Senior High School

Organization & Management

Quarter II
Module 16
The Basic Concept of Small Family Business

Writer:
JONER G. MAGLALANG
MT-I Sta. Maria HS, Macabebe
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
JONER G. MAGLALANG – MT- I
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master the Basic Concepts of Small Family Business. The scope of this module
permits it to be used in many different learning situations. The language
used recognizes the diverse vocabulary level of students. The lessons are
arranged to follow the standard sequence of the course. But the order in
which you read them can be changed to correspond with the textbook you are
now using.

The module is contains:

• Lesson 1 – The Basic Concepts of Small Family Business
After going through this module, you are expected to:
1. explain how to start a small-family business
2. identify the business legal forms and requirement
3. appreciate the role of small-family business in an improving
economic status

What I Know

Before you start studying this module, take this simple test to find
out what you already know about the topic.
Choose the letter of the correct answer. Write your answer on your notebook.
1. Developing new ideas, create, risk taking, positive growth behavior,
giving opportunity to the people and organization that create new
product and services.
a. Entrepreneurial ventures c. Large Business
b. Entrepreneurship d. Small Enterprise
2. Organizations that persistently pursue opportunities are characterized
by creative, innovative activities that have service, growth, and
profitability as principal goals.
a. Entrepreneurial ventures c. Large Business
b. Entrepreneurship d. Small Enterprise
3. A business that has fewer than 100 – 500 workers.
a. Big Entrepreneur c. Large Business
b. Macro Business d. Small Business
4. A written description of business.
a. Building blocks c. Tax payer
b. Business Plan d. DTI
5. It is a company’s objective and it’s approach to reach those
objective.
a. Mission and Vision c. Persistent
b. Flexible d. Confident
6. It is a type of business owned by several members of the group
a. Sole Proprietorship c. Cooperative
b. Partnership d. Corporation
7. A government requirement that order new business owners to
furnish government agencies with necessary information prior
to the legal operation of their business organization.
a. Business Registration c. Accounting Flow
b. Business Plan d. Financial Data
8. Owned and operated by only person.
a. Sole Proprietorship c. Cooperative
b. Partnership d. Corporation
9. A business owned and financially controlled by members of a
family
a. Family Business c. Entrepreneur
b. Enterprise d. Organization
10. Any projected task or work; undertaking
a. Family Business c. Entrepreneur
b. Enterprise d. Organization
11. Joined operation of two or more partners.
a. Sole Proprietorship c. Cooperative
b. Partnership d. Corporation
12. Five or more person owning the business.
a. Sole Proprietorship c. Cooperative
b. Partnership d. Corporation
13 .Must registered to the CDA or Cooperative Development
Authority.
a. Sole Proprietorship c. Cooperative
b. Partnership d. Corporation
14.A written document that tells what you plan to do and how you
plan to do in the business.
a. Business Registration
b. Business Plan
c. Accounting Flow
d. Financial Data
15. A person owned the business.
a. Entrepreneur
b. Entrepreneurship
c. Legal Forms
d. Legal documents
 Lesson
The Basic Concepts of Small Family
1 Business
We are ruled by the ventures of entrepreneurs. All our basic needs, appliances
gadgets and equipment and other things we use or consume daily are all
products of entrepreneurial ventures. Therefore, it is important to recognize
our dependence on the innovative and creative nature of entrepreneurs. The
important role of entrepreneurs is to continuously look into the needs and
wants of society.
According to the article INC. A family-owned business may be defined as any
business in which two or more family members are involved and the majority
of ownership or control lies within a family. Family-owned businesses may be
the oldest form of business organization. Farms were an early form of family
business in which what we think of today as the private life and work life were
intertwined. In urban settings it was once normal for a shopkeeper or doctor
to live in the same building in which he or she worked and family members
often helped with the business as needed.
(https://www.inc.com/encyclopedia/family-owned-businesses.html)

What’s In

Let’s have a review about the previous lesson.

Review:
What are the nature and role in the firm in the
different functional areas of management? Explain .

What’s New

Let’s investigate, observe and analyze the small business that

existing and sustainable in your place.

A. Name 10 small business in your place. In your own

understanding, What do you think are the strategies and
procedures that small the business becomes sustainable and
stable? Are they legal and what form of business they are
register in?
 Small Business Types of Business
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Strategies and Procedures

B. Picture Analysis: Identify the type of business you see in the picture if it
is Sole proprietorship, Partnership, Corporation or Cooperative and
explain?

1.

2.
3.

4.

C. Interview 2 friends using your messenger to find out if they are

interested in becoming entrepreneurs and to have a family business
someday. Find out the specific entrepreneurial venture that they are
planning to pursue and the reason for their choice.
1.

2.

What is It

Let’s start the lesson with brief discussion and discover and learn new
thoughts and expertise.

1. What can you say about the activity? In your observation and investigation
to the small business what are the common characteristics in their
strategies and procedures, what type of business they are engaged in?
2. In the future how can you see yourself? Are your career professional or an
entrepreneur? If entrepreneur, what type of business would you like to
create?
 Why? Explain? Do you have any experience putting up a small
business or family business?
3. What would be the contribution of their plan in an improving economy?

Mini Lesson
Let’ begin with the lesson and learn new things.
Entrepreneurship – innovative, creative, risk-taking, growth-oriented behavior that
brings new opportunities for individuals or organizations to start new business and
to produce new products or services that are beneficial to society.
Entrepreneurial ventures- organizations that persistently pursue opportunities are
characterized by creative, innovative activities that have service, growth, and
profitability as principal goals.

Small business – a business that has fewer than 100 – 500 workers (depending on
the prevailing commercial law in a particular country), independently owned,
operated, and financed; not always entrepreneurial in orientation and does not
dominate its industry; capital is low but capable of producing goods or
rendering services designed to satisfy particular needs of customers.

What are the Entrepreneurial

Procedure? Steps in Entrepreneurial
Procedure
• Formulate the business vision and mission statements
• Segment of the market
• Find the target market
• Understand the environment
• Develop the business Plan

Business plan is a written description of your business's future, a document that

tells what you plan to do and how you plan to do it. If you jot down a paragraph on
the back of an envelope describing your business strategy, you've written a plan, or
at least the germ of one. Business plans are inherently strategic.
Business Plan
- Executive summary - Products and services
- Environmental analyst - Operations
- Industry analysis - Management and ownership
- Market analysis - Financial Data
- Company description - Time table
- Marketing and sales activities
• Implement and monitor the business venture
• Maximize the utilization of business resources
• Creative and Innovative * Good Planners
• Customer-oriented * Open-minded
• Flexible * Persistent
• Confident * Organized
• Updated/Well-informed * Team players
• Knowledgeable * Risk-takers
Business Registration – a government requirement that order new business
owners to furnish government agencies with necessary information prior
to the legal operation of their business organization.
The legal forms of business is determined by its ownership or proprietorship.
Family Business- a business owned and financially controlled by members of a family
Enterprise – any projected task or work; undertaking
What are the Forms of Business?
Single or Sole Proprietorship – a business owned by one person only. The owner and the
business are considered as one, meaning the owner’s income and the business income
are one and the same and the business income is taxed as a personal income. Decision
making is the sole responsibility of the owner and if the business succeeds, he or
she gets all the profits. It it fails, then he or she suffers all the losses and must pay
whatever debt are incurred. The business ends upon the death of the owner or single
proprietor.
Partnership – a business formed when two or more partners formally agree to be joint
owners of a business. The resources (money and other assets) and talents (skills,
experience, and management expertise) of all involved may be pooled together. All
partners share the profits equally, unless otherwise specified in their partnership
agreement.
Corporation – a business entity involving five or more persons owning it. It is
registered and recognized by law as a “legal person” that has legal rights and
responsibilities, can sue or be sued in court, can own and sell properties, and can
transact or enter into contracts. Corporation ownership is divided into units known as
shares of stocks and owners of these are called stockholders. A board of directors,
elected by the stockholders on a regular basis, manage the corporation which is run
according to terms specified by their by-laws and articles of incorporation. The
corporation’s life does not end with the death of stockholder or by the selling of the
stocks of a particular stockholder.
Cooperative - a group enterprise made up of several traders, consumers, or producers
who are interested to produce or trade as a group. The cooperatives’ original purpose
was to supply those involved with goods or services at lower costs compared to those
bought from retailers. Later types of cooperative have emerged that include farmers,
producers, and credit cooperatives. A group of officers, called board of directors and
committees, headed by a chairman, manage the cooperative’s activities. The
cooperative’s life is not affected by the death of any of its members nor by the selling
of a member’s shares. It can, however, be dissolved by a majority vote of the board of
directors and a resolution signed by at least two-thirds of the general membership.
Government agencies where the business to be registered:
• Department of Trade and Industry(DTI)
• Securities and Exchange Commission (SEC) (Partnership and Corporation)
• Cooperative Development Authority (CDA)
• Barangay clearance and securing Community Tax Certificate
• Mayor’s Permit and license to operate
• Fire Safety Clearance – Bureau of Fire Protection (BFP)
• Bureau of Internal Revenue (BIR)
• Pag-ibig Fund (Home Development Mutual Fund)
• Department of Labor and Employment (DOLE)
• Social Security System(SSS)
• Philippine Health Insurance Corporation(Philhealth)
Let’s condition our mind with the song in youtube about Family Business,
Littlest Pet Shop – Biskit Family Busines,
https://www.youtube.com/watch?v=bHlkkb0-nP4
 Let’s learn about the Process Flow of Registering a Business.

Here are the Sample of Legal Form of Business

 What’s More

Let’s answer the simple question below to find out if you

understand and learned skills of the topic.
Choose the letter of the correct answer and write your answer on your notebook
1. Innovative, creative, risk-taking, growth-oriented behavior that brings
new opportunities for individuals or organizations to start new business
and to produce new products or services that are beneficial to society.
a. Small Business c. Entrepreneurship
b. Entrepreneurial ventures d. Entrepreneur
2. Organizations that persistently pursue opportunities are characterized
by creative, innovative activities that have service, growth, and
profitability as principal goals.
a. Small Business c. Entrepreneurship
b. Entrepreneurial ventures d. Entrepreneur
3. A government requirement that order new business owners to
furnish government agencies with necessary information prior to the
legal operation of their business organization.
a. Business Registration c. Business Plan
b. Business Ownership d. Business Portfolio
4. The owner and the business are considered as one, meaning the owner’s
income and the business income are one and the same and the
business income is taxed as a personal income.
a. Single or Sole Proprietorship c. Corporation
b. Partnership d. Cooperative
5. It is divided into units known as shares of stocks and owners of these
are called stockholders.
a. Single or Sole Proprietorship c. Corporation
b. Partnership d. Cooperative
 What I Have Learned

Let’s find out. What you have learned? Choose the correct answer
on the box below and write the answer on your notebook.

1. is innovative, creative, risk-taking, growth-oriented

behavior that brings new opportunities for individuals or organizations
to start new business and to produce new products or services that are
beneficial to society.
2. are organizations that persistently pursue
opportunities are characterized by creative, innovative activities that
have service, growth, and profitability as principal goals.
3. is a business that has fewer than 100 – 500 workers
independently owned, operated, and financed.
4. is a written description of your business's future, a
document that tells what you plan to do and how you plan to do it.
5. is a government requirement that order new
business owners to furnish government agencies with necessary
information prior to the legal operation of their business organization.
6. The of business is determined by its
ownership or proprietorship.
7. a business owned by one person only.
8. is a business formed when two or more partners
formally agree to be joint owners of a business.
9. is a business entity involving five or more persons
owning it.
10. is a group enterprise made up of several traders,
consumers, or producers who are interested to produce or trade as a
group.
11. is a business owned and financially controlled by
members of a family
12. any projected task or work; undertaking

Enterprise Family Business Single Proprietorship Partnership

Cooperative Legal Forms Business Registration

Business Plan Small Business Entrepreneurship Corporation

Entrepreneurial Venture

Well, this is almost the end of the module! Congratulations for

having gone this far. You have been a very hardworking and
patient learner. Did you like the module? Did you learn something
useful from it?
 What I Can Do

Analyze business in the Philippine and why that entrepreneurship becomes

successful? How will you adopt the strategies, mission and vision to your
own business in the future?

A. If you are an entrepreneur, what kind of business will you create?

B. Search on 10 Business Corporation in the Philippines and discuss the
business they are engaged in.
Business Business they are engaged
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Choose two and discuss their successes?

C. Are you getting more excited to operate a business? Why? Explain. Soon
you’ll be ready to open and start your own family business.
D. List down 2 sari-sari store or any small family business in your place. As
them what are their strategies/secret ingredients in running a small family
business and their success stories?

Assessment

You will find out how much you learned from the module by taking this test.
A. Choose the letter of the correct answer. Write your answer on your
notebook.
1. Businesswoman Joana wants her business to pursue different
opportunities that design, innovate different activities and the
principal goals of the business are the growth and profitability.
What ventures it is?
a. Entrepreneurial ventures c. Micro Business
b. Small Business d. Leadership
2.Innovative, creative, risk-taking, growth-oriented behaviour that
brings new opportunities for individuals or organizations to start
new business and to produce new products or services that are
beneficial to society.
a. Entrepreneurship c. Management
b. Organization d. Accounting
3. Which of the following best describe the Small Business?
a. Organizations that persistently pursue opportunities are
characterized by creative, innovative activities that have service,
growth, and profitability as principal goals.
b. Business that has fewer than 100 – 500 workers (depending on the
prevailing commercial law in a particular country), independently
owned, operated, and financed; not always entrepreneurial in
orientation and does not dominate its industry; capital is low but
capable of producing goods or rendering services designed to satisfy
particular needs of customers.
c. It is inherently strategic.
d. Innovative, creative, risk-taking, growth-oriented behaviour that
brings new opportunities for individuals or organizations to start
new business and to produce new products or services that are
beneficial to society.
4. Adrian now living in Toronto, Canada her business was inherent to his
parents and now owned and operated by his two children. What kind
of business they are engaged in?
a. Family Business c. Money Business
b. Large Business d. Foundation
5. Any projected task or work; undertaking
a. Entrepreneurship c. Family Business
b. Enterprise d. Government Agencies
6. Capital is low but capable of producing goods or rendering services
designed to satisfy particular needs of customers.
a. Small Business c. Entrepreneurship
b. Entrepreneurial ventures d. Entrepreneur
7. A group enterprise made up of several traders, consumers, or
producers who are interested to produce or trade as a group.
a. Single or Sole Proprietorship c. Corporation
b. Partnership d. Cooperative
8. A business formed when two or more partners formally agree to be
joint owners of a business.
a. Single or Sole Proprietorship c. Corporation
b. Partnership d. Cooperative
9. The students task to do a written document to start a small
business with mission, vision, product description, target
market personnel and financial data. What kind of documents
the student will create?
a. Business Plan
b. Student’s Portfolio
c. Student’s Handbook
d. Student’s Profile
 10. Paul and Arlene created a small business they agreed upon equal share
in all financial needs of the business. What forms of business is it?
a. Single or Sole Proprietorship c. Corporation
b. Partnership d. Cooperative

B. Matching Type : Write the letter of the correct answer. Choose from the
letter below and write your answer on your notebook.

1. A government requirement that order new business owners to furnish

government agencies with necessary information prior to the legal
operation of their business organization.
2. Sarah Jane wants to put up her own business all the advantages and dis
advantages are her own responsibilities. What type of business it is?
3. A business entity involving five or more persons owning it. It is
registered and recognized by law as a “legal person” that has legal rights
and responsibilities, can sue or be sued in court, can own and sell
properties, and can transact or enter into contracts.
4. The cooperative’s life is not affected by the death of any of its members
nor by the selling of a member’s shares.
5. The resources (money and other assets) and talents (skills, experience,
and management expertise) of all involved may be pooled together.
A. Sole/Single Proprietorship
B. Partnership
C. Corporation
D. Cooperative
E. Business Registration

Additional Activities

Let’s do additional activity that enrich and remember your

knowledge and skill of the lesson we learned.
1. Make 1 page Business Plan.
One Page Business Plan
• Description of Business
• Product and Services
• Target market
• Competition
• Personnel
• Financial data

2. What are the different forms of business and give example of

each type?
Congratulations for the job well done. Thank you.
Answer Key
References
Helena Ma. F. Cabrera, Anthony DC Altarejos and Riaz Benjamin (2016). Organization
and Management

www.entrepreneur .com
www.investopedia.com

www.bain.com

http://nessiebaculo.blogspot.com/2012/07/process-flow-of-registering-business-
in.html
INC.COM, family-owned business https://www.inc.com/encyclopedia/family-owned-
businesses.html

https://www.youtube.com/watch?v=bHlkkb0-nP4

Development Team of the Module

Writer: JONER G. MAGLALANG – MT-I Sta. Maria HS, Macabebe

Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics
LUCIO B. GOMEZ – MT-I, San Matias High School
Illustrator:
Layout Artist:
Language Reviewer:

Management Team

ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS