Abm-business Ethics _ Social Responsibility 12_q1_w1_mod1.pdf

12 ABM – Specialized Subject 1st Quarter – Module 1

Business Ethics and Social Responsibility

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Business Ethics and Social Responsibility– Grade 12 Alternative Delivery Mode Quarter 1 – Module 1: Forms of Business Organization (Ownership) First Edition, 2020 Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in this module are owned by their respective copyright holders. Every effort has been exerted to locate and seek permission to use these materials from their respective copyright owners. The publisher and authors do not represent nor claim ownership over them. Published by the Department of Education Secretary: Leonor Magtolis Briones Undersecretary: Diosdado M. San Antonio

Development Team of the Module Writers:

Mutya S. Capili, MBE Mark Vincet V. Emit, PhD Manuel L. Hermosa, EdD Ma. Cristina A. Labay, MM Ellaine I. Dela Cruz, DBA Mamerto T. Goneda, MSIT

Estela Marie C. Reyes, MBA Jupiter Q. Whiteside, MBA Isabel A. Gumaru, DBA Farida F. Tallud, DBM Clarabelle V. Dalimit, DEM

Editor: Remylinda T. Soriano, EPS Illustrator:

Writers

Layout Artist: Writers Management Team : Malcolm S. Garma, Regional Director Name of Regional Director Genia V. Santos, CLMD Chief Name of CLMD Chief Dennis M. Mendoza, Regional EPS In Charge of LRMS Maria Magdalena M. Lim, CESO V, Schools Division Superintendent Aida H. Rondilla, CID Chief Lucky S. Carpio, EPS In Charge of LRMS Division ADM Coordinator Name of Division ADM Coordinator

Printed in the Philippines by ________________________ Department of Education – National Capital Region Office Address: ____________________________________________ ____________________________________________ ____________________________________________ Telefax: ____________________________________________ E-mail Address:

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Introductory Message For the facilitator: Welcome to the Business Ethics and Social Responsibility Alternative Delivery Mode (ADM) Module on the Forms of Business Organizations (Ownership) This module was collaboratively designed, developed and reviewed by educators both from public and private institutions to assist you, the teacher or facilitator in helping the learners meet the standards set by the K to 12 Curriculum while overcoming their personal, social, and economic constraints in schooling. This learning resource hopes to engage the learners into guided and independent learning activities at their own pace and time. Furthermore, this also aims to help learners acquire the needed 21st century skills while taking into consideration their needs and circumstances. In addition to the material in the main text, you will also see this box in the body of the module:

Notes to the Teacher This contains helpful tips or strategies that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module. You also need to keep track of the learners' progress while allowing them to manage their own learning. Furthermore, you are expected to encourage and assist the learners as they do the tasks included in the module.

For the learner: Welcome to Business Ethics and Social Responsibility Alternative Delivery Mode (ADM) Module on the Forms of Business Organizations according to Ownership

The hand is one of the most symbolized part of the human body. It is often used to depict skill, action and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning resource signifies that you as a learner is capable and empowered to successfully achieve the relevant competencies and skills at your own pace and time. Your academic success lies in your own hands!

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This module was designed to provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time. You will be enabled to process the contents of the learning resource while being an active learner.

This module has the following parts and corresponding icons: What I Need to Know

This will give you an idea of the skills or competencies you are expected to learn in the module.

What I Know

This part includes an activity that aims to check what you already know about the lesson to take. If you get all the answers correct (100%), you may decide to skip this module.

What’s In

This is a brief drill or review to help you link the current lesson with the previous one.

What’s New

In this portion, the new lesson will be introduced to you in various ways such as a story, a song, a poem, a problem opener, an activity or a situation.

What is It

This section provides a brief discussion of the lesson. This aims to help you discover and understand new concepts and skills.

What’s Mores

This comprises activities for independent practice to solidify your understanding and skills of the topic. You may check the answers to the exercises using the Answer Key at the end of the module.

What I Have Learned

This includes questions or blank sentences /paragraph to be filled into process what you learned from the lesson.

What I Can Do

This section provides an activity which will help you transfer your new knowledge or skill into real life situations or concerns.

Assessment

This is a task which aims to evaluate your level of mastery in achieving the learning competency.

Additional Activities

In this portion, another activity will be given to you to enrich your knowledge or skill of the lesson learned. This also tends retention of learned concepts.

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Answer Key

This contains answers to all activities in the module.

At the end of this module you will also find:

References

This is a list of all sources used in developing this module.

The following are some reminders in using this module: 1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a separate sheet of paper in answering the exercises. 2. Don’t forget to answer What I Know before moving on to the other activities included in the module. 3. Read the instruction carefully before doing each task. 4. Observe honesty and integrity in doing the tasks and checking your answers. 5. Finish the task at hand before proceeding to the next. 6. Return this module to your teacher/facilitator once you are through with it. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your teacher or facilitator. Always bear in mind that you are not alone.

We hope that through this material, you will experience meaningful learning and gain deep understanding of the relevant competencies. You can do it!

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What I Need to Know

This module was written for you to accomplish at home. It was carefully designed so that you can work at your own pace and allow self-discovery of the concept through activities that you will perform. Activities were also selected to allow independent learning which also aims to develop students’ reading comprehension skills through understanding written texts. After going through the module, you are expected to: 1. Differentiate the forms of business organizations ABM_ESR12- IIIa-d-1.1 2. Give examples of the different forms of business organizations found in your locality. ABM_ESR12-IIIa-d-1.2 3. Show appreciation on how these organizations contribute to socio economic development ABM_ESR12-IIIa-d-1.3

What I Know

I.

Fill in the blanks.

Instructions: Below are the definitions of business and organization. Write BUSS if it describes a business and ORG if it describes an organization. 1. _____ is an activity of exchanging goods and services, for gaining profit. 2. _____ is a group of people who work together to achieve common goals. 3. ______is a collection of people with particular purpose in the society. 4. ______is an organization where goods and service are exchange for one another or for money. 5. _____social unit of people that is structured and managed to meet a need or to pursue collective goals.

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Lesson 1

Forms of Business Organizations

JOIN THE CLUB!

Have you ever been part of school organization or club? It was indeed a happy and fulfilling day in your Junior High School years. Are you a part of a music or glee club? Maybe, you are also a varsity player of the school’s basketball and volleyball teams or are you a school paper writer who participates in different journalism contests outside the school? What is your position in the club? How many are you in the organization? Who usually has the last say? Who are your leaders? What are you doing in ensuring success in every activity?

Do you feel the fulfillment of being part of an organization? What did you learn from being an officer or a member of a club?

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What’s In

Activity 1: Business as usual. Nowadays, many businesses are closed due to the COVID -19 pandemic and only those businesses which are considered essential such as food businesses and medical services remained.

Can you list down the name/s of business/es which is/are still in operation during the quarantine period? Identify the services/ products they offer. Name of the Business 1. _____________________________

Products/services offered ___________________________

2. _____________________________

___________________________

3. _____________________________

___________________________

4._____________________________

___________________________

5.____________________________

___________________________

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What’s New

The Success Story behind the National Bookstore Socorro Ramos entered the publishing and retail industry by working as a salesgirl at a bookstore. At the age of 19, she opened National Book Store in Escolta, Manila with her husband with a capital of only P 200.00, selling books and school supplies to students.

At that time, Manila was under Japanese occupation who imposed censorship on books and periodicals. To augment their earnings, she and her husband resorted to selling other items like candles and soaps. After the post-war boom, the Ramoses opened a nine-story building along Avenida which made their bookstore more profitable.

At 95, she still believes in the time-honored tradition of “hands-on approach” in business. She even designed the company’s logo herself. May this success story of Nanay Coring give inspiration and encouragement to all. You need someone like her that will serve as a model to bring out the best in yourselves to survive the crisis brought by COVID-19 pandemic. All good things are blessings from the Almighty God and granted to anyone whom He loves at His pleasure. Source: https://www.businessinquirer.net

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From the story you have read, please answer the following questions:

1. What form of business organization did they put up? 2. Aside from being hands on in your own business, what else do you think is/are the key characteristic/s of the owner/s of National Bookstore in their business success?

What is It

Forms of Business Organization according to ownership

Sole Proprietorship is the type of business entity owned and operated by a single person.

A partnership is a business owned by two or more person who contribute resources into the entity. The partners divide the profits of the business among themselves.

Corporation is an enterprise chartered by law with most of the legal rights of a person including to conduct a business, to own and sell property, to borrow money, to sue and be sued. A corporation is a business organization that has a separate legal personality from its owners.

Ownership in a stock corporation is represented by shares of stock.

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Major Contributions of Forms of Business Organization in Socio Economic Development Business are considered the engine of the economy because they contributed to the economy of our country through paying corporate taxes so that the government can provide the promote social welfare of its citizens. Business also provides job opportunities which compensates the people in the society.

What’s More

Independent Activity 1: A. What form of business organization is best described by the following statements? _______________________ 1. “I am the only owner of my business”. 2. “I take all the risks of doing business”. 3. “I keep all the profits”.

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B. Tony and Alex own a saloon together. They share equal responsibility, and each receive 50% of the profits. What form of business organization is this? ______

C. These are examples of what form of business? ____________________

Independent Assessment 2: Choose the letter of the correct answer.

1. Which is NOT a form of business ownership? a. Sole Proprietorship

c. Corporation

b. Partnership

d. Retail

2. Easy to start; owner is own boss; owner keeps all the profits and shoulders losses. These are some descriptions of what type of business. a. Sole Proprietorship b. Partnership

c. Corporation d. Franchise

3. What form of business consists of two or more people to carry on, as coowners of a business for profit?

a. Sole Proprietorship

c. Corporation

b. Partnership

d. Cooperative

4. Your mother has Php 100,000. She wants to invest her money in the form of business that has the least amount of personal liability. What form of business would you recommend? a. Sole Proprietorship b. Partnership c. Corporation d. Cooperative

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5. How a corporation differs from a sole proprietorship? a. Corporations are owned by only one person. b. Corporations can sell stocks to large and small investors to raise money for the business. c. Sole proprietorships have limited liability for the owners. d. Sole proprietorships require a legal charter to start the business.

What I Have Learned

Definition of terms Business Organization refers to how a business is structured. Sole Proprietorship is a business owned by one person. Partnership is an association of two or more people as partners. shares the profit and liabilities of a business venture. Corporation is an entity created by law that is separate and distinct

from its owner and its continued existence is dependent upon the corporate statues of the state in which it is incorporated. Comparative Analysis: Forms of Business Organizations Sole Proprietorship Easiest to establish

Limited life

Partnership It could be easily to establish like sole proprietorship Limited life

Small amount of capital is Large amount of capital needed to start a business Ownership of all Share of profit/losses profits/losses Unlimited liability Minimum legal requirements Business secrecy

Corporation Hard to establish

Life is 50 years and can be extended Large amount of capital

Proportion to each stockholder’s percentage of ownership interest Unlimited liability of the Stockholders have limited partners liability Subject to minimum Subject to numerous government regulations government regulations Business secrecy Lack of secrecy

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Personal interest in managing the business Tax savings

Each partner has a right to Lack of personal interest participate Tax savings Several taxes to pay as mandated by laws and ordinances

What I Need to Reflect

How do you and your family cope up with the financial crisis that we are encountering while we are trying to overcome the pandemic? Even at home, you can organize any form of business ownership for you to cope up with the financial crisis you are encountering. Look for the opportunities brought about by the pandemic. Seize that opportunity. You will be surprised that you turned the impossible to possible (if you will rely solely to Him who is in total control of the unwelcome atmosphere). As Book of Isaiah 41:10 says “Fear not, for I am with you; Be not dismayed, for I am your God. I will strengthen you, Yes, I will help you, I will uphold you with My righteous hand.” God sees your heart and mind. He knows your needs, your worries, your fears, so trust in His presence.

What I Can Do

Great Ideas! Think of a small business you can start amid the COVID19 pandemic on the level of your potential. Start finding out what problems your community are facing. Focus your business around solving that problems and be a part of the solution. Good luck

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“Most successful men have not achieved their distinction by having some new talent or opportunity presented to them. They have developed the opportunity that was at hand.” – Bruce Barton

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Assessment

True or False 1. A Sole Proprietorship, owned by one person, is a form of business organization that is small, requires little amount of capital and is readily established under the control of one person. 2. A Partnership is a form of business in which two or more people operate for the common goal of making a profit. 3. A Partnership is an artificial being created by operation of law. 4. A Sole Proprietorship has the advantage of least government regulations. 5. A Corporation has powers, attributes, and properties expressly authorized by law.

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Answer Key

What I Know

What's More

I.

Independent Activity 1. BUSS 2. ORG 3. ORG 4. BUSS 5. ORG

What’s In Answer to this activity will be based on the available business establishments in the locality where the student resides

1 A. Sole Proprietorship B. Partnership C. Corporation

Independent Assessment 2 1. d 2. a 3. b 4. c 5. b

What’s New 1. Sole Proprietorship 2.Dedicated, Hardworking, Passionate (students need to justify their answer/s with a brief explanation.

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Assessment 1. 2. 3. 4. 5.

True True False True True

References

BOOKS   

Medina, Roberto G., 2006. Business Organization and Management. pp. 34, 41, 42. Philippines. Rex Bookstore, Inc. Salvador, Samuel M. et.al. 2017. Principles and Practices of Management and Organization 2nd Edition. Allen Adrian Books.

ONLINE AND ELECTRONIC RESOURCES

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https://www.businessdictionary.com/definition/organization. Retrieved June 8, 2020 https://business.inquirer.net/273445/eight-successful-filipino-entrepreneurswho-started-small#ixzz6OrdABxxg

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For inquiries or feedback, please write or call: Department of Education - Bureau of Learning Resources (DepEd-BLR) Ground Floor, Bonifacio Bldg., DepEd Complex Meralco Avenue, Pasig City, Philippines 1600 Telefax: (632) 8634-1072; 8634-1054; 8631-4985 Email Address: [email protected] * [email protected]

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