Professional Documents
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Management
Quarter 2 - Module 16
The Basic Concept of Small
Business
Organization and Management- Grade 11
Alternative Delivery Mode
Quarter 2 Module 8: The Basic Concept of Small Business
First Edition, 2020
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Welcome to the Organization and Management 11 Alternative Delivery Mode (ADM) Module
on Basic Concept of Small Business
This module was collaboratively designed, developed and reviewed by educators both from
public and private institutions to assist you, the teacher or facilitator in helping the learners
meet the standards set by the K to 12 Curriculum while overcoming their personal, social, and
economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent learning
activities at their own pace and time. Furthermore, this also aims to help learners acquire the
needed 21st century skills while taking into consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of the module:
As a facilitator you are expected to orient the learners on how to use this module. You also
need to keep track of the learners' progress while allowing them to manage their own learning.
Furthermore, you are expected to encourage and assist the learners as they do the tasks
included in the module.
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 designed to provide you with fun and meaningful opportunities for guided
and independent learning at your own pace and time. You will be enabled to process the
contents of the learning resource while being an active learner.
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This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or competencies
you are expected to learn in the module.
What I Know This part includes an activity that aims to check what
you already know about the lesson to take. If you get
all the answers correct (100%), you may decide to skip
this module.
What’s In This is a brief drill or review to help you link the current
lesson with the previous one.
What’s New In this portion, the new lesson will be introduced to you
in various ways such as a story, a song, a poem, a
question opener, an activity or a situation.
Answer Key
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The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of the module.
Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities included
in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not hesitate to
consult your teacher or facilitator. Always bear in mind that you are not alone.
We hope that through this material, you will experience meaningful learning and gain deep
understanding of the relevant competencies. You can do it!
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What I Need to Know
It may not be instantly apparent, but our daily activities-from the time we wake
up in the morning up to the bedtime at night are ruled by the ventures of entrepreneurs.
The toothbrush, toothpaste, towel, soap, shampoo, conditioner, clothes, shoes, food
and drink varieties, home appliance, electronic gadgets, office equipment,
transportation vehicles, and other things we used or consume daily are all products of
entrepreneurial ventures. Hence, it is important to acknowledge our dependence of
the innovative and creative nature of entrepreneurs. The important rule of
entrepreneurs, therefore, is to continuously look into the needs and wants of society
and to find the best possible way, beyond those currently offered
You must be able to explain the steps and importance of starting a family
business. At the end of this module, you should be able to:
This module could give you a wonderful learning experience so, here are some
reminders in order for it to be kept taken care
1. Take the pretest before going through the module.
2. Make sure to properly read and understand the module in order for you to answer
all the activities and exercises.
3. Read every direction carefully.
4. All the exercises must be answered and written in a separate sheet of paper.
Don’t forget to label your paper properly.
5. While answering, show integrity. The objective of this module is to make every
learner learned. Do not cheat.
6. Take the posttest given at the end of the module. Assess what you have learned.
7. Check all of your answers at the answer key page to know how much you have
gained and learned on this module.
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What I Know
Directions: Choose the correct term in the box below that corresponds to the given
definition.
Entrepreneurs flexible
Entrepreneurship creative
Corporation confident
Cooperative risk takers
Sole Proprietorship
Partnership
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Lesso Basic Concept of Small
n2 Business
What’s In
Direction: Identify whether the statement is true or false. Put an (x) mark on
corresponding box of the correct answer.
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What’s New
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What is It
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Entrepreneurial Characteristics
Creative and Innovative- Entrepreneurs have creative and innovative mindset
and must think out of the box to survive competition and at the same time have
competitive advantage over rival organizations.
Good Planners- planning bridges the gap between where they are and where
they want to go, it shows the right business direction that would lead them to
success.
Customer-oriented- entrepreneurs must be customer oriented to shape their
market offerings and create value in their customers’ mind.
Open-minded- Learning is a never ending process and entrepreneurs can also
learn by being receptive to the ideas of people around them.
Flexible- entrepreneur must be flexible in order to adapt to changing
environmental conditions. Flexibility comes in relation to the strategies, policies
and utilization to business resources.
Persistent. There is no short cut to success, things will not always fall under the
control of business managers, during this hardships entrepreneur must not give
up, and they must be persistent until their goals are achieved.
Confident- entrepreneurs must be confident about their own abilities, together
with the abilities of their other team members.
Organized. A well-organized entrepreneur makes that their organizational
structure furnishes an environment an environment where individual
performance, both present and future, contributes effectively and efficiently to
group endeavors.
Updated- well informed-entrepreneurs must continuously seek important, up-
to-date information regarding their market, customers, rivals in business and
suppliers.
Team Players- Entrepreneurs must be able to work well with others in unity,
strength and good coordination with others will ensure business success.
Knowledgeable- they must have expert knowledge about the product or service
they want to sell, their competitors and local/regional/national markets so that
they will better chances of succeeding.
Risk-takers- Entrepreneurs are not afraid of risks and are ready to meet
business challenges.
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5. Earning Potential. They want to be paid for the extra effort they give to their
work.
If you are really serious in pursuing a business venture, you should have more
or less an idea of what specific business to enter into. These are a few of the more
popular business pursuits nowadays from where you can draw an inspiration:
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Long hours of work
Uncertainty of income
High level of stress
Family risk
Figure 1.2. Risks of Being an Entrepreneur
Promotes
Mobilize Provides taxes to
Self-help
Capital the economy
and
Employment
Improves
Empowers Distribute
quality of
Individual Income
life
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Buy-out is yet another way to be an entrepreneur. Unlike the start-up route, as
the term implies, means that the entrepreneur simply buys an existing business for
sale on which he introduces innovations and improvements. If the same business is
operated, it is as if there was only a change in management
4. START-UP BUSINESS
Start-up business are those that are relatively started new by an entrepreneur.
These are also sometimes referred to as a business that starts from scratch.
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Differences in the Registration of the Legal Forms of Business
Single Proprietorship Registration Partnership Registration
Business name registration Filling of the previously prepared
with DTI partnership agreement by two or more
Two recent 2x2 ID Pictures applicants with the SEC
Filipino citizenship proofs Payment of the filling fee
Payment of application fee Evaluation of the application by the
plus documentary stamp fee lawyer or staff of the corporate and
legal department of the SEC
Release of the approved
registration(w/in 15 to 30 days)
Corporation Registration Cooperative Registration
Filing of the previously Submission of four copies of previously
prepared articles of prepared articles of cooperative
incorporation and by-laws agreement together with the bonds
and bank certification paid with accountable officers.
regarding stockholders’ Submission of four copies of the
shares of stocks with the SEC cooperative by-laws
Payment of registration fee Payment of registration fee
Evaluation of the application Released of approved registration on
by the lawyer and staff of the specified dates.
Corporate and Legal
Department of the SEC
Release of the approved
registration with (15-30 days).
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Availability of Invested properly
bigger capital due becomes the joint
to pooling of property of both /all
resources partners
Availability of a
pool of skills,
knowledge and
talents
Less liability of Major decisions
Corporation stockholders cannot be done
Capability to attract easily even if
larger amount of urgent, without the
capital approval of the
Transfer to stock board of directors
ownership is easier Corporate and
Large pool of individual profits
talents, skills and are taxed
knowledge separately,
Division of profit is resulting in double
fair depending on taxation and
number of stock additional
units owned. expenses
More rules and
regulations have to
be compiled
Cooperative It is a group Business control is
enterprise where shared
members may Ideas and
avail themselves of decisions made by
economics of scale the board of
which they will not directors have to
be able to obtain be accepted by the
as individuals. general
Different types may membership
be formed
(farmers,
producers, credit
cooperatives etc.)
Some registered
cooperatives may
apply for tax
exemption
Large pool of
talents, skills and
knowledge
Limited liability of
members
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What’s More
Activity 1.1
Directions: Enumerate the following:
Legal Forms of Business Organization
1.
2.
3.
4.
Socio-economic impact of business to the economy
5.
6.
7.
8.
9.
10.
Activity 1.2. Answer the following questions and present your answers orally
through a video presentation.
1. What is the importance of entrepreneurship in the Philippine setting?
2. Research three Filipino entrepreneurs and their contribution to the Philippine
economy.
ORAL PRESENTATIONS RUBRIC
Using the following criteria, choose the appropriate number from the following
scale that reflects your assessment of the student’s work.
1 = Weak 2 = Moderately Weak 3 = Average 4 = Moderately Strong 5 = Strong
1. The topic of the presentation meets the requirements of the assignment.
2. The presentation appears to be well researched.
3. The presentation is well organized and cohesive.
4. The presenter is adequately prepared for the presentation.
5. The presentation indicates an understanding of the topic presented
6. The presenter employs a speaking and delivery style appropriate to the
presentation topic.
7. The presenter delivers ideas in a clear and concise fashion without too much
reliance on notes
8. The presenter speaks loudly and clearly enough to be heard by the
audience.
9. The presenter maintains eye contact with the audience.
10. Overall, the work represents the presenter’s full potential.
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What I Have Learned
1. What is Entrepreneurship?
2. Enumerate and briefly explain the entrepreneurial process.
3. Name at least 5 entrepreneurial characteristics and briefly discuss each.
What I Can Do
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RUBRIC FOR THE ESSAY
20 points 15 points 10 point
Content Substantial, Sufficiently Limited content
specific, or developed content with inadequate
illustrative content with adequate elaboration or
demonstrating elaboration or explanation
strong explanation
development and
ideas
ORGANIZATION Sophisticated Functional Confused or
arrangement of arrangement of inconsistent
content with content that arrangement of
evident or subtle sustains a logical content
transitions order with some
evidences
CONVENTION Evident control of Sufficient control Limited control of
grammar, of grammar, grammar,
mechanics, mechanics, mechanics,
spelling, usage spelling, usage spelling, usage
and sentence and sentence and sentence
formation formation formation
Assessment
Direction: Choose the letter of the best answer. Write you answer in another sheet
of paper.
1. The business _ of the organization provides a picture of where the
entrepreneurial venture is headed and what the organization can become in the
future.
A. Goal C. Objective
B. Mission D. Vision
2. The _ states the basic purpose and scope of the organizations’
operations.
A. Goal C. Objective
B. Mission D. Vision
3. The part of the market which the company is willing and capable of servicing.
A. class C. network
B. group D. target market
4. A roadmap which the business must follow utilizing the resources at hand while
keeping the environment in mind.
A. Business plan C. Managerial Plan
B. Lesson plan D. Tactical Plan
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5. This is a marketing system revolving around a two-party legal agreement
whereby the franchisee conducts business according to terms specified by the
franchiser.
A. Buy-outs C. Franchising
B. Family business D. Start-up business
6. An entrepreneur buys an existing business for sale on which he introduces
innovations and improvements and when it operates it is under new management.
A. Buy-outs C. Franchising
B. Family business D. Start-up business
7. Which of the following is a characteristic of a business-format franchise?
A. Continuous assistance is provided by the franchisor.
B. It is the least popular franchise arrangement.
C. Products are bought directly from the supplier
D. The name of the business is chosen by the franchisee
8. Limited liability, indefinite length of life, ease of expansion, legal entity, and
transfer of ownership are considered advantages of a_ .
A. corporation B. partnership C. trade union D. sole proprietorship
9. Which of the following statements is true about business startup requirements.
A. Equipment is the least expensive requirement for a startup business
B. New business owners usually need to register for patent protection
C. Purchasing a franchise is usually easy and inexpensive for startup
business owners
D. The financial needs to start a new business depend on the nature of the
venture.
10. It is a group enterprise where members may avail themselves of the economics
of scale.
A. cooperative C. partnership
B. corporation D. sole proprietorship
11. The following are advantages of partnership except one:
A. Availability of bigger capital due to pooling of resources
B. Equal division of profits based on their agreement as partners
C. Establishment is easy
D. Less liability of stockholders
12. Why is it important for entrepreneurs to talk with industry experts when
developing new business concepts?
A. The industry experts commonly enhance your confidence.
B. The industry experts frequently offer financial support.
C. The industry experts typically provide useful information.
D. The industry experts usually improve your management skills.
13. To determine their human resource needs, new business owners often find it
helpful to:
A. allocate funds for additional payroll taxes.
B. ask a technical recruiter for advice.
C. hire consultants or freelancers.
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D. list all the tasks involved in operating the business.
14. Which of the following statements is true about new venture risk-taking:
Additional Activity
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Answer Key
1. true
2. true
3. false
4. true
5. false
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References
Printed Materials:
Cabrera, Altarejos, and Bejamin.Organization and Management.Quezon City.Vibal
Group.2016.
Payos, Espinosa and Zorilla. Organization and Management.Quezon City.REX Bookstore
Inc.2016.
Organization and Management by: National Educators Academy of the Philippines(NEAP)
Sample rubrics
https://www.google.com/search?q=examples+of+rubrics+for+questions&tbm=isch&v
ed=2ahUKEwiUttSZ6sTqAhXTIaYKHc3RCgcQ2-cCegQIABAA&oq=examples+of+
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EBNQnYABWIycAWDMnQFoAHAAeACAAd4BiAHEDZIBBTcuNy4xmAEAoAEBqgE
LZ3dzLXdpei1pbWc&sclient=img&ei=z34JX9SSDNPDmAXNo6s4&bih=657&biw=13
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