Y3 - Module 2 - Develop Managerial Funtions

Republic of the Philippines
Department of Education
PUBLIC TECHNICAL-VOCATIONAL
HIGH SCHOOLS
Unit of Competency: Acquire Fundamental Skills in

Managing a Business
Module no.2 Module Title: Acquiring Fundamental Skills in
Managing a Business
TABLE OF CONTENTS
Module Title: Acquiring Fundamental Skills in Managing a Business Page
Pre-Test............................................................................................................1
Lesson 1 – Acquire Fundamental Skills in Managing a Business....................5
Let Us Study ...................................................................................................5
Management Functions of Entrepreneurs .......................................................5
Let Us Remember ..........................................................................................12
Activity ..........................................................................................................12
How much have you learned?.........................................................................12
Let us apply what you have learned ...............................................................14
Reference .......................................................................................................14
Lesson 2 – Differentiate the Legal Forms of Business Ownership.................16
Let us study ...................................................................................................16
Deciding the business ownership...................................................................16
Let us remember ............................................................................................19
Activity...........................................................................................................19
How much have you learned?.........................................................................20
Let us apply what you have learned ...............................................................21
Reference .......................................................................................................21
Post-Test ...................................................................................................22
Key to Correction............................................................................................25
HOW TO USE THIS MODULE
Welcome to the Module “Acquiring Fundamental Skills in Managing a

Business”. This module contains instructional materials and activities for you to
complete.
The unit of competency “Acquire Fundamental Skills in Managing a

Business” contains the knowledge, skills and attitudes required for the course
Entrepreneurship.
You are required to go through a series of learning activities in order to

complete each of the learning outcomes of the module. Follow these activities on
your own and answer the Self-Check at the end of each learning activity.
If you have questions, don’t hesitate to ask your teacher for assistance.
MODULE II
COURSE : ENTREPRENEURSHIP III
UNIT OF COMPETENCY : Acquire Fundamental Skills in

Managing a Business
MODULE TITLE : Acquiring Fundamental Skills in

Managing a Business
SUGGESTED DURATION : 4 Hours
WHAT IS THIS MODULE ABOUT?
This module covers the knowledge, skills, and attitudes required

in identifying and explaining effective managerial functions of
entrepreneurs.
WHAT WILL YOU LEARN?
Upon completion of this module you must be able to:
1. acquire fundamental skills in managing a business; and

2. differentiate the legal forms of business ownership.
WHAT DO YOU ALREADY KNOW?
Pre-Test
Answer the questions below honestly. Write the letter only of your
answer in your activity notebook.
1. The most basic management function of an entrepreneur which tells

you where
you are going and how to get there?
a. controlling
b. organizing
c. planning
d. staffing
2. Plans are categorized in different ways. Which plan is used repeatedly

as it covers policies, procedures, and rules in management functions?
a. organizational plans
b. staffing plans
c. standing plans
d. single-purpose plans
3. This plan is essentially non-repetitious. Since it is usually used within
a short period of time. It comprises programs, projects and budgets
a. improvement plan
b. organizational plan
c. single purpose plan
d. standing plan
4. A management function that clusters the activities into departments

or job positions, and designating the personnel to head and compose
each department is called ______.
a. directing
b. organizing
c. planning
d. staffing
5. A diagram that shows the relationships of the position and their

corresponding authority, responsibility, and accountability is ______.
a. functional type organization
b. line and staff organization
c. line organization
d. organizational chart
6. Directing is a challenging task. The principal concern of directing as a

management function is to ______.
a. assess the skills, strengths, weaknesses and potentials of
personnel
b. discover the problem in quantity or quality of skills of
personnel
c. influence subordinate to contribute to the attainment of
the firm objectives
d. make sure that what is done in the enterprise conforms
with what had been planned
7. Which among the choices below is necessary to determine how often

you should measure performance in the controlling process?
a. compare performance with standards and analyze
deviations
` b. establish standards
c. measure actual performance
d. set performance measurements
1
8. A type of organization chart where officers have staffs to assists them
but who do not have any authority over line personnel is
.
a. line and staff organization
b. line organization
c. functional staff organization
9. Assessing the skills, strengths, weaknesses and potentials of your
personnel will tell you whether_______.
a. your company has just the right quantity and quality of
men
b. you have an excess in quantity but are short in quality
c. both quantity and quality of skills of your personnel are
insufficient
d. a b & c
10. If you find out that there is a problem in quantity and quality of
skills among your present personnel. What solution should you
adopt to solve the problem?
a. consider recruiting from inside or outside the
organization
b. undertake training and skills development
c. advise the person to look for another job
d. a & b
11. When entrepreneurial activities slow down, what goes up?

a. Tax revenue
b. Inflation rate
c. Business profits
d. Unemployment rate
12. An entrepreneur is aware of

a. his family’s activities
b. his business competitors
c. his relations to people in his community
d. the demand for products or services in his community
13. The term legal form refers to the type of business ownership.
Which type of business ownership is the simplest and most common?
a. Corporation
b. Cooperative
c. Partnership
d. Sole proprietorship
2
14. Partnership is a business form owned by two or more persons.
Which among the choices below is NOT an advantage of partnership
a. Partners have to be consulted each time a decision and
action is made.
b. No income tax is levied on the partnership itself but on
the owners as individuals.
c. Partners decide as to who shall pay debts in case the
business is unable to pay its liabilities.
d. If one partner commits mistake, the other has to suffer
the consequences.
15. Which of the following is NOT an advantage of a corporation?

a. Corporation continues to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a
stockholder
c. Each stockholder shares in the ownership of the
company, together with the incorporators.
d. Subject to a more government control.
3
LESSON 1
ACQUIRE FUNDAMENTAL SKILLS IN MANAGING A BUSINESS
WHAT IS THIS LESSON ABOUT?
This lesson discusses the fundamental skills in managing a

business.
At the end of the lesson, you should be able to;
1. identify and explain the fundamental skills in managing a

business;
2. differentiate the kinds of organizational chart for effective
management of an enterprise; and
3. appreciate the value of efficient management of a business
enterprise.
LET US STUDY
Words to Study
Accountability is a situation of being answerable to higher authorities.

Authority is the power or right delegated or given to a person.
Line organization is a type of organization which is characterized by a
superior having direct command over workers to accomplish the
task.
Line and staff organization is a type of organization where line officers
have staffs who assist them but who do not have any authority
over line personnel.
Organization chart is a diagram that shows the organizational
relationships of the positions and their corresponding authority,
responsibility, and accountability.
Responsibility is the duty that one has to fulfill in connection with the
performance of the job.
4
MANAGEMENT FUNCTIONS OF ENTREPRENEURS
Management functions are the same to all organizations regardless

of size or type. The only difference is the amount of emphasis given to
each level. But in general, managers have to do the planning, organizing,
staffing, directing, and controlling.
PLANNING
Planning is the most basic management function that tells you

where to go and how to get there. It is like preparing a blueprint of
what is to be done, when, how, and by whom it should be done.
Classification of Plans:
1. Standing plans. These plans are used repeatedly and cover

policies, procedures, and rules.
2. Single-used or single-purpose plans. These plans are

essentially one-shot or non repetitious. This is used within a
relatively short period of time, they comprise programs, projects,
and budgets. Programs are complicated; they are made up of
objectives, goals, strategies, policies, rules, job assignments,
financial resources and other pertinent items.
Another way to classify plans is according to whether they are

short, (to be from a day to a year), intermediate range plans (to be from a
few months to three years); and long-range plans (to be up to 25 years)
Steps Involved in the Strategic Planning
1) Formulate organization objectives. This serve as the basis

where the efforts and services will be used.
2) Analyze present resources. This refers to the availability of
money, staff, machines, materials, space and time to help you
realize your plans.
3) Determine alternative courses of action. Reduce number of
alternatives. Remove those do not look promising, and retain those
sound ones for further analysis.
4) Examine the alternatives. You need to do some statistical and
quantitative analysis of factors involved in each alternative.
5) Select the best course of action. Choosing alternative most
likely to be effective in achieving your objectives.
5
6) Develop support plans. Smaller plans aims to establish
coordination among other levels of the organization so that the
enterprise goal can be easily achieve.
7) Implement the plan. Plans only come into reality when it is
implemented. In implementing the plans, it require the exercise of
other management functions, such as organizing, staffing,
directing, and controlling.
ORGANIZING
Organizing involves identifying the specific activities necessary to

achieve the enterprise goals, clustering the activities into departments or
job positions, and designating the personnel to head and compose each
department.
An example of the organizing function is the owner-manager of a

small factory who establishes three departments - production
department, sales department, and administrative department. He
assigns manager to head each department and clearly delineates
responsibilities among them. Thus, he give the production manager the
responsibility for manufacturing, packing, and shipping, while he
delegates to the sales manager the responsibility for advertising and
costumer service. Then he assigns the administrative head to look after
personnel, purchasing, and accounting.
Below is the diagram showing the organizational relationships of

the positions and their corresponding authority, responsibility, and
accountability.
A. LINE ORGANIZATION
The manager has direct command over workers who accomplish

the tasks. Below is an example of a line organization
MANAGER
SUPERVISOR
FOREMAN
WORKERS 6
B. LINE AND STAFF ORGANIZATION
Any activities that a line officer can not do are delegated to a staff
officer to render these services. For example, in a small manufacturing
enterprise, the president, production manager, and sales manager
perform line functions, while legal counsel who helps and advices the
president has no authority over line employee. Below is an example of
this type.
PRESIDENT
LEGAL COUNSEL
SALES MANAGER PRODUCTION ADMINISTRATIVE

MANAGER MANAGER
C. FUNCTIONAL STAFF ORGANIZATION
In this setup, the worker has more than one immediate superior or
as many as the types of activities assigned to him. An example of this
type is shown below.
7
MANAGER
SUPERVISOR
FOREMAN
QUALITY PRODUCTION
CONTROL SPECIALIST
WORKERS
8
STAFFING
This process involves proper and effective selection, appraisal and

development of personnel to do the jobs and fulfill the roles in the
structure.
A. Asses your workload. The officers manning the operating units

can determine what exactly they are responsible for. This
information can be used as basis for defining the organizational
structure, and the quantity and quality of personnel needed to
handle the workload.
B. Study jobs in the company. This refers to the process of

determining the duties, responsibilities of each job. The analysis
can tell you whether or not the present workers have the
required skills and abilities. You can also find out who else
among the presents employees fit in each job.
C. Examine your present personnel. Assess the skills, strengths,

weaknesses, and potentials. Compare your inventory against
your forecasted manpower needs. Your findings will tell you
whether:
a) Your company has just the right quantity and quality of

people;
b) You have an excess in quantity but are short in quality;
or
c) Both quantity and quality of skills of your personnel are
insufficient.
D. Design an improvement plan. If you find out that there is a

problem in quantity or quality of skills among your present
personnel, you may adopt any of the following solutions:
a) If your workers are not enough, consider recruiting from

inside or outside the organization.
b) If your workers do not posses the required skills, you may
resort to training and development.
DIRECTING
Directing involves putting your plans into effect. How to influence

your subordinates who have distinct needs and a unique personality, to
contribute to the attainment of the firm’s objectives is the principal
concern of directing.
9
Understanding certain principles will help you direct the actions of
your subordinates towards the successful implementation of your plans.
Directing includes the following;
A. Motivation is the process of encouraging the subordinates to act

in a desired manner. When an employee joins a company they
bring with them certain needs which they hope to be able to
satisfy.
a. Physiological needs these are needs for air, food, water, for
survival
b. Safety needs to be protected from danger, threat, or
deprivation
c. Esteem needs such as those for self-confidence,
achievement, competence, knowledge, self-respect freedom
and independence. It also includes the needs for status,
recognition, importance, and respect.
d. Self- realization needs represent the needs for full
development of potentials and of being creative.
B. Leadership is the ability of an individual to persuade the

subordinates to follow. As a leader you need a mixture of skills to
be effective. These skills may be required in varying degrees by
managers in different situations. These skills include the following;
a. Conceptual skills refer to the mental capacity of an

individual to grasp the relationship of different parts into an
integrated whole. They need these skills in planning, and
analyzing.
b. Human relation skills is the ability to deal effectively with

people
c. Technical skills incorporate the capabilities to perform the

mechanics of a certain job which the operative employees
perform, like producing goods that the company
manufactures.
CONTROLLING
The function of controlling is to make sure that what is done in the

enterprise conforms to what has been planned. The two main activities
involved here are comparing actual performance with desired
performance and making necessary connections where there is deviation
from the plans.
10
Steps in the controlling process:
A. Establish standards. Standards are sets of measurements

against which you can evaluate actual results.
Three common types of standards:
 Physical standards include quantity of products or services,

number of customers or clients, and quantity of clients or
services.
 Monetary standards are indicated in terms of peso values and
include labor cost, selling cost, material cost, sales revenue, and
gross profit.
 Time standards refer to the speed with which job should be
done or the deadlines for their completion.
B. Set performance measurements. It is also necessary to

determine how often should you measure performance, who will
do the measurement, and what form will the measurement take.
An important consideration in determining appraisal is that it
must be easy to do and easy to explain to your people.
C. Measure actual performance. This step can be easy for you if

the standards are spelled out clearly and if what your personnel
are doing can be determined clearly. It Includes observation, oral
and written reports, automatic methods, inspections, tests, and
samples.
D. Compare performance with standards and analyze

deviations. Control does not stop after measuring performance.
Data about actual performance can be meaningless unless they
are compared with desired performance. Then you should
analyze the reasons for the failure to meet the standards so that
you can deal with the roots of the performance problems.
Depending on the nature of the shortfalls in performance,
you may correct these shortfalls by resorting to any of the
following remedies.
a) Revising your plans

b) Modifying your goals
c) Reassigning workers
d) Clarifying duties and responsibilities
e) Hiring additional staff
f) Firing problems workers
11
g) Stronger leadership
Controls can be classified as either organizational or operational.

Organizational controls are those that measure the over all performance
of the organization. Operational controls evaluate day to day activities
and spot areas where you may need to take corrective actions.
Effective controls have the following characteristics
a) They control the proper activities. People will naturally be

conscious about meeting standards if they are aware that
those activities will be monitored. However, you should take
care not to cause an imbalance but concentrating to much
control on one group of activities and easing up on another.
b) Control should be timely. “A stitch in time saves nine” a
popular saying goes. Control must report deviation in time to
enable you to deal with the problem before it is too late.
c) Controls should be cost effective. Controlling entails costs.
You pay for the processing and monitoring that you use, like
registers and computers, you pay for the personnel like the
inspector, accountants, and inventory controllers. You also
pay for the line personnel who work on the data on scrap,
production costs, and personnel report. But are all these
practical and economical?
d) Controls must be accurate. Control measures must be
accurate to have a good basis for corrective actions.
e) Controls must be accepted. It is important that your people
understand the purpose and benefits of control so that they
will not feel that you have installed controls just because you
don’t trust your men.
Activity 1
Interview at least three (3) successful managers of different

organizations. Give their similarities and differences using the Venn
Diagram and share the results to the class.
Differences Similarities Differences
12
Activity 2
Give the steps involved in the Strategic Planning by filling up the

diagram below.
Steps Involved in the Strategic Planning
1.
2. 3. 4.
5. 6. 7.
LET US REMEMBER
Effective management is very much important in running a business,

without proper management people might just work to pursue their own
interest without considering that of the organization or those of the
other members. Effective and efficient management makes it possible for
both the organization and the employees to work for a common goal, at
the same time satisfying their respective interest.
HOW MUCH HAVE YOU LEARNED?
Answer the questions below honestly. Write the letter of your

1. The most basic management functions of an entrepreneur, which tells

you where you are going and how to get there?
a. controlling
b. organizing
c. planning
13
d. staffing
b. staffing plans
c. standing plans
a. improvement plan
d. standing plan
a. directing
b. organizing
c. planning
d. staffing

6. Directing is a challenging task. The principal concern of directing as
a management function is to ______.
personnel
personnel
the firm objectives
7. Which among the choices below is necessary to determine how often
you should measure performance in the controlling process?
deviations
14
d. set performance measurements
.
men
insufficient
d. a b & c
10. If you find out that there is a problem in
quantity and quality of skills among your present personnel. What
solution should you adopt to solve the problem?
a. consider recruiting from inside or outside the
organization
d. a & b
LET US APPLY WHAT YOU HAVE LEARNED
Interview different entrepreneurs in your community; ask them to talk

about their experiences and insights as an entrepreneur – manager,
especially on the management functions of planning, organizing, staffing,
directing and controlling. Discuss the results of your findings in your
class.
REFERENCES:
Asuncion, Jr. Ramon G.; et.al.; Entrepreneurship: Abiba Publishing

House, INC: Copyright 1992.
Leuterio, Florida C.; Technology and Livelihood Education for

Sustainable Development: St. Augustine Publications, Inc.: Don
Quijote St., Sampaloc, Manila Philippine Copyright 2005.
15
Principe, June B. et.al.; Technology and Home Economics for Secondary
Schools Fourth Year: FNB Educational, Inc.: #2 Uranus St.,
Corner Jupiter Street, Congresional Subdivision, Project 6,
Quezon City. 2000
Suratos, Cesar P. and J. S. Simpliciano; Technology and Livelihood

Education II: Latest Edition, St. Bernadette Publications, Inc.:
Cubao, Quezon City 2006
Technology and Home Economics III. Business Technology,

Business
Management I. Experimental Education, 1993.
http://www.isquare.com/qualities.cfm
http:www.wikieducator.org/VUSSC/Content/Entrepreneurship/
Starting-Up-a- ` Business/Objectives
16
LESSON 2
DIFFERENTIATE THE LEGAL FORMS OF BUSINESS OWNERSHIP
WHAT IS THIS LESSON ABOUT?
This lesson deals with legal forms of business ownership.
At the end of the lesson, you should be able to:
1. identify the legal forms of business ownership; and

2. discuss the advantages and disadvantages of the legal forms of
business.
LET US STUDY
Words to Study
Legal forms refer to the documents of ownership of a business.

Business is a legally recognized organization designed to provide goods and /or
services to consumers.
Enterprise is a business undertaking
Proprietorship is the state or right of a proprietor or owner
Liability refers to the amount that is owed.
Transaction is a business deal or agreement
Income is the gain or recurrent benefit usually measured in money that derives
from capital or labor
Deciding the business ownership
A business first exists in your mind is an idea. When this idea is

developed and put into writing, it becomes a plan. As you gather your
resources be it material or human resources, you are making your plan
into a reality. And when you register it, it becomes a legal entity, with
appropriate rights and responsibilities.
17
Once you have identified your project or business, you are ready to
organize and set up your own enterprise. This means that you have to
decide on its forms of ownership then later the location, hire and train
personnel, raise funds, acquire machinery and equipment, and finally
register the business.
The term legal form refers to the form of ownership of a business.

You may decide to share ownership with other people if you are not the
only source of project ideas or if you do not have enough capital and
experience to start the business on your own.
Sole proprietorship. A sole proprietorship is a business unit

owned and managed by only one person. It is the simplest and most
common form.
Most small businesses start as sole proprietorships. Here, you and

the business are essentially one. You, as the sole proprietor owns all the
assets.
As such, you will exclusively enjoy the benefits to be derived from

the business. If you decide to become a sole proprietor, you do not need to
consult anyone on matters related to setting or running the business.
Advantages of a Sole Proprietorship Disadvantages of a Sole

Proprietorship
 Relatively low start-up costs
 Greatest freedom from  Unlimited liability
regulation  Lack of continuity in business
 Owner in direct control of organization
decision-making  Difficulty in raising capital
 Minimal working capital  All the risks are of the owner
required  Owner shoulders any liability
 Tax advantages to owner incurred in the business
 Owner is the boss
 All profits to owner
 In cases of death, the business
may be passed on to another by
virtue of a will.
Partnership. Under this business form, two or more persons

are owners of the business. The owners define their rights and
duties as partners in the business through a partnership
agreement.
18
Advantages of a Partnership Disadvantages of a Partnership
 The partners decide as to who  Any action of one partner within
shall be responsible for paying the scope of business binds the
debts in case the business is other partner as well. Thus, if
unable to pay its liabilities later. one partner commits a mistake,
 They agree as to how much will the other has to suffer the
be the share of each one in the consequences as well.
profits of the business and what  Partners also have to be
business responsibilities will be consulted each time a decision or
assigned to each. action concerning the business
 The partners agree as to when needs to be made. This means
the partnership ends such as taking more time to get things
when one partner agrees to a done.
buy-out offer or when one of the
partner dies.
 No income tax is levied on the
partnership itself but on the
owners as individuals.
Corporation: This business form is initiated by individuals called

incorporators, numbering from a minimum of five to a maximum of fifteen.
Advantages of a Corporation Disadvantages of a
Corporation
 The incorporators put up the initial or
starting capital of the business. To get  The corporation is subject
additional capital, shares of stocks are to more government
sold to interested parties called the control.
stockholders.  The corporation is relatively
 Each stockholder shares in the complicated in form and
ownership of the company, together management. It needs high
with the incorporators. cost of formation and
 The right of the stockholder to vote on operation.
matters affecting the corporation  Its credit is weakened by
depends on the number of shares he or the limited liability of the
she holds. stockholder.
 The number of share holders in the  It is subject to a heavier
corporation is used as basis for taxation.
computing the share of each one in the  The stockholders’ voting
profits of the corporation. This share is rights have become
called the dividend. theoretical especially in a
 The life of the business does not depend big corporation because of
on the stockholders. the use of proxies.
19
 It has continuity in existence for a  The stockholders have little
maximum of 50 years. voice in the conduct of the
 Continuity is not affected by death of a business of the
stock holder or by the transfer of shares corporation.
of stocks from one stockholder to
another.
 In case of losses, liabilities are settled
through the sale of the assets of the
corporation.
Cooperative: A cooperative is owned by twenty-five or more
individuals who, like in a corporation buy shares in the business.
However, unlike a corporation, each member of the cooperative is
entitled to only one vote on matters regarding the business regardless of
the number of shares he or she has bought. In case of losses,
responsibility for paying liabilities is also borne equally by the members.
LET US REMEMBER
An entrepreneur should carefully choose what legal form of business

he has to venture. He has to consider or study very carefully the
advantages and disadvantages of each.
Activity
Read the following carefully. Then answer and discuss the questions at
the end of the story.
Jane and Rose are best of friends working in the same agency.
While they were having their coffee break one day, Rose having three
children going to school complained to Jane how difficult to make ends
meet with the meager salary they are receiving. When Jane heard her
friend, she said “why don’t you put-up a sideline? You are a good cook.
You can sell peanut adobo, brittle , peanut butter or other food products.
I am sure you will not have problems in terms of raw materials because
these raw materials are abundant in our community.
Rose is sold to the idea and persuaded her friend to be her partner.
The two friends contributed P2,000.00 each to start the business. They
agreed to have equal profit. Rose would take care of production while
Jane will concentrate in marketing.
Jane started getting orders while Rose concentrated in cooking.

When they succeeded in getting big orders they decided to register their
20
business as a partnership under the name R & J Food Products. From
then on, their costumers have regular orders and even becoming bigger.
After six months of operation, the partners earned P20,000.00 and

they decided to divide it equally between them. Meanwhile, Rose was
exhausting herself with her production efforts, while Jane’s life went on
very casually because once the first orders have been booked, most of the
buyers placed repeated orders.
Before the business reached its first year anniversary, Rose got
sick and advised to rest. Rose can no longer cook and Rose husband’s
forbade her to continue the business.
1. What went wrong with the business?

2. If you were Rose would you enter into a partnership with a friend
or would you register the venture as a sole proprietorship?
3. Were the partners right in splitting the profits equally?
4. Discuss the advantages and disadvantages of partnership.
HOW MUCH HAVE YOU LEARNED?
SELECTION TYPE: Select the best answer by writing the LETTER only
in your quiz notebook.
1. The term legal form refers to the type of business ownership. Which
type of business ownership is the simplest and most common?
a. Corporation
b. Cooperative
c. Partnership
Which among the choices below is NOT an advantage of partnership
a. Partners have to be consulted each time a decision and action
is made.
b. No income tax is levied on the partnership itself but on the
c. Partners decide as to who shall pay debts in case the business
is unable to pay its liabilities.
d. If one partner commits mistake, the other has to suffer the
consequences.
3. Which of the following is NOT an advantage of a corporation?
a. Corporation continue to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a stockholder
c. Each stockholder shares in the ownership of the company,
together with the incorporators.
21
4. Which of the choices below makes sole proprietorship advantageous
to the owner?
a. All profits goes to the owner
b. Unlimited liability
c. All the risk are for the owner
d. Owner shoulders any liability incurred in the business.
5. Which of the choices below is NOT true about a cooperative?
a. Each member is entitled to only one vote
b. Responsibility for paying liabilities is borne equally by the
members
c. Owned by twenty-five or more individuals
d. Initiated by individuals numbering from a minimum of five to a
maximum of fifteen
LET US APPLY WHAT YOU HAVE LEARNED
1. If you engage into business, what form of ownership would you

choose and why?
2. Conduct a simple survey in your community. Find out what

business forms are existing. Present your findings to class.
REFERENCES:
Asuncion, Jr. Ramon G.; et.al.; Entrepreneurship: Abiba Publishing

House, INC: Copyright 1992.
Leuterio, Florida C.; Technology and Livelihood Education for

Sustainable Development: St. Augustine Publications, Inc.: Don
Quijote St., Sampaloc, Manila Philippine Copyright 2005.
Principe, June B. et.al.; Technology and Home Economics for Secondary

Schools Fourth Year: FNB Educational, Inc.: #2 Uranus St.,
Corner Jupiter Street, Congresional Subdivision, Project 6,
Quezon City. 2000
Suratos, Cesar P. and J. S. Simpliciano; Technology and Livelihood

Education II: Latest Edition, St. Bernadette Publications, Inc.:
Cubao, Quezon City 2006
22
________Technology and Home Economics III. Business Technology,
Business
Management I. Experimental Education, 1993.
http://www.isquare.com/qualities.cfm
http:www.wikieducator.org/VUSSC/Content/Entrepreneurship/
Starting-Up-a- ` Business/Objectives
23
Post-Test
Answer the questions below honestly. Write the letter only of your
1. The most basic management function of an entrepreneur which tells

you where you are going and how to get there?
a. controlling
b. organizing
c. planning
d. staffing
b. staffing plans
c. standing plans
a. improvement plan
d. standing plan
a. directing
b. organizing
c. planning
d. staffing
6. Directing is a challenging task. The principal concern of directing as
a management function is to ______.
personnel
personnel
the firm objectives
24
7. Which among the choices below is the management function that is

necessary to determine how often you should measure performance in
the controlling process?
deviations
e. set performance measurements
.
men
insufficient
d. a b & c
10. If you find out that there is a problem in
quantity and quality of skills among your present personnel, what
solution should you adopt to solve the problem?
a. consider recruiting from inside or outside the organization
d. a & b
11. When entrepreneurial activities slow down, what goes up?
a. Tax revenue
b. Inflation rate
c. Business profits
d. Unemployment rate
12. An entrepreneur is aware of
a. his family’s activities
b. his business competitors
c. his relations to people in his community
d. the present demand for certain products or services in his
community.
25
13. The term legal form refers to the type of business ownership. Which
type of business ownership is the simplest and most common?
a. Corporation
b. Cooperative
c. Partnership
Which among the choices below is NOT an advantage of
partnership
a. Partners have to be consulted each time a decision and
action is made.
b. No income tax is levied on the partnership itself but on the
c. Partners decide as to who shall pay debts in case the
business is unable to pay its liabilities.
d. If one partner commits mistake, the other has to suffer the
consequences.
15. Which of the following is NOT an advantage of corporation?
a. Corporation continues to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a
stockholder
c. Each stockholder shares in the ownership of the company,
together with the incorporators.
26
Key to Correction
Pre-test and Post-Test

1. c 11. d
2. c 12. d
3. c 13. d
4. b 14. d
5. c 15. d
6. c
7. a
8. a
9. d
10. b
27
ACKNOWLEDGMENT
The Department of Education wishes to extend thanks and

appreciation to the representatives of the different Secondary Technical-
Vocational Schools who shared their expertise in developing the
Competency-Based Curriculum (CBC) and Competency-Based Learning
Materials (CBLM) on May 25-30, 2009 at the Marikina Hotel, Marikina
City.
This learning material was developed, enhanced and refined by the

following personnel:
Writeshop on the Development of CBC-CBLM
Writers:
MARYAN C. CABASAG
Solana Fresh Water Fishery School
MA. GENEFREDA M. CUANAN

Don Alejandro Roces Sr. Science – Technology High School
CECILIA C. BUNAO
MA. JOSEFINA B. LUNA

E. Rodriguez Vocational High School
DAISY VILLANUEVA
Malolos Marine Fishery School
GAY BUENAVISTA
Muntinlupa Business High School
JEANNETH CUETO
OFELIA F. BERNARDO
Jones Rural School
ROLANDO M. CUBANGBANG
Jones Rural School
28
29
JESUSA C. IGLESIAS
San Jose National Agricultural And Industrial High School
LITO L. AGCAOILI
Alcala Rural School
Encoders:
WARREN LLOYD MANUEL
MARISOL E SALDIVAR
MIA LORAINE MANUEL
CARLO MAGPANTAY
Editor:
ESTRELLITA EVANGELISTA, Ed. D.
Facilitator:
ORLANDO MANUEL, Ph. D.

Cabaruguis National School of Arts and Trades
Writeshop on the Refinement and Enrichment of CBC-CBLM of

Entrepreneurship, June 5-7, 2009, Marikina Hotel, Marikina City
MARYAN C. CABASAG
Iraga, Solana, Cagayan
Region 02

Roces Ave., Brgy. Obrero, Quezon City
NCR
CECILIA C. BUNAO
NCR
MA. JOSEFINA B. LUNA
E. Rodriguez Vocational High School
Nagtahan, Sampaloc, Manila
OFELIA F. BERNARDO
Jones Rural School
Jones, Isabela
Region II
ROLANDO M. CUBANGBANG
Jones Rural School
Jones, Isabela
Region II
JESUSA C. IGLESIAS
San Jose National Agricultural and Industrial High School
Alcala Cagayan
Region II
Encoders:
WARREN LLOYD MANUEL

Fairview, Quezon City
MARISOL SALDIVAR
Taguig City
EDUARDO PINEDA
Cauayan, Isabela
CARLO MAGPANTAY
Project 4, Quezon City
MIA LORAINE MANUEL

Fairview, Quezon City
Editor:
ESTRELLITA EVANGELISTA, Ed. D.
Facilitator:
ORLANDO MANUEL, Ph. D.

Cabaruguis National School of Arts and Trades
Writeshop on the Finalization of CBC-CBLM of Entrepreneurship
July 1-5, 2009, Marikina Hotel, Marikina City
MARYAN C. CABASAG
Iraga, Solana, Cagayan
Region 02

NCR
Encoder:
MIA LORAINE MANUEL
Facilitator:
RENE GAOR DELFINO

Editors:
CAROLINA F. CHAVEZ
Principal II
AIDA T. GALURA – VSA II

Angeles City National Trade School
BEATRIZ A. ADRIANO
Principal IV
E. Rordiguez Vocational High School
CORAZON ECHANO, Ph.D.

Consultant
1
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Republic of the Philippines

Unit of Competency: Acquire Fundamental Skills in

Module Title: Acquiring Fundamental Skills in Managing a Business Page

Welcome to the Module “Acquiring Fundamental Skills in Managing a

The unit of competency “Acquire Fundamental Skills in Managing a

You are required to go through a series of learning activities in order to

COURSE : ENTREPRENEURSHIP III

UNIT OF COMPETENCY : Acquire Fundamental Skills in

MODULE TITLE : Acquiring Fundamental Skills in

SUGGESTED DURATION : 4 Hours

WHAT IS THIS MODULE ABOUT?

This module covers the knowledge, skills, and attitudes required

WHAT WILL YOU LEARN?

Upon completion of this module you must be able to:

1. acquire fundamental skills in managing a business; and

WHAT DO YOU ALREADY KNOW?

1. The most basic management function of an entrepreneur which tells

2. Plans are categorized in different ways. Which plan is used repeatedly

4. A management function that clusters the activities into departments

5. A diagram that shows the relationships of the position and their

6. Directing is a challenging task. The principal concern of directing as a

7. Which among the choices below is necessary to determine how often

11. When entrepreneurial activities slow down, what goes up?

12. An entrepreneur is aware of

15. Which of the following is NOT an advantage of a corporation?

ACQUIRE FUNDAMENTAL SKILLS IN MANAGING A BUSINESS

WHAT IS THIS LESSON ABOUT?

This lesson discusses the fundamental skills in managing a

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to;

1. identify and explain the fundamental skills in managing a

Accountability is a situation of being answerable to higher authorities.

Management functions are the same to all organizations regardless

Planning is the most basic management function that tells you

1. Standing plans. These plans are used repeatedly and cover

2. Single-used or single-purpose plans. These plans are

Another way to classify plans is according to whether they are

Steps Involved in the Strategic Planning

1) Formulate organization objectives. This serve as the basis

Organizing involves identifying the specific activities necessary to

An example of the organizing function is the owner-manager of a

Below is the diagram showing the organizational relationships of

The manager has direct command over workers who accomplish

SALES MANAGER PRODUCTION ADMINISTRATIVE

C. FUNCTIONAL STAFF ORGANIZATION

This process involves proper and effective selection, appraisal and

A. Asses your workload. The officers manning the operating units

B. Study jobs in the company. This refers to the process of

C. Examine your present personnel. Assess the skills, strengths,

a) Your company has just the right quantity and quality of

D. Design an improvement plan. If you find out that there is a

a) If your workers are not enough, consider recruiting from

Directing involves putting your plans into effect. How to influence

A. Motivation is the process of encouraging the subordinates to act

B. Leadership is the ability of an individual to persuade the

a. Conceptual skills refer to the mental capacity of an

b. Human relation skills is the ability to deal effectively with

c. Technical skills incorporate the capabilities to perform the

The function of controlling is to make sure that what is done in the

A. Establish standards. Standards are sets of measurements

Three common types of standards:

 Physical standards include quantity of products or services,

B. Set performance measurements. It is also necessary to

C. Measure actual performance. This step can be easy for you if