ABM

Quarter 1 – Module 10:

Evaluating the Viability and
Impacts of Businesses on the
Community
ABM- GRADE 12
Alternative Delivery Mode
Quarter 1 – Module 10: Evaluating the Viability and Impacts of Business On the
Community
First Edition, 2020

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Published by the Department of Education

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Susan B. Pastera

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 ABM
Quarter 1 – Module 10:
Evaluating the Viability and
Impacts of Businesses on the
Community
Introductory Message
For the facilitator:

Welcome to the Applied Economics 12 Alternative Delivery Mode (ADM)

Module on Evaluating the Viability and Impacts of Businesses on the Community.

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.

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For the learner:

Welcome to the ABM 12 Alternative Delivery Mode (ADM) Module on Evaluating the
Viability and Impacts of Businesses on the Community!

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!

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 end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to

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 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.

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 designed and written with you in mind. It is here to help you
master the nature of Applied Economics. The scope of this module permits it to be
used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the
standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.

The module is divided into two lessons, namely:

 Lesson 1 – Understanding the businesses viability
 Lesson 2 – Evaluating the viability and impact of businesses on the
community

After going through this module, you are expected to:

1. Understands the businesses viability;
2. Evaluate the viability and impact of businesses on the community

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 What I Know

What are the factors that affects business and industry? List down 5 factors
on your sheet of paper.
1.
2.
3.
4.
5.

Lesson

1 Understanding Business Viability

You have learned how to differentiate different terms used in economics in

the past lesson. Now, you will learn how to understand business viability and

impact on the community.

What’s In

Look around you! Why do you think some company or businesses are

successful and some are not? Explain on your sheet of paper.

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 What’s New

How important is profit? How can a company survive when it isn’t making a

profit? How can a company fail when it’s making a large profit? How important is

the Growth?

What is It

The viability of a business is measured by its long-term survival

and its ability to sustain profits over a period of time. A business is able to survive

when it's viable because it continues to make a profit year after year. The longer a

company can stay profitable, the better it's viability. For many enterprises, viability

is ultimately linked to profit. Even if the business is not currently profitable –

perhaps it is in the early stages of development, undergoing a growth spurt, or just

going through a bad patch – there is an expectation that it will be profitable at

some future profit justifies continued investments.

This economic notion of viability can also be extended to not-for-profit enterprises

such as public sector organizations and charities. Such organizations are viable if

they are seen to deliver social or other value, sufficient to justify adequate funding

and support on an ongoing basis. In addition to economic notions of viability, we

can also consider the social viability of an organization. An organization is socially

viable if it provides enough value to justify any social costs (internal or external).

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Viability as Future Profit

The simplest notion of viability is that a company is viable if it makes a profit;

(Profit = Income minus Expenditure). And also, either it must reach breakeven

before funding runs out or the inventors must be willing to provide further.

Viability as Shareholder Value

Distribution will be some of profit goes on interest (bank debt, etc.) and tax. Some

profit may be distributed to investors. Some profit may be retained to fund further

growth (organic or acquisition).

Note: “Vale Stock” – share price based on dividend yield while “Growth stocks” –

share price based on expected growth.

What’s More

Growth versus income.

In the growth phase, money flows into the company from investors.

- Venture
INVESTORS Capital
- Investment Funds - New share
issued COMPANY
- Private Investors
- Banks - Bonds and
bank debt

In the income phase, money are returned to the investors.

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 INVESTORS - dividends
- Investment - share buy-
Funds backs COMPANY
- Private
Investors - pay off
- Banks
debt

It is important to determine whether the business grows to ensure its

viability. Growth maybe organic or by acquisition. Companies often have to raise

extra capital or borrow money to fund a large acquisition. Example is the Microsoft

Company which produce mountains of cash and are now starting to pay decent

dividends.

During of this time of crisis, the internet platforms are the most profitable business

because of the consumer demands like for education; google, youtube and etc. are

the most visited internet platforms.

What I Have Learned

In understanding business viability, I must:

 Define and understand business viability;

 Determine factors that affects business viability;

Business Viability - The viability of a business is measured by its long-term

survival and its ability to sustain profits over a period of time. A business is

able to survive when it's viable because it continues to make a profit year

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 after year. The longer a company can stay profitable, the better it's viability.

For many enterprises, viability is ultimately linked to profit.

Factors that affects business viability are: profit, social, funds/capital,

work force (management team, and etc.

What I Can Do

How important is business image or identity? Are these factors relevant to

business viability? Explain on your sheet of paper.

Assessment

Write True if the statement is correct and False when it is not. Answer on a

sheet of paper.

1. The viability of a business is measured by its profit and losses.

2. A company is viable if it’s expected to make profit one day.

3. Social factors can not hinder the viability of one’s business.

4. When the losses of the company are high it is at risk of closing and

bankrupt.

5. Viability of the business depends also in the work force of the

organization.

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 Additional Activities

Site one example of a company in a TV network that sustain its viability for 5

years at most. Determine the factors why it grows and sustain. Write your answer

on your sheet of paper.

Answer Key

What I know:

What’s In: Essay

Assessment

1. True

2. True

3. False

4. True

5. True

What’s I can do: Essay

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 What I Know

Define the following. Write your answer on your sheet of paper.

1. What is business viability

2. What is profit?

3. What is viability as growth?

4. Who are the shareholders?

5. Differentiate income and growth phase?

Lesson Evaluating the Viability and Impact of

2 Business in the Community

What’s In

How did the internet platforms help us in our education system in the midst

of crisis? Explain in your sheet of paper.

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 What’s New

In evaluating business, you must first identify several factors that may

contribute to the profitability of a certain business. Moreover, the area must be

identified along with demographics (kind of people) within the proximity of the

proposed business area. Lastly, you may also look for the impact to the community

of the business if it will destroy, hamper or improve the living conditions of the

people in the area.

What is It

Many of us are faced with business opportunities on regular basis especially

in the midst of crisis. We need to earn money to supply our daily needs. Deciding

what’s worth embracing though can be difficult. Whether your starting a new

business or whether you’re trying to expand your current business with a new

opportunity, it’s vita to know how to evaluate it.

There are several factors that will help you evaluate the viability and impact

of the business. We need to remember that business should be feasible and

practical as well will have impact to the consumers and industries.

1. Market Size

One of the important factors when evaluating a business opportunity

is market size. Research about market in your area and figure out if there is

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market opportunity and know how big the market is. In putting up business,

you should consider the demands of the people. Is it fitted and will be

needed by your prospect markets?

2. Relationships

Build a good rapport to prospect investors, markets and the people

around you. Does the business opportunity have some relationships? For

example, do you have your connections that can help you on your

business? If you have someone who is technically minded that can be

helpful to your business which can help you run the business. What is

your relationship with potential investors or customers? When you have

more relationships, the opportunity is likely to run smoothly.

3. Ability to Manage Cash Flow

Next you need to have the ability of budgeting or know how to

manage cash flow. Is there a start-up capital for your business? Is it

sufficient to fund your proposed business? Capital must be ready and on

hand so you can just ready to launch out your business in your planned

time. What about ways to keep funding the business each month. Figure

out and study how the cash flow should be managed, and take a look at

your proposed business plan. You must put on mind how to sustain your

business after a period time.

4. Management Skillsets

What are the skillsets of those involved? If you are evaluation your

business opportunity, you need to be honest about what you bring to the

table, and what you need to make up for. This is one of the most

important factors also to ensure your business support, the management

skills. How you manage everything in the business even your work force

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 and product flows. Think of this, what skills you have or they have? Are

they appropriate to the business you’re in. do your rust the competency

of your work force to make the opportunity success?

5. Passion and Persistence

Even if there is a bit lacking of skills or talent to run your business as

long as you have the passion on it and persistence to make your business a

successful one then everything is possible. Remember when evaluating the

viability of the business, you should also remember the impact of this to the

community and to the consumers. So then, they will trust your company as

well to gain more possible consumers. Your attitude matters!

Will you push yourself even though things get little dark? If you’ve

done your research, prepared a good business plan and you are confidence

in your team, then being able to push through is vital.

In starting up a business, you should primary consider how ill it

helps and supply the ends of your markets. Will this be helpful for them? A

successful business will have deeper impact on your consumers’ life and

everyday whereabouts. It is important to gain their trust for your business to

smoothly operate and the more it has an impact to individuals the more

you’ll attract customers.

What’s More

Think of a business you wanted to put on the future. Proposed a business

plan citing those factors learned above. Write it on your sheet of paper.

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 What I Have Learned

In evaluating business viability and impact, I must:

 List down factors that should be consider in evaluating a business;

and

 How it affects the business and impacted the consumers;

What I Can Do

Go around your community. Cite one business or company present on your

place. Evaluate it based on the factors discussed above and what is the impact of

this business to your community and to consumers. These will be answered thru

customers’ feedbacks.

Assessment

Write True if the statement is correct and False if it is not. Write your answer

on your sheet of paper.

1. In evaluating the business viability, place is not a big deal in

putting up a business.

2. The managerial skills of the owner or team is a must.

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 3. A successful business has a good business plan.

4. In managing your team, you should consider their individual skills

and talents.

5. In evaluating the impact of your business, you must consider

customers feedbacks.

6. You should stop your business when you have no returned funds

or profits in the first semesters of your business.

7. A growing business is a profitable business.

8. Good managerial skills are not necessary as long as you have the

capital.

9. In starting up a business, you should primary consider how ill it

helps and supply the ends of your markets.

10.Business should be feasible and practical.

Additional Activities

Proposed a sample business plan with your team. Remember to name

your business and consider tasking. Write it on your sheet of paper.

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 Answer Key

What I Know

1. Business Viability - The viability of a business is measured by its long-

term survival and its ability to sustain profits over a period of time.

2. Profit – is the income minus the expenditures

3. Viability as growth – the business is growing when it is continually

having profits.

4. Shareholders are those companies or persons who invest their money as

a funding or capital to one’s business.

5. In the income phase, money are returned to the investors while in

the growth phase, money flows into the company from investors.

ASSESSMENT

1. False

2. True

3. True

4. True

5. True

6. False

7. True

8. False

9. True

10.True

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References

K to 12 Curriculum Guide in ABM.

Google.com – Applied Economic
Linked IN.com

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