Senior High School

Entrepreneurship
Quarter 2 – Module 2:
Business Implementation
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
to explore business implementation for Entrepreneurship as a career. The scope of
this module permits it to be used in many different learning situations. The language
used recognizes the diverse vocabulary level of students. The lessons are arranged to
follow the standard sequence of the course. But the order in which you read them can
be changed to correspond with the textbook you are now using.

After going through this module, you are expected to:

1. Implement the business plan.

What I Know

Hi! Welcome to our lesson 5, how are you? I hope you’re doing good and enjoyed
the previous lesson we had. Just like the previous lesson, let’s have a pre-test to check
your prior knowledge about the topic. If you got a perfect score, you can skip this
lesson and proceed to the next module, but if you didn’t get a perfect score, you don’t
have to worry because this module will help and guide you to understand the topic
Are you ready? Let’s start.

I. Rearrange the Jumbled Letters to form the correct terms.

1. SIENUBSS- it is an organization or enterprising entity engaged

in commercial, industrial, or professional activities.

2. REMUSTOC- is an individual or business that purchases

another company’s goods or services.

3. PETRERENRUNE- A person who organizes and operates a

business or businesses, taking on greater than normal
financial risk in order to do so.

4. TEAMKR- is a place where two parties can gather to facilitate

the exchange of goods and services

5. POMACYN- it is a legal entity formed by a group of individuals

to engage in and operate a business – commercial or industrial.

II. Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.

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1. It is a written document that describes in detail how a business is going to
achieve its goals.
a. Business Certificates
b. Business Plan
c. Enterprise
d. Company
2. It is another word for a for-profit business or company, but it is most often
associated with entrepreneurial ventures.
a. Benchmark
b. Franchise
c. Enterprise
d. Corporation
3. It is calculated as total revenue less total expenses.
a. Profit
b. Asset
c. Financial forecast
d. Revenue
4. It is a short statement of why an organization exists, what its overall goal is.
a. Vision statement
b. Business Plan
c. Income Statement
d. Mission Statement
5. It is a sum of money provided to a company to further its business objectives.
a. Liabilities
b. Income
c. Capital investment
d. Expenditures
6. It is an estimation of revenue and expenses over a specified future period of
time and is utilized by governments.
a. Budget
b. Profit
c. Cash
d. Income
7. The one who places capital into a project or business with the intent of making
a profit from the initial placing of capital.
a. Entrepreneur
b. Manager
c. Investor
d. Customer

8. These are resources that your business owns or leases that provide economic
value.
a. Assets
b. Budget
c. Expenses
d. None of the above
9. It is based on a marketing concept which can be adopted by an organization as
a strategy for business expansion.
a. Organization
b. Marketing
c. Franchising
d. None of the above

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 10. It is a term for financial assets, such as funds held in deposit accounts and/or
funds obtained from special financing sources.
a. Salary
b. Income
c. Net-profit
d. Capital

Lesson

5 Business Implementation

Hi! We are now in our module 5, how are you today? I hope you enjoyed the
discussion and activities in our module 4. Before we talk about the business
implementation for Entrepreneurship as a career,

What’s In

Hello! How’s your day? I hope you have a great day!

Before we talk about business implementation, let’s have a review regarding

the personal purpose of entrepreneur is his or her personal mission.

Remember the entrepreneur must be very clear about the purpose in

establishing the enterprise. Whether it is for generating profits or feeding the family,
making a difference in the industry or actualizing the self, the purpose must be
compelling enough to motivate the entrepreneur.

The enterprise must state its mission statement clearly for:

➢ The sake of the customers being wooed;

➢ The investors who need to know what they are getting into;
➢ The financiers evaluating the enterprise; and
➢ The government functionaries who must regulate the activities of industries and
businesses.
Now that you know these mission statement, we will proceed now to our lesson
Business Implementation. But wait, why do we need to study Business
Implementation?

Remember, one of the four exits in SHS is the entrepreneurship (negosyo),

that’s why, you as a learner must establish on the basis of a very exciting business
concept leading to a grand vision. As a future entrepreneur, you must offer
something new, something appealing, something different that says, “Take notice,
I’m arriving with a bang!” In other words, the entrepreneur must present a winning
business concept that manifests tremendous future possibilities.

Now, as a future entrepreneur, I want you to write at least 5 missions/goals on

how you can build your business concept as a start-up. Fill the given blanks below.

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 1.

2.

3.

4.

5.

Notes to the Teacher

This module is designed for the students to fully acquire
the expected learning competencies. It includes series of activities
which are suggested to be accomplished for better understanding
and mastery of the lesson. The teacher should give proper
assistance when necessary.

What’s New

Case Study
Read and Understand the Jollibee Business Concept and answer the given
questions below.

When Jollibee decided to challenge the giant McDonald’s in the market, it

brought the Filipino taste to hamburgers. For that matter, it introduced a lot of
Filipino dishes not traditionally sold in hamburger joints. Jollibee observed in their
market research that Filipino consumers smelled their burgers before eating them.
The logic is obvious: the nose can smell a thousand aromas while the tongue can only
distinguish four tastes (sweet, sour, salty, and bitter). Jollibee knew that good taste is
a function of good smell. Their tag line, “Langhap sarap” that roughly translates to
“You can savor its good taste from its great aroma,” says it all. Jollibee also came up
with a child-friendly name and an endearing mascot to accompany the name.
Strategically, Jollibee decided to locate two or three outlets to “surround” McDonalds.
The rest is history.

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Question:

1. What are the differentiated business concepts that Jollibee won the hearts,
minds, and wallets of Filipino Consumers? Do you think these business
concepts are effective in outgunning the giant McDonalds? Explain your
answer.
_

2. If you’re going to build your own Food Industry like Jollibee, what would be
your business concepts and why?

What is It

Congratulations! You were able to know your career path as early as now.
Today, we will discuss the business implementation for Entrepreneurship as a career.
This will help you to know more of the Entrepreneurship (negosyo) curriculum exit.

Here is the introduction to business implementation that you may explore if you
pursue college education and have Entrepreneurship degree:

Introduction to Business Implementation

A Very Good Business Plan

The next step for the entrepreneur is to have a very good business plan. It is a
wise thing to do in order to chart the course of the business properly and to focus the
efforts of the entrepreneur.
The purposes of the business plan are:
1. Entice partners, investors, and bankers to fund a business venture.
2. Communicate what the enterprise is all about, what market it wants to serve.
3. Show what financial returns it could muster.

The business plan should contain important information about the following:

➢ The business itself;

➢ The organizers;
➢ The management and technical people;
➢ The financial structure;
➢ Its market potential;
➢ Its target market;
➢ Its projected sales, expenses, and profits; and
➢ Its probable risks.

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 The business plan should begin with business concept and the vision for the
enterprise in the next three to five years.
It should proceed to an enumeration of business objectives, key result areas, and
performance indicator. An overall enterprise strategy should then be articulated to
show how the performance could be attained.
Next, the business plan should contain an executive summary of the following:

1. The organizers and the key people behind the nosiness and why these people
have the resources, talents, skills, and technology to achieve success;
2. The market being targeted and why there is enough market potential to justify
the business;
3. How the business will be operated and organized, including all outsourcing,
subcontracting, franchising, and licensing agreements;
4. The products or services to be offered and why they are right for the market;
5. The investment capital required for the business and what exactly it would be
used for;
6. The technology, the technical expertise, the equipment, and material suppliers
to be utilized;
7. The capital structure (short and long term debt, stockholders’ equity) of the
business;
8. The operating budget, financial projections (income statement, balance sheet,
cash flow), and return on investment prospects; and
9. The risks in the business and the contingency measures to counterpart them.

Organizing and Structuring the Enterprise

The Business Plan must be able to estimate the capital required by the enterprise.
The capital required would be dictated by the investment in the assets of the
enterprise. These assets are composed of the following:
1. The current assets, which are short-lived assets. They are composed of cash,
inventory, accounts receivables, and other current assets.
2. The long-lived or fixed assets. They are composed of property, plant, and
equipment.
3. The other assets. They are composed of organizational and pre-operating
expenses.
interest rate, therefore, is the obvious choice of the manager when asked to
make a decision.

The assets of the enterprise are financed by its liabilities. These liabilities are
composed of:

➢ Current liabilities such as suppliers’ credit and other short-term credit;

➢ Long term debt; and
➢ Owner’s equity

• Sole proprietorship
The simplest and easiest enterprise to organize. The owner or the entrepreneur
has sole control over the enterprise. He or she reaps all the profits and, also, all
the losses. But he or she will also incur all the risk.

The following are clearances that must be obtained to secure a mayor’s permit or
municipal license before they can operate in a locality.
➢ Barangay clearance
➢ Fire safety clearance
➢ Certificate of electrical inspection
➢ Certificate of occupancy

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 ➢ Department of Trade and Industry (DTI) certificate
➢ Lease contract if space is leased
➢ Locational clearance

There may be additional requirements depending on the type of business and the
ordinances issued by the concerned local government.
• Partnership
If two or more persons bind themselves into a contract to contribute money,
property, and expertise in a common venture with the intention of dividing the
profits among themselves, then they would have entered into a partnership.

• General partnership
Is composed of partners who are liable individually and collectively to all those
who have claims against them.

• A limited partnership
Consist of partners who have limited liabilities while others in the partnership
have unlimited liabilities. A limited partner is not personally liable for all the
obligations of the partnership beyond his or her prorated capital contribution to
the partnership.

The partnership should obtain all the required government clearances, permits,
and licenses. It should get:
➢ A bank certificate of deposit on the money contributions of the partners; and
➢ The approval for its partnership name form the Department of Trade and
Industry.

• Corporation
The third form of business organization. Like the partnership, the corporation
also has a separate legal personality quite distinct from the investors who
contributed money to the enterprise.

Four Types of Corporation

1. Stock Corporation. Issues capital stocks divided into shares (or proportions of
the total capital). The corporation is authorized to raise capital that has a
corresponding number of shares.
2. Non-Stock Non-Profit Corporation. Is organized to carry out a purpose or
purposes other than generating profits for investors. All the surpluses (or profit
equivalents) generated by the corporation are not distributed to the funders in
the form of dividends. Rather, they are plowed back into the corporation or the
foundation to contribute further to the attainment of its mission.
3. Close Corporation. Has articles of incorporation that limit the ownership of
issued stocks to at most 20 persons. There are strict restrictions on the transfer
of stocks. The stocks cannot be listed in any stock exchange nor can any public
offering of shares be made.
4. Corporation Sole. It is a special form of corporation allowed by law, usually
associated with the clergy. The Corporation Sole is a trusteeship that is set up
for the purpose of administering and managing the affairs, property, and
temporalities of a church or group of clergy.

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 What’s More

Did you enjoy the mini-lesson of the module? To better understand it, let’s have
another activity. Enjoy!

Activity 1

Getting Started
1. If you were to set up a business venture, what would be your personal purpose
for doing so? What type of business would you set up? What would be the
mission of this enterprise? Craft a personal and an enterprise mission
statement.

2. What is your compelling business concept? What would be your vision for your
business five years after setting it up?

3. What name would you give to your business venture? What is the significance
of that name? Would it protect the image you desire for your business?

4. If you were to invite investors to your business, who would they be and why?
What are the possible sources of financing for your business venture?

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 What I Have Learned

How’s the activity? I hope you learned from it. This part is the generalization which
contains the summary of what you learned. I want you fill in the blanks to continue
the given sentences below.

1. All the market research must be done and the desired customer segment has
been targeted. Likewise, when the final location has been chosen and the new
product has been designed and developed, then .

2. The enterprise begins to have its own life and may have a purpose separate
from the personal mission of the entrepreneur maybe because
.

3. The entrepreneur must choose a very fitting name for the enterprise. A good
name identifies the company very well. The entrepreneur must think long and
hard about the name so that .

4. In livelihood undertakings or microenterprises, it is common for entrepreneurs

to embark on a business venture as a “lone wolf” not needing the capital or
expertise of others. At best, it may be .

5. The entrepreneur must flesh out, into more specific details, the information
that a good business plan must contain .

6. The business plan should proceed to an enumeration of business objectives,

key result areas, and performance indicators. These are essential in terms of
.

7. For the government readers, the business plan should provide compliance
statements with all laws and regulatory provisions as an important matter in
.

8. The sole proprietorship is mandated by law to register the business with the
.

9. The start-up corporation established by entrepreneur (and his or her family or

friends) should have .

10. If the team in a business is not fully equipped technically and managerially,
then .

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 What I Can Do

Activity 2:
The Entrepreneur’s To-Do-List

Make a to-do-list that would help you go about establishing your own
enterprise. Base on the items that have been discuss in this module, there seems to be
a lot of tasks that need to be completed by the entrepreneur. Be as realistic as possible
in terms of what you can achieve in a day.
Start from a week’s worth of activities and then expand them to a month and so
on. You can be as detailed as possible (which should include time lines). For a more
organized calendar, you may refer to the sample below.
At the end of each day. Check or cross out the task/s that have been
accomplished.
Sample of Entrepreneur’s To-Do-List and Calendar
JANUARY 20XX
SUN MON TUE W ED THU FRI SAT
1 2 3 4 5 6 7
Brgy.
Clearance
8 9 10 11 12 13 14
Fire safety Certificate of
Clearance occupancy
15 16 17 18 19 20 21
Business
Permit
22 23 24 25 26 27 28

29 30 31

Assessment

Before the presentation of the mini-lesson, you had your pre-test right? Now, this will
serve as your post-test. This will test you if you were able to understand the lesson
well. Good Luck!

Please answer on a separate sheet of paper.

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True or False: Write True if the statement is correct, and False if it is incorrect.

1. According to Philippine law, the majority of the incorporators must not be

residents of the Philippines.
2. In sole proprietorship, there is no distinction between the owner and the
enterprise.
3. Once the corporation is established, there is no limit to the number of natural
or juridical persons who can invest in the corporation.
4. After establishing the enterprise, the entrepreneur must meticulously screen
and hire men and women who foster the cause and share the commitment of
the enterprise.
5. A minimum of two persons can constitute a partnership. However, there is a
limit to the number of persons in a partnership.

COMPLETE THE SENTENCES: Choose the correct word or phrase from the box to
complete each sentence.

PARTNERSHIP CONTRACT

SYNTHESIZED FEARLESS FORECASTS

CAPITAL STRUCTURE FINANCIERS AND INVESTORS

SHARES GOOD NAME

ANGEL INVESTORS VISION

1. provide capital to entrepreneurs knowing that there

are risks involved. They may come in the form of senior relatives, close friends,
and professional equity investors.
2. A identifies the company very well. It communicates
what the company is all about and what its products are all about.
3. The business plan should begin with the business concept and the
for the enterprise in the next three to five years.
4. For the investors, they should be given on expected
profits, dividends, and market values.
5. The financial statements must be in order to capture
both the upside and downside prospects of the business.
6. The way the financial package is designed is called
of the enterprise.
7. A is vested with its own legal personality quite distinct
and separate from its individual members.
8. In order to form a partnership, a binding must be signed by
all the partners.
9. The corporate form of business allows various combinations of funds to be
raised from .
10. Based on the submission of Articles of Incorporation to the Securities and
Exchange Commission, the corporation is authorized to raised capital that has
a corresponding number of .

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 Additional Activities

Answer the following questions or situations based on what you’ve learned from
the lesson.
1. What do you think is a very good business plan?

_
2. As an entrepreneur, what will be your criteria for hiring people? Why?

3. Amidst this pandemic situation, what will be the best business for you to
established? Support and explain your answer.

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