Teacher Applicant:

Year Level: Grade 11

Strand: ABM

Subject: Fundamentals of ABM 1

Method 4A’s

I. Objectives: At the end of this lesson the learners will be able to:

A. Compare and contrast the types of business according to its activities.

B. Identify the advantages and disadvantages of its types of business.

C. Make a list of business in their community according to their activities

II. Subject Matter: Types of Business According to Activities

Resources: Funadamentals of Accountancy, Business and Management 1

By: Joselito G. Florendo pp. 86-91
Materials : LCD Projector, laptop, pictures, cartolina strips, at marker at chart.

III. Strategy: 4A’s

Teacher Activity Student’s Activity

A. Classroom Routine:

1. Opening Prayer

Let us all stand for opening Prayer.

Amen!
2. Setting Classroom Rules:

3. Review
What are the form of business organization?
Their are three forms of business organization Sole
proprietorship, partnership, corporation and
cooperatives.

Differentiate the forms of business organization in

terms of ownership?
 Teacher Activity Student’s Activity

Sole proprietorship own by individual while

partnership is own by two or more partners, while the
shareholders co own the corpoartion.

B. New Lesson

We have learned that there are forms of business

organization from the previous chapter and this
business organization may differ on the equity
presentation but the accounting for assets and liabilities
are essentially the same.

C. Motivition
Class are you open minded? Yes mam

How do you earn money?

By asking from our parents

I earn money if I work

I earn money through my online selling.

I earn profit by having a business...

Today we will learn Types of Business According to

Activities. At the end of this lesson the learners will be
able to:

A. Compare and contrast the types of business

according to its activities.

B. Identify the advantages and disadvantages of its

types of business.

C. Make a list of business in their community

according to their activities

D. 4A’s Methods

1. Activity

Let’s have a game! This game is called Pass the ball.

 Teacher Activity Student’s Activity

I have here a ball of paper. All you have to do is to pass

the ball around your classmates. When the music stop
the one who hold the ball will open it and read the clue The class will be divided into 3 groups.
and choose a picture posted from the screen.

Music On and Stop

 Teacher Activity Student’s Activity

(read the clue)

Hair treatment, hair spa, hair rebond, blower, heater

and hot oil. Service business

(Go to the front and find the picture of hair salon)

Turn on the music and stop the music. (Read Clue)

 Teacher Activity Student’s Activity

Open the second clue. Buy and sell, can goods, fruits and vegetables, RTW,
Grocery stores, sarisari stores

Group 3

(READ THE CLUE)

Making shoes, Juice production, car manufacturer raw

materials employee.
 Teacher Activity Student’s Activity

Music start

Music stop

There are three types of business according to its

activities. First is the Service business, Merchandising
business, and manucfacturing business.

2. Analysis

There are three types of business according to

its activities. First is the Service business.

Service business is a business generates

income by providing service for a fee.

Merchandising is a type of business of buying

and selling of goods. A company purchases
goods from a supplier, in which these goods
will be sold to customer.

Manufacturing a company that purchases raw

materials, in which these raw materials will
undergo a process, until it becomes finished They earn profit by providing their services like hair
goods to be sold to customer. rebonding in parlor, and lawyer by giving legal advices
for the client who are ininjustices.

Grocery stores and mini mart earn profit by selling

In the first sets of picture, how do they earn profit? goods to the customer.

How about in the second group, how do they earn The shoe maker earn profit by making shoes and the
profits? finish product of the shoes where ready for sale.
 Teacher Activity
And the third group how do shoe maker earn profit?
3. Application
What are the 3 types of business
according to its activities?
You have learn the the 3 types of business according
to its activities. Now I will group you into 3 groups,
each group will recieve an envelope. Inside the
envelope are problems that you need to create the
cycle of business operation. And explain the activities
do they have.
Student’s Activity
The 3 types of business according to its activities are
Service business, merchandising busines and
manufacturing business.
Group 1
Cycle of the business Operation:
Juan have a Money, he think of having a hair salon so,
he hire Ana as his employee and agreed to pay her
five thousandspesos monthly. Then Ana Start
working as hair dresser of Juan Salon. Since Ana is
very good in hair styling Juan Salon earn revenues in
servicing from their customer.
In Service business are firms that generally use
their employees to provide intangible products or
service to customer.
Group 2
Teacher Activity Student’s Activity

Cycle of the business operation:

Juan and Ana borrows Money from the bank to build

their own business. They have a small sari-sari store in
their community. Juan and Ana buys wholesale from
Vallecer Grocery in Dipolog and and display it in
their grocery stand of their sari-sari store. The sari-
sari store where ready to sell all the goods. Lots of
customer from their neighborhood buying goods in
the store.

Group 3.

Juan wins 1 Million in the lottery. In order to save

money, he thinks of a business for him to earn money.
His friend Lando worries, if who will buy his tons of
mangoes harvested from his far. Juan offers him that
he will buy the mangoes of his friend for his new
business and hires laborers to manufacture mango
puree. He stores the mango puree to his warehouse
while waiting for his buyers. Then, ALAS! The school
canteen of different schools buy his product. And
Juan earn profit from his manufactured Mango
Puree.
 Teacher Activity Student’s Activity

Allright lets check your anwer.

For Group 1 is the Service Business.

They earn profits by rendering services to their
How do they earn profit?
customer.

The advantage of this business is the absence of

What is the advantages of service business? inventory.

No Production facilities.

The disadvantages of this type of business is inability

to standardize services

How about the disadvantages?

Barber Shop

Hair salon
What are the examples of service business?
School

Hospitals

From your answer of the of Cycle of business

 Teacher Activity Student’s Activity

Operation.

And, now let’s go to the Second Group.

What do you call the type of business that buys

finished good from suppliers and resells the same to the
customer?
We call that type of business as Merchandising.
Compare merchandising business to service business?

Unlike the service business, Merchandising

Merchandising business is business sell tangible
products. They buys finished product or almost
finished goods from their suppliers and resells the same
to customer.
business is business that sells tangible products.
They buys finished product or almost finished
goods from their suppliers and resells the same to
customer. While the service business generates
business by rendering service to the customer for
a fee.

Did you know that there are types of merchandising

business?

Yes ma’am. the wholesaler and the retailer.

Give me examples of Merchandise business that you
can see in your community?
 Teacher Activity Student’s Activity

How about the advantages and disadvantages of the Grocery store

Merchandising Business. Supermarket
Online Selling

The advantages of this type of business is visible

product and less conversion time and effort.

The disadvantages of this type of business is the

managing the inventory.

We are done with first and second group. Now let’s go

to the third group.

What business activity do manufacturing business

have?

Would you compare the activity of the manufacturing

business from service and merchandising?

Give me example of manufacturing business?

Manufacturing goods Ma’am.

 Teacher Activity
Base from this cycle what are the advantages of this
type of business?
How about the disadvantages?
Additional Information:
Their are businesses that may be classified under more
than one type of business. One of the example is the
bakery, it combines the raw materials in making a loaf
of bread (manufacturing); sells hot pandesal
(Merchandising) and caters customer orders in a small
coffee table serving ensaymada and hot coffee
(service).
4. Assessment:
ESSAY
Get ½ sheet of paper. For 10 points
Give 3 Example of business or
companies do service, merchandise or
manufacturing. Why are those
business categorized as those type of
business activities?
Student’s Activity
Manufacturing companies are relatively
complicated organizations than service and
merchandising companies.As the name suggests,
manufacturers create their own product.
Nestle
Zest -o
Coca-Cola
Honda
Manufacturing business where manufacturer
create their own products. Which buy raw
materials, components or parts which are process
by using machines, computer and labor to
finished goods, they earn revenues primarily from
selling the finished goods.
The advantages of this type are the quality control
And the visibility of the product
The disadvantages of this type of business is
generally need of production.
High Conversion cost, the cost of quality.
 Teacher Activity Student’s Activity

5. Assignment:

Look for a business in your community that is

service, merchandising or manufacturing business.
Interview the owner on how he earns profits of his
business. For 15 points.

Rubrics Points

Input Knowledge 10 points

Documentation 5 points

Total 10 Points