Week-1

Business
Ethics
Allyssa Mae D. Nido
12- ABM (AYALA)
 What I Have Learned

1. Define business and its forms

using your own words.
 From my perspective, a company is an
organization or an entity that makes a
profit by selling goods or services. A
business's critical job is to operate to
gain profits. We are all aware that
some firms are not profitable, yet their
primary objective is to earn profits.
There are three fundamental
business organization
structures.
 Sole Proprietorship

1 It is a sort of business 3 The following are the key

where the owner and disadvantages of operating
operator are the same people as a sole proprietorship:
without any legal distinction Liability is limitless: If you
between the business and conduct your small business
owner. as a sole proprietorship, you
A sole proprietorship is the are personally liable for all
2 most manageable company of the responsibilities and
structure to form since it is actions of the company.
not a legal organization and
does not need any
paperwork. It does not exist
apart from its owner.
Legally, the firm and its
owner are synonymous.
 CORPORATION
A corporation is an independent legal entity from its
owners. In other words, it exists as a separate legal
entity from its investors. Individuals and businesses
share several rights and duties. They are authorized
to negotiate into contracts, lend and borrow money,
sue and be sued, employ people, own property, and pay
taxes.

The benefits of creating a company include liability

protection for individuals, business stability and
continuity, and easier access to funding. The downsides
of a corporation include the time commitment and
potential for double taxation and the having to adhere
to stringent formalities and rules.
 Partnership
A partnership is a business
structure in which two or
more individuals create an
association. Additionally, it is
a financial structure in which
members participate in the
gains and losses associated
with a commercial venture.
Partners are equally and
severally liable for the
partnership's debts due to
this profit-sharing
agreement.
A partnership is a form of market
organization in which two up to
more individuals create an
association. Additionally, it is a
financial structure in which
members participate in the gains
and losses associated with a
commercial venture. Partners are
separately and severally liable for
the partnership's debts due to this
profit-sharing agreement.
The disadvantages of a partnership include the
following:
Liability is infinite. As with a sole proprietorship,
general partners are individually accountable for
the partnership's debts and obligations. This joint
and several liability structures imply that creditors
may seek recovery from a single general partner for
the business's debts.
Self-employment taxation. The self-employment
tax is calculated on the portion of a partner's
ordinary income that is reported on a Schedule K-1.
This is a 15.3 percent tax on the firm's total profits
not exempt from these taxes (social security and
Medicare).
 2. In your own words,
differentiate sole
proprietorship, corporation, and
partnership.
 A sole proprietorship business in which the
individual proprietor is ultimately liable for the
acts of the business. A partnership comprises two
or more individuals who share responsibility for the
company's administration. Since corporations
operate independently of their owners, they are
one of the most easily identified commercial
organizations. Numerous owners may control an
organization.
 3. Why do people engage in
business? You may explain your
answer by providing an
example.
 People do engage in a business because their minds are
open to opportunities. Some people nowadays plan to run
a business but can’t do it because they are focusing on
“What if’s,” What if no one supports me? What if some
people make a judgment about my products? What if my
business did not go according to my plan? And what if I
waste my time, effort, and money on an unsuccessful
business. People willing to engage in a business must be
risk-takers because it is normal to feel afraid, expect the
worst, and find how you will overcome those challenges.
For Example:
Mia is so frustrated with working for eight hours a day at a coffee shop at a daily rate of
Php 150. Therefore she attempted to interview her best online seller buddy, Aliah. Aliah
works on her business every other day due to her inability to do it full-time. After all, she
had her kid to look after as well. Mia opened the discussion by asking Aliah how much
money she got every other day from online selling. Aliah answered that she earned
between Php 1,000 and Php 2,000 depending on the number of viewers on her online
selling. Mia is shocked by what she has heard and requests information about Aliah how
she did it. I participate in business to make profits and become rich; come to think of it, if
you work for someone else's industry or company, you are contributing to the owner's
riches; how about you? Yes, they pay you for your efforts, but just a fraction of what they
make. As long as you have a genuine desire to make real money and the abilities and
intelligence necessary to get consumers, this is a win-win scenario. Never believe anything
is impossible since a businessperson's true thinking is that even if something is impossible,
as long as you believe in yourself that you can, it is doable.
What I Can Do
A rich relative of yours tells you that he/she is willing to lend you one million pesos without any
1 interest and ask you to start a business. What kind of enterprise do you prefer? Describe it
briefly.

It will be my pleasure to accept that amount. I will invest this money in a business called
"Carpe Diem Photography" to capture the moment. I will catch the interests of our clients
by using advanced and updated equipment. Our professional photographers are artistic,
creative, and persevering. Carpe diem photography also offers in-house photography, in
which case they can get their pictures and prints simultaneously, using their desired
designs. It is a goal of Carpe Diem photography to meet and past the standards of the
clients through a frame, photo album, and simply printed pictures. Carpe Diem aims to
provide high-quality photos, gain the clients' trust, create the best possible outcome, and
develop a relationship and good reputation in serving our business. It is also our goal to
catch the attention of our clients, communicate with the clients and co-workers, and be
able to adapt and respond to any circumstances or conditions of the clients.
Directions: Create your business logo. Use a
separate sheet of paper for your drawing.