Republic of the Philippines

Department of Education
CITY OF MANDAUE
MANDAUE CITY COLLEGE SENIOR HIGH SCHOOL
Don Andres Soriano Ave., Centro, Mandaue City, Cebu, Philippines, 6014
Tel. No: (032) 345-1237  E-mail: mandaueclc@gmail.com
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Vision: “As a learner-centered public institution, Mandaue City College envisions excellence, innovation and success in education to inspire and
transform lives to be responsible citizens and competitive graduates who are assets to the community and society at large and will be prepared
for a variety of post-graduation options.”

Business Ethics and

Social Responsibility
Learning Module
Quarter1 – Week1
SY 2021- 2022

JUDY UY BERNUS, M.ED-.ADM. AND SUPN, MA.ED-TEACHING MATH

Teacher
Mandaue City College Senior High School
Mandaue City, Philippines
 Lesson 1:Forms of Business
Organizations
For the learner:

Welcome to Business Ethics and Social Responsibility Alternative Delivery Mode (ADM) Module on
the Forms of Business Organizations according to Ownership The hand is one of the most
symbolized part of the human body. It is often used to depict skill, action and purpose. Through our
hands we may learn, create and accomplish. Hence, the hand in this learning resource signifies that
you as a learner is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!

This module was written for you to accomplish at home. It was carefully designed so that you can
work at your own pace and allow self-discovery of the concept through activities that you will
perform. Activities were also selected to allow independent learning which also aims to develop
students’ reading comprehension skills through understanding written texts.

After going through the module, you are expected to:

1. Differentiate the forms of business organizations

2. Give examples of the different forms of business organizations found in your locality.

3. Show appreciation on how these organizations contribute to socio economic development

Have you ever been part of school organization or club? It was indeed a happy and fulfilling day in
your Junior High School years.

Are you a part of a music or glee club? Maybe, you are also a varsity player of the school’s basketball
and volleyball teams or are you a school paper writer who participates in different journalism
contests outside the school?

What is your position in the club? How many are you in the organization? Who usually has the last
say? Who are your leaders? What are you doing in ensuring success in every activity?

Do you feel the fulfillment of being part of an organization? What did you learn from being an
officer or a member of a club.

Pre Test
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

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

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?
 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.

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”. 12

B. Tony and Alex own a saloon together. They share equal responsibility, and each receives 50% of
the profits. What form of business organization is this? ______

C. These are examples of what form of business? ____________________

PLDT, VECO, GLOBE, SMART

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 c. Corporation
b. Partnership 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 c. Corporation
b. Partnership d. Cooperative

5. How a corporation differs from a sole proprietorship?

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.

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

Form of Business Organization

Sole Proprietorship Partnership Corporation

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

Activity 1:True or False . Write True if the statement is true and false if it’s false.

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

Activity 2: 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.

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.____________________________ ____________________ _________________________________________________