7

TLE-AFA-AGRI CROP
PRODUCTION
Quarter 1 – Module 8:
Market and Environment
Technology and Livelihood Education– Grade 7
Alternative Delivery Mode
Quarter 1 – Module 8: Market and Environment
First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: Jusel N. Tebio
Editors: Aisa C. Ibero, MAEd, Jonathan L. Bayaton
Reviewers: Rosemarie O. Elum
Illustrator: Jefferd C. Alegado
Layout Artists: Reynald M. Manzano, Jusel N. Tebio
Management Team: Senen Priscillo P. Paulin, CESO V Rosela R. Abiera
Fay C. Luarez, TM, Ed.D., Ph.D. Maricel S. Rasid
Adolf P. Aguilar Elmar L. Cabrera
Nilita R. Ragay, Ed.D
Antonio B. Baguio, Ed.D.

Printed in the Philippines by ________________________

Department of Education –Region VII Schools Division of Negros Oriental

Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

Tele #: (035) 225 2376 / 541 1117
E-mail Address: [email protected]
 7

TLE-AFA-AGRI CROP
PRODUCTION
Quarter 1 – Module 8:
Market and Environment
 What I Need to Know

Content Standard
The learner demonstrates an understanding of the market and environment
of agricultural crop production in a community.

Performance Standard
The learner independently identifies the business market, forms of business,
production, business location, registration of business, and record-keeping within
the market.

Learning Competency
Recognize, get involve and understand the market and environment for
agricultural crop production.

1. Identify the market and environment in a business.

2. Take a part in a simple business in the community.
3. Plan a simple business following the market and environment.
4. Create steps to develop the simple business making it more recognizable in
the community.
5. Elaborate the simple business being a part of in terms of its market, form,
location, production, and its people in the community.

Learning Objectives

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

1 Identify the market and environment in a business.

2 Create and take part in a simple business in the community.
3 Value the importance of business in the market.

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 What I Know

Direction: Choose the letter of the correct answer. Do not write your answer to this
manual.

1. Refers to a group of people with economically important needs and demands

which open entrepreneurial or business opportunities to everyone.
a. Fashion c. Market
b. Economics d. Fans

2. The legal forms of business;

a. Sole proprietorship c. Corporation
b. Partnership d. All mentioned
3. In the 4m’s of production, which M refers to the people in the business that do
the labor force?
a. Machines c. Manpower
b. Materials d. Money
4. Process of recording the money received and spent by the operations of business
a. administering c. posting
b. booking d. bookkeeping
5. Which of the following are factors in selecting the best business location?
a. nearness to consumers
b. availability and quality of raw materials and supplies
c. accessibility to consumers and transportation
d. all of the above

Note: If you get 100% correct in this pre-assessment, skip the lesson but if
not and only get 50% to 99% correct, then proceed with the lesson.

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Lesson

8 Market and Environment

Market is what makes up a business. The products, the consumers, the

suppliers and the environment matter most in buying or selling. Without knowing
the target market, the appropriate product to trade or sell, the business might lose
its backbone. It might end up a failure and worst, leave your pockets empty. That is
why as an entrepreneur, we must put in mind the different aspects in the market
and its environment.

What’s In

When can we say that an entrepreneur is successful?

What traits should you need to have a good business?

Notes to the Teacher

This contains an information that will help you in
guiding the learners to identify the business
market, forms of business, business location,
registration of business, and record keeping within
the market.

What’s New
Direction: Submit a picture of a famous product that has been used
for decades and until now is still used in the market because of its availability,
demand, and effectivity.

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 What is It

FEATURES OF A BUSINESS MARKET

Market is a potential group of consumers--people or entrepreneurship--who wants to

buy and can purchase a certain product or service. Market doesn't only mean the place where
you buy your needs and wants but it is also the people involved in business that based their
commodities in tradition, culture, and technology. A lot of business opportunities are found in
the market.

The needs and demands of people depend on the class of people involved. A class of
people is called market segments. These may be:
• High-end segments-- consist of luxury consumers that can pay at a high amount
because they are aiming for quality services or products.
• Middle-end segments-- this is commonly referred to as the middle class since these
people can spend for items that are higher quality than value brands but can be
purchased at a low cost
• Low-end market segments--involves lower-priced products suitable for consumers
who do not want to spend a big amount of money
Each has different needs for various products and services.

A busy market and environment

A wise entrepreneur should always check what is being wanted and in-demand
products or services in the market. Being vigilant is one of the secrets for successful
entrepreneurs to make their business work sustainably. A businessman must be skillful enough
to address the needs and demands of the market and unknowingly, you will harvest the wealth
you worked hard for. Need or demand-based businesses will always have a big role in the
market.

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 THE LEGAL FORMS OF BUSINESS

The following are three (3) legal forms of business and their characteristics, advantages, and
disadvantages:
Forms Characteristics Advantages Disadvantages
Sole Proprietorship • Owned by only 1 person • Very easy to • The owner-manager
who is responsible for the establish is required to render
whole business • Decision comes full operation time.
• The owner can assume from 1 person • No one else can share
the role of manager, only in the financial
finance officer and burden of the owner
worker • In case of financial
instability, the firm
can dissolve easily
Partnership • 2 persons have combined • Comparatively • Decision making is
resources and skills easy to establish shared between the
• Any of the 2 can act as • There is check two owners
financier or manager and balance • In times of partner
• They can also share among partners conflict, the business
responsibilities and roles is at risk
in business operations • Limited funding may
constraint business
operations

Corporation • 2 or more persons own • Business risks are • The complex

the business shared by many organizational set-up
• Aside from the owners, people. imposes a long line of
many people known as • If business is more expensive ways
shareholders, are good, growth is of control.
engaged in a corporation maximized due to • Complex decision-
through their investment bigger capital. making process will
known as shares or • Burdens in the delay operation.
stocks operations are
shared by various
specialized
individuals.

Abundant production of fruits and vegetables in the market

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 THE 4 FACTORS OF PRODUCTION

Production is creating or making certain products, goods or services to be bought in the

market to meet the consumer's demands and needs. It should be done thoroughly, must be
spent with a lot of time and research to get the best quality product to target the demands of the
business industry. These four factors of production known as 4 M's are needed to achieve the
output of a service or product, they are as follows:

Machines These are devices that use mechanical

power to convert raw materials into
marketable products or outputs.
Manpower This means the people who do the work,
service, or the labor force including the
entrepreneur to provide the outputs
needed in the market.
Materials The raw resources or finished products
that need to be processed and made that
are consumed directly or indirectly.
Money It is known as the medium of economic
exchange. From the entrepreneur, it is
needed as capital to create the business he
or she wants to meet the demands of the
target market. They come in paper bills or
coins, mainly used as payment for goods
and services, repayment of debts, and
saving or
restoring the purchasing power of the
business. Without money, the rest of the
other factors of production might become
unsuccessful.

A big plantation where factors of production can be found

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 FACTORS IN SELECTING THE BEST BUSINESS LOCATION

Important things to consider in selecting the appropriate business location:

a. Nearness to target markets

b. Availability and quality of raw materials and supplies
c. Accessibility to consumers and transportation.
d. Consider zoning and local ordinances.
e. Availability of power and fuel sources.
f. Taxation, such as municipal tax policies, other local fees and rates

REGISTRATION OF A NEW BUSINESS

Registration of a new business for legalities is a must so that you won’t deal with
legislative problems in the future. Before you let your well-planned business rocks the market
the following official processes must be undertaken:

a. Register your official business name in the Department of Trade and Industry (DTI).
b. Apply for a Mayor’s Permit to operate the business and the Municipal Business License of the
business.
c. Register your business at the Securities and Exchange Commission (SEC). The Articles of
Incorporation and By-Laws are required for all corporations and partnership.
d. Register your business in the Bureau of Internal Revenue where upon your business will be
assigned a Tax Identification Number (TIN).
e. Register your employees with the PhilHealth, PAG-IBIG, and Social Security System (SSS).
Registration in other agencies that provide welfare and other insurance benefits must also be
consulted and legally followed.

SIMPLE RECORD KEEPING

Record keeping revolves around the history of your business activities, financial
dealings by entering the accurate data in notebooks, ledgers, journals, or keeping documents in
files. As an entrepreneur, you must be well-informed on the production activities of your
business. Proficiently knowing what your manpower is doing may result in better productivity
and efficiency. The practice of record-keeping covers the development of your business and
carefully tracks the profit and losses.

Record keeping accompanies bookkeeping. Bookkeeping means the process of recording

the money received and spent by the operations of the business.

The following are the most important activities in bookkeeping:

a. Keep and maintain records daily.

b. Identify the source of receipts.
c. Record all incurred expenses.
d. Keep complete records in all assets.

Secure supporting documents, namely, sales slips, paid bills, invoices, receipts, deposit
slips, checks issued and canceled. Payrolls must also be kept. Generally, the benefits of recording
system and good records kept are the following:

a. It is easy to monitor the success or failure of your business.

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 b. Information needed to make decisions is provided and accessible.
c. Information needed to take a bank financing package is available.
d. References for budgeting are at hand.
e. Easy preparation of income tax return.
f. Easy computation of sales taxes.
g. Profit distribution is facilitated by organized record keeping.

What’s More

Activity 1
Direction: Match Column A with the definitions in Column B. Write only the
letter of the best answer.

Column A Column B
_____ 1. Machines A. 2 or more persons own the business

______2. Money B. 2 persons have combined resources

and skills

______3. Partnership C. Devices that uses mechanical power

to convert raw materials into products

______4. Corporation D. Know as the medium of economic

exchange
______5. Sole Proprietorship E. A business owned by 1 person

Activity 2

Direction: Write T if the statement is correct and F if the statement is incorrect.

Write your answer on the space provided before each number.

_________1. A wise entrepreneur should always check what is being wanted and in
demand products or services in the market.
_________2. A businessman must be skillful to address the needs and demands of
the market.
_________3. There are five (5) legal forms of business.
_________4. Workers are factor of production of a business.
_________5. Business registration isn’t necessary in putting up a business.

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 What I Have Learned

I have learned that __________________________________________________________

__________________________________________________________________________

I realized that ______________________________________________________________

__________________________________________________________________________

I will ______________________________________________________________________

8
 What I Can Do

Businesses are one of the solid foundations in our communities. It sells goods and
services that enhance everyone's life and strengthen communities. Color and
illustrate your business in a short-sized bond paper. Answer the following
questions as you plan out your future business.

CREATE YOUR DREAM BUSINESSIN$

1. Name of Owner:
__________________________________________________________________________________
2. Name of Business:
__________________________________________________________________________________
3. Sell/Produce:
__________________________________________________________________________________
4. Your market segments:
__________________________________________________________________________________
5. Define the legal form of business:
__________________________________________________________________________________
6. Production Needed:
__________________________________________________________________________________
7. Business location:
__________________________________________________________________________________

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8. How was your business registered? Please indicate the steps.
__________________________________________________________________________________
__________________________________________________________________________________

9. How will you keep your business going or your products and services in demand
to the market?
__________________________________________________________________________________
__________________________________________________________________________________
10. What are your actions for record keeping?
__________________________________________________________________________________
__________________________________________________________________________________

Assessment

Direction: Study your community and decide the nearest business you can join or
be of help for assistance and observation. This could be done for one day. The
business could be small or big (you can also create a small business on your own
depending on your capacity**not required). Examples of business you can join
could be a small karinderya, sari-sari store, street barbecue, or grilled banana
stalls. Once your task is completed, answer the following:
(Please refer to the table below).

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 _____________________________________

(Name of the Store and the Owner)

1. What are the products/services they provide in the business?

______________________
________________________________________________________________________________
2. Identify the business’ market segments:
________________________________________
_________________________________________________________________________________
3. Define the legal form of the business: __________________________________________
__________________________________________________________________________________
4. What are the 4m’s of production available?
_____________________________________
__________________________________________________________________________________
5. Describe the business location: ________________________________________________
__________________________________________________________________________________
6. Is the business legal? If yes, when and where was it registered? If no, you can
include this in your action plan for the business as assistance and help for
them.
__________________________________________________________________________________
__________________________________________________________________________________
7. Is record keeping practiced? How is it done? ___________________________________
_________________________________________________________________________________
_________________________________________________________________________________
8. Indicate the possible ways for the business to develop more, become efficient,
sustainable and recognizable in the community?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

(SIGNATURE OVER PRINTED NAME)

OWNER OF BUSINESS
Prepared by:

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Please refer to the rubrics below:
Scoring Rubrics for the Assessment (Performance-based)
Criteria Score
20 15 10
Accuracy of Data Data are gathered Data are gathered Some data aren’t
Gathered and answers to but some questions gathered, answers
questions asked are aren’t answered are mostly incorrect
correct. correctly or and incomplete.
incomplete.
Innovative ideas for New ideas for Old practices are Ideas are identified
Improvements improvement are identified and but not suggested to
identified, developed then the business’ owner.
suggested, and suggested to the
agreed by the business owner.
business owner.
Timeliness Task is done at the Task is half done at Task isn’t done at
set time. the set time. the set time.
Total 60

Additional Activities

If someday your desired business is achieved, what could be the chosen feature of
your own business? Explain. (10 points)

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 13
What’s More
Activity 1
Pre-Test
1. C
2. D 1. C
3. B 2. D
4. A 3. C
5. E 4. D
Activity 2 5. D
1. T
2. T
3. F
4. T
5. F
Answer Key
References
https://images.app.goo.gl/tpRCFX9TAtESMtiA7

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https://images.app.goo.gl/YvqYWMGFMFn2CmdD8

http://www.businessdictionary.com

https://images.app.goo.gl/BtNNiqUVtgW9qAsS6

https://images.app.goo.gl/qaHYWdtqBRnYkdmA6

https://images.app.goo.gl/PUrJzk4YNNJ3phGf6

https://images.app.goo.gl/sWEkFq696vUvLt8F6

https://images.app.goo.gl/Sy6agDGSqdMqRfADA

www.wikipedia.com

Microsoft® Encarta® 2009. © 1993-2008 Microsoft Corporation

Albarico J.M., Celarta C.B, Fernando E., and Valdez E.S. 2011. Agriculture and
Fishery Arts I. United Eferza Academic Publications, Co., Bagong Pook, Lipa City,
Batangas 4217.

Nazareno, Jesus B., MDM and Sajorda, Rodolfo C., 2013. Technology Livelihood
Education-Grade 9, Agricultural Crop Production Learner’s Material. First Edition
2013. 2nd FloorDorm G, Philsports Complex, Meralco Avenue, Pasig City,
Philippines 1600
Merriam Dictionary
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Tel #: (035) 225 2376 / 541 1117

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