Professional Documents
Culture Documents
ABM-11 ORGANIZATION-AND-MANAGEMENT Q1 W3 Mod3 PDF
ABM-11 ORGANIZATION-AND-MANAGEMENT Q1 W3 Mod3 PDF
Department of Education
National Capital Region
DIVISION OF CITY SCHOOLS – MANILA
Manila Education Center Arroceros Forest Park
Antonio J. Villegas St. Ermita, Manila
Learning Competency:
Analyze the forms and economic
roles of business organizations.
HOW TO USE THIS MODULE?
Before starting the module, I want you to set aside other tasks
that will disturb you while enjoying the lessons. Read the simple
instructions below to successfully enjoy the objectives of this kit.
Have fun!
Brief Introduction- This section will give you an overview of the lesson.
1
LESSON Forms of Business Organization
4
EXPECTATIONS
2
LOOKING BACK TO YOUR LESSON
3
Matching-type
Directions: Match the column A to column B. Write your answer in the space provided
before the number
A B
Enjoy reading…..
BRIEF INTRODUCTION
After deciding to start a business (and the business to pursue), one of the important
issues is the form of business entity that will serve as the vehicle in pursuing the business.
You may say that the next important issue is the source of funding, which is correct, but
that issue will be discussed later. Right now, let’s focus on the forms of business.
The choice of the form of business or business organization depends on various factors.
In certain business, like banks, the law requires that the business entity must be a
corporation. A small business, like your friendly sari-sari store, is better off as a sole
proprietorship, although it could also be converted to another form of business if the
circumstances require that shift.
A. Partnership
Partnership consists of two or more persons who bind themselves to contribute money
or industry to a common fund, with the intention of dividing the profits among themselves.
The most common example of partnerships are professional partnerships, like in the case
of law firms and accounting firms. Just like a corporation, it is registered with the
Securities and Exchange Commission (SEC).
Advantages of a Partnership
Partnerships are relatively easy to establish;
however time should be invested in
developing the partnership agreement.
With more than one owner, the ability to raise funds may be increased.
3
Learning Module for Organization and Management
The profits from the business flow directly through to the partners’ personal tax return.
Prospective
employees may be attracted to the business if given the incentive to become a
partner.
The business usually will benefit from partners who have complementary skills.
Disadvantages of a Partnership
Partners are jointly and individually liable for the actions of the other partners.
Profits must be shared with others.
Since decisions are shared, disagreements can occur.
Some employee benefits are not deductible from business income on tax returns.
The partnership
may have a limited life; it may end upon the withdrawal or death of a
partner.
1. General Partnership
Partners divide responsibility for management and liability, as well as the shares of
profit or loss according to their internal agreement. Equal shares are assumed
unless there is a written agreement that states differently.
3. Joint Venture
Acts like a general partnership but is clearly for a limited period of time or a single
project. If the partners in a joint venture repeat the activity, they will be recognized
as an ongoing partnership and will have to file as such and distribute accumulated
partnership assets upon dissolution of the entity.
B. Sole proprietorship
4
Learning Module for Organization and
Management d. The business is easy to dissolve, if desired.
C. Sole Corporation
D. Corporation
Disadvantages of a Corporation
a. The process of incorporation requires more time and money than other forms of
organization.
b. Corporations are monitored by federal, state and some local agencies, and as a
result may have more p
c. Paperwork to comply with regulations.
d. Incorporating may result in higher overall taxes. Dividends paid to shareholders
are not deductible from business income; thus this income can be taxed twice.
5
Learning Module for Organization and Management
E. Cooperative
The primary objective of every cooperative is to help improve the quality of life of its
members. Towards this end, the cooperative shall aim to:
a. Provide goods and services to its members to enable them to attain increased
income, savings, investments, productivity, and purchasing power, and promote
among themselves equitable distribution of net surplus through maximum
utilization of economies of scale, cost-sharing and risk-sharing;
b. Provide optimum social and economic benefits to its members;
c. Teach them efficient ways of doing things in a cooperative manner;
d. Propagate cooperative practices and new ideas in business and management;
e. Allow the lower income and less privileged groups to increase their ownership in
the wealth of the nation; and
f. Cooperate with the government, other cooperatives and people-oriented
organizations to further the attainment of any of the foregoing objectives.
ACTIVITIES
In 5 to 8 sentences, discuss in a yellow paper how learning this lesson can improve your
relationship with the people around you, your parents, guardians, or family. Ask an elder at
home to comment on your answers.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
_________________________________________________________________________________________
6
Learning Module for Organization and Management
Activity 2: Independent Activity
Directions: Give your own descriptions on the various forms of business organizations in 3
to 5 sentences only. Write your answer in the space provided in bullet form.
To discuss Answer
1. Sole proprietorship
2. Partnership
3. Corporation
4. Cooperative
REMEMBER 9
Walk Whitman Rostow, also known as W.W. Rostow was an economist in the Lyndon B. Johnson
administration from 1966-1969. He also published articles and developed models on economic development.
The Five Stages of Economic Development model is developed by Walt Withman Rostow. The five
stages 2) Preconditions for Take-off, 3) Take-Off, 4) Drive to maturity, and 5)
are 1) Traditional Society,
Age of Mass Consumption.
Partnership consist of two or more persons who bind themselves to contribute money or industry to a common
fund, with the intention of dividing the profits among themselves.
Partnership, 2) Limited Partnership and Partnership with limited
Types of partnership are 1) General
liability, and 3) Joint Venture.
Sole proprietorship is the simplest form of business and the easiest to register, through the Bureau of
Trade Regulation and Consumer Protection (BTRCP) of the Department of Trade and Industry (DTI). It is
owned by an individual who has full control/authority of its own and owns all the assets, as well as
answers all liabilities or losses.
personally
Corporation is a juridical entity established under the Corporation Code and registered with the SEC.
Cooperative is an organization established for the purpose of purchasing and marketing the products or its
members, i.e., shareholders, and/or procuring supplies for resale to the members, whose profits are
distributed to the members (in the form of patronage dividends), not on the basis of the members’ equity.
7
Learning Module for Organization and Management
Multiple Choice
Directions: Read the questions carefully and encircle the letter of the correct answer. Write
your answer in a yellow paper.
1. Which of the following is a form of business which has unlimited liability. Creditors may
proceed not only against the assets and property of the business, but also after the
personal properties of the owner.
a. Corporation b, Sole Corporation
c. Partnership d. Sole proprietorship
3. When the preconditions for take-off are met, a society can take off.
a. Drive to Maturity b. Take-off
c. Traditional Society d. None of the above
4. It acts as a general partnership but is clearly for a limited period or a single project.
Which of the following is CORRECT answer?
a. General Partnership b. Limited Partnership
c. Joint Venture d. None of the above
5. In which a type of partnership that divides responsibility for management and liability, as
well as the shares of profit or loss according to their internal agreement.
8
Learning Module for Organization and Management
POST-TEST
MULTIPLE CHOICE: Choose the letter of the correct answer. Write your answer in the
space provided.
____1. The followings are the disadvantages of Corporation except ONE.
a. Incorporation requires more time and money that other forms of organization.
b. Monitored by federal, state and some local agencies.
c. May result in higher overall taxes.
d. May deduct the cost of benefits it provides to offices and employees.
____5. It means that most of the partners have limited liability, as well as limited input
regarding management decision.
a. Abundant
b. Unlimited
c. Single
d. Limited
____7. It is registered in the same manner as other corporations with the SEC, except that
it is composed of only one person, just like a sole proprietorship.
a. One Person Corporation
b. Partnership
c. Double Person Corporation
d. Cooperative
9
Learning Module for Organization and Management
____9. The following are the objectives and Goals of a Cooperative except ONE.
a. Provide good and services to its members to enable them to attain increase
income, savings, investments and purchasing power.
b. Allow the higher income and higher privileged group to increase their
ownership in the wealth of the nations.
c. Teach them efficient ways of doing things in a cooperative manner.
d. Provide optimum social and economic benefits to its members.
Reflective Question: If you have an existing sari-sari store, what are the possible things
you will consider in terms of business registration based on the topic discussed to respond
to the COVID-19 pandemic? Cite at least two and explain. Write your answer in the space
provided.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
_________________________________________________________________________________________
10
Learning Module for Organization and Management
REFERENCES
Books
Darr, K. (2013). Introduction to Management and Leadership Concepts, Principles and Practices, Jones and
Bartlett Learning, Retrieved from: https://www.google.com.et
Mintzberg, H. (1989). MINTZBERG ON MANAGEMENT. Reprinted by permission of Free Press, a division of
Simon & Schuster, Inc.
Robbins, S., Robbins, S. P. and Coulter, M. (2012). Management -11th ed, Pearson. Retrieved from:
www.pearsonhighered.com
Websites
Smyth, D. (2019). The Roles of Business Organizations in Economic Development. Retrieved
from:https://bizfluent.com/info-7745795-roles-business-organizations-economic-development.html
https://www.managementstudyhq.com/functions-of-management.html
https://www.slideshare.net/LalaineCazar/nature-and-concept-of-
management?from_action=save
https://www.wisdomjobs.com/e-university/principles-of-management-and-organisational-behaviour-tutorial-
366/evolution-of-management-thought-12679.html
https://www.mindtools.com/pages/article/management-roles.htm
https://study.com/academy/lesson/five-stages-of-economic-development.html
https://pnl-law.com/blog/forms-of-business-sole-proprietorship-partnership-corporation/
https://www.cda.gov.ph/resources/issuances/philippine-cooperative-code-of-2008/republic-
act-9520
https://bizfluent.com/info-7745795-roles-business-organizations-economic-
development.html
https://www.freepik.com/free-vector/team-leader-managing-
project_5562411.htm#page=1&query=manager in business management position=4
https://www.freepik.com/free-vector/urban-buildings-with-cityscape-
scenery_4794860.htm#page=1&query= BUSINESS ENVIRONMENT position=33
https://www.freepik.com/premium-vector/business-people-communicating-office-
banner_5523082.htm#page=1&query= BUSINESS ENVIRONMENT position=22
https://www.freepik.com/free-vector/scrum-team-discussing-
tasks_4950291.htm#page=1&query=ROLE OF BUSINESS position=6
https://www.freepik.com/free-vector/professional-group-working-
project_4950283.htm#page=1&query=ROLE OF BUSINESS position=11
https://www.investopedia.com/terms/c/corporation.asp
https://u.osu.edu/coopmastery/legal/alternative-business-structures/
Acknowledgements
Development Team of the Module
11
Learning Module for Organization and
Management
ANSWER KEY
PRETEST
1. General Partnership
2. Cooperative
3. Corporation
4. Single Proprietorship
5. Partnership
Activities
Activity 1: Independent Activity
Sample suggested answer: This topic helps me to appreciate the roles played
by every institution in the community, big or small organization-public or private. It
can create an impact on the business and to the people in it, including but not
limited to the owners, management, staff, and the community itself. This way, I
realize that my parents, siblings, and other family members are essential too. Their
presence helps us do better with what we do in school and the community.
Rubrics:
4 Expert – Piece is extraordinary, and very informative and well organized
3 Accomplished – Piece has an interesting style, and somewhat informative
and organized.
2 Capable – Piece has little style, gives some new information but poorly organized.
1 Beginner - Piece has no style and, and gives no new information and very
poorly organized
Post-test
.
1. B
2. D
3. B
4. C
5. D
6. D
7. A
8. A
9. B
10. C 13