Organization Plan, Production Plan,

Pretest
And Operational Plan
1. A. Organization Plan
2. D. Loans
3. B. Production Schedule
4. A. Limited Liability
5. C. To minimize or avoid defects or damages in the supplies.

Task no. 4: point this out!

1. TRUE

2. FALSE. “In most instances the sole proprietor and partners have unlimited liability” If
the owners fail to settle existing obligations, creditors may run after their personal
properties. Obligations can be paid by seizing and selling the owner’s personal assets.
3. TRUE
4. TRUE
5. TRUE
6. FALSE. Production Process
7. TRUE
8. FALSE. Suppliers of the raw materials must practice total quality management
9. TRUE
10. FALSE. Must be included
 Post Test

Identify the important areas that must be properly described in the organization plan.

1. Form of Business Organization

2. Liability of owners
3. Organizational Structure
4. Roles and Responsibilities
5. Salary Requirements

Name the critical areas that must be included in the production plan and the operation plan.

Production plan
6. Production Schedule
7. Production Process
8. Processing plant and equipment
9. Sources of Material
10. Production cost

Operation plan
11. Evaluation of suppliers
12. Materials requisition and receiving procedures
13. Storage and inventory control system
14. Shipment system and control
15. Functions of support services
State some factors that must be considered in selecting the form of organization that is best
suited to the business.

16. Capital Requirement

17. Liability of the owners
18. Management and supervisory skills
19. Tax Implications
20. Government intervention
 21. Nature of the Business
22. External Financing Requirement

Enumerate at least 3 factors involved in selecting the machinery and equipment for the
production of goods.

23. Finance
24. Marketing
25. Operations