Entrep Module 1234 2021 Second Sem Final

ENTREPRENEURSHIP
MERCY JOY S. MERCY

GARCIA
Republic of the Philippines
JOY S. GARCIA
SOUTHERN LEYTE STATE UNIVERSITY-SAN JUAN
College of Business Management
San Juan, Southern Leyte
BC-HE 104- BEAUTY CARE (NAIL CARE)
Course Overview
Course Number
Course Code TLED 210 (ENTREPRENEURSHIP)
Description Title (ENTREPRENEURSHIP)
Credit Units 3
School Year/Term AY 2020-2021/2ND Semester
Mode of Delivery Online/ offline Learning
Name of Instructor MERCY JOY S. GARCIA
This course dwells on basic entrepreneurial
Course Description concepts and practices. It includes such as
personal entrepreneurial concepts,
environment and market.
At the end of the semester, the students

must have:
1. Discussed entrepreneurship in the
context of small and medium scale
industries. Explore job/entrepreneurial
Course Outcomes opportunities for beauty care services
2. Distinguished the types of trading,
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manufacturing and services;
3. Generated a set of opportunities that
will respond to the needs of the
environment in terms of key needs,
resources and trends
4. Designed business and product plans
5. Performed the basic functions of
management
SLSU Vision A high quality corporate University of Science,

Technology and Innovation
SLSU Mission SLSU will develop science, technology and

innovation leaders and professionals; produce
high-impact technologies from research and
innovations; contribute to sustainable
development through responsive community
engagement programs; and generate revenues
to be self-sufficient and financially viable.
Module Guide
The Module are designed in order to address the flexible learning modalities in higher
education as instructed by the Commission on Higher Education (CHED). The course module on
ENTREPRENEURSHIP consist of four modules with module 1 has three topics, module 2 has
three topics, module 3 has three topics, module four has three topics. The presentation of
information was carefully planned so that optimum learning shall take place given the
modalities we have today.
To start the course module, you need to complete the pre-test structured by the author
of this module. The pre-test covered all topics of the course. You don’t need to worry because
pre-test will not be graded, just answer the test in order to determine the level of understanding
or prior knowledge to the subject.
Course module is divided into two terms, two modules for midterm and another two for
the final term. A separate examination shall be given to you to assess the knowledge gained
from the modules. Dates on the examination will be announced accordingly.
Every topic contains learning outcomes that you must accomplished one in a while. The
presentation of topics used 4As Model to ensure a learner centered approach. You must
complete every activity provided to help yourself understand the topic easily.
Once done with the course module, a separate parallel post-test will be accomplished by
you to further evaluate the learning and the module itself. References are provided for further
research on your end.
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Pre-Test
Test I.
Multiple Choice. Select the best answer and encircle the letter of your answer.
1. Creating of something of value means?
a) Entrepreneurs create products or services that can be offered for a price
b) devote their time and effort
c) Possibility to fail
d) losing of interest
2. What is Entrepreneur?
a) a person who starts business or operates business
b) the process of creating something new.
c) getting rewards.
d) none of the above
3. What is Entrepreneurship?.
a) the process of creating something new with value.
b) money
c) freedom
d) Rewards
4. What are the characteristics of an Opportunity seeker?
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. a) Accepts full responsibility for problems encountered
b.) Helps own employees to get the job done
c.) Seeks to satisfy customers
d) all of the above
5. What is Trading?
a) buying of goods and selling the same without change in form
b) the process of converting raw materials into finished product
c) are what you see in the completed product.
d) goods are sold in small amount.
6. When goods are sold in small quantities, it is called?
a) trading b) merchandising c) retailing d) manufacturing
7. It is the process of converting raw materials into finished products.
a) trading b) manufacturing c) retailing d) merchandising
8. It is what is paid for the product purchased which is intended for resale or manufacturing
into another product.
a) profit b) cost c) mark-up d) none of the above
9. It carries a wide variety of product line usually clothing, soes, bags, beauty products, home
furnishing and household goods.
a) supermarket b) Department store c) superstores d) direct selling
10. Sell variety of food and household products.
a) supermarket b) department store c)superstores d) direct selling
11. It is larger than the supermarket and department stores have emerged.
a) superstores b) department store c)factory outlet d) direct selling
12. A stores that carry a variety of models for one kind or limited product line..
a) superstores b) convenience store c)factory outlet d) direct selling
13. It is the process of converting raw materials into finish products.
a) Manufacturing b) retailing c) cost d) profit
14. It is a labor used in manufacturing a product which can be charged directly to that particular
product.
a) Direct materials b) direct labor c) factory overhead d) indirect materials
15. It refers to human effort used in the factory which cannot be identified as pertaining to a
particular product.
a) Direct materials b) direct labor c) factory overhead d) indirect labor
16. It is doing work for others.
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a) service business b) retailing c) manufacturing d) performing
17. It is a way by which goals are attained.
a) Strategy b) analyzing c) producing d) communicating
18. This is being practiced by big foreign corporations by allowing their company’s name to be
used by local entrepreneurs to give their business a local reputation.
a) Franchising b) partnership c) exporting d) branch opening
19. This means selling products to another country.
20. Entering an agreement with a foreign company to do business in that country would be
beneficial to the local entrepreneur .

Module 1:
WHO IS AN ENTREPRENEUR, ENTREPRENEURIAL

COMPETENCIES AND ENTREPRENEURIAL
QUALITIES AND SELF ASSESMENT
Bachelor of Science in Technology Livelihood Education (BTLED)-

Faculty
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Southern Leyte State University – San Juan Campus
Topic 1:
Who is an Entrepreneur?
Entrepreneur
An entrepreneur is comprehensively defined by Zimmerer & Scarborough (2005) as
someone who “creates a new business in the face of risk and uncertainty for the purpose of
achieving profit and growth by identifying significant opportunities and assembling the
necessary resources to capitalize on them”. They are the ones who act on their business ideas.
Learning Outcomes
At the end of this topic, you must be able to:
1. Identify who is an Entrepreneur?
Let’s Begin (Activity)
Activity 1:
Have a good warm up before exploring more about the topic. Say something about what is
ENTREPRENEURSHIP based on your own understanding.
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ENTREPRENEUR
SHIP
You need to complete the activity above so that you have an idea of the topic. If you are done, we
shall continue.
We’re Getting There!
1. What are the advantages of studying Entrepreneurship?
Ans:_____________________________________________________________________________________________________
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___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
______________________________________________________________________________________________.
You have now an idea of our topic. To give you more concrete and substance
understanding of the topic, together we will explore the topic more. Read the content of
the lesson on who is an Entrepreneur?
Now, we explore
To give you substance understanding of the topic, we will explore the topic more. Read the
content of the lesson on who is an Entrepreneur?
Four basic aspects of being an entrepreneur?
1. Creation of something value- This means entrepreneurs create products or
services that can be offered for a price.
2. Devotion of necessary time and effort- Entrepreneurs devote their time and
effort towards the attainment of their personal goals. In business, some of these
goals are to earn profits, to make products/services available in the community,
to provide employment and income for their family and other reasons.
3. Assumption of necessary risks- In the pursuit of their goals, entrepreneurs
assume risks on the possibility of losing whatever they put in. in business there
is the possibility to fail and lose everything. But the possibility of earning big is
even greater.
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4. Getting rewards- Many entrepreneurs reap the rewards of their efforts through
the generation of profits and business expansion. Moreover, the prestige of being
a business owner provides intrinsic satisfaction.
Who is an Entrepreneur?
An Entrepreneur is a person who starts and or or operates a business. An

entrepreneur is creative and innovative.
 He is a person who starts something new. An entrepreneur may be male of
female, young or old, professionals, college graduate or school dropout,
comes from A, B C, D or E economic group. He is an owner-manager who is
willing to take risks. Usually he is someone not willing to work for others.
Instead he wants others to work for him. Usually , also his kind of business is
single proprietorship because he does everything from production to selling.
Role of Entrepreneurs in the Economy
Entrepreneurs are vital in the economic development of the country. They
provide employment and income moves in the economy forward, as shown in
the vicious cycle of development below.
Employment and Income

Entrepreneurs Investment
Savings and Taxes
Figure 1-1. Vicious Cycle of Development
Thus, the cycle results to economic development as more people are employed and
enjoy an income through the investment of an entrepreneur. The government likewise benefits
in the process because entrepreneurs, as businessmen, pay taxes, hence, the government has
the funds to provide service to the people.
It should be remember that the activity of one entrepreneur provides a multiplier effect.
For example – Jose decided to manufacture T-shirts and buys his materials from Mr. Santos.
Hence, Mr. Santos hires workers to meet the requirements of Jose and Jose hires workers to
produce the T-shirts. If Jose will close his business, eventually, Mr. Santos will also close his
shop unless he has a lot of customers. This cycle, is the opposite of the cycle above, called the
cycle of regression.
The previous cycle also shows that entrepreneurs are:
Mobilizers
of capital 8
Service providers Tax payers
Employers Suppliers of products
1. Mobilizers of Capital. Entrepreneurs sometimes use their own savings as capital for
their business ventures. However, if they do not have the capital, money can be
borrowed from banks to finance their intended business.
2. Service providers. Business ventures of entrepreneurs could be along the line of service
like parlor, spas or coffee shops.
3. Employers. Usually, entrepreneurs hire people to help them in their business. A
restaurant owner, for example, will hire cooks and kitchen helpers while he, the owner,
does the purchasing and attending the customers.
4. Tax payers . Business establishments pay taxes to the government. Thus , more business
would mean more taxes and better government services.
5. Suppliers of products. Products and services are available through the efforts of the
entrepreneurs. Without them, a scarcity of certain products and services will be felt.
Role of Entrepreneurship in Economic Growth
Micro, small and medium enterprises (SMEs) are a vital component of the economy.
Microbusiness,small and medium enterprises provide employment for 70 percent of the
Philippine labor force. According to the 2001 National Statistics (NSO), of the total business
enterprises of 811, 589 the MSMEs provide jobs to 69.1 percent of the employed Filipino with
their economic output at 32 percent. It is important for the economy to increasethe output of
the MSMEs to help the economy moving and growing. To attain this, MSMEs should have more
access to (1) credit, (2) better sources of raw materials, (3) modern technology and (4) more
marketing information. The government has three strategies to help MSMEs.
They are:
 Provide credit , technology and marketing support to new enterprises from 24 billion
Pesos in 2004 to 309.98 billion pesos in 2010.
 Tap overseas Filipino workers to invest their earning in MSMEs.
 Promote greater involvement of local government unit (LGUs) in promoting small
business activities by providing them information on business opportunities, available
sources of funds, and the latest product design.
In November 2002, RA 9178 was signed into Law. RA 9178 or the Barangay Micro Business
Enterprises (BMBEs) Act of 2002 or provides five incentives and benefits. These incentives and
benefits are:
 Exempts BMBEs from income tax and encourages LGUs to exempt or reduce local taxes
imposed on BMBEs.
 Exempts BMBEs from coverage of the minimum wage law.
 Improves credit delivery to BMBEs.
 Provides for technology transfer, production and management training and marketing
assistance to BMBEs.
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 Provides trade and investment promotion to BMBEs.
Entrepreneurs in Small and Medium Industries

Entrepreneurs are engaged in either small or medium business. This is because
basically the establishments of business are dependent upon the amount of capital that
you can put in ad the number of employees that you hire. Many business started small
and then moved on towards big business.
Small and medium scale businesses are important in the country because of the
following reasons:
1. They help provide the supply of products to customers. For example, a
family needs only a can of milk per week and this need in met by the
nearby store in the community.
2. They help provide personal services. For example, you need a haircut,
this service is provided by the neighbourhood barber shop.
3. Small and medium scale business serves as a means of earning to an
umemployed individual. For example, the service of Juan dela Cruz, a
factory worker, was terminated. From the separation pay he received,
Mr. Juan dela Cruz started a repair shop and earns in the process.
4. The small and medium scale businesses also provide employment to
other people. In our example under #3, Mr. Juan dela Cruz also hired
workers to help him in the process of providing repair services to his
customers. Thus, unemployment in the country is reduced.
5. Small and medium scale entrepreneurs also pay taxes to the government
and such payment allows the government to provide services to the
people. Some of these services are education, sanitation, peace and
order, electricity, health and others.
The small and medium entrepreneurs cannot be underestimated. Financially, they
provide purchasing power to their workers; psychologically, they enjoy prestige and
satisfaction because they own their business and economically they add to the supply ans
demand of goods and services.
Entrepreneurs are found practically in every community. For example, the producers of
rags sold along the busy city streets, the scissors makers in the provinces, the candle makers,
vegetable growers and , many others. These people boost the economy and make their country
proud of their industriousness.
This Time, You Try

Yourself!
1. List down Five entrepreneurs in your community and discussed the kinds of
business they are engaged in. Find also their reasons for engaging in business.
1. (_______________________________)
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____________________________________________________________________________________________.
2. (________________________________)
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3. (________________________________)
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4. (________________________________)
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___________________________________________________________________________________________.
5. (________________________________)
_____________________________________________________________________________________________
___________________________________________________________________________________________.
Words to Ponder
You can Do It !
Topic 2:
Defining Consumer
ENTREPRENEURIAL COMPETENCIES
Entrepreneurs are ambitious. They have strong desire to succeed. They are motivated
by their personal mission and vision. They are willing to do whatever it takes to succeed. They
take risks and sometimes at a higher level than most other people. They are ready to take the
road less travelled. They are confident they will succeed. They have no one to answer to; they
are their own bosses. The risk-taking quality of an entrepreneur is not the same as that of a
gambler. The entrepreneur has a way of controlling the outcome. The outcome is not left to
chance.
Learning Outcomes
1. Identify entrepreneurial competencies.

2. Give importance of the reminders to the new Entrepreneur.
1. What are your strengths and weaknesses?

_____________________________________________________________________________________________________
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_____________________________________________________________________________________________________
______________________________________________________________________________________________.
shall continue.
Activity II.
1. How can you overcome your weaknesses?
_________________________________________________________________________________________
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_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
____________________________________________________________________________.
Now, we explore
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content of the lesson on Entrepreneurial Competencies.
Characteristics of Entrepreneurs:
 They have a strong desire to succeed
 They are risk-takers
 They are creative
 They take responsibility for their activities
 They have a high level of confidence.
For one wanting to be in business, he should test himself against the above competencies. The
benefits of entrepreneurship in the succeeding sections will help in making decision on which
course of action take.
The rewards of entrepreneurship are:
1. Money or material return of profit
2. Freedom
3. Psychological rewards
Profit generally comes in the form of money or cash. This is the material income or
rewards from running a business. Profit is left after deducting the cost and expenses from the
selling price of products and services. Thus,
Selling Price—Cost and Expenses+ Profit
The entrepreneur has freedom to do what he feels is fit in his business. The products
may be those he bought for sale, those he bought and converted to other products or those
services he renders to others. Freedom includes what products to sell, where to sell and when to
sell. This is what is referred to as being one’s own boss.
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The third benefit of entrepreneurship is the good feeling of being of service to others. The
entrepreneur is able to satisfy customers need, to give work or employment to others, to pay
taxes to government and support the community.
Problems of Entrepreneurship
Just as there are benefits in entrepreneurship, there are also some problems. The
problems are:
1) Entrepreneurship demand hard work
2) Entrepreneurship demands long working hours
3) Entrepreneurship may cause emotional stress.
The desire to succeed in terms of profit, satisfying customers’ needs and sustaining the
company make the entrepreneur work harder than the others who are employees. The
entrepreneurs may lose his capital, may lose his credit or may lose face if he is not able to make
profit or when he is not able to produce the needed cash. If capital and cash is not enough, he
may keep on looking for sources to fill in his need for money. He may lose his face and money
even be charged in court for bouncing checks. Some entrepreneurs end up going back to
employment or becoming employees again. This is after experiencing both being an employee
and being an entrepreneur. Generally, the employees stop thinking of their work-related
problem when they leave their work places. Entrepreneurs think of their own business
wherever they go.
Strengths and Weaknesses

What are your strengths? What are your weaknesses? These two questions will guide you in
your self-evaluation with regards to entrepreneurship. Skills, knowledge, health, interest, the
desire to grow are strengths that will push a person to be an entrepreneur. Weaknesses, like
lack of self-confidence or inability to speak well and convince people are temporary and can be
improved by going to the beauty salon, a visit to the dentist or the dermatologist for skin
problems. A change in wardrobe, diet and exercise can do wonders to improve self-confidence.
Reminder to the new Entrepreneur

A starting business entrepreneur, bear in mind that you would start business by yourself or
with a small group of people. It is important to stick to the basics of running a business, such as;
1. Make sure you get things done.
2. Be close to the customers.
3. Innovative. Be open to new ideas.
4. Produce through people. Trust them.
5. Be hands-on running your business.
6. Be clear with your values.
7. Know your expertise. Continue doing it. Stick to what you know best.
8. Keep things simple.
9. Keep a lean staff.
10. Keep firm on directions but at the same time give your people autonomy. Be good at
balancing the two.
Now, you already have explored the second topic of the Module on Entrepreneurial
Competencies.
This Time, You Try

Yourself!
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Essay Test:
I.
1. Read the ten reminders to the new entrepreneur.
2. Select one of the ten that you would want to explain.
3. Think of practical ways of applying the “reminder” that you have chosen.
_____________________________________________________________________________________________________
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_____________________________________________________________________________________________________
___________________________________________________________________.
II.
1. Name some characteristics of an entrepreneur which you think relates to you. Explain
your answer.
Answer:____________________________________________________________________________________________
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_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_________________________________________________________________.
Words to Ponder
Character is what remains when a

man is stripped of his fame and
fortune.
Topic 3:
Defining Consumer
Entrepreneurial Qualities and Self- Assessment
In the Philippines, extensive research by the Small Enterprise Research and

Development Foundation at the Department of Trade and Industry reveals 10 Personal
Entrepreneurial Characteristics (PECs) that lead to success. These are grouped into what are
called the Achievement Cluster, the Planning Cluster, and the Power Cluster.
Learning Outcomes
 Identify if it is employment characteristics or employment characteristics.

 Assess the Personal Entrepreneurial Characteristics of successful entrepreneur’s
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Observe the pictures presented below:
shall continue.
Now, I want you to widen your imagination: Answer the following questions below .
1. What can you say about the picture presented above?
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_______________________.
Now, we explore
_________________
content of the lesson on Personal Entrepreneurial Characteristics.
Achievement Cluster
This pertains to the desire of the individual to fulfil or to realize something. This desire
is strong to an entrepreneur who will not stop at any obstacle but take such obstacles as
challenges. Hence, the following characteristics are dominant in him.
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1. Opportunity- Seeker
a. Perceives and acts on new business opportunities
b. Seizes unusual opportunities to obtain financing, equipment, land, work, work,
space or assistance.
2. Persistent
a. Takes repeated or different actions to overcome obstacles
b. Makes sacrifices or expends extraordinary effort to complete a task
c. Sticks to own judgement in the face of opposition or disappointment
3. Committed
a. Accepts full responsibility for problems encountered
b. Helps own employees to get the job done
c. Seeks to satisfy the customers.
4. Risk-Taker
a. Takes moderate risks.
b. Prefers situations involving moderate risks
5. Values Efficiency and Quality Oriented
a. Always strives to raise standards and aims for excellence
b. Strives to do things better, faster, and at a lower at cost.
Planning Cluster
An entrepreneur is clear on what he wants to achieve. He plans his every move because
he knows that eliminated resources will be used. To make sure that the resources
(money, material, machinery, etc.) are efficiently used, he makes his move tentatively on
paper, hence, the plan. A plan is a blue print of the project that he wants to establish.
Such quality of an entrepreneur demands that he be a:
6. Goal –Seeker
a. Sets clear and specific short-term objectives.
b. Sets clear and long-term goals
7. Information-Seeker
a. Personally seeks information on clients, suppliers and competitors
b. Seeks experts to render business or technical advise
c. Uses contacts or information networks to obtain information
8. Systematic in planning and Monitoring
a. Develops logical, step-by-step plans to reach goals
b. Looks into alternatives
c. Monitors progress and switches lo alternative strategies when necessary to
achieve goals,
Power Cluster
Power does not mean bossing around. This means the power to lead; to convince
people of your ideas; the power to make people believe in you, or the power to persuade
others especially those with negative perceptions. Therefore, an entrepreneur must:
9. Be Persuasive and Good in Networking
a. Uses deliberate strategies to influence or persuade others
b. Uses business and personal contacts to accomplish objectives
10. Possess Strong Self-Confidence
a. Believes in self
b. Expresses confidence in Own ability to complete a difficult task or to meet a
challenge.
Other Factors to Consider
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After studying the personal entrepreneurial characteristics (PECs), the entrepreneur determines those
characteristics he already possesses, those where improvements are necessary and environmental
factors. These are:
1. Personal Interest. The personal interest of the individual is a deciding factor in getting into
business. His personal interest will drive him to engage into something that will give him
satisfaction. lf you look around, usually restaurant Owners love to cook.
2. Knowledge / Talents. The skills or talents or knowledge of an individual serve as his best
asset in venturing into something that will earn him an income. People who are good in
computer technology eventually establish internet stations or internet cafes.
3. Training/Work Experience. The kind of training or experience of an individual influences
his desire to go into business. Children of entrepreneurs eventually become entrepreneurs
themselves. Those whose family was engaged in the manufacturing of, say, shoes, ultimately
become shoe manufacturers themselves. In the same manner, those who have worked in a
beauty salon tor quite some time, sooner or later, put up their own salons.
4. Government Support/Assistance Programs. The goal of any government is economic

development. It is done through investment, business and employment. Thus, support is
available in terms of technology, marketing or training. So, check this out in your community.
5. Rate of Growth of Business. There is no profit in venturing into business where the rate of
growth is negative. Check government and industry reports to have a glimpse of the future of
the business you have in mind.
6. Other Considerations. Consider the rate of return of the capital you will put into the
business. Would you earn higher returns by putting your money in the money market
compared to the potential profits if you put up a business? Would you earn more in terms or
salary as employee compared to operating a business? Answers to these questions will
determine your next move.
The Entrepreneurial Personality

Given the characteristics and other considerations in entrepreneurship, the list of
entrepreneurial personality therefore can be lumped into three (3), namely:
1. High need for achievement. Here lies the strong desire of an individual to pursue his
dream, a dream that could be long-range or immediate. His dream keeps on flashing in his mind until
he makes a move for it to be realized.
2. Strong belief that they can control their destiny: William Jennings Bryan said
"Destiny is a not a matter of change, it is a matter of choice; it is not a thing to be waited for, it is a
thing to be achieved." Indeed, it is!
3. Risk-taker. Risk is present in eve3y activity, but it can be lessened. Business risk can be
learned or avoided by careful planning, insurance and being alert of what t is happening around.
Poultry farm pest, for example, can be avoided by vaccination or selling the entire herd in case of
epidemic in a nearby farm.
In spite of the risk involved in business, entrepreneurs establish their business because they
prefer to be independent, to be personally responsible for solving problems, setting goals and reaching
goals through their own efforts. They prefer to take calculated risks. They usually are not likely to be
contented in a corporate or government employment.
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Entrepreneurial Self-Test Encircle your answer
1. I am persistent. When I am interested in a project, I need less sleep. Yes Maybe No
2. When I am interested in a project, I need less sleep. Yes Maybe No
3. When there is something I want, I keep my goal clearly in mind. Yes Maybe No
4. I examine mistakes and I learn from them. Yes Maybe No
5. I keep New Year's resolutions. .. Yes Maybe No
6. I have a strong personal need to succeed. Yes Maybe No
7. I have new and different ideas. Yes Maybe No
8. I am adaptable. Yes Maybe No
9. I am curious Yes Maybe No
10. I am intuitive. Yes Maybe No
11. If something cannot be done, I find a way. Yes Maybe No
12. I see problems as challenges. Yes Maybe No
13. I take chances. Yes Maybe No
14. I will gamble on a good idea even if it is not a sure thing Yes Maybe No
15. To learn something new, I explore unfamiliar subjects. Yes Maybe No
16. I can recover from emotional setbacks. Yes Maybe No
17. I feel sure of myself. Yes Maybe No
18. I am a positive person Yes Maybe No
19. I experiment with new ways to do things Yes Maybe No
20. I am willing to undergo sacrifices to gain possible long-term rewards. Yes Maybe No
21. I usually do things my own way Yes Maybe No
22. I tend to rebel against authority Yes Maybe No
23. I often enjoy being alone Yes Maybe No
24. I like to be in control. Yes Maybe No
25. I have a reputation for being stubborn. Yes Maybe No
My name is _____________________________________________________________________
My score is _____________________________________________________________________
My score interpretation
is________________________________________________________________________________
__________________________________________________________________________________
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My decision
__________________________________________________________________________________
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Scores per answer
Yes - 3 points
Maybe - 2 points
No- 1 point
Scores Interpretation
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60-75 You have the qualities of an entrepreneur
48-59 You have the potential but need to push yourself
37-47 You may not want to start a business alone
Below 37 Self-employment may not be for you
Now, you already have explored the second topic of the Module on factors of clothing
selection.
This Time, You Try

Yourself!
TEST I.
1. Make a self-evaluation. Do you posses of an entrepreneur?
_____________________________________________________________________________________
________________________________________________________________.
2. In which of the characteristics would you score high? And Low?
_____________________________________________________________________________________
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_____________________________________________________________________________________
_____________________________________________________________________________________
___________________________________________________________________________.
TEST II.
Indicate on the space provided whether the statement shows (a) Entrepreneurial
characteristics or (b) Employment characteristics. Write the letter “A” or “B” only.
__________1. He wants a fixed working time
__________2. He sees Opportunities in problems
__________3. He enjoys experimenting and creating new things.
__________4. He wants to make a certain that he receives his income on time.
__________5. He loves the status quo.
Words to Ponder
Great men all started from the first step .
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References:
Entrepreneurship by Cristina B. Banastao and Solita A. Frrias.
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BC-HE 104- BEAUTY CARE (NAIL CARE)
Course Overview
Course Number
Course Code BC-HE 104
Description Title BEAUTY CARE (NAIL CARE)
Credit Units 3
An exploratory course in Beauty Care ( Nail
Course Description Care) Services which covers four common
competencies that a Bachelor Technology and
Livelihood Education student ought to
possess, namely; 1) use of tools and
equipment;2) interpreting nail design; 3)
practicing Occupational Health and Safety
Procedures (OHSP); and 4) maintain tools,
equipments and paraphernalia. The
preliminaries of this course include the
following: 1) discussion on the reference of the
course: 2) explanation of the key concepts
relative to the course and: 3) exploration on
career opportunities.
21
must have:
1. Explain the core concepts and
principles of manicure and pedicure,
hand spa and foot spa;
Course Outcomes 2. Explore job/entrepreneurial
opportunities for beauty care services
3. The learner independently performs
beauty care (nail care) services.


Module Guide
BEAUTY CARE (NAIL CARE) consist of four modules with module 1 has three topics, module 2
has three topics, module 3 has three topics, module four has three topics. The presentation of
22
Module 2:

Faculty
23
Topic 1:
Defining
TRADING Consumer
Entrepreneurs engaged in various activities—some bug, some small and others in
between. Their activities could be trading , manufacturing or service business. They are
supported by either the family members or members of the community as employees.
Entrepreneurs are found not only in big cities but in small towns as well, catering to the needs
of people.
Learning Outcomes
 Identify the different types of trading;
 Realize the importance of retailing.
Have a good warm up before exploring more about the topic. Say something about what is TRADING
based on your own understanding.
TRADING
24
shall continue.
You already have the idea of the topic. To help us determine the correctness or your
answer please be guided with the next activity.
Answer the following questions:
1. How many traders in your community?
_____________________________________________________________________________________________
_____________________________________________________________________________________________
__________________________________________.
2. What kind of products they sell?
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_________________________________________.
content of the lesson
Now, we explore
Part 1
Entrepreneurs engaged in various activities—some big, some small and others in
between. Their activities could be trading, manufacturing or service business. They are
supported by either the family members or members of the community as employees.
Entrepreneurs are found not only in big cities but in small towns as well, catering to the needs
of people.
TYPES OF BUSINESSES
There are three types of entrepreneurial businesses. They are trading, manufacturing and
service.
Trading or Merchandising is the buying of goods and selling the same without changes in form.
When goods are sold in small quantities it is called Retailing. When goods are sold in big
quantities or in volume, it called Wholesaling. The process of buying and selling is also caleed
trading or merchandising. A common example of retailing is the “Sari-Sari store”.
25
Most retailing is done in retail store. A retail store may be a :
1. Self-service retailer- example: supermarket
2. Limited service retailer- example: dress store
3. Full service-retailer-example; cellphone store
4. Specialty store-example: Wise Old Owl Bookstore Inc.
5. Department store-example: Robinsons
6. Supermarket-example: Waltermart
7. Convenience store- example 7 Eleven
8. Superstore-example: SM
9. Combination store-example: Mercury Drug
10. Hypermart-example; SM Hypermart
11. Discount store-example: ₱99 Store
12. Factory outlet- example: Surplus Shop
13. Price clubs-example: Makro
14. Door-to-door seller or direct marketer-example: AVON
15. Vending machine-example: Coca-Cola
16. Seller by mail or telephone or TV.
TYPES OF ENTREPRENEURIAL BUSINESS

1. TRADING- the most popular non-store trading is direct marketing. Many individuals
start their taste of business by direct selling. The seller builds personal and
continuous relationships with buyers. Many times, the buyers are friends r relatives
of the seller. The buyers find it difficult to refuse the offer of a friend or relative. The
seller knows the need, capacity and the temperament of the buyer. The seller knows
to whom, when and where to make the offer. Direct selling activities usually start as
a side-line which may eventually mature to fill time jobs and open up to other
opportunities.
2. MANUFACTURING- is the process of converting raw materials into finished

products. The manufacturer buys the raw materials. He makes the raw materials to
finished products by applying direct labor and factory overhead.
a. Raw Materials are what you see in the completed product. For example: in
shoes and hand bags, the leather is the raw materials. Paper is the raw
materials for the book. Woods is the raw materials for furniture.
b. Direct Labor is the work on the raw materials as it is converted into finishe
product. Direct labor is the work of the carpenter on the wood to convert
wood go furniture. Direct labor is the work of the sewer when leather is
made into handbags.
c. Factory Overhead is the resources needed costs that need to paid for in
making products other than raw materials and direct labor. In the
manufacture of handbags, some examples of factory overhead are the
Meralco bills or electricity, the salary of the supervisors, the PLDT or phone
bills, the rental of factory space, the water bills. Factory overhead refers to
all cost in manufacturing other than raw materials and direct labor.
3. SERVICE BUSINESS is doing work for others. Examples of service businesses are
beauty parlors, spas, barber shops, laundry shops, and repair shops. Medical , dental,
accounting , legal and other services of professionals are also example of service
business.
The number one reason for doing business is to make profit. Profit is what is left
after subtracting cost and expenses from the selling price. Profit is the excess of
26
revenues over cost and expenses. However, when cost and expenses are higher than
selling price, the result is a loss instead of a profit. To make profit, the seller sets a selling
price that is more than the total of cost and overhead. This is called Mark-up.
Cost is what is paid for the product purchased which is intended for resale or for
manufacturing into another product. Overhead consists all costs of business operations
other than direct costs. Direct Costs for retailing is the cost of the product purchased, for
manufacturing, they are the cost of direct materials and direct labor and in a service,
they are the direct costs of rendering services.
Retailing is the selling of goods and services directly to the final consumers or users.
The final consumers may be an individual person or a business unit. For example,
National Bookstore sells bond paper to students. It also sells bond paper to San Miguel
Corporation. Both the students and San Miguel Corporation are end-users. Meralco sells
electric power to the Cruz family and also to the University of the East. The Cruz family
and the University of the East are end-users. Therefore, , National Book Store and
Meralco are the traders in the example given. The sari-sari store in the street corner, the
vendors of fish and vegetables in the wet market and the Nestle ice cream peddler are
also esmple of the traders. It is also possible that a trader is both retailer and wholesaler
at the same time. When National Bookstore sells bond paper to Don Bosco Book and
Supplies Store, National Book Store is called a Wholesaler.
Trading may be done through retail stores or through mail. TV, telephone, door-to-door,
vending machines or electronic means. Store retailing is the more common form of retailing.
The store retailing may be self-service like in a department store or supermarket, or limited
service like cellphone shop.
SPECIALTY
STORE
DEPARTME
NT STORE
SUPERMAR
KET
CONVENI
ENCE STALL
OWNERS
STORE RETAILERS
VENDORS
SUPER FACTOR DIRECT

Y SELING
STORE OUTLETS
FIGURE 1 KINDS OF RETAILERS
1. Department Store carries a wide variety of product line usually clothing, shoes,
bags, beauty products, home furnishing and household goods.
2. Supermarket sell a variety of food and household products.
27
3. Specialty stores carry a variety of models for one kind or limited products line.
For example , a cellphone store carries brands like Nokia, Motorola Samsung
with different models of each brand.
4. Convenience Store that carry high turn-over goods, twenty-four hours a day and
seven days a week. Examples of convenience stores are 7 Eleven and Ministop.
The retail processes of convenience stores are usually higher than those of
supermarkets.
5. Superstores which are larger than supermarkets and department stores have
emerged. Examples of superstores are usually higher than those of
supermarkets.
6. Factory outlets of different manufacturers are grouped together in one factory
outlet. The outlets are located in places far from the cities. When the customer
goes to the factory-outlet mall, he will varied choices.
7. Direct selling is one –on-one selling. One seller approaches a buyer. Amny times
the buyer are friends or relatives of the seller.
DIFFERENT TYPES OF TRADING BUSINESS

The different types of trading business are store trading snd non-store trading. Store
trading is classified as to:
A. Amount of service
1. Self-service
2. Limited service
3. Full service
B. Product line
1. Specialty store
2. Department store
3. Supermarket
4. Convenience store
5. Superstore
6. Combination store
7. Hypermarket
8. Service business
C. Retail prices
1. Discount store
2. Off-price retailer
3. Factory outlet
4. Independent off-price retailer
5. Warehouse club
6. Catalogue showroom
D. Control outlets
1. Chain store
2. Retailer cooperative
3. Franchise
4. Merchandising conglomerate
E. type of store cluster
1. central business district
2. shopping center
Non-store retailing include:
A. direct marketing
1. door-to-door retailing
28
2. automatic vending
B. direct mail marketing
C. catalogue marketing
D. telemarketing
E. television marketing
F. electronic marketing
Effects of Trading in Business

Trading cannot be avoided. Wherever you go, even in rich countries, people buy in retail.
In retail business turnover of goods is fast, thus , money inflow is also fast. Imagine
products of the shelves that have been standing there for about the week. Such products
are occupying space if your establishments is air-conditioned, you are, I effect , spending
for the cooling of such products. Compare these with those products that stood only for
a couple of hours on the shelves and then will need replenishment. It means shelf cost is
very limited and your cash drawer has plenty of cash.
What is the Impact of Trading to Business?

Trading is the path whereby inflow of cash from the buyers to the company passes. It is
very important, considering the diagram below.
PRODUCTION SALES
 Procurement of new materials  retail

 Investment on tools and equipment  wholesale
Figure 2 production and Sales Relationship
Products produced are sold either on retail or wholesale. From the sales revenue, the
businessman procures raw materials again for his next production cycle and perhaps buy
additional tools and equipment for the expansion. Thus, more products are produces are sold. If
his products cannot be absorbed by one store only, he offers his products to other stores, thus
operations expand and grow.
In a nutshell, the following are the benefits of retailing:
1. Retailing allows the fast movement of products. Product price is discounted if the buyer
will buy several or in combination with other products to encourage customers to buy.
2. It encourages people to buy more by giving preferential benefits to customers. For
example, increasing the number of quantities at the same price to valuable customers or
promotions like “buy one, take time”.
3. Enhances buyer-owner relationships. This is because some sellers are friendly and
thus encourage people to buy from them every time they need the product.
4. Low budget families would be able to buy products in small quantities. For example, ½
kilo of sugar instead of one kilo.
29
5. Retailing is the answer to small buyers, whose need is for a couple of days for a small
family. For example, a family of four will not buy five kilos of banana for their one week
consumption.
6. Retailing is a business strategy. In grocery stores, slow moving products are packed
with a toy to make the product saleable. Another strategy is the offering of credit card to
be able to move/ sell more goods or services.
Example:
Importance of selling in the Economy

Selling is the transfer of goods and services from the producer to the customers and the
transfer of money from the customer to the producer, as shown in the diagram below:
MONEY
PRODUCER/SELLER CUSTOMER /BUYER
GOODS AND SERVICES
FIGURE 3 : PRODUCER AND CUSTOMER RELATIONSHIP

Without the process of exchange for goods and services, the economy will not move.
The figure above can be expanded as shown on the next page to indicate how the economy
operates.
Technically, labor means “selling one’s services to the business firms. Thus, your parents or
relatives work with a company or operate their own business. In return, the business firms pay
them for their effort in the form of salaries or wages or profits if they own the business. From
the money that they received , the households buy goods and services from the business frim
and pay in cash or through credit cards.
30
Some of the income is the regulatory body of the economy. Government funds spent fro services
are coming from taxes paid by the households and business firms.
Thus, selling is the primary factor that moves the economy. If people will not buy, products will
not move. The business firms will not have an income from sales, no business tax, no
government service and so on.
This Time, You Try

Yourself!
1. List down at least five traders in your community and the kind of product they sell.
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
_________________________________________________.
2. What is the importance of retailing?
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
_________________________________________________.
3. What benefits can your family get out of the retailers?

________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
_________________________________________________.
31
Topic 2:
Defining Consumer
MANUFACTURING
Learning Outcomes
 Identify what are the relevance of manufactured products in your life;
 Give examples of manufactured products.
To start, Associate related ideas on the pictures.
shall continue.
32
You already have the idea of the topic. To help us determine the correctness or your answer
please be guided with the next activity.
Test I.
1. What can you say about the pictures above?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_________________________________________________________________.
Now, we explore
MANUFACTURING BUSINESS
Many small scale entrepreneurs convert local raw materials to finished products. These
businesses are called cottage industries. The Philippine government, many years back, have
motivated cottage industries by establishing the National Cottage Industry Development
Authority, also called the NaCIDA. Since the initial years of the NaCIDA, many other incintives
have been offered to Filipinos not only by the Philippine Government but also by foreign
governments like Canada and Japan.
When an Entrepreneur decides to go into Business, he has to consider several factors. Some of
these are:
1. Capital- How much capital is available for tools, equipment, machines, raw materials,
payment for wages, overhead and other expenses.
2. Production space- How big/small is the space? Where is it? Is it owned or leased? If
leased, how much is the rent? What are the terms for leasing property?
3. Storage for materials and finished goods- is there a space for storing materials and and
finished goods?
4. Labor cost and labor supply- is there a ready supply of qualified workers?
What is the prevailing wage arte in the area?
5. Factory overhead-how much, more or less, would be the factory overhead given the cost
of utilities like water and electricity and other costs?
6. Cost of manufacturing- if the cost of manufacturing would be higher than that of the
competition, then perhaps manufacturing is not the right venture.
7. Technology-to produce a product, technology should be available.
8. Availability of raw materials-this is vital. No product will be produced without the
materials.
9. Competition- As mentioned, if the producer will produce at higher cost compared to his
competitors, selling price will be high, causing a difficulty in moving the products.
However , in spite of the high financial and complex operational requirements of
manufacturing enterprise, many entrepreneurs ventures into it because of the following
reasons:
1. The desire to earn more
2. Low manufacturing cost
3. Well-planned sales.
Generally, the cost of manufacturing product is lower than the cost of purchasing a
completely finished product. Sales can be well-planned and maximum sales projections can
33
be attained, since the business will not be depending on outside suppliers for the goods it
will sell. Thus, lower cost plus unhampered selling operations can ultimately result in high
profit.
What is Manufacturing?
Manufacturing is the process of converting raw materials into finished products. The
manufacturer buys the raw materials. He makes the raw materials into finished products by
applying direct labor and factory overhead.
There are many kinds of manufacturer in the country. Some of these are:
1. manufacturers of shoes/footwear specially in Liliw and Marikina
2. canned god manufacturers
3. manufacturers of soap and toiletries
4. manufacturers of food products
5. manufacturers of garments or RTWs
6. manufacturers of school and office supplies
7. manufacturers of glasswares, silverwares and chinawares or kitchenwares
The above is the list of general classifications. For example, canned goods can be sud-divided
into:
 sardines
 canned fruits
 beverages-juices, softdrinks,etc.
Below is the diagram showing the flow of operations of a manufacturing concern.
INPUT PROCESS OUTPUT
PURCHASE OF PROCESSES SELLS FINISHED
RAW GOODS
RAW MATERIALS
MATERIALS
DIRECT LABOR
FACTORYOVERHEAD
FEEDBACK
Role of Manufacturing in Economic Development

Aside from selling, manufacturing is the other dimension in economic development. No product
will be sold without producing. In the process of producing the products, exchange also takes
place. Raw materials will have to be purchased and labor will have to be paid plus all other
expenses. Generally, manufacturing entails the following costs:
Manufacturing cost or production cost is the sum of the cost of direct materials, direct labor and
factory overhead. During the accounting period, that part of manufacturing cost which
represents work completed is transferred to Finished Goods Inventory, whereas incomplete
work remains in Work in Process. The elements of manufacturing costs are:
34
1. Direct Materials pertain to all materials which form part of the finished product which
can be measured and charged directly and which can be identified as forming part of
the product such as leather to make bags and shoes, lumber to make tables and chais,etc.
2. Direct Labor is labor used in manufacturing a product which can be charged directly to
that particular product. The wages paid to a carpenter making chairs in a furniture
factory is an example of direct labor.
3. Factory Overhead refers to indirect elements of cost incurred to turn out a finished
product which may be in the form if indirect materials , indirect labor or other indirect
expenses.
On the opposite side of the direct costs are the indirect labor or other indirect expenses.
1. Indirect Materials are materiasl needed for the completion of the product but which
consumption will with regard to the product is either so small or allocation too complex
that it will be inconvenient or too laborious to charged them directly to a particulary
unit of product.
Ex. Nails, glue and sand paper in the manufatctures of furnitures.
2. Indirect Labor refers to human efforts used in the factory which cannot be identified as
pertaining to a particular product. The cost of indirect labor includes salaries and wages
page to foremen, supervisord, janitors, timekeepers, and the like.
3. Other Indirect Expenses are expenses necessary for the production as a whole such as
light and power, rental, insurance, taxes, etc.
Importance of Manufacturers
Manufacturers of products are important because of the following reasons:
1. Considering the expenses and receipts of manufacturers, they contribute to the
movement of the economy;
2. Manufacturers provide the supply of products needed by the people like canned milk or
powdered milk, clothes, bags, etc.
3. Manufacturers provide employment and income to the households;
4. They pay taxes to the government which are used by the government to finance its
projects and pay for the salaries of government employees.
The salaries are wages received by the employee either in private business or in the
government allow for another round of purchases, production and sales.
With production comes value or the money equivalent of the product. More goods produced
increased the gross domestic product and national income. Fueled by money in the circular flow
, the economy moves towards development.
Creativity in Manufacturing
The availability and the production of new products in the market can be attributed to
manufacturing. Since manufacturing is the process of transforming raw materials into
finished products, it allows for the creative talents of an individual/ manufacturer to
manifest. Many kinds of products in different designs owed its production to the creativity
of manufacturer. Bags, for example, come in different colors, sizes and shapes for different
uses, occasions and even reasons.
Manufacturers need to be creative to meet the ever changing demand of the customers.
How Can An Individual Be Creative?
Below are some tips to develop ones creative talents:
35
 Creativity is developed by being observant.
Observe what people are wearing or using and try to improve it by way of function or
ease of use.
For example: Many years ago, people use pen and ink. Thus, you have to carry a bottle of
ink in your bag that could spill to all of your things in the bag. Hence, the very
convenient ballpen with dry ink was introduced.
 Creativity is developed y imagination.
Through imagination, toy manufacturers are able to introduce toys that move with use
of batteries, dolls whose eyes open and close and many other different kind of toys.
 Creativity is developed because of external conditions.
Manufactured products change because of people’s life styles. For examples, people are
now very mobile. They move from one place to another, hence the introduction of small
and portable products.
The economic conditions in the country also influence the manufacture of products from the
expensive to the affordable. For example, from pure leather to leatherette products.
The changing seasons also help develop one’s creativity. From summer months come beach
products like rubber slippers, swim suits, sunglasses, beach bags, baskets, creams, etc. from the
rainy season comes umbrellas, rain coats and jackets.
Why Should Manufacturers Be Creative?
Manufactures need to be creative because of the following reasons:
 To be competitive. Manufactures need to be creative gto be competitive. If you do not

introduced products that are different and affordable, sooner or later you are going to
be put of business.
 To meet the need of customers. Customers are very choosy and fickle-minded. They do
not buy the same product for long. They want to try new things. Hence manufacturers
need to be creative.
Choosing the Product to Manufacture or Service to Offer

Manufacturing is an easy venture. Many of the products in the market, big or small, are
manufacturer from big or small factories whose operations are either simple or
complex. You too, can be successful manufacturer considering the following:
Business ethics
Market Demand
Personal Exposure
Capital
Seasons
Available resources
Competition
Competence
Personal Interest
36
 Personal interest. Your interest will determine your success. If you love what you do,
you will persevere in spite of the odds. Together with perseverance is patience; patience
to finish whatever it is you are into
 Your competence. Determine your competency. What are you good at? If you are good
at baking, then put up a bakeshop. If you are good at cooking, then put up a cafeteria. If
you are good at handicrafts, like making décor, then manufacture decors.
 Competition. Consider the realities of competition. If you love broiled chicken and your
recipes is super good, you may say, “ I will go and out up a “litsong manok” stand in front
of your garage. But wait, how many roasted chicken stands are there in front of your
block or in your small subdivision? Or maybe right now, there are only two but because
it is easy to put up this kind of business, soon a lot more will appear in your community.
What you want to put up is charcoal- broiled chicken. This product can be easily
substituted y fried chicken.
 Available Resources. Your manufacturing operation is highly on resources such as raw
materials, machines and labor. Without any of this, your operation will be affected very
much. For examples, abaca is available in the Bicol region, while the shoe makers are
found in Marikina.
 Seasons. Unless you receive an order for next year’s summer season, you do not
manufacture swim suits during the rainy season.
 Capital. The amount of capital needed to operate your manufacturing business will
determine whether you have the capacity to establish it or not. While there are
institute=ions where you can borrow money for capital, this would require knowledge
in the preparations of a feasibility study that will be evaluated by the bank. Based on the
study, if the bank officers are convinced of the profitability of your project, the
application for investment capital could be granted.
 Personal exposure. Usually , children of manufacturers become manufacturers become
manufacturers or entrepreneurs themselves. This is because they learned the
operations from their parents and /or grandparents. As they grow, the children take
over the operations of the business.
 Market demand. Manufacture products that are in demand. Check market or industry
figures to determine sales. If the sale potential of a product is good, chances are, the
sales of the company will be increased.
 Ethics in business. This is important because many manufactures nowadays cheat their
customers by way of quality. Cheating will not do! Customers are protected by law.
Cases can be filed in court. Products, wherever they are in the world, can be recalled
causing immense losses.


This Time, You Try
Yourself!

1. What would you have to do to develop your creative talents?

_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________.
2. How do you practice creativity?
37
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
___________________________________________________________________.
3. What is the relevance of manufactured products in your life?
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
__________________________________________________________.
4. Give examples of manufactured products and discuss the process used in manufacturing
the same.
Topic 3:
Defining Consumer
SERVICE BUSINESS
The 20th century saw the introduction of new kinds of businesses such as the service
type of business. Service business became more pronounced during our time the 21 st century—
mainly because of the increased in population and family income. Improving economies allow
people to have more money to spend and demand for comfort and style.
Learning Outcomes
 Identify the advantages of having a service business;
 Give an example of service business.
To start, let’s have first an activity.

1. Now pandemic what do you usually do in your house?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_______________________.
2. What comes in your mind when you heard/read the word Service?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
______________________.
content of the lesson
38
Now, we explore
What is a Service Business?

Service business is doing work for others. It is a kind of business that sells services. The service
offered could be the service of a single individual, like the one who fixed your leaking faucet, to
the sophisticated serviced of hotels and banks.
Below are some samples of business under the service sector:
 Small Sectors
 Beauty parlor
 Barber shops
 Daycare centers
 Restaurants or snacks bars
 Collection (bayad) centers
 Flower shops
 Pensionne house
 Bake shops
 Dress shops
 Car repair shops
 Water stations
 Large corporations
 Banking and finance
 Hotel and restaurant services
 Schools
 Entertainment- (theme parks, movie houses , TV productions)
 Hospitals
 Call centers
 Transportation services’ (bus companies, Airlines, Shipping line)
 Professional services
 Medical/dental services by doctors
 Legal services by lawyers
 Accounting services
 Engineering services
 Tutoring services by teachers
 Services by architects
Benefits of Service Business

The easiest way towards becoming an entrepreneur is to render personal service
to customers. Plumber for example, do home repairs as the magnitude of the
work becomes great, they hire people to work with them as helpers. As these
39
helpers learn the task, they too enter into an agreement to work on plumbing
projects, hence, knowledge and skill multiply and more people become self-
employed.
What are the Advantages of Establishing a Service Business?

Establishing a service business has many advantages. Some of these are;
Mobility
You are your own boss
Non-perishable products
Minimal capital
Easy to establish
 Easy to establish. A service business is easy to establish. Documentation is simple. Some

are not even registered with any government agency, like food catering and the street
food operators, hence the term “underground economy”. People are self-employed
doing business that, although not against the law are being apprehended by the law.
 It requires minimum capital. The capital requirement in establishing a service
business is very minimal. For example, to start a beuty parlor, all you need is a small
space with mirror, chair and tools for hair trimming. As your business grows, additional
tools can be purchased.
 Services are non-perishable. Products and services, unlike fruits and vegetables are not
perishable. Therefore. You do not need a space to store them and there are no risks of
spoilage.
 You are your own boss. As a service entrepreneur, you are expected to guide the
employees of your organization to eliminate customer complaints. You call the shots and
to you belongs the profits.
 Mobility. Service is a very mobile business. You offer your business anywhere using a
minimum of equipment needed are only communication gadgets and probably a video
camera. The added advantage is you get to enjoy the party.
Community-Oriented Business
Numerous services business are community-oriented, such as:
Barber Shop/ Beauty Parlor
Computer Center
Day Care Center
Dance/ Music Instructors

Carpenters, Plumbers, Masons, etc.
Water Station
Body- Building Gym
40
 A body- building gym. The beauty of this type of service business is that you encourage
people to keep themselves trim and physically fit. Once engrossed in this type of activity,
the youth are driven away from drugs, liquor, gambling and other bad influences in the
community.
 Water station. Providing clean water to the community is a noble undertaking. This
business allows people to have a supply of clean drinking water.
 Services offered by a carpenters, plumber, masons, etc. these people help in fixing
parts of the houses or community that need repair. You will need a carpenter to fix your
ceiling and you will need a mason to put up a concrete fence.
 Dance and music instructors. These people also do their share in having a pleasant
community. Groups can be arranged so that the instructor visits them on a certain time
and place for lessons.
 Daycare centers. Centers for babies and toddlers are now flourishing especially in
exclusive villages where parents are both working and do not want to ask leaving the
Childs with a nanny.
 Computer centers. Many families do not own a computer but the children have school
assignments to work on, hence, this kind of business is also a becoming a common sight
in the community.
 Barber shops/beauty parlors. These businesses are also very dominant in communities.
Their peak season is during fiesta’s, school opening, Christmas season, graduation n
schools and other occasion.
Importance of service to the economy.

As explained in the previous topic, the economy moves through the process of exchange;while
manufacturers exchange products for money, service business exchange service for money.
Both sectors are helping the economy move through the exchange of goods and services. If we
stop one and depend on the other only, the economy will weaken because without employment,
income will fall.
Services are important because of the following basic reasons:
1. It helps moves the economy- like manufacturing, service is a contributor in moving the
economy. It allows people to have jobs and earn an income so that they can participate
in the exchange process. Moreover, manufactures need to sell their products. Thus,
services like brokerage companies,(people who transport products from the factory to
the shipping lines), services deliveries, tracking companies, wholesalers, retailers,
communication services and many others. Indeed, the impact is great. Everybody
contributes in the whole economic mechanism.
2. It makes life not only pleasant but also comfortable. Consider the services of the
garbage collectors, the street sweepers, the laundry stations and the personal service
providers like the barbers, taxi drivers. Without them life would be ,perhaps,
unbearable.
3. It makes products available. Products within peoples reach because services like the
delivery of snack foods, and mail to order goods. Products from other countries are
available in another country because of shipping and airline services.
4. It allows people to travel and communicate with each other. In additional the
shipping and airlines services come the services of travel agencies, hotels, restaurants,
resorts, entertainment services, communications services and others.
41
This Time, You Try
Yourself!
Arranging Steps Chronologically

Directions: Below are the steps in hand massage (1 – 6) and arm massage (7 – 10). Arrange in
sequence the steps by writing the letter ( A-F) for hand massage and (G-J) arm massage on the
corresponding pictures.
ENTREPRENEURSHIP
MERCY JOY S. MERCY

GARCIA
JOY S. GARCIA
Course Overview
Course Number
Course Code TLED 210 (ENTREPRENEURSHIP)
Description Title (ENTREPRENEURSHIP)
Credit Units 3
This course dwells on basic entrepreneurial
Course Description concepts and practices. It includes such as
personal entrepreneurial concepts,
environment and market.
42
must have:
5. Discussed entrepreneurship in the
context of small and medium scale
industries. Explore job/entrepreneurial
Course Outcomes opportunities for beauty care services
6. Distinguished the types of trading,
manufacturing and services;
7. Generated a set of opportunities that
will respond to the needs of the
environment in terms of key needs,
resources and trends
8. Designed business and product plans
9. Performed the basic functions of
management


Module Guide
ENTREPRENEURSHIP consist of four modules with module 1 has three topics, module 2 has
three topics, module 3 has three topics, module four has three topics. The presentation of
43

Module 3 and 4:

Faculty
44
Topic 1:
Identifying Business Opportunities in the Environment
An entrepreneur starts from scratch. The tem start-up means creating a new business
from scratch or zero. Start-ups could be a business that provides customers with products that
do not exist or a business that provides customers with improvement in existing products.
Learning Outcomes
1. Identify the business opportunities in the environment.
Activity 1:
Have a good warm up before exploring more about the topic. Say something about what is
opportunities based on your own understanding.
45
OPPORTUNITIES
shall continue.
2. What are the advantages of studying Entrepreneurship?
Ans:_____________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
______________________________________________________________________________________________.
You have now an idea of our topic. To give you more concrete and substance
understanding of the topic, together we will explore the topic more. Read the content of
the lesson on who is an Entrepreneur?
Now, we explore
content of the lesson .
An entrepreneur starts from scratch. The tem start-up means creating a new business
from scratch or zero. Start-ups could be a business that provides customers with products that
do not exist or a business that provides customers with improvement in existing products.
46
Sources of Product Ideas
ldeas for new products or services may come from any of the following:
1. Chance happening. While strolling in the park, you saw an old couple who, after a long
walk were looking for vacant bench to sit down on. Unfortunately, all benches were
occupied. Thus, you come upon the idea of producing a cane that could open into a small
chair.
2. Personal interest or hobby. Hobbies like tinkering with machines could develop into a
machine repair shop business combined with a barber shop so that one can have his
hair trimmed while waiting for the repair of his car to be finished.
3. Friends and relatives. A family of five girls who are conscious of how they loolk and
meticulous about the products they use, could start a beauty salon business with their
Own brand of beauty products.
4. Family business. The eldest son of a couple operating a hotel or resort, 10r example,
could establish a liquor store in one corner of the hotel lobby.
5. Suggestions. A cell phone repair centre could be a suggestion of someone for you to
open one considering that there is none in the area where a lot of cell phones are being
sold.
6. Education or courses.Short courses like tour guiding, international cooking,landscaping
and others are offered by entrepreneurial individuals because they realize that there are
people are not financially capable of going to college but need to have means of earning a
living.
7. Prior work experience. Working in a bank, you realize that very small business Owners
or market vendors cannot avail of the lending services of the bank because of the
absence of collateral. A lending business can therefore be put up with very easy terms
like no collateral and paying daily or weekly as soon as sales effected.
8. Research and Development. With the use of a questionnaire, customers are requested to
say what they want about a product or service. Through interviews or informal discussions,
middlemen or distributors may give suggestions about a product or service based on their
contact with customers
9. Creative problem solving is a method for obtaining new ideas focusing on certain
parameters. Creativity can be unlocked and creative ideas and innovation can be
generated by using creative problem solving techniques. The most common creative
problem solving technique is brainstorming. It is also a popular method of generating
company ideas. At this point, it is important to brainstorm on
a. the product to introduce, and
b. the form of business organization.
Ten people may be organized for this activity. The brainstorming output will be the
starting point in demonstrating ability to apply trading, manufacturing, service as an
entrepreneurial activity.
10. Focus Group Discussions. A group of individuals provide information in a structured
format.
11. Brainstorming. A group of individuals meet and they stimulate each other through
freewheeling discussions. This is an unstructured process of generating all possible
ideas about a problem within a limited timeframe through the spontaneous
contributions of participants.
47
12. Problem Inventory Analysis. The consumers are given a list of problems with a general
product category. The consumers are asked to identify and discuss products in this
category with particular problems. Anew product idea may come out from this
approach.
13. Other means. New product ideas could also come from other means like need. The
copying machine was invented because of the need to produce several copies of
documents that look exactly the same as the original especially the signature.
New ideas may come from consumers, existing companies, distribution cl and
government through research and development with the use of a questionnaire.
The consumers are requested to say what they want. The entrepreneur looks at the competitors and
think of how to improve what is already available in the market. Through interviews, the middleman
or distributors may give suggestions based on their contact with consumers or complaints from
customers.
The government regulations may lead to a new product demand for example: the national
identification system or an ID for every Filipino. The research and development of company may
come up with a new product idea.
Improvements on Existing Products

Improving an existing product or service renders it new. For example, instead of producing
only a hair brush, you put a small mirror on the handle of the hair brush. Thus, the product
gives dual function.
Changing the presentation of the product also makes it new. Pharmaceutical products, for
instance, may originally be produced in liquid form. But because it can be messy or
inconvenient to take outside the home, those products are now made into tablet and
capsule
. Changing the package is another way of introducing a new product. Products in bottles
made of glass could be presented in plastic bottles or perhaps the same bottle but different
shape.
Spotting Opportunities
Below are some factors that will help you spot opportunities:
 Market need. Be observant and be keen in determining the needs of the people in
the community. For example, you observe that the children in the community are
left with their nannies while their parents go to their respective offices. Thus,
perhaps a day care center would be a good business.
 Location. Your place is near a school with many students. Thus, opportunity would
be for a store of school supplies, a snack bar or a shop for sewing uniforms Hobby
of the people. The hobby of the women in the community is needlework.
Therefore, your opportunity would be for a store for threads or framing services.
 Available materials in the community. Your community, for instance, is near the
sea with an abundance of shells. Such resources can be made into decorative
articles that can be sold outside of the community.
48
 Your interest and know-how: Your interest and know-how is, in itself, an
opportunity. You love plants, 1or example, and you are well-versed in taking
care of them. Your opportunity 1S rent a plant business or plants for sale.
Ways of Going into Business
An entrepreneur starts a business that he thinks has a lot of potential for profit His family may
have been in business for a long time and he may take a part or department in that business.
Another way is to duplicate his family business in another place. He may also pick up an idea
from his family business, modify it or apply it to another product. For example, one who grew up
with a family-owned restaurant chain may go into business of ready-to-eat packaged meals. One
who grew up in a bookstore business may now deal with special-interest books. Specifically,
going into business could be any of the following:
1. Start a new business. A bakeshop may be opened in a place where no bakeshop exists.
A laundry shop may be put up in a new subdivision. A transportation service may be
extended to a barrio. The first is an example of an existing business which is not yet
available in a certain place. The second business is providing a new product. The third
business is about providing improved products. Examples are food products in plastic
containers. Starting a new business is the whole concept of this book.
2. Buy an existing business. Would-be entrepreneurs are sometimes attracted to buying

existing businesses. The reasons for this are that existing businesses eliminate the uncertainties
encountered by a new business; the cost of starting is also eliminated; the business has already
gained a foothold in the industry, it has established its name; and finally, there is already an
established relationship between customers and the business and between the business and the
suppliers.
The price could also be a bargain because the owners are migrating to another country or
the owners are already old and would like to retire. Of course, no investor would buy at first
glance. Customers of the business, bankers, employees, suppliers, the industry and
professionals like accountants and lawyers are good sources of information to determine
whether the business is worth buying or not. Examine its business papers, tax returns,
receipts, Invoices, and most of all, its financial statements. It is also good to inspect the
premises of the business, the building, machines, tools, equipment, materials and other
assets that are included in the sale.
The potential entrepreneur is also cautioned to be aware with unreported company debt or
obligation that might come out after the sale. The contract o sale should specify those debts
or other obligations after the sale is for the account of the seller.
3. Take over a family business. An entrepreneur may be a member or the family. He has
been exposed to the business as he was growing. The business is Ongoing. Capital may
not even be needed because the parents are ready to give the business to the children. If
the parents are not yet ready to leave the whole business with the children , they may
meanwhile share it with the children.
4. Buy a franchise. Operating a franchise can also be an attractive business venture
considering that the name of the franchisor is already well-established. Furthermore,
franchisors offer free training to the employees of the franchisee, free advertising
financial assistance, technical assistance and the continuing supply of materials. The
franchisor provides all assistance to make sure the business is successful because their
name is at stake. Given these benefits, the worry of the franchisee is only the daily
operation of the business.
49
In spite of its advantages, franchising has its own set of drawbacks. These are:
1) the franchise fee could run into millions of pesos;
2) the investment cost that include the renovation of the place of operation to jibe
with the concept of the franchisor, furniture, fixtures, equipment, insurance,
inventory.etc.,
3) royalty payments for the use of the name of the franchisor. These could be
certain percentage of sale or gross income;
4) advertising/promotion fee - sometimes franchisees are asked to share in the
advertising expenses of the franchise.
Moreover, there are certain restrictions that must be observed by the franchisee
such as only the products of the franchisor are to be offered for sale by the
franchisee, employee uniform should be the same as that of the concept of the
franchisor and other restrictions.
Ways numbers 2, 3 and 4 are shortcuts to being an entrepreneur. These
businesses have very short start-up time. Some young, would-be entrepreneurs
would prefer to gain experience through employment before going into their
own business. Some go to full time employment and at the same time have a
business as a sideline with a plan that eventually they would go full time in their
business. Some become entrepreneurs because of the unusual opportunities,
loss of job, migration, and change in family structure like death, marriage, health
and other events.
Opportunities for Business

In the Philippine free enterprise system, any person is free to go into business. In every corner
within the county, there are opportunities for doing business. You start small with the hope of
making it big soon. Look around and it may not take you long to see more of the likes of your
favourite fast-food or your relative or friend who is making good money from his service,
trading or manufacturing venture. This person may even be your parent or your own brother or
sister.
Entrepreneurs are called energizers of small business. They speak economic growth. They
provide jobs. They introduce products. They provide goods and services. In a broad sense,
services are also called products.
Entrepreneurs are in the following businesses:
1. grocery stores
2. drug stores
3. gasoline stations
4. fast food outlets
5. hardware stores
6. constructions
7. repair shops
8. laundry shops
9. restaurants
10. travel agencies
11. insurance agencies
12. transportation services
13. real estate brokerages
14. bakeshops
15. machine shops.
16. preschools
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17. beauty parlors
18. Spas
19. barber shops
20. importers
21. exporters
22. producers of crafts
23. boutiques
24. computer shops
25. dress shops
26. courier deliveries
27. food catering
28. boarding house
29. internet cafes
30. resorts
31. sports venues
32. coffee shops
33. professional services like medical and dental clinic
There are some more not listed here. Some or those listed are in retailing or trading, some in
manufacturing and others in services.
The government through the Department of Trade and Industry (DTI) has come up with a list of
provinces per region and the products/raw materials coming from that province/region. The
objective is to inform potential buyers and sellers where to buy or sell what product. the list is
at the end of this lesson.
Environmental scanning
An analysis of the environment is done to determine what approach to use in the Conduct of
business. This is called strategy.
Strategy is the way by which goals are attained. To determine what strategy to use, a SWOT
analysis is made. The strength and the weakness refer to the internal characteristics of the
business, while the opportunity and threat are external characteristics.
Assume that you would want to go into the business of broiled chicken with rice and Vegetable
salad. You arrive at this decision because you have a special recipe that your friends like very
much because of its very good taste and appearance. You analyse the environment. You observe
high volume pedestrian traffic in your intended location at Lopez entrance to B.F.Homes in
Sucat, Parañ aque City. You have noticed that there are food sellers within the 100-meter radius
of the Lopez entrance. There are Jollibee outlet, Baliwag Chicken, Manok ni San Pedro, Julie's
Bakery, Lots-a-Pizza, wet market, 24-hour grocery store, Mercury Drug Store and sidewalk
vendors of fruits, vegetables and native snack foods. You see the heavy pedestrian as an
opportunity and the existing businesses as threats. You made an assessment of yourself and
concluded that among your strengths are your being an Owner of a commercial unit in the place,
your tasty chicken recipe, and the fact that you have poultry farm in Silang, Cavite. Of course,
you realize that the competition is a threat. You also see your lack of experience in the broiled
chicken business as a weakness. After a month of being in business, you review the financial
results and continue monitoring results not only monthly but practically every day.
Below is a table that shows the SWOT of the proposed business:
51
Strengths (S) Weaknesses (W)
 Owner of commercial unit  Lack of experience in business

 Tasty Chicken recipe
 Poultry farm owner
Opportunities (O) Threats (T)
 Heavy pedestrian traffic  Strong competition
Clearly, the strengths are more than the weaknesses. Your best strategy would be to make your
broiled chicken aromatic and visibly mouth-watering to attract the pedestrians to buy. Your
day-to-day operation will give you the experience you need and get adjusted into the business
In an on-going business, planning should include planning for the functional areas of the
business, such as:
1. operations
a. buying and selling
b, manufacturing
C. service
2. marketing
3. finance
4. human resource management
5. accounting
6. computer information system
This Time, You Try

Yourself!
1. How do you spot an opportunity?

_________________________________________________________________________________________________
_________________________________________________________________________________________________
_____________________________________________________________.
2. Give some business opportunities available in your community.
_________________________________________________________________________________________________
_________________________________________________________________________________________________
____________________________________________________________.
3. Explain why you consider them opportunities.
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_____________________________________________________________.
52
Words to Ponder
Innovate, make your own.
You can do it!!
Topic 2:
PROJECT FEASIBILITY STUDY AND WRITING A BUSINESS PLAN
Objectives:
a. Discuss the importance of a feasibility Study;

b. Enumerate the Parts of the Feasibility Study;
c. Conduct environmental scanning;
d. Describe the guidelines in writing a business plan.
Activities:
a. Partner Task (each partner should choose a business project, write the
objectives of your choosen business project and write also the description of
your business.
Guide Questions:
1. What is a Feasibility Study?

2. Who needed the product feasibility studies?
3. What are the parts of the Feasibility Study?
4. What are the guidelines in writing a Business plan?
5. What are the parts of the Business plan?
Assesment:
53
Written Test: Indicate on the space provided whether the folloeing falls under the
category of Strength (S), Weakness (W), Opportunity (O), and Threat (T):
______1. There is a big mall in the area where you would like to put up a business.
______2. You allotted a big capital for a small business.
______3. You are a trained salesman.
______4. Business tax in the area is high.
_______5. The place is known rebel stronghold.
Learning Materials : Books
Reference : Entrepreneurship book by Cristina B. Banastao and Solita A. Frias
Project Feasibility Study and Writing a Business plan
Topic
Discussion :
What is a Feasibility Study?
 Is an activity designed to find out what is feasible, achievable, attainable, practicable or

workable.
Who needed the product feasibility study?
Project feasibility studies are needed by:
1. Management need feasibility studies when they have to decide on new products or
when they have excess funds to invest.
2. Investors, like top management in number 1, would want to put in money where the
rate of returns is high.
3. Lenders need to know if the borrowers are capable of paying the loans that will be
granted to them.
4. Government agencies need to know the details of government projects before funds are
released.
What are the parts of the Feasibility Studies?
1. The Executive summary- presents the highlights of the study that are shown in detail in
the different sections ,presents the conclusions arrived at on the feasibility studies.
54
2. The Project background and history- discusses the proponents of the project or the
owner of the project, location, name of the business and forms of organization whether
sole proprietorship, partnership or corporation.
3. The Industry study- involves the analyses of threat of new entrants and substitutes and
bargaining power of buyers and suppliers.
4. The market study- consists of market description, demand, supply , statistical analysis
of demand and supply, general marketing practices, proposed marketing programs,
projected sales and system designs.
5. The management study- consist of personnel requirement, management policies,
timetable (Gant chart), and system designs.
6. The technical study- consists of the identification of the product, the process of
acquiring, processing and bringing the product to the point of sale.
7. The financial study- consists of projected balance sheet, projected income statement,
projected cash flow over a period of time, usually five years. The tests are for liquidity,
capital adequacy, profitability and breakeven point.
8. The socio-economic study- shows the impact of the project on the personnel, on the
community, on the environment, on the government and other beneficiaries
What are the Guidelines in writing a business plan?
1. State your objectives

2. Describe the business
3. Describe your products or services
4. Identify your potential market
5. Identify your competitors
6. Consider your pricing policy
7. Determine your marketing method
8. Identify your material requirements and sources of supply
9. Determine the process and equipment you will use to manufacture your products
10. Determine your key personnel
11. Identify your work force
12. Determine your financial requirements
13. Prepare a budget.
Topic 3:
FUNCTIONS OF MANAGEMENT
55
FUNCTIONS OF MANAGEMENT
Objectives:
a. Define management and understand its functions;
b. Realize the value of management skills and managements role in attaining
business goals;
c. Read organization structures;
d. Compare leaders with managers.
Acivity: Group Activity

1. Identify the business that you want to put up.
a. Write the Mission and Vision of the Business
b. Draw an organizational chart for your business
Guide Questions:
1. What is Management?
2. What are the four Management Functions?
3. What is planning mission and vision?
4. What are the guidelines for setting goals?
5. What is the purpose of planning?
6. What are the functions of management?
7. What is leading and leadership?
8. What are the different types of leaders?
Assesment:
Complete the following sentences:
1-2. Starting an enterprise is divided into two stages namely:_______ and ______.
3.The establishment of business starts with oneself, this is called____.
4.Business of whatever size needs a _____ that details its would be operation.
5.The _____ is the part of the plan that shows how the business is to be funded.

FUNCTION OF MANAGEMENT
Topic
Discussion:
56
What is Management?
 Is the attainment of organizational goals in an effective and efficient manner through
planning, organizing, leading and controlling organizational resources.
What are the four management functions?

1. Planning – is the defining of goals for future organizational performance and deciding on
the tasks resource needed to attain them.
2. Organizing- is assigning tasks, grouping tasks into departments and allocating resources
to departments.
3. Leading- is the use of influence to motivate employees to achieve the organization’s
goals.
4. Controlling- is the monitoring of employees activities, keeping the organization on track
toward its goals, and making corrections needed.
What are planning, goals, mission and vision?

 Planning – is the defining of goals for future organizational performance and deciding
on the task resources needed to attain them.
 Goals – are what the organization wants to achieve.
 Vision- is a dream, the organization wants to achieve.
 Mission- is what the business is doing.
What are the guidelines for getting goals?

Goals should be SMART.
S- Specific. To be specific, goals should be expressed in quantitative terms.
M- Measurable . The target is exact.
A- Achievable. Given increasing population, a stable economy, peace and order situation and
other environmental factors.
R- Realistic.
T- Time-based. “last year” and “this year”.
What are the purpose of Planning?

1. Establishes coordinated effort- gives direction, helps the organization towards its
objectives or goals;
2. Helps the organization to look ahead to anticipate or expect changes, to address or
provide solutions to problems that may arise from changes or uncertainties;
3. Reduces duplications, overlapping and wasteful activities;
4. Sets standards for control
5. Serves as reference—planners refer to previous plans for guidance.
What is leading and leadership?

Leading is the use of influence to motivate employees to achieve organizational goals.
57
Leadership is the quality that inspires and motivates people beyond their normal levels
of performance.
Leaders come in different types such as:
SERVANT LEADER
INTERACTIVE LEADER
TRANSFORMATIONAL LEADER
CHARISMATIC LEADER
TRANSACTIONAL LEADER
1. Transactional leader- is the one who classifies subordinates role and task, requirements,
initiates strictures, provides rewards and displays consideration for subordinates.
2. Charismatic leader- is a leader who has the ability to motivate subordinates to transcend
their expected performance.
3. Transformational leader- is a leader distinguished by a special ability to bring about
innovation.
4. Interactive leader- is a leader who is concerned with consensus building, is a open and
inclusive ad encourages participation.
5. Servant leader- is a leader who works to fulfil subordinates needs and goals as well as to
achieve the organizations larger mission.
Comparison of Manager and Leader
Manager Leader
(1) Appointed (a) appointed or emerge within he

(2) Ability to influence is based on the group
formal authority inherent in their (b) can influence other to perform
position. beyond the action by formal
authority
58
Topic 4:
EVOLUTION OF MANAGEMENT and MANAGING THE HUMAN

RESOURCE
Objectives:
a. Enumerate the Management Theorists;
b. Identify the sources of man power, recruitment and hiring, employee
categories and wage and salary;
c. Explain the employee categories, training, wage and salary, employee
benefits and reward system.
Activities: Partner task.

Answer the following questions and choose one reporter to present the output:
1. Why is understanding the functions of management important in raising a
business?
2. Why is it important to learn the “Pinoy” values in running a business?
Guide Questions:
1. What is theory?
2. What are the Classical approaches and Contemporary approaches?
3. Who are the Management Theorists?
4. What are the sources of Man power?
59
5. What are the tools used in Recruitment and Hiring?
6. What are the process of recruitment and hiring?
7. What are the Employee Categories?
8. What are the employees benefits and reward system?
9. What are the disciplinary actions?
Assesment: Written test

Indicate the terms being identified below on the spaces provided.
_________1. It refers to a list of tasks to be performed by a worker.

_________2. It pertains to a list of traits and skills that an applicant must posses to occupy the
position.
_________3. He is an employee whose stay in the company is indefinite.

_________4. He is an employee whose stays in the company is covered by an agreement.
__________5. It is the process of attracting potential applicants to apply for a position in a
company.
EVOLUTION OF MANAGEMENT and MANAGING THE HUMAN RESOURCE
Topic
Discussion:
What is Theory?
 Is a coherent group of assumptions that explains the relationship between two
or more observable facts and to provide a sound basis for predicting future
event.
What is Classical Approaches?

 Provide the foundation for management and organization as they exist today.
What is Contemporary Approaches?

 Represent the cornerstones of modern management thoughts.
Who are the Writers Management Theorists?

1. Barnard, Chester- observed the people in the organization come together to achieve
goals that they cannot achieve alone and that organizations can operate efficiently and
survive the difficult times if goals are kept in balance with the needs of the individuals
working for such goals.
60
2. Deming, Edwards- he introduced the concepts of total quality management which
means quality is the concern of everybody in the organization from the directors down
to the rank and file.
3. Drucker, Peter- he is a modern management thinker who introduced the concept of
efficiency and effectiveness.
4. Follet, Mary- she defined management as “the art of getting things done through
people”.
5. Gantt, Henry- an industrial engineer who introduced the “bonus” system as conceived
by Frederick Taylor.
6. Gilbreth, Frank and Lilian- they concluded in their “time and motion study”, that
motion and fatigue are intertwined, therefore, if motion is reduced, fatigue is also
reduced.
7. Mayo,Elton- study the “Hawthorne Effect”
8. McGregor, Douglas-he introduced theory X and Y about the managers perception of
the behaviour of the worker.
9. Munsterberg, Hugo- introduced the use of psychology in organizations emphasizing on
the behaviour of the people in the workplace.
10. Murphy, Edwards Jr.-nothing is as simple as it seems;everything takes longer than it
should;if anything can go wrong it will; if there are two or more ways of doing
something and one of them can lead to catastrophe, then someone will do it.
11. Ouchi, William- studied how Japanese business organizations are managed hoping to
find solutions to find the problems of American business.
12. Pareto, Vilfredo-a mathematician who introduced the 80/20 principle or theory of
distribution.
13. Peters , Thomas- he challenge managers to think beyond change.
14. Taylor, Frederick- the Father of Scientific Management
15. Waterman, Robert- introduced the MBWA technique o Management by walking
around.
16. Weber, Max-organizations operate on a formal and hierarchical structure that defines
lines of authority.
What are the sources of manpower?

 Job Fair- schools, industry organizations, the government, or private institutions
sponsor job fairs with the objective of helping job seekers and employers meet
each other.
 Employment agencies- this is the kind of service that helps entrepreneurs of
employers locate a job seeker for local or overseas employment.
 Internet- posting in the internet a need for an employer is no longer uncommon
these days given the computer technology.
 Through friends- friends usually recommend people they know with the aim of
helping them find jobs and normally friends help each other.
What are the tools used in Recruitment and Hiring?

1. Job Description
2. Job Specification
3. Application Form
4. Interview Questions
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5. Testing
What are the process of Recruitment and Hiring?
Preliminary interview
Filling-up of Application Form
Testing
Medical examination
Final interview
Orientation and submission of other Rejection

documents
What are the employee categories?

1. Casual /temporary-their stay should not reach six months.
2. Probationary-employees on probation are those intended for permanent position.
3. Contractual-employees work in organization based on a contract.
4. Permanent or regular employee-regular employees enjoy all the benefits mandated by
the law plus the benefits on the generosity of the employer.
What are the Benefits of the Employee?

 Bonuses
 13th month pay
 Allowances
 SSS employers contribution
 Free uniform
 Free accommodation free food free medical/dental assistance
 Free use of the company facilities like libraries and other.
Topic 5:
EVOLUTION OF MANAGEMENT and MANAGING THE HUMAN

RESOURCE
BOOKKEEPING
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TOPIC
OBJECTIVES:
a. Identify and differentiate the steps in bookkeeping;
b. Determine the content of financial statement;
c. Determine the importance of financial statement.
Activity: Partner task.

3. Choose a partner.
4. Search an example of an Income statement
Guide Questions:
10. What is Bookkeeping?
11. What are the steps in the Accounting process?
12. What are the 3 basic financial report?
13. What are the steps in the Accounting Cycle?
14. Who are the users of financial statement?
15. What are the uses of financial statement?
Assessment: Written test

Name the financial statement, whether Income Statement or Balance Sheet, where the following
account s are to be found. On the space provided, write “IS” for Income Statement or “BS” for
Balance sheet.
Account Titles
1. Rent ______________________
2. Office Equipment ______________________
3. Purchase returns/allowances ______________________
4. Cash in Bank ______________________
5. Accounts payable ______________________
6. Purchases Discount ______________________
7. Allowance for Bad Debts ______________________
8. Salaries and Wages ______________________
9. Unused Supplies ______________________
10. Loans Payable ______________________
DISCUSSIONS:
What is Bookkeeping?
Bookkeeping is record keeping. It is a task in the accounting process.
What is Accounting?
Is defined as an information system that measures, processes and communicate
information primarily financial n nature, about an identifiable entity for the purpose of making
economic decisions.
What are steps in the Accounting Process?
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1. Analyzing – is looking over transactions entered into, economic events that have taken
place, and determining their effects on the business.
2. Recording- involves the effects of transactions and events that have been analysed.
3. Classifying- is the sorting or grouping of like transactions and events into specific
account titles.
4. Summarizing- is the process that involves grouping together the various accounts
referred to in the classifying process.
5. Reporting- involves the preparation of financial summaries called financial statements.
6. Interpreting- involves the computation of and the study of relationship of figures form
the financial reports.
What are the three basic financial reports?

1. Balance Sheet- shows the assets, liabilities and owners’ equity or owners share in the
business as of a specific date.
2. Income Statement- shows the sales or service income, cost and expenses of the
business for a period of time.
3. Cash flow Statement- shows where the cash “came from” and where the cash “went to”
for a period of time.
Assets – are resources owned by the business, they are cash on hand, cash in banks, accounts
receivables, notes receivables, unused supplies, prepayments, land, building, equipment.
Liabilities- are payable to third parties, they may be accounts payable, notes payables, expenses
payables and mortgage payable.
Owners’ equity- is the share of the owners, it consists of owners’ investments (plus profit or
minus accumulated losses and withdrawals) retained in the business.
Sales and Service Income -are the revenue of gross income from sales of company goods and
services.
Cost of Sales or Cost of Service- are the direct costs of the products sold or the service
rendered.
Among the expenses are:

 Salaries Expense -salaries for service rendered by employees
 Utilities Expense-telephone, water, electricity used
 Rent Expense-rental for the use of equipment, office, building and land
spaces owned by others.
 Supplies expense- office supplies, selling supplies, factory supplies used
 Transportation Expense- fare for trips ad travels, cost of gasoline and oil used for
company vehicles.
 Representation Expense- amounts paid to restaurants, hotels and the like for eating
out with costumers and others.
 Depreciation Expense - that portion of the cost of building, vehicles and equipment that
is allocated as expense for an accounting period.
 Interest Expense- interest on debts or money borrowed.
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What are the steps in the Accounting Cycle?
1. Journalizing- journalize the economic transactions and events.
2. Posting- post to the general ledger, the journal entries in number 1.
3. Trial Balance- prepare the trial balance from the general ledger.
4. Adjusting – adjust the ledger balances
5. Financial statements- make income statement and balance sheet from the adjusted
trial balance.
6. Closing- close or transfer the income and expense accounts to “income and expense
summary account” and the latter account to owners’ equity.
7. Post-Closing Trial Balance – make a trial balance of all assets, liabilities and owners’
equity accounts after having closed the income and expense accounts.
8. Revising- reverse some adjusting entries to prepare them for a new accounting period.
Users and Uses of Financial Statements

a) Investors - to determine whether to buy, hold or sell their investments in equity
ownership in the business. To assess the ability of the investee to pay dividends or to
pay return to the investors.
b) Employees – to determine stability and profitability of employers. To determine the
ability of the employers to pay salaries and fringe benefits.
c) Lenders – to determine the ability of the borrowers to pay on time, the loans granted to
them by the creditors.
d) Suppliers- to determine the ability of the costumer to pay debts as they fall due. To
determine the ability of the customer to remain as a continuing buyer.
e) Customers- to determine the ability of the enterprise to be a continuing source of
supply. To determine the ability of the company to exist over a long period of time.
f) Government Agencies- to determine the capacity of the enterprise to pay taxes and its
tax compliance, to provide the basis for monitoring and regulating the activities of
enterprises and individuals.
g) Public- to determine the activities of the enterprise. To determine contribution to the
economy in the form of: (1) number of employees, (2) ownership of assets, (3) process
of their products, (4) patronage of local suppliers (5) patronage by customers.
h) Management- to determine the activities of the enterprise for planning, organizing,
leading, and controlling.
Accounting for Cash

Cash consist of any medium of exchange that banks accept for deposits. Acceptability by
banks is attest for inclusions of an item as cash. Cash items included coins, paper money, checks,
bank draft, and postal money orders. Checks may be personal, corporate, certified, cashier’s
manager’s check. However all these checks should be currently dated: not post-dated nor stale.
A check is post-dated when date is after the current date and stale when the date is very much
earlier than the current date, usually six months or more. Cash can be in “Petty Cash”, “Cash on
Hand”, and “Cash in Bank” accounts. In place of the “Cash in Bank” account title, the name of the
bank may be used, for example “Union Bank”. The account may also be titled “Cash”.
Accounting for Petty Cash Fund
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There are some payments that may not be conveniently made with checks, because the
payment has to be done immediately and the amount involved is very small. For this type of
payments, the accounting requires the setting up of Petty Cash Fund. The Petty Cash Fund is an
amount of money held by a company employee called petty cash custodian. A check is issued in
favour of the petty cash custodian, which check is enchased with the bank and the proceeds of
the encashment which is in the form of coins and peso bills is put in a petty cash box held by
petty cash custodian. The petty cash custodian is the person in charge of the fund safekeeping and
disbursements.
Accounting for Service Income, Sales and Collections
The supporting documents for “Service Income” are the “Cash slips” and “Charge Slips”, for
“Sales”, the “Sales Invoices” and for Cash Collections, the “Cash Slips” and “Official Receipts”. In a
service entity, as soon as the service has been rendered, the entity can already recognize the
Service Income. There arises an income (credit) in Service Income account and an increase (debit)
in asset “cash” when cash is received.
Accounting for Sales Discounts, Returns and Allowances
Sales may be reduced by discounts, returns and allowances. There are two types of
discounts, the trade discounts and the cash discounts.
1. Trade Discounts- are the reductions from price lists. These are negotiated discounts
which are deducted from listed price lists. The charge slips or sales invoices show the
net amounts after deducting the trade discounts.
2. Cash Discounts- are the amounts deducted from accounts receivable and sales to
encourage customers (debtors) to pay their suppliers (creditors) promptly or within the
discount period.
Accounting for Payments of Expenses

Expenses are grouped into selling expenses and general and administrative expenses.
These expenses are different from “cost of good sold” for a trading or merchandising businesses
and from the “cost of goods manufactured and sold” for a manufacturing business.
Accounting for Payroll
One of the major essential areas for accounting is the compensation of employees. The
employer is required to keep complete and accurate records of employees’ salaries and wages.
The records are to be kept over a long period of time. Government units have direct link to the
record keeping responsibilities of entities.
These government units are the
1. Bureau of Internal Revenue (BIR)
2. Social Security System (SSS)
3. Philhealth
4. Home Development Mutual Fund (“Pagibig”)
There are mandatory payroll deductions that are remitted to these government units. On a
long term, employees will keep on coming back to the employer for the certifications of
employment and certifications of contributions to these government entities. When the
employee files his income tax return, he needs to present the documents stating the income tax
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withheld from his salaries by his employer. When an employee gets loans from the SSS or from
the Pagibig, he needs to get certification of remittances from his employers. When an employee
or his dependents are hospitalized, he needs to get certification of remittances to Philhealth
from his employer.
Accounting for Purchase of Merchandise and Payments
The word purchase is generic term to mean buy or to acquire. We have previously used
this in our illustrations of cash payments for the acquisition of office equipment’s, office
supplies, gasoline, and newspapers. At this point the limited used of “Purchases” account is
introduced. Purchases as an account title means good bought for the purpose of resale without
any change in the physical form. The business engaged in this activity is called merchandising
companies or trading entities. The account “Purchases” is debited when goods are acquired on
cash basis or on account. There may be discounts on buying just as there are discounts on
selling.
Special Journals and Subsidiary Ledgers.
The journals are:
(a) Sales journal for sales
(b) Purchases journals for purchase of merchandise
(c) Cash receipts journal for cash receipts
(d) Cash payments or disbursements journal for cash payments
(e) General journal
Subsidiary Ledgers
Are the accounts (like boxes) where increases and decreases in the individual accounts
usually for accounts receivable and accounts payable are posted.
Ageing schedules of Accounts Receivable
Periodically, usually at end of month, an ageing schedule of accounts receivable is
prepared. This will enable the company to know the total amount of their accounts receivable,
the customers from whom the amounts are due and the age of the accounts receivable whether
current or overdue. The collection department uses the schedule in following up collections
from customers.
Topic 6:
TAXATION
TAXATION
TOPIC
OBJECTIVES:
a. Explain the fundamentals of taxation;
b. Determine Value Added Tax and its effect on invoicing to customers;
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c. Explain the importance of knowledge of business law and taxation;
d. Explain the value of registering, copyrights, patents and trademarks.

1. Ask your parents, relatives and friends what taxes they are paying
2. Give an example of tax forms.
Guide Questions:
1. What is Taxation?
2. What are the essential characteristics of tax?
3. What are the kinds of National Internal Revenue Taxes?
4. What is income tax on businesses?
5. What is Value Added Tax?
6. What are the percentage taxes?
Assessment: Essay 5 points each

1. What is the importance of knowing the taxation?
2. Is it important to pay the right taxes at the right amount and at the right time? Why?

Discussions:
Taxation is the inherent power of the state to demand contributions for public purpose or
purposes.
Taxes are the enforced proportional contributions from persons and property levied by the law
making body of the state by virtue of its sovereignty for the support of the government and all
public needs.
It is important to pay the right taxes at the right amount and at the right time. The government
need taxes to finance its functions. For the entrepreneur paying the right tax at the right amount
at the right time following advantages are derived:
(a) Saves the tax payer the burden of penalties
(b) Helps in sustaining the life of the business.
Tax consciousness should be a major concern of every business person. Even when accountants
are available for consultation, it is important that a taxpayer knows foe the minimum the basic
of taxation. Taxes are national and local. National taxes are imposed by the national government
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and are embodied in the National Internal Revenue Code (NIRC) and Tariff and Customs Code.
Local Taxes are imposed by the local governments like those embodied by the Local
Government Code. Sometimes, the decision where to locate the business is influenced by the
differences in the local taxes.
The Essential characteristics of tax are:
1. It is an enforced contribution
2. It is generally payable in money
3. Is it proportional in character
4. It is levied on person or property
5. It is levied by the state which has jurisdiction over the person or property
6. It is levied by the law-making body of the state
7. It is levied for public purpose or purposes
8. It is commonly required to be paid at regular periods or intervals.
Taxes are different from license or permit fee. License fee or permit fee like the mayor’s permit:
1. Are legal compensation or reward for an offices for specific services
2. Are imposed for regulations
3. Involves police power
4. Are limited to the necessary expense of inspection and regulation
5. Are imposed on the right exercise privilege
Kinds of National Internal Revenue Taxes

The following are national internal revenue taxes that businesses have to pay:
1. Income tax
2. Estate and donor’s taxes
3. Value added tax (VAT)
4. Percentage taxes
5. Excise taxes of certain goods
6. Documentary stamp taxes
7. Such other taxes that may be imposed by law and collected by the Bureau of Internal
Revenue (BIR)
Periodic tax filing and/or payment requirements on businesses.

1. Quarterly income tax
2. Annual income tax
3. Monthly value added tax
4. Quarterly value added tax
5. Monthly withholding tax
6. Annual withholding tax
7. Information return for income payments not subjected to withholding tax
8. Community tax
9. Real estate (property) tax
Income tax on Business
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Taxes on business are dependent on the organization whether sole proprietorship,
partnership or corporation.
1. The sole proprietorship is subject to the graduated tax on income for a calendar year
which is from January 1 to December 31. The deadline for filing final income tax return
for the calendar year is April 15 of the year that follows. If the taxpayer is filing and
paying for the calendar year January 1 to December 31, 20X5, the deadline is April 15,
20X6 for filing the final income tax return and final payment of income tax due. At the
end of each of the calendar quarters the sole proprietor files quarterly income tax
returns at the corresponding incomes tax due. The following illustration is a summary of
the income tax for four calendar quarters. The tax formula is illustrated as follows for
taxpayers Fernando Santos.
Gross income for 20X5 2,000,000

Less deductions for cost of sales - 1,100,000
Expenses - 400,000
Net Income 500,000
Less personal exemptions
(a) As married taxpayers - 32,000
(b) One dependent child - 8,000
Taxable Income subject to the graduated

Income tax rate for individual tax payers 460,000
Based on the following tax table, the 460,000 taxable income is taxed in bracket number 6. The
tax due is:
50,000 + 30% (460,000- 250,000)
Or 50,000 + 30 % (210,000)
Or 50,000 +63,000
Or 113,000
Graduated Income Tax Rated for Individuals
On taxable income of :
1. Not over 10,000 5%

2. Over 10,000 but not over 30,000 500+10% of excess over 10,000
3. Over 30,000 but not over 70,000 2,500+15% over 70,000
4. Over 70,000 but not over 140,000 8,500+20% of excess over 140,000
5. Over 140,000 but not over 250,000 22,500+ 25% of excess over 250,000
6. Over 250,000 but not over 500,000 50,000+30% of excess over 500,000
7. Over 500,000
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2. The Corporations and the Partnerships (other than professional partnerships) are taxed
at 32% of taxable income. Assume that the taxpayer in number 1 is Fernando Santos
Corporation. The corporation income tax is computed on the taxable income which is
500,000 not 460,000. The income tax due for the year 32% of 500,000. The income tax
due is 160,000. The tax due from the corporation is 160,000 while the tax due when the
business is a sole proprietorship s only 113,000.
Value Added Tax

 The income tax is a national tax. It is payable to the national government. Another
national tax is the Value Added Tax (VAT).the VAT also called Expanded Value Added
Tax (E-VAT) is another national tax,it is a tax which is a percentage of selling price.
 VAT is a tax on consumption levied on the sale, barter, exchange or lease of goods or
properties and services in the Philippines and on importation of goods into the
Philippines.
 The seller is the one statutorily liable for the payment of the tax but the amount of the
tax may be shifted or passed on the buyer, transferee or lessees of the goods, properties
or services. This rule shall be likewise apply to existing contracts of sale or lease of
goods, properties or services that the time of the effectively of RA No. 9337. However, in
the case if importations, the importer is the one liable for the VAT.
 On the first implementation of VAT it was computed at 10% of the selling price of the
product. the VAT was subsequently increased to 12% For Example: a SONY TV set is
sold by Anson’s Emporium at 20,000. The customer pays 22,400 is the output VAT. If
Anson’s has input VAT, the cash remittance may be lesser than 2,400. Reporting to and
payment of VAT is made monthly. There are some small taxpayers and some products
that are exempted from VAT. Among the VAT exempt commodities are:
 Agricultural and marine products in their originals state such as vegetables,
meat, fish, fruits, eggs and rice
 Agricultural and marine products in their original state such as vegetables, meat,
fruits, eggs and rice.
 Lease of residential houses not exceeding 10,000 monthly
 Educational service rendered by both public and private educational institutions
 Books, newspapers and magazines
 Sales of persons and establishments earning not more than 1.5 million annually,
which could include sari-sari stores, carinderias and street vendors.
Percentage Taxes
Percentage taxes are taxes measured in percentage of gross selling price or gross value
in money of good sold, bartered, exchanged, or imported, or gross receipts or earning derived
by any person engaged in the sale of services. Percentage taxes are privilege taxes. Percentage
are valued-added tax are imposed in the privilege to sell commodities or service.
Services subject to percentage tax are enumerated below:
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(1) Sale or lease of good or properties or the performance of the service of non-VAT-
registered persons, other than the transaction mentioned in paragraph(A) to not
exceed the amount of One Million Five Hundred Thousand Pesos (1,500,000.00)
(2) Services rendered by domestic common carries by land, for the transport of the
passengers and keepers garages;
(3) Services rendered by international air/shipping carriers;
(4) Services rendered by franchise grantees of radio/or television broadcasting
whose annual gross receipts of the preceding year do not exceed Ten Millions Pesos
(10,000,000.00), and by franchise grantees of gas and water utilities;
(5) Services rendered for overseas dispatch, message of conversation originating
from the Philippines;
(6) Services rendered by any person, company or corporation (except purely
cooperative companies or associations) doing life insurance business of any sort in
the Philippines;
(7) Service rendered by fires, marine or miscellaneous insurance against foreigner
insurance companies;
(8) Services of proprietors, lessees, or operators of cockpits, cabarets, night or day
clubs, boxing exhibitions, professionals basketball games, Jai-alai and race tracks;
(9) Receipts on sale, barter or exchange of shares of stock listed and traded through
the local stock-exchange or through initial public offering.
Local governments like Makati City or the Municipality of Baliuag, Bulacan may impose
local business taxes. However, the local government exempt small business to motivate
more members of the community to become entrepreneurs.
Topic 7:
BUSINESS LAW
BUSINESS LAW
TOPIC
OBJECTIVES:
a. Identify what is Business Law;
b. Differentiate copyright, trademark and patent.

1. Get yourself a partner.
2. Search an example of an bank check
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3. Make a simple contract with your partner; you are free to choose the subject
matter on the contract.
Guide Questions:
1. What is Law?
2. What are the following characteristics of legal law?
3. What are the sources of legal law?
4. What is Patent?
5. What is copyright?
6. What is Labor?
7. What is trademark?
Assessment: Essay (5 points each)

1. Why is it important to know the business law?
2. Why is that the person going into business should know the value of Labor?

DISCUSSIONS;
Law means any rule of action or any system of uniformity. Law my be promulgated and
enforced by the state (legal sense) or law maybe in the non- legal sense as in
1. Divine law
2. Natural law
3. Moral law’
4. Physical law
Legal law has the following characteristics:

1. It is a rule of conduct
2. It is obligatory
3. It is promulgated by legitimate authority
4. It is for common observance and authority.
The sources of Legal Law are:

1. Constitution
2. Legislation
3. Administrative or executive orders, regulations and rulings
4. Judicial decisions
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5. Custom
6. Principles of justice and equity
7. Religion
Entrepreneurs should be knowledgeable of business law. This true even when lawyers
accountants and consultants are readily available to service the business persons. Knowledge of
business law is important in deciding:
1. On the form of business organization whether sole proprietorship, partnership or
corporation
2. On the kind of products to deal in
3. Om the location of the business
4. On whether to transact on cash basis or with disbursement checks or on account
5. On borrowing on mortgages
6. On character loans or loans with collaterals
7. On promissory notes, bank checks and other negotiable instruments.
8. On partnering with local citizens or with foreigners
9. On local or foreign transactions
10. On franchising or start-up ventures
11. On dealing with debtors or creditors
12. On selling on consignments
13. On leasing or outright purchase
The business person will somehow deal, even in their simplest forms, with laws on:
1. Partnership and corporation
2. Obligations and contracts
3. Negotiable instruments
4. Sales, agency and credit transactions
5. Taxation
6. Labor
Knowledge of Law on Obligations and Contracts
 Business person will somehow be parties with contracts. They need to sign contracts for
services, contract for rentals, contracts for buying or selling called Deed of sale. Basic
knowledge of English or the dialect with which agreements are written is all that is
needed to understand the contracts. If the proprietor needs clarification, he may seek
the services of a lawyer. The Business person may also refer to book for the provisions
of the Civil Code of the Philippines on obligations and contracts which are made simple
by some authors and primarily written for non-lawyers to understand.
 The law on obligations and contract is contained in book IV of the Civil Code of he
Philippines.
 The first three deal with Persons and Family Relations (Book 1); Property (Book 2); and
Different Modes of Acquiring Property (Book 3).
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 Article 1156 says: “An Obligation is a juridical necessity to give, to do or not to do”;
 According to Article 1305, Contract is a “meeting of minds between two persons
whereby one binds himself, with respect to the other, to give something or to render some
service”
Labor
A person going into business should know the value of labor--- labor being one of the
essentials in the trading and manufacturing of tangible products and the rendering of
services. The Department of Labor and Employment (DOLE) is responsible for the
regulations of employment. Its authority concerns:
1. Promotions of employment and apprenticeship
2. Workers protection and welfare
3. Promotions and maintenance of industrial peace based on social justice.
The Labor Code of the Philippines contains the labor policies relating to terms and
conditions of employment. Included in the Labor Code are:
1. Workweek and working hours
2. Vacations
3. Special leave
4. Holidays
5. Employment of minors
6. Hiring policies
7. Termination of employment
8. Workplace safety
9. Minimum wage
10. Social security benefits
11. Medical benefits
12. Workers compensation benefits
13. Bonus and additional benefits
14. Worker’s rights.
Intellectual Property Rights

Early in the life of the business, the entrepreneur should be conscious of the need to the
protect his trade name, trademark, logos and product content and design. Philippine
laws protect intellectual and industrial property rights. Trade names are registered with
the Department of Trade and Industry; copyright with the National Library and patents
Office right to use the names, trademarks, logos and exclusive right to manufacture
patented product. The definitions of terms are:
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1. Copyright is the body of law that grant authors, artists and other creators
protection for their literary and artistic creations which covers literary works,
musical works, works of arts, maps and technical drawings, photographic works,
motion pictures, computers programs and multimedia products. Protection is
acquired at the moment of creation of the work and deposit of copies with
National Library and the Library of the Supreme Court is Encourage to obtain a
certificate that can be used as prima facie evidence for prosecution of
infringement.
2. Patent is statutory grant by government which confers to an inventor or his legal
successor in return for the disclosure of the invention of the public, the right for
a limited period of time to exclude others from making, using the territory of the
country that grants the patent
3. Trademark is a distinguishing mark, name, or symbol used to identify a product.
Topic 7:
BUSINESS ETHICS
BUSINESS ETHICS
TOPIC
OBJECTIVES:
a. Appreciate the value of social and ethical responsibility in the conduct of business.
b. Apply social and ethical practices
c. Appreciate the advocacies on social and ethical responsibilities of persons and
companies.
Activity:
1. Interview a businessman in your community and find out how he practices ethics
and social responsibility in business.
Guide Questions:
1. How can businessman apply social responsibility in the conduct of their business?
2. What is the importance of ethics and business?
Assessment: Written test.
On the space provided, indicate a check mark () if the following statement is correct and an (X)
mark if it is wrong.
____1. To be able to sell more and thereby earn more, add rice washing to vinegar for sale.
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____2. The needle of the weighing scale could be adjusted to maximize the weight with less of the
commodity.
____3. Ask the employees to sign the payroll slip that their wage is in accordance with the
minimum wage law even if what they receive is less.
_____4. Provide employees with a lounge where they can relax during lunch break.
_____5. Treat the waste water from the factory before allowing it to flow out into the river.

DISCUSSIONS:
 Ethics is a set of moral principles or values. Ethics may be general or professional.

 General Ethics guides the individual on proper personal conduct; proper personal
conduct that is imposed by the society and moral duties.
 Professional ethics is one self-imposed by professionals even above the requirements
of the law.
Corporate Social Responsibilities

Corporate social responsibilities have become buzzwords in our Philippines setting. The
same is true with corporate citizenship.
 Corporate social responsibility or corporate citizenship is a business principles that

the long term interest of business are best served when its profitably and growth are
accomplished alongside the development of communities, the protection and
sustainability of the environment and the improvement of people’s quality of life.
 Social responsibilities are ethical obligations to customers, employees and the public.
CSR is manifested by:

1. A working environment characterized by programs on health and safety, family and
welfare, equal opportunity rewards and legal reasonable working hours.
2. Harmonious relationship between the business and the community.
3. Business concern for sustainable environment
4. Contributions to programs that address social needs beyond the immediate
community. The business becomes a good citizen, not only of the community where
it is located, but also of the country of the world.
The practice of corporate corporate social responsibility provides the following benefits.
1. Promotes goodwill and enhances the business reputation
2. Enhances costumer loyalty
3. Improves employee commitment and productivity
4. Provide tax benefits
5. Provides continuing harmonious relationship with community official and leaders
6. Provide corporate name awareness
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7. Promotes product recognition
Social desirable and ethical practices that may not entail additional cost or money include:
1. Honesty in advertising truth in advertising
2. Production and distribution of organically grown fruits and vegetables and other food
products.
3. Volunteering in the promotion of waste management like recycling and preservation of
the environment
4. Boycotting business products, TV stations and other media that promote
advertisements that promote sex and objectionable shows.
5. Rendering an honest days work among the employees
6. Formulations of and compliance with the business code of ethics.
 An organization’s code of ethics is a formal document that states organizations
primary values and the ethical rules it expects employees to follow.
 Going back to the list of stockholders, let it not be forgotten that the business also
has its responsibility to its:
1. Employees for decent wages
2. Customers for safe products
3. Suppliers for fair deals
4. Investors and owners for fair returns on their investments.
 Religion of the Businessman

The following is a result of a conference of church leaders and businessman.
The religion of the businessman could be stated simply: it is through the pursuit of
business activity that businessman best fulfils his social responsibility. By running a firm
efficiently, he creates employment, provides product for the market place and generates
a fair return on investment for stockholders. It is through the sum total of all business
activity, that human needs are met and the environment uplifted. Should any marginal
social problems arise, these are the responsibility of government. It is government’s
further responsibility to provide a legal tax environment that leaves business free to
pursue its proper goals
Josephson Institute for the Advancement of Ethics
The Josephson Institute is a non-profit foundation established to encourage

ethical conduct of professional in the field of government, law, medicine, business,
accounting and journalism. The set of principle prescribed by the foundation are:
1. Honesty. Be truthful, sincere, forthright, straight forward, frank candid.
2. Integrity. Be principled, honorable, upright, courageous and act on convictions.
3. Promise Keeping. Be worthy of trust, keep promises, fulfil commitment, abide by
the spirit as well as the letter of an agreement.
4. Loyalty. Be faithful and loyal to family ,friends, employers, client, and country.
Safeguard the ability to make independent professionals judgement by scrupulously
avoiding undue influences and conflict of interest.
78
5. Fairness. Be fair and open minded, be willing to admit error and, where
appropriate, change positions and beliefs, demonstrate a commitment to justice, the
equal treatment of individuals, tolerance for and acceptance of diversity.
6. Caring for Others. Be, caring, kind and compassionate; share, by giving, be of
service others; help those in need and avoid harming others.
7. Respect for Others. Demonstrate respect for human dignity, privacy, and the right
self-determination of all people, be courteous, prompt, and decent; provide others
with the information they need to make informed decisions about their own lives.
8. Responsible Citizenship. Obey just laws; if a law is unjust, openly protest it; exercise
all democratic rights and privileges responsibly by participation, social
consciousness and public service; when in a position of leadership or authority,
openly respect and democratic processes of decision making, avoid unnecessary
secrecy or concealment of information, and assure that others have all the
information they need to make intelligent choices and exercise their right.
9. Pursuit of Excellence. Pursue excellence in all matters; in meeting your personal
and professional responsibilities, be diligent, reliable, industrious, and committed;
perform all the tasks to the best of your ability, develop and maintain a high degree
of competence, be well informed and well prepared.
10. Accountability. Be accountable; accept responsibility of decisions, for the
foreseeable consequences of actions and inactions, and for setting an example for
others. Parents, employers, teacher, many professionals and public officials have a
special obligation to lead by example, to safeguard and advance the integrity and
reputation of their families, companies, professions and the government itself; an
ethically sensitive individual avoid even the appearance of impropriety and takes
whatever actions are necessary to correct or prevent inappropriate conduct of
others.
We need ethics to live in an orderly manner. Because of the importance of ethic

in our day to day living, some are put into law. However, it may be difficult for some to
be legislated. Certain individuals act unethically because their ethical standards differ
from society or because he chooses to selfish. Professionals, especially those dealing
businesses and businessmen often face the difficult task of pursuing ethical practices. .
79
POST -TEST
Test I.
Multiple Choice. Select the best answer and encircle the letter of your answer.
1. Creating of something of value means?
a) Entrepreneurs create products or services that can be offered for a price
b) devote their time and effort
c) Possibility to fail
d) losing of interest
2. What is Entrepreneur?
a) a person who starts business or operates business
b) the process of creating something new.
c) getting rewards.
d) none of the above
3. What is Entrepreneurship?.
a) the process of creating something new with value.
b) money
c) freedom
d) Rewards
4. What are the characteristics of an Opportunity seeker?
. a) Accepts full responsibility for problems encountered
80
b.) Helps own employees to get the job done
c.) Seeks to satisfy customers
d) all of the above
5. What is Trading?
a) buying of goods and selling the same without change in form
b) the process of converting raw materials into finished product
c) are what you see in the completed product.
d) goods are sold in small amount.
6. When goods are sold in small quantities, it is called?
a) trading b) merchandising c) retailing d) manufacturing
7. It is the process of converting raw materials into finished products.
a) trading b) manufacturing c) retailing d) merchandising
8. It is what is paid for the product purchased which is intended for resale or manufacturing
into another product.
a) profit b) cost c) mark-up d) none of the above
9. It carries a wide variety of product line usually clothing, soes, bags, beauty products, home
furnishing and household goods.
a) supermarket b) Department store c) superstores d) direct selling
10. Sell variety of food and household products.
a) supermarket b) department store c)superstores d) direct selling
11. It is larger than the supermarket and department stores have emerged.
a) superstores b) department store c)factory outlet d) direct selling
12. A stores that carry a variety of models for one kind or limited product line..
a) superstores b) convenience store c)factory outlet d) direct selling
13. It is the process of converting raw materials into finish products.
a) Manufacturing b) retailing c) cost d) profit
14. It is a labor used in manufacturing a product which can be charged directly to that particular
product.
a) Direct materials b) direct labor c) factory overhead d) indirect materials
15. It refers to human effort used in the factory which cannot be identified as pertaining to a
particular product.
a) Direct materials b) direct labor c) factory overhead d) indirect labor
16. It is doing work for others.
a) service business b) retailing c) manufacturing d) performing
81
17. It is a way by which goals are attained.
a) Strategy b) analyzing c) producing d) communicating
18. This is being practiced by big foreign corporations by allowing their company’s name to be
used by local entrepreneurs to give their business a local reputation.
19. This means selling products to another country.
20. Entering an agreement with a foreign company to do business in that country would be
beneficial to the local entrepreneur .
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ENTREPRENEURSHIP

MERCY JOY S. MERCY

BC-HE 104- BEAUTY CARE (NAIL CARE)

At the end of the semester, the students

SLSU Vision A high quality corporate University of Science,

SLSU Mission SLSU will develop science, technology and

Republic of the Philippines

WHO IS AN ENTREPRENEUR, ENTREPRENEURIAL

Bachelor of Science in Technology Livelihood Education (BTLED)-

1. Identify who is an Entrepreneur?

Let’s Begin (Activity)

An Entrepreneur is a person who starts and or or operates a business. An

Employment and Income

Savings and Taxes

Figure 1-1. Vicious Cycle of Development

Employers Suppliers of products

Role of Entrepreneurship in Economic Growth

Entrepreneurs in Small and Medium Industries

This Time, You Try

1. Identify entrepreneurial competencies.

Let’s Begin (Activity)

1. What are your strengths and weaknesses?

We’re Getting There!

Strengths and Weaknesses

Reminder to the new Entrepreneur

This Time, You Try

Character is what remains when a

In the Philippines, extensive research by the Small Enterprise Research and

 Identify if it is employment characteristics or employment characteristics.

Observe the pictures presented below:

We’re Getting There!

4. Government Support/Assistance Programs. The goal of any government is economic

The Entrepreneurial Personality

This Time, You Try

Great men all started from the first step .

Entrepreneurship by Cristina B. Banastao and Solita A. Frrias.

BC-HE 104- BEAUTY CARE (NAIL CARE)

SLSU Vision A high quality corporate University of Science,

SLSU Mission SLSU will develop science, technology and

Bachelor of Science in Technology Livelihood Education (BTLED)-

Let’s Begin (Activity)

TYPES OF ENTREPRENEURIAL BUSINESS

2. MANUFACTURING- is the process of converting raw materials into finished

SUPER FACTOR DIRECT

FIGURE 1 KINDS OF RETAILERS

DIFFERENT TYPES OF TRADING BUSINESS

Effects of Trading in Business

What is the Impact of Trading to Business?

 Procurement of new materials  retail

Importance of selling in the Economy

PRODUCER/SELLER CUSTOMER /BUYER

GOODS AND SERVICES

FIGURE 3 : PRODUCER AND CUSTOMER RELATIONSHIP

This Time, You Try

3. What benefits can your family get out of the retailers?

Let’s Begin (Activity)

To start, Associate related ideas on the pictures.

We’re Getting There!

Role of Manufacturing in Economic Development