Business Ethics and Social

Learning Area Grade Level 12

Responsibility
W1
Quarter Third Quarter (3rd QTR) Date March 1-5, 2021

I. LESSON TITLE Forms of Business Organization and its Role in Social Economic Development

II. MOST ESSENTIAL LEARNING Differentiate the forms of business organization in terms of their purpose and role
COMPETENCIES (MELCs) in socioeconomic development (ABM_ESR12-IIIa-d-1.4)

III. CONTENT/CORE CONTENT The learners demonstrate an understanding of the nature and forms of business
organizations and the purpose of establishing business enterprises.

Suggested
IV. LEARNING PHASES Learning Activities
Timeframe

A. Introduction 20 minutes DAY 1

Good morning! In our week 1 lesson, we are going to focus on the following
objectives:
a. identify the forms of business organizations and their characteristics and
b. explain the purpose of business organizations and their role in
socioeconomic development

Let us answer Activity No. 1

Direction:
Below are the characteristics of money. Match the description of each word in
Column I with its meaning in Column II.

Column I Column II
1. Easily exchanged for goods and services A. Acceptable
2. Money is universally accepted B. Convertible
3. Long lasting C. Divisible
4. Can be easily broken down into smaller units D. Durable
5. Easy to carry E. Homogenous
F. Portable
Ever since the birth of free enterprise, all kinds of businesses have influenced
society one way or another. Business, also known as an enterprise, agency, or
firm, is an entity involved in the provision of goods and/or services to consumers.
Businesses are prevalent in capitalist economies, where most of them are
privately owned and provide goods and services to customers in exchange for
other goods, services, or money.

The characteristics of Money

1. Acceptable - money is universally accepted
2. Convertible - easily exchanged for goods and services
3. Divisible - can be easily broken down into smaller units
4. Durable - long lasting
5. Homogenous - similar example: all $100 bills are the same in appearance
6. Scarce - this ensures its value
7. Portable - easy to carry

B. Development 30 minutes Before we further discuss each type of business organization, let us have your
next activity.

Activity No. 2
Direction:
 Respond to the statement below and write your answer on a separate sheet of
paper.

Define the term “business” based on your own understanding.

There are several types of business organizations such as:

a. Conglomerates
b. Cooperatives
c. Franchise
d. Government Departments
e. Local and Municipal Authorities
f. Nationalized Industries and
g. Partnership

An organization is a system that groups people together towards establishing a

common goal. Business organizations are centered on creating goods and
services for profit.
The following are the types of business organizations:
1. Conglomerate - a group of unrelated companies under one umbrella.
A parent company owns a controlling stake in each company which
conducts business separately. (e.g., Restaurant, shoe store, travel
agency, etc.)
2. Cooperatives -business entities owned by their members who purchase
shares to join them. They are usually established because of a need
existing among a number of persons who wish to acquire goods and
services at a reasonable cost. (e.g., Retail Consumer cooperatives and
Producer cooperatives)
3. Franchise – an agreement between the person requesting permission to
set up business and the parent company to allow the franchisee to sell
its product or services. Many multinational companies expand into new
regions through franchises. (e.g., Jollibee, McDonalds, Choking, etc.)
4. Government department – includes the government ministries that are
very important to the running of government. (e.g., The Ministry of
Finance and Education)
5. Local and municipal authorities – these bodies fulfill local needs and
allow for more balanced local development. (e.g., The Kingston and St.
Andrew Corporation (K.S.A.C) in Jamaica)
6. Nationalized industries – are government owned and controlled
businesses. They provide essential services such as water, electricity and
transportation. They carry out duties such as cleaning gullies and drains
and fixing community roads. (e.g., water company providing standpipes
to rural communities)
7. Partnership – formed legally by a minimum of two and a maximum of
twenty persons in a business. (e.g., Red Bull selling energy drinks)

C. Engagement 30 minutes DAY 2

Activity No. 3

Using the KWL Chart, write down what you know about the topic in the What I
Know column. Then, in the form of a question write the things that you want to
know in the What I Want To Know column. Lastly, in the What I Learned column,
write what has been added to your knowledge in business.

K-W-L CHART

What I Know What I Want to Know What I Learned

 D. Assimilation 20 minutes Starting a business requires a lot of hard work. Therefore, persons must be ready
when deciding to start up a business to dedicate a lot of time and energy to the
start-up. It is also very costly and therefore capital will have to be identified to
inject into a new business. To better understand, here are some reasons for
starting a business. (Mindshapers Co., Inc)

1. Being your own boss where you can make decisions about the direction
and operation of the business.
2. Financial independence where starting the business would give you the
opportunity to be a successful businessperson and achieve financial
independence.
3. Self-actualization/Fulfillment in which owning and operating a successful
business will give a feeling of accomplishment.
4. Creation of employment for relatives, friends and community members
which can assist in providing jobs for persons in communities with high
levels of unemployment.
5. Use of skills and knowledge for yourself where the skills, knowledge and
experience that you have acquired can be put to work for you.

Activity No. 4
Direction: As a future businessperson, discuss the importance of business in
today’s generation and create your own reason for starting a business.

V. ASSESSMENT 15 minutes Activity No. 5

Let us check your understanding.

Direction: Write T if the statement is True and F if the statement if False.

1. Business enterprises are legal entities operating in an economy to

provide goods and services at a profit.
2. Businesses will close if they are making losses.
3. Firms produce commodities/goods and services that satisfy needs and
wants for its market.
4. Government manages the economy. They set the laws that govern
households and businesses.
5. Households consume the goods and services provided by firms.
6. Households are known as consumers.
7. Whether man lives in a simple economy or in a more sophisticated one,
he must survive.
8. A man is seen as an economic animal. To survive, he must be involved
in economic activities such as production, consumption and
exchange.
9. Firms are the producers in an economy. They obtain and maintain
markets through consistent advertising and sales promotion.
10. Government provides the necessary services (road, water,
transportation, communication, etc.) so that businesses may operate
efficiently. Households and businesses must in turn pay their taxes.

VI. REFLECTION In your notebook, write your personal insights about our lesson using the prompt
5 minutes below:

I understand that
____________________________________________________________________

I realize that
 _______________________________________________________________________

Prepared by: Mary Grace L. Maceda, SDO Imus City Checked by: Dr. Josephine Canlas, Adora G. Del
Mundo, Ciela Aunica D. Lelis