Senior High School

Organization and Management

Module 16:
Starting a Family Business

AIRs - LM
LU_Organization and Management_Module16
ABM - ORGANIZATION AND MANAGEMENT
Module 16: Starting a Family Business
Second Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.
Development Team of the Module

Author: Rose Ann Mapalo

Editor: SDO La Union, Learning Resource Quality Assurance Team
Content Reviewer: Joselito Dumocmat
Language Reviewer: Brian O. Rilloraza
Illustrator: Ernesto F. Ramos Jr.
Design and Layout: Rhea Flor T. Olivar

Management Team:

Atty. Donato D. Balderas Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, PhD
Assistant Schools Division Superintendent
German E. Flora, PhD, CID Chief
Virgilio C. Boado, PhD, EPS in Charge of LRMS
Lorna O. Gaspar, EPS in Charge of ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

Printed in the Philippines by: _________________________

Department of Education – SDO La Union

Office Address: Flores St. Catbangen, San Fernando City, La Union
Telefax: 072 – 205 – 0046
Email Address: launion@deped.gov.ph
 Senior High School

Organization and Management

Module 16:
Starting a Family Business
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear
learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in

each SLM. This will tell you if you need to proceed on completing this
module or if you need to ask your facilitator or your teacher’s assistance for
better understanding of the lesson. At the end of each module, you need to
answer the post-test to self-check your learning. Answer keys are provided
for each activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the
exercises and tests. And read the instructions carefully before performing
each task.

If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.

Thank you.
 Target

Business opportunities are waiting for those who have the courage to create
and innovate something new and useful to human being. As an entrepreneur, they
have to come up with a great ideas accompanied with a good business plan and
strategies that will lead them to achieve their goals which is to provide service, grow
in the business field and earn a profit.

As we face the challenges brought to us by the Covid-19 pandemic, a lot of

families who lose their jobs decided to start their own family business to provide
their basic needs. But starting a business takes a lot of time and effort. For small
business, the owners are responsible for managing all aspects of their company.

This module will provide you the necessary information and activities that
will help you understand the concept of having a family business.

After going through this module, you are expected to:

1. Explain the steps and importance of starting a family business

(ABM_AOM11-IIj-40)

To be able to realize the above mentioned MELC, it is important to perform

the following sub-tasks:

1. identify the importance of starting a family business;

2. determine the steps needed in establishing a family business and;
3. write an essay about the different situations on starting a family
business.

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 Jumpstart

Activity 1.1: GUESS THE TAGLINE

Direction: Name the business to which the following famous taglines belongs.
Write your answers in a separate sheet of paper.

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 Discover

Try to look around your place and check the different businesses around
you. What did you notice? You’re right, a family business. According to surveys,
around 80% of the most successful businesses in our country were owned and
controlled by a family. And to name some we have the: Ayala, Aboitiz, SM shopping
malls, Metrobank, Goldilocks, Jollibee, Unilab, Mercury Drugstore, and the like.

Business gives the family not only an income but can also employ their
family members. They can work for themselves, they can control the business and
they can bequeath it to their kin. Family businesses play a major role in our
economy. They provide jobs to many and help our government by rightfully paying
their business taxes.

As we face the Covid-19 pandemic, a lot of families lost their jobs. And to be
able to support their families, some of them decided to open and venture into their
own business. What are the other benefits of having a family owned business?

Benefits of having a Business with Family:

1. They work hard.

2. There is stability.
3. There is a greater sense of commitment and accountability.
4. There is comfort in working together.
5. Easier decision making.
6. Family members are flexible in terms of work positions.
7. Expands your network.
8. Reduced cost or expenses especially during economic downturns.

For large companies, they say that succession is a very crucial matter. The
succession plan of every generation will have a great effect that might lead to the
rise or fall of every family owned business. Succession planning is a process by
which individuals are scanned to pass on the leadership role within a company.

Businesses have to be registered in compliance to Philippine laws. Without

proper registration in authorized government agencies, the business cannot operate
legally. Registering gives credibility to the business on which they will earn the
trust of the customers including suppliers, their partners and stakeholders. Here
are the simple steps in starting a business.

Steps in Starting a Business:

1. Create a Business Plan

In starting a business, it’s important that you have a good business plan.
First thing to do is to formulate your business vision and mission,
identify your target market, understand the environment, the service or

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 product you will offer, marketing and sales activities, financial data or
you may conduct some market analysis and research before creating
your business plan. This will help you determine financial requirements
and programs of activities in advance.

2. Choose a Business Structure

Depending on the size and resources of your business, you have to decide
whether to set up a sole-proprietorship, partnership, corporation or
cooperative.
Single proprietorship – a business owned by one person only
Partnership – a business formed when two or more partners formally
agree to be joint owners of a business
Corporation – a business entity involving five or more persons owning it
Cooperative – a group enterprise made up of several traders, consumers,
or producers who are interested to produce or trade as a group

3. Register a Business Name

Get registered to your chosen business name according to the type of
your business to the following departments.

 Sole Proprietorship – Department of Trade and Industry(DTI)

 Partnership/Corporation– Securities and Exchange Commission(SEC)
 Cooperative – Cooperative Development Authority(CDA)

Let’s say you are starting a small business with a starting capital of
₱20,000. After choosing a business name, the first thing to do is to check
through the DTI website if your chosen business name is already used by
others. If your business name is available, then all you have to do is to fill
out a business name application form then submit to the nearest DTI
office and wait for your DTI Certificate of Registration before moving to
the next step.

4. Register with your Barangay

Go to your barangay office and fill out an application for a business
permit. You have to submit your DTI Certificate of Business Registration,
proof of residence and two valid IDs.

5. Register with the Mayor’s Office

Go to your municipal office and fill out an application and register as a
sole proprietor. You also need to submit your Barangay Clearance
Certificate, DTI Certificate of Business Registration, proof of residency
and two valid IDs.

6. Register with BIR

After securing the necessary local permits and business certificates, you
may now visit your regional district office and fill out a BIR form 1901 to
register your business. Don’t forget to bring with you your Mayor’s
Business Permit, Barangay Clearance Certificate, DTI Certificate of

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 Business Registration, proof of residency and valid IDs. They may
instruct you to wait for few working days before you can claim your BIR
form 2303.

7. Open a Bank Account

To help you manage your finances, you may open a new business
account to separate business transactions from your personal ones.

8. Register with government-mandated sectors

It is mandated by law that all businesses must register and remit to
government institutions such as Social Security System (SSS), Bureau of
Internal Revenue (BIR), Philhealth, and Pag-Ibig Fund services.

After going through these steps, you are now ready to start your family
business. Your business plan do not end here, you have to continuously improve it
to be able to keep up with the trend of this fast changing world. Don’t expect to
earn a big profit instantly. Having a business needs hard-work, patience and
perseverance.

Explore

ACTIVITY 1.2: WORD HUNT!

Direction: Find important terms about starting a family business from the box
and then encircle the word/s that are being described by the clues given below.
Write your answers in a separate sheet of paper.

E Q W R C O O P E R A T I V E Y U I
L C E Y W B T Y O I A C A S R V B L
B V S O A E V B T Y O V P E W V D A
A F W T W C T Y O R A X O E F T Q C
R T E W B I R M P M E R T A I W F K
A Y O G D U A O A M A X I H J I L S
N E W N W R R W R T B G S Y V G A K
G D R I E A Q L T U H H M E R A X I
A N N T T M E M N Y K T V M C S Y Y
Y S M I O M F O E T U R R G O X B L
O M O A G B N S R X Y E T B F Q I O
U N I R H U B U S I N E S S P L A N
T I R T C P O W H E E S S I F E I Q
L O Y S E Y D Y I T B W D U T R T X
T R F I W R U T P R M R W O Y W Y E
O T D F L E X I B L E E D C O S S S
K P S U C C E S S I O N W Y B E R A

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Clues:

 business entity with five or more owners

 where you register a sole proprietorship business
 you can find the mission/vision of a business
 made up of several traders, registration for a corporation
 business with joint owners
 government agency that you need to register and remit your tax
 able to work in a different position in the company
 pass the leadership role in a company
 first permit/clearance to be secured

ACTIVITY 1.3: COMPLETE ME!

Direction: Fill what is missing in the steps of starting a business. Write your
answers in a separate sheet of paper.

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 Deepen

ACTIVITY 1.4: FOR YOU!

Direction: Read and analyze the following situation below then answer what is
asked. Write your answer in a separate sheet of paper.

Scenario: You won the Super Lotto Jackpot worth ₱30,000,000. Your family
decided to venture into a business to avoid wasting the money and at the same
time, to gain a profit.

1. If you were given the chance to choose, what business are you going to put up?
Are you going to let your family handle and work for your business? Why?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

2. Summarize and discuss the whole process that you are going to undergo in
starting your business.

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

2. In your own opinion, are businesses stronger when family members are
involved? Justify your answer.

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

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TABLE 1: Rubrics for Scoring the Output in Activity 1.4

Indicators Score

1. Completeness: Learner responses directly on each

question/s
2. Content: Learner’s response shows that he/she
understands the lesson clearly.
3. Analysis: Learner’s response provides analysis to the
larger concepts of the lesson
4. Writing Skills: Learner writes clearly, in complete
sentence, and with minimal errors in grammar and
spelling.
Legend:

5 – Excellent

4 – Very Good

3 – Good

2 – Fair

1 – Needs Improvement

Gauge

MULTIPLE CHOICE: Direction: Read and understand each question carefully.

Write the letter of the best answer in a separate sheet of paper.

1. Andrei went to their barangay office to apply for barangay permit but he wasn’t
able to get one. He brings the following: 2 valid IDs and proof of residency.
What document does he lack?
A. Barangay Permit B. Birth Certificate
C. DTI Certificate of Registration D. Mayor’s Permit

2. Being the owner of a restaurant, Jessy needs to learn how to cook, be a

cashier, a service crew and a delivery boy. What characteristic of an
entrepreneur does he have?
A. Busy B. Flexible
C. Overqualified D. President

3. Where do business corporations go to register their business name?

A. Barangay B. Municipal
C. DTI D. SEC

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4. What do you call the process of transferring leadership to the next generation?
A. Election B. Promotion
C. Inheritance D. Succession

5. What BIR form are you going to get in registering your business?
A. 103 B. 203
C. 303 D. 403

6. How many valid IDs do you need when applying for business permit?
A. 1 B. 2
C. 3 D. 4

7. Where the mission/vision of a certain business is stated?

A. Book B. Business Plan
C. DTI D. Permit

8. Andrei, Roshen and Cazzy decided to join their money to put up a small
business. What type of business structure they should register?
A. Cooperative B. Corporation
C. Partnership D. Sole-proprietorship

9. Why is it important to make a market survey?

A. Tells you how many and what type of people they are.
B. Tells you how much a customer will pay.
C. It tells you what a customer will buy.
D. All of the above

10. What will happen if a business was not registered?

A. They will be charged by the government for illegally operating a
business.
B. They can have discounts from their supplier.
C. A lot of customer will the product.
D. All of the above.

11. If a business has employees, what government institution does he was

mandated to pay for his employees?
A. Bureau of Fire Protection B. Loan
C. Credit Card D. SSS

12. What will you do next after having your barangay permit?
A. Go to Barangay Office B. Go to DTI
C. Go to BIR D. Go to Municipal Office

13. How many percent of business were family-owned?

A. 60 % B. 80%
C. 85% D. 93%

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14. Which department do cooperative business register their names?
A. BIR B. CDA
C. DTI D. SEC

15. What might be the disadvantage/s of having a family-owned business?

A. You can break the rules. B. You work comfortably.
C. You work on your own. D. Create conflict.

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LU_Organization and Management_Module16
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Activity 1.1 Activity 1.3
1. SM A. DTI Certificate of Business Registration
2. Unilab B. Proof of Residency
3. Jollibee C. 2 Valid IDs
4. Goldilocks D. 2 Valid IDs
5. Aboitiz E. BIR Form 203
6. Mercury Drugstore
7. National Bookstore
8. Cebu Pacific
9. Metrobank
10. CDO
Activity 1.2
E Q W R C O O P E R A T I V E Y U I
L C E Y W B T Y O I A C A S R V B L
B V S O A E V B T Y O V P E W V D A
A F W T W C T Y O R A X O E F T Q C
R T E W B I R M P M E R T A I W F K
A Y O G D U A O A M A X I H J I L S
N E W N W R R W R T B G S Y V G A K
G D R I E A Q L T U H H M E R A X I
A N N T T M E M N Y K T V M C S Y Y
Y S M I O M F O E T U R R G O X B L
O M O A G B N S R X Y E T B F Q I O
U N I R H U B U S I N E S S P L A N
T I R T C P O W H E E S S I F E I Q
L O Y S E Y D Y I T B W D U T R T X
T R F I W R U T P R M R W O Y W Y E
O T D F L E X I B L E E D C O S S S
K P S U C C E S S I O N W Y B E R A
GAUGE
1. C 6. B 11. D
2. B 7. B 12. D
3. D 8. C 13. B
4. D 9. D 14. B
5. B 10. A 15. D
Answer Key
References

Printed materials:
 Edilynda G. Enriquez.2016. Organization and Management. 168 D. Jorge
Street, Pasay City, Philippines: JFS Publishing Services
 Helen Ma. F. Cabrera, Anthony DC. ALtarejos, and Riaz Benjamin. 2016.
Organization and Management. 1253 Gregorio Araneta Avenue, Quezon City,
Philippines: Vibal Group, Inc.
 Emmanuel T. Santos.2016. Organization & Management. 1061 Metropolitan
Avenue, San Antoniop Village, Makati City: International Academy of
Management & Economics

Websites:

 https://www.mybusiness.com.au/management/4474-benefits-of-a-family-
owned-business
 https://www.inc.com/encyclopedia/family-owned-
businesses.html?fbclid=IwAR2W_bZRpUgHNyp3D1b2YqXD1vvhUR6lqr4eqzd
83LuxPkxBhCE8ggpX7Yc
 https://blog.vistage.co.uk/advantages-disadvantages-of-a-family-business
 https://tycoon.ph/top-10-successful-entrepreneurs-philippines-
story/3/?fbclid=IwAR2htDtpNG_wF1tmxUfJZYSU9kp_jHCzm-kvfZa2zxG-
Na_ixlZ_xdAnMmU
 https://ph.asiatatler.com/life/invest-wisely-this-2020-by-getting-to-know-
the-countrys-top-
conglomerates?fbclid=IwAR2W_bZRpUgHNyp3D1b2YqXD1vvhUR6lqr4eqzd8
3LuxPkxBhCE8ggpX7Yc
 https://prworksph.com/family-business/?fbclid=IwAR0-oC83Lb-
yUeh2frllVqfwC9_UO63aDUAQ7H0TCnM25qljTfXV6dCyFnA
 https://businessmirror.com.ph/2020/08/19/family-business-governance-
important-then-and-
now/?fbclid=IwAR3KdPJU7I3kH_Uzz6TaUyIy3Sc5jBYrD0CY6DEL-
I512Tcj9V90kEcuc6g
 https://business.inquirer.net/281785/good-bad-news-for-family-businesses
 https://www.grantthornton.com.ph/insights/articles-and-updates1/from-
where-we-sit/family-enterprise-to-infinity-and-beyond/?fbclid=IwAR0-
oC83Lb-yUeh2frllVqfwC9_UO63aDUAQ7H0TCnM25qljTfXV6dCyFnA

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 For inquiries or feedback, please write or call:

Department of Education – SDO La Union

Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072) 205 - 0046
Email Address:
launion@deped.gov.ph
lrm.launion@deped.gov.ph

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