University of Santo Tomas-Legazpi

Senior High School

2020-2021

(MODULE 1: The Business Organization)

Writer:
Ms. MARIEL A. BONGON, LPT
OPENING PRAYER

Lord, I know you are with me and love me.

Give me peace of mind
As I prepare for this time of study.
Help me to focus on my books and notes,
Keep me away from all distractions so that
I will make the best use
Of this time that is available to me.

Give me insight that I might understand

What I am studying, and help me
To remember it when the time comes.

Above all,
I thank you for all the ability to be able to study
And for the many gifts and talents
That you have given me.
Help me always to sue them in such a way
That they honour You and do justice to myself.
Amen.
 After going through the module, you are expected to:
1. Differentiate the forms of business organizations
2. Give examples of the different forms of business organizations found in your
locality
3. Show appreciation on how these organizations contribute to socio economic
development

Instruction: Below are the definitions of business and organization. Write BUSS if it describe 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.

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 a school’s basketball and
volleyball teams or are you a school paper writer who
participates in different journalism contests outside 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?
 Nowadays, many business are closed due to COVID-19 pandemic and only those businesses
which are considered essential such as food business and medical services remained.

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 BUSINESS PRODUCTS/SERVICE OFFERED
1. ____________________ ______________________________________________
2. ____________________ ______________________________________________
3. ____________________ ______________________________________________
4. ____________________ ______________________________________________
5. ____________________ ______________________________________________

Forms of Business Organization according to ownership

 Sole Proprietorship is a 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 charted 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.
 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.
COMPARATIVE ANALYSIS:

Forms of Business Organizations

SOLE
PARTNERSHIP CORPORATION
PROPRIETORSHIP
Easiest to establish It could be easily Hard to establish
established like sole
proprietorship
Limited life Limited life Life is 50 years and can
be extended
Small amount of capital Large amount of capital Large amount of capital
is needed to start a
business
Ownership of all Share or profit/losses Proportion to each
profits/loses stockholder’s
percentage of
ownership interest
Unlimited liability Unlimited liability of Stockholders have
the partners limited liability
Minimum legal Subject to minimum Subject to numerous
requirements government government
regulations regulations
Business secrecy Business secrecy Lack of secrecy

Personal interest in Each partner has the Lack of personal

managing the business right to participate interest
Tax savings Tax savings Several taxes to pay as
mandated by laws and
ordinances
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”. _______________________

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

C. These are examples of what form of business?

1. _______________________ 2. _________________________ 3. _________________________

4. _____________________ 5. __________________________ 6. __________________________

D. 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 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.
 Learning Skills
More
Easy, I get I still need
examples
it help
please
• Differentiate the forms of business organizations

• Give examples of the different forms of business

organizations found in your locality
• Show appreciation on how these organizations
contribute to socio economic development

Closing prayer
Thank you for today. Thank you for my dear family and all that You have blessed
me with. I pray for my loved ones today. May you fill them with Your peace and strength.
I pray that this day goes great and that You are able to spend time with them. Reveal
Yourself to them in marvelous ways Lord. I pray that you guard our hearts and minds
from the temptations in the world. May you also soften the hearts of those people who
confused themselves to help others. May you guide us, the people, to team up for the
world’s sake. And in this time of pandemic, may we know how to open our hands to help
others. Amen

REFERENCES:

Fernandez, Maria Rosario C. et al., (2020). DIWA Senior High School Series: Business Ethics and Social
Responsibility (Second Edition). 4/F SEDCCO 1 Bldg., 120 Thailand corner Legazpi Streets Legaspi Village,
1229 Makati City, Philippines. Diwa Learning Systems, Inc.

Medina, Robert 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.