Business Ethics and Social Responsibility Quarter 3– Module 1

TOPIC: Business Organizations' Purpose and Roles in Social and Economic Development

Let Us Try

FORMS OF BUSINESS ORGANIZATION

Sole Proprietorship

Partnership

Corporation

Cooperative

ADVANTAGES

1. You have complete control as the owner.

2. Bridging the gap in expertise and knowledge.
3. Business security and perpetuity.
4. There are equal voting rights for members.

DISADVANTAGES

1. Difficulty raising money.

2. Future selling complications.
3. Rigid formalities, protocols and structure.
4. Members have equal voting rights regardless of investment - which may not suit an
investor-driven business.

Let Us Practice

SOLE PROPRIETORSHIP(differences)

1. Acquires all business information will be discreet by the owner itself.

2. It is owned by one natural person called proprietor or proprietress.

PARTNERSHIP(differences)

1. It requires business secrets to will be opened to every partner.

2. It is formed by two people who intend to do business together and share its ownership,
profits, and liabilities.
CORPORATION(differences)

1. It is owned by shareholders and can form for-profit or non-profit.

2. Several persons own it (natural or juridical) called shareholders or stockholders.

SIMILARITIES of sole proprietorship and partnership

 Both are easy and inexpensive to set up.

SIMILARITIES of partnership and corporation

 Both are owned by groups of people instead of an individual.

SIMILARITIES of corporation and sole proprietorship

 Both have two common structures.

SIMILARITIES OF THREE

 They are the three main forms of business organization.

Let Us Practice More

STEP 1: I'll inform my business partner about the loss of our money and tell him/her that we
need to address this problem immediately.

STEP 2: I will survey and find a solution to this problem with my business partner.

STEP 3: If we find the mistakes of my partner's business decision, we will immediately create an
action plan to solve what we lose.

STEP 4: We'll plan and concentrate on finding the best solution till everything is in order.

STEP 5: If everything has been solved, we learn that teamwork is essential in making a business
decision to give a good option for our business. We will also conduct a Plan B, and we'll think
about the consequences of our decisions.

CORRECTED SITUATION OF YOUR BUSINESS: Learn to forgive, think of your actions,

always create a Plan B, the teamwork is important and consider the consequences.

Let Us Remember

SOCIO-ECONOMIC GROWTH

Sole Proprietorship
 1. Without consulting others, an owner can make rapid and decisive decisions.
2. They can invest their own capital into the business or may be able to access business
loans and overdrafts.

Partnership

1. It encourages national and local institutional reform in order to attract domestic and
foreign investment.
2. The partnership helps the Philippines realize its equitable and sustainable economic
growth goals.

Corporation

1. To conduct a lawful, ethical, profitable and sustainable business to create value over the
long term.
2. The board of directors uses its business judgment and regular engagement with
shareholders to determine how it operates.

Let Us Assess

1. D
2. C
3. A
4. D
5. B
6. A
7. B
8. D
9. D
10. D
11. D
12. B
13. A
14. C
15. D

Let Us Enhance

 A sole proprietorship is a business owned and operated by a single person with no legal
distinction between the owner and the business. The three images depict work that you
will do for being a sole proprietorship. Only you can bear the consequences and solve any
problems your company may face.
Let Us Reflect

Purok 14 Ula, Tugbok

Davao City

Cellphone no. #09608677745

DLG's BAKESHOP

I'm going to start into a small bakeshop till it blooms. My projected starting capital is
P500,000.00. It covers the cost of constructing the small store and labor, bakery equipment, and
other raw materials required to complete the DLG's Bakeshop. I have to be mindful of the target
market as well.

These are the five (5) reasons why I want to be the sole owner of the bakeshop. First, I want to
challenge myself if I'm competent to become a businesswoman. Second, I want to build and
grow my business on my own to the point that everyone will recognize and respect my abilities
and experience in this field. Third, I didn't want to have any misunderstandings with my business
partner; therefore, I decided to go into business on my own to handle all of the business decisions
and consequences. Fourth, I want to surpass my limits. Lastly, I want to be self-sufficient in
running a business, select what I want to add, enhance, design my store and bread, witness
customers' joy while eating and admiring my product, deal with negative criticism, and keep the
profits.

A business partnership is preferable since two people can aid and advise each other, but being a
sole proprietorship satisfied me because I can challenge myself.