What I Know….

Fill in the blanks.

Instructions: Below are the definitions of business and organization. Write BUSS if it
describes a business and ORG if it describes an organization.

1. is an activity of exchanging goods and services, for gaining profit.

2. is a group of people who work together to achieve common goals.

3. is a collection of people with particular purpose in the society.

4. is an organization where goods and service are exchange for one another
or for money.

5. social unit of people that is structured and managed to meet a need or to

pursue collective goals.

Lesson 1

Forms of Business Organizations

What’s In…..
Activity 1: Business as usual.
Nowadays, many businesses are closed due to the COVID -19 pandemic and only
those businesses which are considered essential such as food businesses and medical services
remained.

1
Can you list down the name/s of business/es which is/are still in operation during the
quarantine period? Identify the services/ products they offer.

Name of the Business Products/services offered

1.

2.

3.

4.

5.

What’s NEW…..

The Success Story behind the National Bookstore

Socorro Ramos entered the publishing and retail industry by working as a
salesgirl at a bookstore. At the age of 19, she opened National Book Store in
Escolta, Manila with her husband with a capital of only P 200.00, selling books and
school supplies to students.
At that time, Manila was under Japanese occupation who imposed censorship on
books and periodicals. To augment their earnings, she and her husband resorted to
selling other items like candles and soaps.
After the post-war boom, the Ramoses opened a nine-story building along Avenida
which made their bookstore more profitable.
At 95, she still believes in the time-honored tradition of “hands-on approach”
in business. She even designed the company’s logo herself.
May this success story of Nanay Coring give inspiration and encouragement
to all. You need someone like her that will serve as a model to bring out the best in
yourselves to survive the crisis brought by COVID-19 pandemic. All good things are
blessings from the Almighty God and granted to anyone whom He loves at His
pleasure.

Source:
https://www.businessinquirer.net

2
From the story you have read, please answer the following questions:

1. What form of business organization did they put up?

2. Aside from being hands on in your own business, what else do you think is/are the key
characteristic/s of the owner/s of National Bookstore in their business success?

WHAT IS IT…...

Forms of Business Organization according to ownership

Sole Proprietorship is the type of business entity owned and operated by a single person.
A partnership is a business owned by two or more person who contribute resources into the entity. The
partners divide the profits of the business among themselves.
Corporation is an enterprise chartered by law with most of the legal rights of a person including to
conduct a business, to own and sell property, to borrow money, to sue and be sued. 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.

Major Contributions of Forms of Business Organization in Socio

Economic Development

Business are considered the engine of the economy because they contributed to the
economy of our country through paying corporate taxes so that the government can provide
the promote social welfare of its citizens. Business also provides job opportunities which
compensates the people in the society.

3
 WHAT’S MORE…..

Independent Activity 1:

A. What form of business organization is best described by the

following statements?

1. “I am the only owner of my business”.

2. “I take all the risks of doing business”.
3. “I keep all the profits”.
B. Tony and Alex own a saloon together. They share equal responsibility, and each receive
50% of the profits. What form of business organization is this?
C. These are examples of what form of business?

Independent Assessment 2:

Choose the letter of the correct answer.

1. Which is NOT a form of business ownership?

a. Sole Proprietorship c. Corporation
b. Partnership d. Retail
2. Easy to start; owner is own boss; owner keeps all the profits and shoulders losses. These are some descriptions
of what type of business.
a. Sole Proprietorship b. Partnership
c. Corporation d. Franchise
3. What form of business consists of two or more people to carry on, as coowners of a business for profit?
a. Sole Proprietorship c. Corporation
b. Partnership d. Cooperative
4. Your mother has Php 100,000. She wants to invest her money in the form of business that has the least amount
of personal liability. What form of business would you recommend?
a. Sole Proprietorship b. Partnership
c. Corporation d. Cooperative
5. How a corporation differs from a sole proprietorship?

4
a. Corporations are owned by only one person.
b. Corporations can sell stocks to large and small investors to raise money for the business.
c. Sole proprietorships have limited liability for the owners.
d. Sole proprietorships require a legal charter to start the business.

What I Have Learned…..

Definition of terms
Business Organization refers to how a business is structured.
Sole Proprietorship is a business owned by one person.
Partnership is an association of two or more people as partners shares the profit and liabilities of a business
venture.
Corporation is an entity created by law that is separate and distinct from its owner and its continued existence is
dependent upon the corporate statues of the state in which it is incorporated.

Comparative Analysis:
Forms of Business Organizations
Sole Proprietorship Partnership Corporation
Easiest to establish It could be easily to Hard to establish
establish like sole
proprietorship
Limited life Limited life Life is 50 years and can be
extended
Small amount of capital is Large amount of capital Large amount of capital
needed to start a business
Ownership of all Share of profit/losses Proportion to each
profits/losses stockholder’s percentage
of ownership interest
Unlimited liability Unlimited liability of the Stockholders have limited
partners liability
Minimum legal Subject to minimum Subject to numerous
requirements government regulations government regulations
Business secrecy Business secrecy Lack of secrecy
Personal interest in Each partner has a right to Lack of personal interest
managing the business participate
Tax savings Tax savings Several taxes to pay as
mandated by laws and
ordinances.

WHAT CAN I DO….

5
Great Ideas!
Think of a small business that may help your community problems amid the COVID-
19 pandemic on the level of your potential. And explain why you choose that
business.

Rubrics for the Reflection

5 The question was answered very clearly and definitively.
4 The question was answered clearly and definitively
3 The question was treated quite clearly and definitively.
2 The question was poorly answered
1 The question was not answered well.

Assessment….
Directions: Write TRUE if the statement is correct and FALSE if it is not. Write your answers on
your answer sheets.

1. A Sole Proprietorship, owned by one person, is a form of business organization that is small,
requires little amount of capital and is readily established under the control of one person.
2. A Partnership is a form of business in which two or more people operate for the common goal
of making a profit.
3. A Partnership is an artificial being created by operation of law.
4. A Sole Proprietorship has the advantage of least government regulations.
5. A Corporation has powers, attributes, and properties expressly authorized by law.

References…..
BOOKS
 Medina, Roberto G., 2006. Business Organization and Management. pp. 34, 41, 42. Philippines. Rex Bookstore, Inc.
  Salvador, Samuel M. et.al. 2017. Principles and Practices of Management and Organization 2nd Edition. Allen Adrian Books.

ONLINE AND ELECTRONIC RESOURCES

 https://www.businessdictionary.com/definition/organization. Retrieved June 8, 2020
 https://business.inquirer.net/273445/eight-successful-filipino-entrepreneurswho-started-small#ixzz6OrdABxxg
Department of Education - Bureau of Learning Resources (DepEd-BLR)
Ground Floor, Bonifacio Bldg., DepEd Complex Meralco Avenue, Pasig City, Philippines 1600
Email Address: blr.lrqad@deped.gov.ph * blr.lrpd@deped.gov.ph