and Larry Page in 1998.

Popular Course in this category

Apple was founded in April 1976 by Steve Jobs and has become a tech
giant. Its products Mac, iPhone, Ipad, and other smart devices are used by
millions of people so much so that the new product launches are awaited by

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tech enthusiasts. In 2018, Apple recorded the highest revenue of ₱ 265 billion.
With a strong presence of more than 500 stores all over the world, the Company
is expanding in sales and revenue year on year.

3M. The Company known for its many products and patents is located in
Minnesota. It has worldwide revenue of ₱ 23 bn and makes products like
reflective materials, circuits in printers and cellphones, dental supplies, medical-
related products, safety products, and industrial materials like tapes, adhesives,
etc. It was started in 1902 and the organization was built through innovation and
need-driven products for the consumers.

Domino’s Pizza. The largest pizza chain has more than 8300 stores around
the world including Company-owned and franchised stores. The Company was
started in 1960 in Michigan. The Company has a revenue of more than ₱ 2.47
bn.

Exxon Mobil is the world’s largest oil company and one of the
largest publicly traded companies. The Company is involved in oil and gas
exploration, production, supply, transportation. The Company’s oil refineries can
produce 6 million barrels per day to be transported to about 100 countries and
operate under different brands like Exxon, Esso, Mobil.

CorpGeneral Motors Corporation also called General Motors or GM

specializes in automobiles. They have many brands like Chevrolet, Buick, GMC,
Cadilac, Holden, Isuzu, Opel among others. The Company was founded in 1908
in Detroit. The Company is ranked amongst the top 10, fortune 500 Companies
and manufactures vehicles in 37 Countries with sales of more than 10 million
vehicles. (Examples of Corporation n.d.)

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Other Examples of Corporation

 Dynamic Development Corporation – Lee Super Plaza and Lp Hypermart

 Philsouth Properties and Development Corporation
 San Miguel Corporation
 Uy Matiao Trading Corporation

Cooperative Business Examples

What do these businesses look like in the real world? Let’s take a look at
some examples:

Producer & Worker Cooperatives

Groups of agricultural producers or industrial workers may opt to form
cooperatives in order to access goods/services, find qualified workers, market
their goods, or collaborate in storage or distribution.
Examples:

 Do it Best: A member-owned producer of hardware, building materials,

and lumber. It is one of the largest co-ops in the industry.
 Dairy Farmers of America: A national milk marketing cooperative that
is owned by over 16,000 dairy farmers. Members of the cooperative
produce over 20 percent of raw milk in the U.S.
 Ocean Spray: An agricultural cooperative organization based out of
Lakeville, Massachusetts. Its member-growers produce 70 percent of all
cranberries in the U.S.

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Credit Unions
Credit unions are markedly different than banks. They are owned by
consumers; those who take part in their financial services are member-owners.
They come in a variety of sizes and may opt to provide services for people with
specific needs or who meet certain qualifications.

Examples:

 Navy Federal Credit Union: Servicing military and government personnel and
their families for decades, this credit union is the largest in the nation by a
wide margin.
 The Union Credit Union: A credit union formed to serve union members. It is
operated entirely by union staff and management.
 Alliant Credit Union: A member-owned credit union from Chicago, Illinois that
was founded by United Airlines employees over 80 years ago.

Retail Stores & Wholesalers

Member-owned retail stores and wholesale operations are designed to
decrease production/distribution costs and meet community needs. They exist in
a wide range of industries, though the methods in which they streamline food
production are notable.

Examples:

 Associated Wholesale Grocers: The largest co-op food wholesaler for

independent supermarkets in America.
 Park Slope Food Coop: This is one of the oldest and largest food co-ops in
America, located in Brooklyn, New York. In exchange for working a few years
every month, members can buy foods and other goods at a substantial
discount.

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 People’s Food Co-op: A food cooperative in Portland, Oregon with several
thousand members. Its members have a strong focus on environmental
sustainability.

Housing Cooperatives
Also known as resident-owned communities, real estate cooperatives can
include apartments, groups of homes, or individual homes. Members (tenants)
pay for the mortgage and maintenance of the property. While there are usually
more restrictions for such property, each member also has a say in how things
are operated.
Examples:

 Berkeley Student Cooperative: A student housing cooperative mostly

serving full-time students at the University of California.
 Co-op City, Bronx: Located in the Bronx in northeast New York City, this is the
largest cooperative housing development in the world.
 Greenbelt Homes, Inc.: A cooperative of 1,600 homes in Greenbelt,
Maryland. Many of the homes have historical value, as they were the original
houses built in 1936 by the federal government as part of the New Deal.
(What is a coopertative n. d.)

Other examples of Cooperative

 Cooperative Bank of Negros Oriental – Head Office

 Dumaguete Cathedral Credit Cooperative (DCCCO)

 Negros Oriental II Electric Cooperative Inc.

 Perpetual Help Community Cooperative (PHCCI)

 Silliman University Community Cooperative

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III. What Have I Learned

SUM IT UP!

Examples of the Forms of Business Organization

Sole Proprietorship Examples
 ABC Bakeshop
 Ana’s Sari-sari Store
 XYZ Motor Repair Shop
 Santillan Optical

Partnership Business Examples: Everything You Need to Know

Red Bull & GoPro
Sherwin-Williams & Pottery Barn
West Elm & Casper
Dr. Pepper & Bonne Belle
Louis Vuitton & BMW
Spotify & Uber

Corporation Examples
Amazon
J.P. Morgan Chase & Co.
Microsoft
Google
Apple
3M
Domino’s Pizza
Exxon Mobil

Other examples of Corporation

 Dynamic Development Corporation – Lee Super Plaza and Lp
Hypermart
 Philsouth Properties and Development Corporation
 San Miguel Corporation
 Uy Matiao Trading Corporation

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Cooperative Business Examples
Producer & Worker Cooperatives
Do it Best
Dairy Farmers of America
Ocean Spray
Credit Unions
Navy Federal Credit Union
The Union Credit Union
Alliant Credit Union
Retail Stores & Wholesalers
Associated Wholesale Grocers
Park Slope Food Coop
People’s Food Co-op
Housing Cooperatives
Berkeley Student Cooperative
Co-op City, Bronx
Greenbelt Homes, Inc.:
Other examples of Cooperative
 Cooperative Bank of Negros Oriental – Head Office
 Dumaguete Cathedral Credit Cooperative (DCCCO)
 Negros Oriental II Electric Cooperative Inc.
 Perpetual Help Community Cooperative (PHCCI)
 Silliman University Community Cooperative

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EVALUATION/POST TEST:
Modified Identification. Choose the correct answer from the choices below and
write only the letter of the correct answer.

A. Single/Sole Proprietorship
B. Partnership
C. Corporation
D. Cooperative

_____ 1. Philsouth Properties and Development Corporation

_____ 2. Lee Super Plaza and Lp Hypermart

_____ 3. Santillan Optical

_____ 4. Navy Federal Credit Union

_____ 5. Louis Vuitton & BMW

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