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Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF LAGUNA
SAN PEDRO RELOCATION CENTER NATIONAL HIGH SCHOOL – MAIN CAMPUS

Instructional Sheets
in
ENTREPRENEURSHIP
Grade 9

(Based on MELC’s)
2ND QUARTER

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PRE-TEST

Before we proceed with your self learning module, let us first find out how much you already know. Read and
understand the items being described below. Choose the letter of the correct answer and write it in your answer
sheet.

1. The following statements tell how environmental scanning is done. Choose from the options the correct
arrangement of the steps in conducting environmental scanning.

1. Note down the needs of the people in the community.


2. For things and services needed, find out what are not available and plan how to develop these into
entrepreneurial ventures.
3. Communicate with people through interviews, observations and advertisements on what is new.
4. Check those items which are already available and think how they may improve the packaging
and quality.
A. 4,1,2,3 B. 3,1,4,2 C. 2,4,1,3 D 1,4,2,3

2. The statistical study of human population and its distribution is called _________.
A. Demography B. Ecology C. Photography D. Psychology

3. Environmental scanning is the acquisition and use of information about events, trends and relationships in and
organization’s external environment. New products or materials and new processes in doing things are
vital aspects of_______________.

A. ecological environment
B. educational environment
C. political environment
D. technological environment

4. As an entrepreneur, the first thing that you should find out are the demands of the community. This refers
to___________.
A. community needs B. Evaluation C. industrial information D. technology

5. How will you determine the needs of the people in your community?
A. conduct an environmental scanning
B. make use of observations
C. make use of surveys and referrals
D. all of the above

6. When there is competition, then there is a___________ in business.


A. Opportunity B. strength C. threat D. weakness

7. The acronym for SWOT is _________.


A. Style, Wear, Operation, Tool
B. Strengths, Weaknesses, Opportunities, Threats
C. Store, Warehouse, On – line, Technology
D. Supply, Weekly, Opportunities, Time

8. If the people in the community patronize your product, then your business has _______.
A. Operation B. Strength C. Threats D. Weakness

9. Which of the following questions can be categorized as an opportunity?


A. What could you improve?
B. What are the interesting trends you are aware of?
C. What obstacles do you face?
D. Is it accessible to all?

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10. You encounter difficulty in hiring workers due to low salary. This is classified as ________.
A. Opportunity B. strength C. threat D. weakness

11. Which of the following is the simplest and easiest enterprise to organize?
A. Partnership B. Sole Proprietorship C. Corporation D. All of these

12. It refers to how a business is structured.


A. Business Organization B. Business Management C. Business Finance D. Business Enterprise

13. Two or more persons who bind themselves into a contract to contribute money, property, and expertise in a
common venture with the intention of dividing the profits among themselves.
A. Partnership B. Sole Proprietorship C. Corporation D. All of these

14. Is an artificial being created by operation of law having the right of succession and the powers, attributes
and properties expressly authorized by law.
A. Partnership B. Sole Proprietorship C. Corporation D. All of these

15. Which of the following is the characteristics of a sole Proprietorship?

A. Difficult in ease of formation


B. Directors set policy and appoint officers.
C. Owner have equal say with regards to the management of the business.
D. The owner decides on the operation of the business.

16. It refers to the way that an organization arranges people and jobs so that its work can be performed and its
goals can be met.
A. functional type organization
B. line and staff organization
C. line organization
D. organizational structure

17. A type of organization chart where officers have staffs to assists them but who do not have any authority
over line personnel is .
A. line and staff organization
B. line organization
C. functional staff organization
D. organizational chart

18. Assessing the skills, strengths, weaknesses and potentials of your personnel will tell you whether_______.
A. your company has just the right quantity and quality of men
B. you have an excess in quantity but are short in quality
C. both quantity and quality of skills of your personnel are insufficient
D. a b & c

19. If you find out that there is a problem in quantity and quality of skills among your present personnel. What
solution should you adopt to solve the problem?
A. consider recruiting from inside or outside the organization
B. undertake training and skills development
C. advise the person to look for another job
D. a & b

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20. A diagram that shows the relationships of the position and their corresponding authority, responsibility, and
accountability is ______.
A. functional type organization
B. line and staff organization
C. line organization
D. organizational chart

21. After registering with the DTI, the certificate becomes your proof of _____.
A. authority to operate a business
B. business ownership
C. license to operate
D. payment of taxes

22. Where do you need to go to in order to secure the municipal license or Mayor’s permit which will serve as
your license or permit to operate the business?
A. BIR B. BPLO C. CDA D. DTI

23. Article of Partnership or Article of Incorporation should be registered with this agency.
A. BIR B. DTI C. SEC D. YECS

24. If you need to systematize the payment of taxes of your business, where will you go?
A. BIR B. DOLE C. SEC D. SSS
25. It is necessary to register your business to make it _____.
A. functional B. legal C. operational D. profitable

WEEK 1-2
LESSON 1- ANALYZES THE EXISTING PROBLEM AND NEEDS IN THE COMMUNITY WHERE THERE
ARE BUSINESS OPPORTUNITIES

CONTENT STANDARDS
The learner identifies business opportunities.

PERFORMANCE STANDARDS

The learner demonstrates understanding of concepts and principles in identifying business


opportunities.

MOST ESSENTIAL LEARNING COMPETENICES


Analyzes the existing problem and needs in the community where there are business opportunities

MATERIALS

Module/instructional sheet, activity sheet

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DEFINITION OF TERMS

Words to Study

Environmental Scanning is any of the various techniques through which


images/information are recorded or gathered from conditions, situations and materials
in the particular environment.

Demography is the statistical study of human population and its distribution.

Individual Interest is the skill or expertise of a person.

Technology means improved products or services.

Resources are available money, equipment and facilities.

Trend is a practice or interest that is very popular for a short period of time

Goods are products that are bought and sold in the business.

Services are work done for others as an occupation or business.

Technology is the system by which a society provides its members with those things
needed or desired.

Industrial is anything having to do with the business of manufacturing products;

WHAT IS THE INSTRUCTIONAL SHEET ABOUT?

Problems are part of life -- they go together with being alive. And every community
has problems, too; they go together with being a community. That's just a fact of community life.
Analyzing community problems is a way of thinking carefully about a problem or issue before
acting on a solution. It first involves identifying reasons a problem exists, and then (and only then)
identifying possible solutions and a plan for improvement. Opportunities can exist on paper or in
the form of ideas. Opportunities usually related to the entrepreneur’s work experience, hobbies,
or social environment. Opportunities can be found in many ways and in many places. Many
people see opportunities but only entrepreneur acts upon them. This instructional sheet covers
the knowledge, skills, attitudes and values needed in identifying business opportunities.

WHAT WILL YOU LEARN?

At the end of this lesson, you should be able to:

 conduct an environmental scanning where there are business opportunities


 identify and analyze the existing problems and needs in the community.

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How Much Have You Learned?

Let us find out how much you have learned. Read and understand the items being described below. Choose
the letter of the correct answer and write it in your answer sheet.

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1. The growth of industry always creates opportunities for establishing an enterprise. This refers to ________.
A. industrial information B. review of old projects D. synchronization of plans D. technology

2. Read technical and business journals. The underlined words refer to ____________.

A. evaluation of development plans


B. industrial information
C. local specialized skills
D. review of old projects

3. Why is there a need for an entrepreneur to explore the economic, cultural, and social conditions of the
community?

A. To determine the number of population in the community


B. To discover the developed enterprise in the community
C. To find out the analytical skills among the professional in the community
D. To identify the problems, needs and business opportunities in the community

4. As an entrepreneur, how will you make your product more usefull and of good quality?

A. change the brand of the product into a new one


B. seek assistance from the government
C. use your creativity and imagination
D. none of the above

5. When you identify the demands of the people then you are identifying the ______________.

A. Community Need B. Industrial Information C. Local Specialized Skills D. Technology

Let’s Apply What You Learned

ACTIVITY 1.1 ENTREPRENEURS IN MY NEIGHBORHOOD

Direction: Identify at least five entrepreneurs in your neighborhood (ex. Sari-sari store owner, karinderia owner,
etc.) and describe what kind of business each has. Then list one of their most outstanding characteristics.

Name of Entrepreneurial Outstanding Characteristics


Entrepreneur Venture
1.

2.

3.

4.

5.

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ACTIVITY 1.3 AVAILABLE or NOT AVAILABLE?

Directions: List down the goods and services that are available based on the conducted environmental
scanning. Then, categorize them as available and not available; as well as those services which are available
and not.

Goods available/not available in the community

Available Not Available


1.
2.
3.
4.
5.

Services available/not available in the community

Available Not Available


1.
2.
3.
4.
5.

How Well Did You Perform?

REFLECTION:

The students, in their notebook, journal or portfolio will write their personal insights about the lesson using the
prompts below.

I understand that: ______________________________________________________________________________________.

I realize that: ___________________________________________________________________________________________.

Congratulations! You did a great job! Rest and relax for a while
then move on to the next lesson.
Good luck!

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WEEK 3-4
LESSON 2 - SELECTS APPROPRIATE BUSINESS OPPORTUNITIES BASED ON THE NEEDS OF THE
COMMUNITIES

CONTENT STANDARDS
The learner identifies business opportunities.

PERFORMANCE STANDARDS

The learner demonstrates understanding of concepts and principles in identifying business opportunities.

MOST ESSENTIAL LEARNING COMPETENICES


Selects appropriate business opportunities based on the needs of the communities

MATERIALS
Module/instructional sheet, activity sheet

DEFINITION OF TERMS
Words to Study

 Strengths are the capital, knowledge, skill or other advantage that a firm has or can
acquire over its competitors in meeting the needs of its customers.
 Weakness is a defect or shortcoming which increases the risk of a failure.
 Opportunity means a good position, chance, or prospect, as for advancement or
success.
 Threat is an indication or warning of probable trouble.
 SWOT stands for Strengths, Weaknesses, Opportunities and Threats

WHAT IS THE INSTRUCTIONAL SHEET ABOUT?

After identifying the different business opportunities in your community, you will now try
to examine which opportunity to undertake. The SWOT Analysis will help you select the
appropriate business opportunities based on the needs of your community.

WHAT WILL YOU LEARN?

At the end of this lesson, you should be able to:

 Define SWOT Analysis


 Identify own SWOT
 select appropriate business opportunities based on the needs of the community.

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WHAT DO YOU NEED TO KNOW?

What is SWOT Analysis?

SWOT Analysis is a planning tool used to understand the Strengths, Weaknesses, Opportunities, and
Threats involved in a project or in a business.

i. It helps you develop your career in a way that takes best advantage of your talents,
abilities and opportunities in your community.

ii. It helps you to focus on your strengths, minimize threats, and take the greatest possible
advantage of opportunities available in your community.

Let’s Apply What You Learned

ACTIVITY 2.1: MY PERSONAL SWOT

Directions: Think and list your Strengths, Weaknesses, Opportunities, Threats by answering the following questions
below. Write your answers inside the corresponding box.

STRENGTH ANALYSIS OPPORTUNITIES ANALYSIS


 What unique skills do you have?  What opportunities to learn are
 What do you do better than anyone open?
else?  Do you have contacts to
 What achievements are you proud help/advise you?
of?  Do you have solutions to others
WEAKNESSES ANALYSIS complain?

 What skills or knowledge do you THREAT ANALYSIS


lack?  What obstacles do you currently
 What skills could you improve? face? 10 | P a g e
 What do you avoid doing?
MY PERSONAL SWOT

STRENGTH WEAKNESSES

OPPORTUNITIES THREAT

REFLECTION:

The students, in their notebook, journal or portfolio will write their personal insights about the lesson using the
prompts below.

I understand that: ______________________________________________________________________

________________________________________________________________________________________.

I realize that: __________________________________________________________________________

________________________________________________________________________________________.

Congratulations! You did a great job! Rest and relax for a while
then move on to the next lesson.
Good luck!

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WEEK 5
LESSON 3 - DIFFERENTIATES THE FORMS OF BUSINESS ORGANIZATION

CONTENT STANDARDS

The learner demonstrates understanding of concepts and principles in assessing management and
organizational functions of a business.

PERFORMANCE STANDARDS

The learner assesses management and organizational functions of a business.

MOST ESSENTIAL LEARNING COMPETENICES

Differentiates the forms of business organization

MATERIALS
Module/instructional sheet, activity sheet

DEFINITION OF TERMS

Words to Study

 Organization- an organized body of people with a particular purpose, especially a


business, society, association, etc.
 Legal forms refer to the documents of ownership of a business.
 Business is a legally recognized organization designed to provide goods and /or services
to consumers.
 Enterprise is a business undertaking
 Proprietorship is the state or right of a proprietor or owner
 Liability refers to the amount that is owed.
 Transaction is a business deal or agreement
 Income is the gain or recurrent benefit usually measured in money that derives from
capital or labor

WHAT IS THE INSTRUCTIONAL SHEET ABOUT?


One of the first decisions that you’ll have to make as a business owners is how your
business should be structured. You need to know the advantages and disadvantages of each
of the different forms of business organization to make sure you’re making the right decision for
your new business.

How will you structure your business? As a partnership? Corporation? Sole proprietorship?
Decide which one is best for your small business.liability, lifespan and financial structure. This is a
big decision that has long-term implications.
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WHAT WILL YOU LEARN?

At the end of this lesson, you should be able to:

 Define Business Organization


 Enumerate and describe the different forms of business organization
 Differentiate the forms of business organization

WHAT DO YOU NEED TO KNOW?

FORMS OF BUSINESS ORGANIZATION

Deciding the business ownership

A business first exists in your mind is an idea. When this idea is developed and put into writing, it becomes
a plan. As you gather your resources be it material or human resources, you are making your plan into a reality.
And when you register it, it becomes a legal entity, with appropriate rights and responsibilities.

Once you have identified your project or business, you are ready to organize and set up your own
enterprise. This means that you have to decide on its forms of ownership then later the location, hire and train
personnel, raise funds, acquire machinery and equipment, and finally register the business.

The term legal form refers to the form of ownership of a business. You may decide to share ownership with
other people if you are not the only source of project ideas or if you do not have enough capital and experience
to start the business on your own.

Sole proprietorship. A sole proprietorship is a business unit owned and managed by only one person. It is
the simplest and most common form.

Most small businesses start as sole proprietorships. Here, you and the business are essentially one. You, as
the sole proprietor owns all the assets.

As such, you will exclusively enjoy the benefits to be derived from the business. If you decide to become
a sole proprietor, you do not need to consult anyone on matters related to setting or running the business.

Disadvantages of a Sole Proprietorship


Advantages of a Sole Proprietorship

 Unlimited liability
 Relatively low start-up costs
 Lack of continuity in business
 Greatest freedom from regulation
organization
 Owner in direct control of decision-making
 Difficulty in raising capital
 Minimal working capital required
 All the risks are of the owner
 Tax advantages to owner
 Owner shoulders any liability incurred in
 Owner is the boss
the business
 All profits to owner
 In cases of death, the business may be
passed on to another by virtue of a will.

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Partnership. Under this business form, two or more persons are owners of the business. The owners
define their rights and duties as partners in the business through a partnership agreement.

Advantages of a Partnership Disadvantages of a Partnership


 The partners decide as to who shall be  Any action of one partner within the scope
responsible for paying debts in case the of business binds the other partner as well.
business is unable to pay its liabilities later. Thus, if one partner commits a mistake, the
 They agree as to how much will be the share other has to suffer the consequences as well.
of each one in the profits of the business and  Partners also have to be consulted each time
what business responsibilities will be assigned a decision or action concerning the business
to each. needs to be made. This means taking more
 The partners agree as to when the time to get things done.
partnership ends such as when one partner
agrees to a buy-out offer or when one of the
partner dies.
 No income tax is levied on the partnership
itself but on the owners as individuals.

Corporation: This business form is initiated by individuals called incorporators, numbering from a minimum
of five to a maximum of fifteen.

Advantages of a Corporation Disadvantages of a Corporation


 The incorporators put up the initial or starting capital of  The corporation is subject to more
the business. To get additional capital, shares of stocks government control.
are sold to interested parties called the stockholders.  The corporation is relatively
 Each stockholder shares in the ownership of the complicated in form and
company, together with the incorporators. management. It needs high cost of
 The right of the stockholder to vote on matters formation and operation.
affecting the corporation depends on the number of  Its credit is weakened by the limited
shares he or she holds. liability of the stockholder.
 The number of share holders in the corporation is used  It is subject to a heavier taxation.
as basis for computing the share of each one in the  The stockholders’ voting rights have
profits of the corporation. This share is called the become theoretical especially in a
dividend. big corporation because of the use
 The life of the business does not depend on the of proxies.
stockholders.  The stockholders have little voice in
 It has continuity in existence for a maximum of 50 the conduct of the business of the
years. corporation.
 Continuity is not affected by death of a stock holder
or by the transfer of shares of stocks from one
stockholder to another.
 In case of losses, liabilities are settled through the sale
of the assets of the corporation.

Cooperative: A cooperative is owned by twenty-five or more individuals who, like in a corporation buy
shares in the business. However, unlike a corporation, each member of the cooperative is entitled to only one
vote on matters regarding the business regardless of the number of shares he or she has bought. In case of losses,
responsibility for paying liabilities is also borne equally by the members.

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How Much Have You Learned?

Let us find out how much you have learned. Read and understand the items being described below. Choose
the letter of the correct answer and write it in your answer sheet.

1. The term legal form refers to the type of business ownership. Which type of business ownership is the simplest
and most common?
a. Corporation
b. Cooperative
c. Partnership
d. Sole proprietorship

2. Partnership is a business form owned by two or more persons. Which among the choices below is NOT an
advantage of partnership
a. Partners have to be consulted each time a decision and action is made.
b. No income tax is levied on the partnership itself but on the owners as individuals.
c. Partners decide as to who shall pay debts in case the business is unable to pay its liabilities.
d. If one partner commits mistake, the other has to suffer the consequences.

3. Which of the following is NOT an advantage of a corporation?


a. Corporation continue to exist for a maximum of 50 years
b. Continuity of existence is not affected by death of a stockholder
c. Each stockholder shares in the ownership of the company, together with the incorporators.
d. Subject to a more government control.

4. Which of the choices below makes sole proprietorship advantageous to the owner?
a. All profits goes to the owner
b. Unlimited liability
c. All the risk are for the owner
d. Owner shoulders any liability incurred in the business.

5. Which of the choices below is NOT true about a cooperative?


a. Each member is entitled to only one vote
b. Responsibility for paying liabilities is borne equally by the members
c. Owned by twenty-five or more individuals
d. Initiated by individuals numbering from a minimum of five to a maximum of fifteen
e.

Let’s Apply What You Learned

Activity 3.1

Read the following carefully. Then answer and discuss the questions at the end of the story.

Jane and Rose are best of friends working in the same agency. While they were having their coffee break
one day, Rose having three children going to school complained to Jane how difficult to make ends meet with
the meager salary they are receiving. When Jane heard her friend, she said “why don’t you put-up a sideline?
You are a good cook. You can sell peanut adobo, brittle , peanut butter or other food products. I am sure you
will not have problems in terms of raw materials because these raw materials are abundant in our community.

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Rose is sold to the idea and persuaded her friend to be her partner. The two friends contributed P2,000.00
each to start the business. They agreed to have equal profit. Rose would take care of production while Jane will
concentrate in marketing.

Jane started getting orders while Rose concentrated in cooking. When they succeeded in getting big
orders they decided to register their business as a partnership under the name R & J Food Products. From then
on, their costumers have regular orders and even becoming bigger.

After six months of operation, the partners earned P20,000.00 and they decided to divide it equally
between them. Meanwhile, Rose was exhausting herself with her production efforts, while Jane’s life went on very
casually because once the first orders have been booked, most of the buyers placed repeated orders.

Before the business reached its first year anniversary, Rose got sick and advised to rest. Rose can no longer
cook and Rose husband’s forbade her to continue the business.

1. What went wrong with the business?


2. If you were Rose would you enter into a partnership with a friend or would you register the venture as a
sole proprietorship?
3. Were the partners right in splitting the profits equally?
4. Discuss the advantages and disadvantages of partnership.

ACTIVITY 3.2

Direction: Classify the type of ownership being described. Write SOLE PROPRIETORSHIP, PARTNERSHIP,
CORPORATION, OR COOPERATIVE before each number.

___________1. The incorporators put up the initial or starting capital of the business. To get additional capital,
shares of stocks are sold to interested parties.
___________2. The partners decide as to who shall be responsible for paying debts in case the business is unable
to pay its liabilities later.
___________3. Minimal working capital required
___________4. Owned by twenty-five or more individuals who, like in a corporation buy shares in the business
___________5. Each member is entitled to only one vote on matters regarding the business regardless of the
number of shares he or she has bought.
___________6. Any action of one partner within the scope of business binds the other partner as well. Thus, if one
partner commits a mistake, the other has to suffer the consequences as well.
___________7. All the risks are of the owner
___________8. The life of the business does not depend on the stockholders.
___________9. They agree as to how much will be the share of each one in the profits of the business and what
business responsibilities will be assigned to each.
___________10. In cases of death, the business may be passed on to another by virtue of a will.

REFLECTION:

The students, in their notebook, journal or portfolio will write their personal insights about the lesson using the
prompts below.

I understand that: ____________________________________________________________________________________.

I realize that: _________________________________________________________________________________________.

Congratulations! You did a great job! Rest and relax for a while then
move on to the next lesson.
Good luck!

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WEEK 6-7
LESSON 4 - DISCUSSES AN ORGANIZATIONAL STRUCTURE OF A BUSINESS AND DESIGNS AN
ORGANIZATIONAL CHART BASED ON A GIVEN STRUCTURE USING APPROPRIATE COMPUTER
APPLICATIONS PROGRAMS/APPLICATIONS.

CONTENT STANDARDS

The learner demonstrates understanding of concepts and principles in assessing management and
organizational functions of a business.

PERFORMANCE STANDARDS

The learner assesses management and organizational functions of a business.

MOST ESSENTIAL LEARNING COMPETENICES

Discusses an organizational structure of a business and designs an organizational chart based on a


given structure using appropriate computer applications programs/applications.

MATERIALS
Module/instructional sheet, activity sheet

DEFINITION OF TERMS

Words to Study

Organization- an organized body of people with a particular purpose, especially a business,


society, association, etc.

Organizational Structure - is a system used to define a hierarchy within an organization

WHAT IS THE INSTRUCTIONAL SHEET ABOUT?

In this lesson you will learn the definition of organizational structure and how the
structure of an organization can influence the attitudes and behaviors of organizational
members.

WHAT WILL YOU LEARN?

At the end of this lesson, you should be able to:

 Define Organizational Structure


 Design an organizational chart

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Organizational structure refers to the way that an organization arranges people and jobs so that its work can be
performed and its goals can be met. It also defines how tasks are divided, grouped, and coordinated in
organizations. Every organization has a structure that clarifies the roles that organizational members perform, so
that everyone understands their responsibilities to the group.
The formal structure of an organization provides two important roles for organizational members. The structure of
an organization clarifies roles for organizational members, so that each member knows what they are supposed
to do and who they report to. The structure also dictates the amount of control an organizational member has
regarding his job in the organization.
An example of the organizing function is the owner-manager of a small factory who establishes three
departments - production department, sales department, and administrative department. He assigns manager
to head each department and clearly delineates responsibilities among them. Thus, he give the production
manager the responsibility for manufacturing, packing, and shipping, while he delegates to the sales manager
the responsibility for advertising and costumer service. Then he assigns the administrative head to look after
personnel, purchasing, and accounting.

Below is the diagram showing the organizational relationships of the positions and their corresponding
authority, responsibility, and accountability.

A. LINE ORGANIZATION

The manager has direct command over workers who accomplish the tasks. Below is an example of a
line organization

MANAGER

SUPERVISOR

FOREMAN

WORKERS

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C. FUNCTIONAL STAFF ORGANIZATION

In this setup, the worker has more than one immediate superior or as many as the types of activities
assigned to him. An example of this type is shown below.

MANAGER

SUPERVISOR

FOREMAN

QUALITY PRODUCTION

CONTROL SPECIALIST

WORKERS

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Let’s Apply What You Learned

ACTIVITY 4.1

Directions: Assume that you are going to venture on a fast food business. How would you prepare your team?
Design an organizational structure/organizational chart based on the given examples.

Scoring Rubric

5 4 3 2
The structure is very The structure is easy The structure is a bit The structure is
easy to understand to understand and messy , unorganized messy, unorganized
Illustrations and follow. follow. and hard to follow and incomplete.

The structure is The structure is The structure is The structure is


exceptionally attractive in acceptably distractingly messy
attractive in terms terms of attractive or very poorly
Attractiveness of design, layout, and though it may be a designed.
design, layout, and neatness. bit messy. It is not attractive.
neatness.
Information is clear Information is The information is The information
and very well organized and organized, but not appears to be
Organization organized section are identified entirely sequential or organized
with a good amount with clarity
with a good amount
of clarity and
sequencing

REFLECTION:

The students, in their notebook, journal or portfolio will write their personal insights about the lesson using the
prompts below.

I understand that: ____________________________________________________________________________________.

I realize that: _________________________________________________________________________________________.

Congratulations! You did a great job! Rest and relax for a while then
move on to the next lesson.
Good luck!

20 | P a g e
WEEK 8
LESSON 5 - EXPLAINS THE STEPS/PROCEDURES IN MAKING THE BUSINESS LEGAL

CONTENT STANDARDS

The learner demonstrates understanding of concepts and principles in assessing management and
organizational functions of a business.

PERFORMANCE STANDARDS

The learner assesses management and organizational functions of a business.

MOST ESSENTIAL LEARNING COMPETENICES

Explains the steps/ procedures in making the business legal

MATERIALS
Module/instructional sheet, activity sheet

DEFINITION OF TERMS
Words to Study

 Ownership means an exclusive right of a person to a business


 Authorization is the issuance of approval to operate
 Legalize means to be permitted by law
 DTI – Department of Trade and Industry
 DOLE – Department of Labor and Employment
 SSS – Social Security System
 SEC – Securities and Exchange Commission
 CDA – Cooperative Development Authority
 BPLO – Business Permit and Licensing Office

WHAT IS THE INSTRUCTIONAL SHEET


ABOUT?
Legality of your business venture is necessary to make your operation legal. The following
pages shows some of the documents to be secured from the different governments agencies to
run your enterprise legally. Without compliance with the legal requirements your business is
considered illegal. These are documentary transactions between the owner of the business and
the government.
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WHAT WILL YOU LEARN?

At the end of this lesson, you should be able to:

 enumerate and explain the steps/procedure in legalizing a business;


 gather legal documents pertaining to business; and
 emphasize and explain the importance of registering the business and
various government offices.

I need to get
a permit for
DTI DOLE SSS
my business,
where can I SEC BPLO CDA
ask for
assistance? Barangay Permit or

Business Clearance

The following is the procedure in registering a business as mandated by the Introduction to Entrepreneurs
of Small Enterprises, Research and Development Foundation (SERDEF).

 Register your business name with the Department of Trade and Industry (DTI). The certificate issued
after registration becomes your proof of business ownership.
 Register with your municipal city government. When you have a municipal license or a mayor’s
permit, this serves as your authorization to conduct or operate the business.
 Register with the Bureau of Internal Revenues (BIR). This will help systematize your financial operation
and payment of taxes.
 You have to register at the Social Security System (SSS) if you have five or more employees.
 Register the Article of Partnership or Article of Incorporation with the Securities and Exchange
Commission (SEC).
 Register with the Department of Labor and Employment.

There are several benefits derived from registering your business with the government, as follows:

1. When you register your business with the Department of Trade and Industry, the certificate issued to
you becomes your proof of business ownership.
2. The municipal license or Mayor’s permit issued to you serves as an authorization for you to operate
your business.
3. Your registration with the Bureau of Internal Revenue will help you systematize your financial
operations and the payment of taxes.
4. If you have registered your business enterprise with Cooperative Development Authority (CDA)which
is optional, you can enjoy the following privileges:

a. Exemption from taxes and fees except from real property and capital gains tax, import duties and
taxes, value-added tax on imported articles, taxes on income not arising from the CDA activity such
as interest, royalties, prizes and dividends.
b. Exemption of the CDA derived income from the computations of the owners or members in division.

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c. Exemption from any government rules and regulations on assets, income and activities directly
connected with the services of CDA.

It is a must to register your business for your own benefit and protection. When your business has been
registered you are now ready to own your business and face challenges coming your way.

(The following pages show some samples of legal documents pertaining to business/enterprise.)

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Sample of Local Business Clearance as Issued and Signed by the Office of the Barangay Captain

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Sample of Business Permit and Licence to be Issued by the Office of the Mayor
Front Page Back Page

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How Much Have You Learned?

Write the steps in registering your business. Record them in the correct order. Do this in your paper.

Let’s Apply What You Learned

ACTIVITY 5.1

Interview a business owner in your neighborhood. Ask him/her how the business was registered, how
much it costs him/her to register his/her business.

REFERENCES

Competency-Based Learning Material Entrepreneurship

https://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/analyzing-community-
problems/main

https://www.slideshare.net/arif_fatin/business-opportunities-11290794

https://www.referenceforbusiness.com/management/Ob-Or/Organizational-Structure.html#ixzz6aCizpe7x

https://www.mosourcelink.com/guides/start-a-business/register-your-business/forms-of-business-organization

https://www.google.com/search?ei=9NleX8ukBJGGoATPiZGgCg&q=form+meaning&oq=form+meaning&gs_lcp=CgZw
c3ktYWIQAzINCAAQsQMQgwEQRhD5ATICCAAyAggAMgIIADICCAAyAggAMgIIADICCAAyAggAMgIIADoECAAQRzoFC
AAQsQM6CAgAELEDEIMBOgQIABBDOgUIABCRAjoICC4QxwEQrwE6EAgAELEDEIMBEJECEEYQ-
QE6BwgAELEDEEM6CAguELEDEIMBOgoIABCxAxCDARBDUMykBFi-
xARgvMYEaANwAngAgAGeAYgB5A2SAQQwLjE0mAEAoAEBqgEHZ3dzLXdpesgBCMABAQ&sclient=psy-
ab&ved=0ahUKEwjL7tGJ0efrAhURA4gKHc9EBKQQ4dUDCA0&uact=5
https://www.slideshare.net/lionnagaraju/swot-analysis-4924257?qid=82d70dd5-9400-48b0-8634-
bce0e0f43ba4&v=&b=&from_search=7
26
Page

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REFLECTION:

The students, in their notebook, journal or portfolio will write their personal insights about the lesson using the
prompts below.

I understand that: ____________________________________________________________________________________.

I realize that: _________________________________________________________________________________________.

Congratulations! You did a great job! Rest and relax for a while then
move on to the next lesson.
Good luck!

BENEDITH C. CHAVEZ
Subject Teacher

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Page

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Post-Test

Let us find out how much you already know about the lessons. Read and understand the questions
below. Choose the correct answer by writing the letter of your answer in your quiz notebook.

1. The following statements tell how environmental scanning is done. Choose from the options the correct
arrangement of the steps in conducting environmental scanning.

1. Note down the needs of the people in the community.


2. For things and services needed, find out what are not available and plan how to develop these into
entrepreneurial ventures.
3. Communicate with people through interviews, observations and advertisements on what is new.
4. Check those items which are already available and think how they may improve the packaging
and quality.
A. 4,1,2,3 B. 3,1,4,2 C. 2,4,1,3 D 1,4,2,3

2. The statistical study of human population and its distribution is called _________.
A. Demography B. Ecology C. Photography D. Psychology

3. Environmental scanning is the acquisition and use of information about events, trends and relationships in
and organization’s external environment. New products or materials and new processes in doing
things are vital aspects of_______________.

A. ecological environment
B. educational environment
C. political environment
D. technological environment

4. As an entrepreneur, the first thing that you should find out are the demands of the community. This refers
to___________.
A. community needs B. Evaluation C. industrial information D. technology

5. How will you determine the needs of the people in your community?
A. conduct an environmental scanning
B. make use of observations
C. make use of surveys and referrals
D. all of the a
E. bove

6. The acronym for SWOT is _________.


A. Style, Wear, Operation, Tool
B. Strengths, Weaknesses, Opportunities, Threats
C. Store, Warehouse, On – line, Technology
D. Supply, Weekly, Opportunities, Time

7. If the people in the community patronize your product, then your business has _______.
A. Operation B. Strength C. Threats D. Weakness

8. When there is competition, then there is a___________ in business.


A. Opportunity B. strength C. threat D. weakness

9. Which of the following questions can be categorized as an opportunity?


A. What could you improve?
B. What are the interesting trends you are aware of?
C. What obstacles do you face?
D. Is it accessible to all?
28

10. You encounter difficulty in hiring workers due to low salary. This is classified as ________.
Page

A. Opportunity B. strength C. threat D. weakness

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11. Is an artificial being created by operation of law having the right of succession and the powers,
attributes and properties expressly authorized by law.
A. Partnership B. Sole Proprietorship C. Corporation D. All of these

12. Which of the following is the characteristics of a sole Proprietorship?


A. Difficult in ease of formation
B. Directors set policy and appoint officers.
C. Owner have equal say with regards to the management of the business.
D. The owner decides on the operation of the business.

13. Which of the following is the simplest and easiest enterprise to organize?
A. Partnership B. Sole Proprietorship C. Corporation D. All of these

14. It refers to how a business is structured.


A. Business Organization B. Business Management C. Business Finance D. Business Enterprise

15. Two or more persons who bind themselves into a contract to contribute money, property, and expertise
in a common venture with the intention of dividing the profits among themselves.
A. Partnership B. Sole Proprietorship C. Corporation D. All of these

16. Assessing the skills, strengths, weaknesses and potentials of your personnel will tell you whether_______.
A. your company has just the right quantity and quality of men
B. you have an excess in quantity but are short in quality
C. both quantity and quality of skills of your personnel are insufficient
D. a, b & c

17. If you find out that there is a problem in quantity and quality of skills among your present personnel.
What solution should you adopt to solve the problem?
A. consider recruiting from inside or outside the organization
B. undertake training and skills development
C. advise the person to look for another job
D. a & b

18. A diagram that shows the relationships of the position and their corresponding authority, responsibility,
and accountability is ______.
A. functional type organization
B. line and staff organization
C. line organization
D. organizational chart

19. A type of organization chart where officers have staffs to assists them but who do not have any authority
over line personnel is .
A. line and staff organization
B. line organization
C. functional staff organization
D. organizational chart

20. It refers to the way that an organization arranges people and jobs so that its work can be performed
and its goals can be met.
A. functional type organization
B. line and staff organization
C. line organization
D. organizational structure
29

21. Article of Partnership or Article of Incorporation should be registered with this agency.
A. BIR B. DTI C. SEC D. YECS
Page

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22. If you need to systematize the payment of taxes of your business, where will you go?
A. BIR B. DOLE C. SEC D. SSS

23. It is necessary to register your business to make it _____.


A. functional B. legal C. operational D. profitable

24. After registering with the DTI, the certificate becomes your proof of _____.
A. authority to operate a business
B. business ownership
C. license to operate
D. payment of taxes

25. Where do you need to go to in order to secure the municipal license or Mayor’s permit which will serve
as your license or permit to operate the business?
A. BIR B. BPLO C. CDA D. DTI

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Republic of the Philippines
DEPARTMENT OF EDUCATION
Region IV-A CALABARZON
Division of Laguna
SAN PEDRO RELOCATION CENTER NATIONAL HIGH SCHOOL
City of San Pedro

ENTRPRENEURSHIP 9
ASSESSMENT TEST

Name: ____________________________________ Date: ______________________________ Score: _________


Grade & Section: _______________________________ Teacher: ______________________________________

I. Open-Ended Question

1. Enumerate and explain the steps in registering a business.


2. Enumerate and differentiate the froms of business organization.

II. Think of a possible business and create a SWOT Analysis. Use the table below.

STRENGTH WEAKNESSES OPPORTUNITIES THREATS

SCORING RUBRIC

5 4 3 2
Clearly demonstrates Demonstrates an May address all the Demonstrates
an understanding of understanding of the requirements, but minimal
UNDERSTANDING the question question demonstrates only a understanding of the
partial understanding question
of the question
Completes all the Partially complete the Uses text incorrectly Does not complete
COMPLETENESS requirements of the of requirements of the or with limited the requirements
the question(s) question(s) success
Provides an insightful Provides some Includes an Provides only an
and detailed explanation/opinion inconsistent or unclear reference or
EXPLANATION explanation/opinion that includes ideas confusing no use of the text for
that includes or from the text for explanation support
extends ideas from support
the text
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