Define the following:

a. entrepreneur

Entrepreneur is a person who uses these opportunities to organize and operate a business and who
accepts the risks of operating a business.

b. division of labor

It is the separation of tasks, which allows an individual to be an expert in one thing in order to improve
efficiency of society..

c. business organization

is a “group of individuals systematically united for the accomplishment of a common purpose or

undertaking for profit in any of the several ways allowed and regulated by law.

Answer the following:

1. What are the roles of business in society?

Business organizations have different roles in the society. Their main role is to provide products and
services needed. They also provide employment. The wages that employees receive are used to
purchase other goods and services.

2. Why do businesses need to pay taxes in the government?

Because the taxes are used to provide infrastructure (such as roads, water, hospital) and pay for services
(like medical, law, enforcement, sanitation) for the Filipinos.

3. Why is division of labor important in business?

Division of labor important in business because it is the source of interdependence of entrepreneurs and
organizations, which results into increases productivity of the organization and the individual worker

Define the following:

1. Sole proprietorship
A sole proprietorship is a business owned by a single individual.

2. Partnership

A partnership is an arrangement between two or more individuals come together, contribute

resources to form a business and the agree to divide the profit among them.

3. Corporation

A corporation is an entity that is legally recognized as separate and distinct from its owners.
 4. Nonprofit organization

A non-profit organization is an organization that is formed to serve a public purpose rather than for
financial gain.

5. cooperative

It is a business owned and controlled by all the members of the business.

Ms. Acacia wants to start an Italian restaurant of her own. She is deciding which
form of ownership she should pursue. Persuade Ms. Acacia to choose your form of
ownership and discuss the advantages and disadvantages.