Learning Activity sheets in

ENTREPRENEURSHIP
(Quarter 4 – Week 5)

Name: _____________________________ Grade & Section: ____________

Activity Sheet No. 5 Date Answered: _____________

LESSON 5 BUSINESS PLAN IMPLEMENTATION

Manifest understanding of starting and operating a simple business (CS_EP11/12BENTREP-IVa-i-1,

CS_EP11/12BENTREP-IVa-i-2, CS_EP11/12BENTREP-IVa-i-3, CS_EP11/12B-ENTREPIV-j-4)

1. Implement the business plan

“Let’s kick it off!

In the previous lessons, you have learned how to conduct feasibility study, how to make
a business plan and how to make a marketing strategy. In this activity you will now learn how
to implement your business plan. It is very important to know the purpose of implementing a
business and what type of business to set up.

Activity 1

Direction: Arrange the jumbled words to answer each question.

1. The simplest and easiest enterprise to organize. LOSE REIPROPOTIHPIS

2. It consists of partners who have limited liabilities
while others in the partnership have unlimited liabilities MILIDET HIPSRENTPAR
3. Can be formed or incorporated by, at least five, or at
most 15 natural persons. ATIONCOROPR
4. It has Articles of Incorporation that limit the ownership
of issued stocks to at most 20 persons. OSECL COPROANIOTR
5. It is a trusteeship that is set up for purpose of
administering and managing the affairs, property, and
temporalities of a church or group of clergies. PROTIOCORAN OSEL

“Are you taking it?”

1. If you were to set up a business, what would be your personal purpose for doing so?
 2. What type of business would you set up? Why

“Here’s how it is!”

After making a pre-feasibility study, business plan and marketing plan you are now
ready to seize a particular opportunity in the establishment of your business.

Presumably, all the market research has been done and the desired customer segment
has been targeted. Likewise, the final location has been chosen and the new product has been
designed and developed. These have all been part of the rigorous steps taken in preparing for
entrepreneurship. Now is the time to set up the enterprise, plan its future, and mobilize the
needed resources.

The entrepreneur must be very clear about the purpose in establishing the enterprise.
Whether it is for generating profits or feeding the family, making difference in the industry or
actualizing the self, the purpose must be compelling enough to motivate the entrepreneur.

The Business Plan must be able to estimate the capital required by the enterprise. The
capital required would be dictated by the investment in the assets of the enterprise. These assets
are composed of the following:

1. The current assets, which are short-lived assets. They are composed of cash,
inventory, accounts receivables, and other current assets.

2. The long-lived or fixed assets. They are composed of property, plant, and equipment.

3. The other assets. They are composed of organizational and pre-operating expenses.

The assets of the enterprise are financed by its liabilities. These liabilities are composed
of the following.

1. Current liabilities such as suppliers’ credit and other short-term credit;

2. Long term debt; and

3. Owner’s equity.
The way the financial package is designed is called the capital structure of the
enterprise.

The simplest and easiest enterprise to organize is the sole proprietorship. In this
structure, the owner or entrepreneur has sole control over the enterprise. He or she reaps all the
profits and, also, all he losses. But he or she will also incur the risks.

In sole proprietorship, there is no distinction between the owner and enterprise. The
entrepreneur is personally answerable and obligated to fulfil all terms and conditions of any
business contracts that he or she enters to.
 The sole proprietorship is mandated by law to register the business with the proper
authorities. All businesses, in whatever legal, form, are required to secure a mayor’s permit or
municipal license before they can operate in a locality.

Before getting this permit, there are clearances that must be obtained. These are the
following:

• Barangay Clearance
• Fire Safety Clearance
• Certificate of electrical inspection
• Sanitary permit
• Certificate of occupancy
• Department of Trade and Industry (DTI) certificate
• Lease contract if space is leased
• Location clearance

There may be additional requirements depending on the type of business and the
ordinances issued by the concerned local government.

It is likewise the responsibility of any enterprise to register its business with the Bureau
of Internal Revenue (BIR) for taxation purposes. The official receipts of the enterprise must
also be registered with the BIR. For a sole proprietorship, the tan identification number (TIN)
of the entrepreneur serves as the enterprise TIN.

If two or more persons bind themselves into a contract to contribute money, property,
and expertise in a common venture with the intention of dividing the profits among themselves,
then they would have entered into partnership.

A partnership is vested with its own legal personality quite distinct and separate from
its individual members. Thus, a partnership venture can own its own assets. It can incur its own
liabilities. It can sue and it can get sued.

A minimum of two persons can constitute a partnership. However, there is no limit to

the number of persons in a partnership. There are two types of partnerships based on the
liability of the partners: general partnership and limited partnership.

A general partnership is composed of partners who are liable individually and

collectively to all those have claims against them. Claimants can run after all the personal assets
of all the partners.
A limited partnership consists of partners who have limited liabilities while others in
the partnership have unlimited liabilities. A limited partner is not personally liable for all
obligations of the partnership beyond his or her prorated capital contribution to the partnership.
The law requires that there must be at least one general partner in a limited partnership to
assume the unlimited liabilities. The limited partnership must add the word ‘Limited’ to its
partnership name.
 In a partnership, the decision of one partner is binding to all other partners. There should
be internal mechanism and procedures followed to ensure this. When the partners enter into a
contract, they need the consent and knowledge of the other partners.

In order to form a partnership, a binding contract must be assigned by all of the partners.
They should decide on a partnership name and craft their Articles of Partnership. These Articles
of Partnership must contain all the operational requirements of the partnership.

The partnership should obtain all the required government clearances, permits, and
other licenses. It should get:

• A bank certificate of deposits on the money contributions of the partners; and

• The approval for its partnership name from the Department of Trade and Industry.

Having obtained these documents, it should register and file the Articles of Partnership
with the Securities and Exchange Commission (SEC). Needless to say, the partnership must
also register with the SSS and the BIR, as well as other government instrumentalities that may
have jurisdiction over its type of business.

The third form of business organization is the corporation. Like the partnership, the
corporation also has a separate legal personality quite distinct from the investors who
contributed money to the enterprise.

A corporation can be formed or incorporated by, at least five, or at most 15 natural

persons. According to Philippine law, the majority of the incorporators must be residents of the
Philippines. However, once the corporation is established, there is no limit to the number of
natural or juridical persons who can invest in the corporation.

The corporate form of business allows various combinations of funds to be raised from
financiers and investors. Thus, bigger businesses favor the corporate form of business. This is
due to its limited liability and flexibility in financing terms obtained.

There are four types of corporations, which are as follows:

1. Stock Corporation. The Stock Corporation issues capital stock dividend into shares
(or portions of the total capital). Based on the submission of Articles of Incorporation
to the Securities and Exchange Commission, the corporation is authorized to raise
capital that has a corresponding number of shares.

At least 25% of the authorized capital, as stated in the Articles of Corporation, must be
subscribed to by stockholders at the time of incorporation. Moreover, at least 25% of
the subscribed capital must be paid up by subscribers at the time of incorporation. The
rest of the 75% will comprise the unpaid capital subscriptions, which then represent the
receivables of the corporation from the subscribers.

2. Non-Stock Non-Profit Corporation. The Non-Stock Corporation is organized to carry

out a purpose or purposes other than generating profits for investors. The Non-Stock
Corporation usually has a social mission. Hence, all the surpluses (or profit equivalents)
generated by the corporation are not distributed to the funders in the form of dividends.
 Rather, they are plowed back into the corporation or the foundation to contribute further
to the attainment of its mission. The Non-Stock Corporation is governed by its Board
of Trustees who are chosen and replaced according to the provisions of the Articles of
Incorporation and the accompanying By-Laws.

3. Close Corporation. The Close Corporation has Articles of Incorporation that limit the
ownership of issued stocks to at most 20 persons. There are strict restrictions of the
transfer of stocks. The stock cannot be listed in any stock exchange nor can any public
offering of shares be made.

4. Corporation Sole. A Corporation Sole is a special form of corporation allowed by law,

usually associated with the clergy. The Corporation Sole is a trusteeship that is set up
for purpose of administering and managing the affairs, property, and temporalities of a
church or group of clergies.

The corporation must enter its name with the DTI register with the SEC, SSS, BIR and
all the other relevant government entities. In contrast to the sole proprietorship, where
taxes are based on the total income of the owner in a gradually increasing proportion of
the income, the corporation pays a stipulated percentage of its income tax (35% of
income before taxes in the Philippines). Of course, other taxes are paid by business
enterprises such as the value added tax, the real estate tax, etc.

The start-up corporation established by the entrepreneur (and his or her family or
friends) is quite a long way from the politics of large corporations. However, the more
ambitious entrepreneur must plan way ahead for this type of politics.

In implementing a business an entrepreneur must be will prepared and wholeheartedly

plan and focus to its operation in order to make sure that the business will be viable and will
earn profit in the future. It should be guided with the company’s vision, mission and objective.

“Now do it!”
Activity 2: Entrepreneur’s To-Do List

Direction: Make a to-do list that would help you go about establishing your own enterprise.
Based on the items that have been discussed in this learning activity sheet, there seems to be a
lot of tasks that need to be completed by the entrepreneur. Be as realistic as possible in terms
of what you can achieve in a day.
Start from a week’s worth of activities and then expand them to a month and so on. You can be
as detailed as possible (which should include time lines). For more organized calendar, please refer to
the sample below.
 Sample of Entrepreneur’s To-Do List and Calendar
June 2021
SUN MON TUE WED THU FRI SAT
1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26
Fire Safety DTI
Clearance Certificate
27 28 29 30

“Ace it!”
Activity 3: Multiple Choice

Direction: Chose the correct letter of your answer.

1. It is a trusteeship that is set up for a purpose of administering and managing the affairs,
property and temporalities of a church or group of clergies.

A. Sole Proprietorship B. Corporation Sole

C. Close Corporation D. Non-Stock Non-Profit Corporation

2. It consist is composed of partners who are liable individually and collectively to all those
have claims against them.

A. Limited Partnership B. Close Corporation

C. General Partnership D. Stock Corporation

3. This corporation issues capital stock dividend into shares.

A. Close Corporation B. Non-Stock Non-Profit Corporation

C. Corporation Sole D. Stock Corporation

4. It has Articles of Incorporation that limit the ownership of issued stocks to at most 20
persons.

A. Close Corporation B. Limited Partnership

C. General Partnership D. Stock Corporation

5. In this structure, the owner or entrepreneur has sole control over the enterprise.

A. Sole Proprietorship B. Partnership

C. Corporation D. None of the choices
 Learning Activity sheets in
ENTREPRENEURSHIP
(Quarter 4 – Week 6)

Name: _____________________________ Grade & Section: ____________

Activity Sheet No. 6 Date Answered: _____________

LESSON 6 REASONS FOR KEEPING BUSINESS RECORDS

Manifest understanding of starting and operating a simple business (CS_EP11/12BENTREP-IVa-i-1,

CS_EP11/12BENTREP-IVa-i-2, CS_EP11/12BENTREP-IVa-i-3, CS_EP11/12B-ENTREPIV-j-4)

1. Identify the reasons for keeping business records.

“Let’s kick it off!

Activity 1

Directions: Answer the question and write your answer on the space provided.

1. What do you think is the main objective of the activity above?

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

https://www.ewallp.com/wp-content/uploads/small-business-accounting-records-710x400.jpg

1. How will you describe the picture above?

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________
 “Are you taking it?”

1. Why do you need to keep records?

2. How will it help you on the operation of your business? Why?

“Here’s how it is!”

According to Neil Marshall, Tax and Business Advice Pty Ltd, January 19, 2020,
Business operating is a fast-paced and dynamic environment, the task of keeping records can
fall secondary to everyday business operations. However, failing to efficiently keep up to-date
and comprehensive records can hurt your business’s long-term operations.

Probably the most important reason why we need a sound-record keeping is that it will
help you learn and grow from your business experiences. It will also help you understand the
situation of your business and will prevent you for having future losses that might end up to
bankruptcy. In this regard you will be able to know where to focus on and where your business
needs improvement.

Why should an entrepreneur keep records?

Everyone in business must keep records. Keeping good records is very important to
your business. Good records will help you do the following:

• Monitor the progress of your business

• Prepare your financial statements
• Identify sources of your income
• Keep track of your deductible expenses
• Keep track of your basis in property
• Prepare your tax returns
• Support items reported on your tax returns

Monitor the progress of your business

You need good records to monitor the progress of your business. Records can show
whether your business is improving, which items are selling, or what changes you need to
make. Good records can increase the likelihood of business success and can motivate the
entrepreneur to be more focused and inspired to do good.

Prepare your financial statements

 You need good records to prepare accurate financial statements. These include income
(profit and loss) statements and balance sheet. These statements can help you manage your
business.

• An income statement shows the income and expenses of the business for a given
period of time.
• A balance sheet shows the assets, liabilities, and your equity in the business on a
given date.

Identify Sources of your Income

You will receive money or property from many sources. Your records can identify the
sources of your income. You need this information to separate business from non-business
receipts and taxable from non-taxable income.

Keep track of your deductible expenses

Unless you record them when they occur, you may forget expenses when you prepare
your tax returns.

Keep track of your basis in property

Your basis is the amount of your investment in property for tax purposes. You will use
the basis to figure the gain or loss on the sale, exchange, or other disposition of property, as
well as deductions for depreciations, amortization, depletion, and casualty losses.

Prepare Tax returns

You need good records to prepare your tax returns. These must support the income,
expenses, and credits your report. Generally, these are the same records you use to monitor
your business and prepare your financial statement.

Support items reported on your tax returns

You must keep your business records available at all times for inspection by the Internal
Revenue Service (IRS). If the IRS examine any of your tax returns, you may be asked to explain
the items reported. A complete set of records will speed up the examination
 “Now do it!”
Activity 2: Modified True or False

Direction: Write TRUE if the underlined word is correct and write the
CORRECT ANSWER if the underlined word is not correct.

__________1. You need good records to monitor the progress of your business.

_________2. To keep track of your business property your basis is the amount of your capital
in property for tax purposes.

_________3. Your records can identify the sources of your income.

_________ 4. An income statement shows the assets, liabilities, and your equity in the
business on a given date.

__________ 5. A balance sheets shows the income and expenses of the business for a given
period of time.

“Ace it!”
Activity 3: Essay

Direction: Answer the following questions.

1. What is the importance of keeping business records?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

2. How will you know if the record you keep is good or not?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________