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ABM – Specialized Subject

1st Quarter – Module 1
Business Ethics and
Social Responsibility

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Introductory Message
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 More
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
What I Have Learned end of the module.
This includes questions or blank sentences
What I Can Do /paragraph to be filled into process what you
learned from the lesson.

Assessment This section provides an activity which will

help you transfer your new knowledge or skill
into real life situations or concerns.
Additional Activities
This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
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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 .

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
Forms of Business Organizations
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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 Products/services offered

1.

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 c. Corporation

b. Partnership d. Franchise

3. What form of business consists of two or more people to carry on, as co- owners
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 Partnership Corporation
Easiest to establish It could be easily to Hard to establish
establish like sole
proprietorship
Limited life Limited life Life is 50 years and can be
extended
Small amount of capital is Large amount of capital Large amount of capital
needed to start a business
Ownership of all Share of profit/losses Proportion to each
profits/losses stockholder’s percentage
of ownership interest
Unlimited liability Unlimited liability of the Stockholders have limited
partners liability
Minimum legal Subject to minimum Subject to numerous
requirements government regulations government regulations
Business secrecy Business secrecy Lack of secrecy

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 Personal interest in Each partner has a right to Lack of personal interest
managing the business participate
Tax savings 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 COVID-
19 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 


“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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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

 https://www.businessdictionary.com/definition/organization. Retrieved June 8,

2020
https://business.inquirer.net/273445/eight-successful-filipino-entrepreneurs-
who-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: blr.lrqad@deped.gov.ph * blr.lrpd@deped.gov.ph

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