FORMS OF BUSINESS

ORGANIZATION
for Business Ethics and Social Responsibility
Senior High School (ABM)
Quarter 1 / Week 1

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 FOREWORD

This Self Learning Kit for Business Ethics and Social Responsibility
is an innovative tool designed exclusively for ABM students in the
Senior High School. It assists in understanding various business
concepts by providing students with real-life business applications
through a variety of realistic examples. It serves as a guide in
differentiating the forms of business organizations.
It is aligned with the BEC of the Department of Education
following the prescribed MELCs (Most Essential Learning
Competencies.
This Self-Learning Kit is divided into three parts.
What happened?
This section contains pre-activities that serve as springboards
and a pretest to determine if students are sufficiently prepared to
begin a new course of study.
What I Need to Know? (Discussion)
This section also contains the different forms of business
organizations. Examples are given that will help them appreciate the
importance of business organizations.
What I have Learned? (Evaluation/Post Test)
The exercises contained in this section measures student’s
understanding of key concepts of the forms of business organizations
are guaranteed to build skills and competence. These serve as a
diagnostic tool to identify the learners’ areas of strengths and
difficulties.

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LESSON

1 DIFFERENTIATING THE FORMS OF BUSINESS

ORGANIZATIONS

OBJECTIVES
At the end of the lesson, the learners are expected to:
K: identify the forms of business organizations;
S: differentiate the forms of business organizations; and
A:appreciate the importance of the forms of business
organizations.

LEARNING COMPETENCY:
Differentiate the forms of business organizations
(ABM_ESR12IIIa-d-1.1)

I. What Happened

PRE-ACTIVITY: PICTOWORD

Instruction: Form a word that describes the picture below.

Photo credits: Clipart

A N T C P R X O

A N I G B I Z O

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PRE-TEST:

Multiple Choice. Choose the letter that corresponds the correct answer. Write
your answer in your activity notebook.

1. Which of the following is a business owned by only one person and is the

simplest form of business organization?

A. sole proprietorship B. partnership

C. corporation D. cooperative
2. It is a business owned by two or more persons who contribute resources into
the entity.
A. sole proprietorship B. partnership
C. corporation D. general partnership
3. A business owned by two or more people, with a maximum of 20 owners, who
have agreed to share all assets, liabilities, profits, and losses of a company.
Which of the following best describe the statement?
A. sole proprietorship B. partnership
C. limited partnership D. general partnership
4. It requires two or more individuals agreeing to start a business where one or
more of the partners are liable only for the amount they have invested.
A. sole proprietorship B. partnership
C. limited partnership D. general partnership
5. Which among the form of business organization that has a separate legal

personality from its owners?

A. sole proprietorship B. partnership

C. corporation D. cooperative

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II. What You Need To Know
A business is an activity that is part and parcel of human society: it is an
entity in which economic resources or inputs, such as materials and labor, are
put together and processed to provide goods or services or outputs to
customers.
Businesses are usually complex enterprises involving major activities like
purchasing, manufacturing, marketing, advertising, selling, and accounting. The
objective of most businesses is to earn profit.
A business organization has different forms. It may take the form of a
proprietorship, partnership, corporation, or cooperative.

DISCUSSION
Forms of Business Organization

These are the basic forms of business ownership:

1. Sole Proprietorship

A sole proprietorship is a business owned by only one person. It is the

simplest form of business organization. It is easy to set-up and is the least costly
among all forms of ownership.

The sole proprietorship form is usually adopted by small business

entities. It’s a business that has no separate existence from the owner, as all
income and losses are taxed against their personal income tax return.

Compared to the other business organization methods, this option requires

the fewest number of documents to complete and file. Since everything funnels
back to the owner, there is no profit-sharing to sort through, making the whole
process very simple.

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Advantages
• Easy setup
• Full control

• You receive all of the profits

• Direct access to feedback

Disadvantages

• Unlimited liability

• Full responsibility

• High working capital demands

2. Partnership

A partnership is a business owned by two or more persons who contribute

resources into the entity. The partners divide the profits of the business among
themselves. Its chief characteristics are: (a) association of individuals; (b) mutual
agency; (c) limited life; (d) unlimited liability; and (e) co-ownership of property.

The association of individuals in a partnership may be based on as simple

an act as a handshake; however, it is preferable to state the agreement in
writing.

• A partnership is a legal entity for certain purposes.

• A partnership is an accounting entity for financial reporting

purposes.

• Net income of a partnership is not taxed as a separate entity.

Mutual agency means that an act of any partner is binding on all other
partners, so long as the act appears to be appropriate for the partnership. This is
true even when partners act beyond the scope of their authority. Partnerships

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have a limited life. Partnership dissolution occurs whenever a partner withdraws
or a new partner is admitted.

Each partner has unlimited liability. Each partner is personally and

individually liable for all partnership liabilities. Creditors’ claims attach first to
partnership assets and then to the personal resources of any partner,
irrespective of that partner’s capital in the company.

There are three forms of partnerships:

• General partnerships
• Limited partnership
• Joint ventures

In general partnerships, all partners have unlimited liability. In limited

partnerships, creditors cannot go after the personal assets of the limited
partners.

Each partnership shares similar features, though each has different

ownership and liability structures. In any partnership, each partner is required to
commit resources like capital, property, or tangible experiences such as skilled
work or labor in order to share in the business’s profits and losses.

As we’ll break down for each partnership, at least one partner is tasked
with making decisions the business’s day-to-day operations. While it is not
required legally, each partnership requires that a formal partnership agreement
is drafted. This document will lay out each partner’s ownership stake, liability
limitations, as well as their voting structures and how business decisions for the
company are to be made.

Now that we have a better understanding of partnerships, let’s learn more

about their specific forms.

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General Partnership
A business owned by two or more people, with a maximum of 20 owners,
who have agreed to share all assets, liabilities, profits, and losses of a company.
These partners carry unlimited liability, meaning their personal assets are on the
line and can be sued for the whole of the partnership’s business debts. Taxes,
however, do not flow through the partnership, meaning the partners are
responsible for their own tax liabilities, including any earnings made from the
partnership, on their personal income taxes.

Advantages
• More partners, more capital
• Added talent
• Divided responsibility

• Greater business networks

• Tax advantages
Disadvantages
• Unlimited liability
• Partners can disagree
• Profit is shared

To form a general partnership, there are 3 specific standards that need to be

met. Let’s take a look at them.

• The partnership needs to include two or more owners

• Each partner must be comfortable with unlimited liability

• Proof that the partnership exists via a formal partnership agreement

Compared to a corporation or an LLC, the costs of establishing a general

partnership are minimal and do not require as much paperwork. A general
partnership features many benefits including the flexibility to form the business as
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partners see fit. This flexibility can include the opportunity to closely oversee its
operations.

In a general partnership, each partner possesses agency powers,

enabling them to participate directly in the management of the business.
Agency powers allow partners to establish binding agreements, deals, and
contracts with other organizations and individuals that each partner is bound to
adhere by. It’s recommended that agreements like these be cleared before
being agreed upon, however.

Arriving at these decisions typically occur through majority vote amongst

all of the partners. Each partner’s vote holds the same weight though voting
privileges can be awarded to specific voters in the absence of a specific
partner. It’s crucial for each member of the organization to have their vote be
recognized, as every partner is held responsible in the event of inappropriate or
illegal activities.

When a partner passes away, the general partnership is typically

dissolved. The same occurs when one partner becomes unable to meet their
obligations or leaves the organization. Specifics can be written into the
partnership agreement that would allow the general partnership to continue
through the transfer or succession of ownership.

Limited Partnership

Establishing a limited partnership requires two or more individuals agreeing

to start a business where one or more of the partners are liable only for the
amount they have invested.

Clearly, what separates limited partnerships from other partnerships is that

partners can limit their liability. Limited partners, also known as silent partners,
have a stake in the company but do not have the ability to make management

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decisions. The remaining partners, known still as general partners, are responsible
for day-to-day operations and any financial obligations beyond their initial
investment.

Limited partners receive dividends based on the amount they’ve invested

in the business. Another difference between limited and general partners is that
they are not considered self-employed. As long as they remain outside of the
business’s operations, limited partners will not be subjected to self-employment
tax.

Advantages

• Share in profits and losses without needing to be involved in the business

• Limited personal financial risks for limited partners

• Taxed via your own income tax returns

• Easier to attract new investors

Disadvantages

• General partner(s) fully liable

• Limited partner(s) can assume general partner liability if they become

active in the business

• State taxes and fees

Joint Venture

A joint venture is an arrangement between two or more parties (often

established businesses) who have agreed to combine their resources in order to
accomplish a specific project. This arrangement remains valid until the
completion of a project or a certain period elapse.

Advantages

• Increased capacity and access to resources

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 • Shared liability with parties
• Access to new markets

Disadvantages

• Different visions for the joint venture

• Imbalanced inputs and outputs between parties

• Lack of communication could derail project

An example of a joint venture is the collaboration between Alphabet

(Google’s parent company) and Fiat Chrysler Automobiles. In May of 2016, the
two companies announced that they would be collaborating in an effort to
develop self-driving cars. While each could have certainly done this
independently, both partners decided they had a greater opportunity to
achieve their goals by working collaboratively.
Technically, a joint venture is not a partnership. Since the term partnership
is used to describe a single body of business formed by one or more individuals,
a joint venture may not formally fall into the same category.

With a joint venture, each party is responsible for the costs of the project
and will be associated with any profits or losses. It should be noted that while
each partner is responsible for the joint venture’s expenses, these costs remain
separate from their and their partner’s other business interests.

A joint venture agreement will establish the rights, obligations, and

objectives for the partnership and its members. The agreement will indicate how
much each partner contributed, where day-to-day responsibilities lie, and how
profits and losses will be handled.

Ideally, the partners should establish a new entity when forming a joint
venture. This will allow for the partners to have a clear sense of how taxes will be
paid. Through the joint venture agreement, the partners are able to declare
how the joint venture will pay its taxes.
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Before forming a joint venture, it’s important to answer the following questions:

• How many parties will be involved? What specific, essential skill does each
provide?

• What and how much is each party contributing? Who owns what?

• What is the scope of the joint venture (Where will you operate? What will
you solve? How will you accomplish this?)

• How will the joint venture be structured? Who is controlling and

managing?

• How will we operate once we’ve accomplished our initial goals?

• Who will work for the joint venture?

(Types of Business Organizations n.d.)

3. Corporation

A corporation is a business organization that has a separate legal

personality from its owners. Ownership in a stock corporation is represented
by shares of stock.

The owners (stockholders) enjoy limited liability but have limited

involvement in the company's operations. The board of directors, an elected
group from the stockholders, controls the activities of the corporation.

Unlike an actual person, a corporation can live on in perpetuity, as long it

is profitable. Shareholders are able to either sell or transfer their shares enabling
the corporation to live in the event of a cash out or death.

The characteristics that distinguish a corporation from proprietorships and

partnerships are:

• The corporation has separate legal existence from its owners.

• The stockholders have limited liability.

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 • Transferable ownership rights (ownership is in shares of stock).

• Ability to obtain capital (relative ease).

• The corporation can have a continuous life.

• The corporation is subject to numerous government regulations.

• The corporation must pay an income tax on its earnings, and the
stockholders are required to pay taxes on the dividends they receive: the
result is double taxation of distributed earnings.

In addition to those basic forms of business ownership, these are some other
types of organizations that are common today:

Limited Liability Company

More commonly known and referred to as an LLC, a limited liability

company is a business organizational structure that protects the owner’s
personal assets in the event of a business fault or accident.

Having your business structured as an LLC won’t fully prevent you from
being personally liable if it is determined that the owner has taken action that is
illegal, reckless, or fraudulent. Owners can also be held responsible if they have
not properly distinguished the activities of their company from own personal
interests.

Advantages
• Owner’s liability limited to their amount invested
• No minimum or maximum on the number of owners
• Owners can operate fully in the company
• Operating management flexibility
Disadvantages

• Increased organizational complexity

• Multiple tax classifications

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 The rules of an LLC are established by each state, meaning the rules for
each owner will differ depending on their location. You will need to file the
name of your LLC along with your articles of organization, with the state in which
you’ll operate.

It’s also possible that you will be asked to prepare an LLC operating
agreement stating each owner’s percentage of ownership in the company. This
operating agreement will also indicate each owner’s distribution of shares,
responsibilities, voting power, and the protocol in the event that the owner
wants to sell their stake in the business. (Types of Business Organizations n.d.)

Limited liability companies (LLCs) in the USA, are hybrid forms of business
that have characteristics of both a corporation and a partnership. An LLC is not
incorporated; hence, it is not considered a corporation. But, the owners enjoy
limited liability like in a corporation. An LLC may elect to be taxed as a sole
proprietorship, a partnership, or a corporation. (Types and Forms of Businesses, 2020)

Cooperative

A cooperative is a business organization owned by a group of individuals

and is operated for their mutual benefit. The persons making up the group are
called members. Cooperatives may be incorporated or unincorporated.

Some examples of cooperatives are water and electricity (utility) cooperatives,

cooperative banking, credit unions, and housing cooperatives. (Types and Forms of
Businesses, 2020)

Types of Cooperatives

Most simply, cooperatives can be categorized by their purpose; their

members procure from and/or provide goods and services to the cooperative.
For example, members of grocery cooperatives procure grocery items from their
cooperatives while members of worker cooperatives provide their labor to their

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cooperative. Sometimes, members provide goods and/or services to the
cooperative, as well as procuring goods and/or services; for example, members
of an arts and crafts cooperative can purchase supplies from the cooperative
and provide their artwork and labor to market their crafts through a cooperative
store.

Cooperatives operate in a broad variety of industries, including the following:

• Agricultural cooperatives help producers assure markets and supplies,

achieve economies of scale, and gain market power through jointly
marketing, bargaining, processing, and purchasing supplies and services.

• Arts and Crafts cooperatives help artists and crafts persons maximize their
earning potential and working conditions.

• Business cooperatives are formed by businesses to purchase supplies or

obtain services at a lower cost.

• Child Care and Preschool cooperatives provide high-quality enrichment

and educational programs for children and their families.

• Credit Unions provide at-cost financial services to a wide cross-section of

the population.

• Custodial and cleaning services cooperatives create employment

opportunities and provide the benefits of ownership for their worker-
members.

• Food cooperatives and buying clubs gain access to grocery products

using a consumer-directed approach.

• Hardware wholesaling cooperatives, like other business cooperatives,

allow independent businesses to be competitive by cutting expenses and
adding member services through joint purchasing and marketing.

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 • Housing cooperatives offer ownership options for the countrymen from all
income groups.

• Insurance cooperatives operate much like retail cooperatives except that

they provide insurance services instead of consumer goods.

• Student cooperatives are set up and run by students to meet specific

needs.

• Utility cooperatives provide utilities such as communication services,

electricity, and water to their members.

• Worker cooperatives create employment opportunities and provide the

benefits of ownership to members. (What is Cooperatives? n. d.)

II. What Have I Learned

SUM IT UP!
Forms of Business Organization
These are the basic forms of business ownership:

1. Sole Proprietorship

A sole proprietorship is a business owned by only one person. It is the

simplest form of business organization. It is easy to set-up and is the least costly
among all forms of ownership.

2. Partnership

A partnership is a business owned by two or more persons who contribute

resources into the entity. The partners divide the profits of the business among
themselves. Its chief characteristics are: (a) association of individuals; (b) mutual

Specific forms of partnership.

16
General Partnership
A business owned by two or more people, with a maximum of 20 owners,
who have agreed to share all assets, liabilities, profits, and losses of a company.
These partners carry unlimited liability, meaning their personal assets are on the
line and can be sued for the whole of the partnership’s business debts.

Limited Partnership

Establishing a limited partnership requires two or more individuals agreeing

to start a business where one or more of the partners are liable only for the
amount they have invested.

Joint Venture

A joint venture is an arrangement between two or more parties (often

established businesses) who have agreed to combine their resources to
accomplish a specific project. This arrangement remains valid until the
completion of a project or a certain period elapse.

3. Corporation

A corporation is a business organization that has a separate legal

personality from its owners. Ownership in a stock corporation is represented
by shares of stock.

In addition to those basic forms of business ownership, these are some other
types of organizations that are common today:

Limited Liability Company

More commonly known and referred to as an LLC, a limited liability

company is a business organizational structure that protects the owner’s
personal assets in the event of a business fault or accident.

Cooperative

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 A cooperative is a business organization owned by a group of individuals
and is operated for their mutual benefit. The persons making up the group are
called members.

POST TEST:
A. Multiple Choice. Choose the letter that corresponds the correct answer. Write
it in your activity notebook.

1.The proprietorship form of business organization __________________.

A. must have at least three owners

B. represents the largest number of businesses in the country

C. combines the records of the business with personal records of the

owner

D. is characterized by a legal distinction between the business as an

economic unit and the owner

2. The partnership form of business organization ________________________.

A. is a separate legal entity

B. is a common form of organization for service type of business

C. enjoys an unlimited life

D. has limited liability

3. A business organized as a corporation ___________________________.

A. is not a separate legal entity

B. requires that stockholders be personally liable for the debts of the

business

C. is owned by its stockholders

D. terminates when one of its original stockholders dies

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4. Which of the following is not an advantage of the corporate form of business
organization?

A. limited liability stockholders

B. transferability of ownership

C. unlimited personal liability for the stockholders

D. unlimited life

5. Abcede and Xyck met at the law school and decide to start a small law
practice after graduation. They agree to split revenues and expenses evenly.
Which among the common form of business organization for a business such
this?

A. joint venture B. partnership C. corporation D. proprietorship

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ADDITIONAL ACTIVITY

ESSAY. Read and understand each questions. Write your answer in your
notebook.

1. How are these forms of business organization differ from each other?
2. Explain in your own words and discuss the significance of each forms of
organization.
Rubric for Essay Writing
Points 5 4 3 2 1
Interesting Ideas are
Communicate Basic No thoughts
content with below the
Original Ideas information information is given to the
a fresh expected
well conveyed content.
perpective level
Sentences It is easy to Many
Clarity and Occasional A number of
flow together understand sentences are
organization awkward awkward
and well the sentences hard to
of the words sentences sentences
organized and meaning understand.
One or more Two or more Four or more Six or more
Less than one
Spelling incorrect incorrect incorrect incorrect
error
sentences sentences sentences sentences.
Submitted at
Submitted on Three or more
Timeliness the last One day late Two days late
time. days left.
minute.

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 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

JOELYZA M. ARCILLA , EdD

Assistant Schools Division Superintendent

MARCELO K. PALISPIS, EdD

Assistant Schools Division Superintendent

NILITA L. RAGAY, Ed.D.

OIC - Assistant Schools Division Superintendent
CID Chief

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ELISA L. BAGUIO
Education Program Supervisor – MATH

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

GWEN ABA GALVEZ

Writer

CHRISTY BLEZEILLE L. POCONG

Lay-out Artist

_________________________________

ALPHA QA TEAM
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO
DIDITH T. YAP

BETA QA TEAM
ELIZABETH A. ALAP-AP
EPIFANIA Q. CUEVAS
NIDA BARBARA S. SUASIN
VRENDIE P. SYGACO
MELBA S. TUMARONG
HANNAHLY L. UMALI

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 REFERENCES

Racelis, A. 2017. Business Ethics and Social Responsibility.4-8. Manila: Rex Book
Store, Inc.

Types of Business Organization. n. d. Retrieved from

https://www.fastcapital360.com/blog/types-of-business-organizations/

Types and Forms of Business. 2020. Retrieved from

https://www.accountingverse.com/accounting-basics/types-of-
businesses.html

What is cooperative? Retrieved from

http://sfp.ucdavis.edu/cooperatives/what_is/ on July 28, 2020

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 SYNOPSIS AND ABOUT THE AUTHOR

This Self Learning Kit (SLK) is ANSWERS KEY

about differentiating the forms of
business organization: sole
proprietorship, partnership,
corporation, and cooperative. It
includes the topic that discusses
on the other forms that belong to
the main form of business
organization.
Realistic examples are
provided the difference of the
forms of business organization.
Enjoy learning this SLK and
have fruitful day ahead.

AUTHOR
GWEN ABA GALVEZ is an Accountancy Business and Management
(ABM) teacher at Dauin National High School, Division of Negros
Oriental. She currently teaches specialized and applied subjects for
Senior High School students.
In her love and trust for Foundation University, Dumaguete
City, she finished her Secondary Education in the said institution. She
graduated Bachelor of Science in Commerce major in
Management Accounting and earned her degree in Master of
Business Administration at the same school.
In order for her to be qualified to teach in the Department of
Education, she took her Continuing Program Education at
Foundation University, Dumaguete City. She was a former Branch
Manager of one of the branches of M.Lhuillier Financial Services
(Pawnshops), Inc. for seven years.

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LESSON

2 GIVING EXAMPLES OF THE FORMS OF BUSINESS

ORGANIZATIONS

OBJECTIVES:
At the end of the lesson, the learners are expected to:
K: identify the examples of the forms of business organizations;
S: give examples of the forms of business organizations; and
A: appreciate the importance of the forms of business
organizations.

LEARNING COMPETENCY:
Give examples of the forms of business organizations
(ABM_ESR12IIIa-d-1.2)

III. What Happened

Let us have a recall!

A business is an activity that is part and parcel of human society: it is an

entity in which economic resources or inputs, such as materials and labor, are
put together and processed to provide goods or services or outputs to
customers.

Forms of Business Organization

These are the basic forms of business ownership:

Sole Proprietorship

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 A sole proprietorship is a business owned by only one person. It is the
simplest form of business organization. It is easy to set-up and is the least costly
among all forms of ownership.

Partnership

A partnership is a business owned by two or more persons who contribute

resources into the entity. The partners divide the profits of the business among
themselves.

Corporation

A corporation is a business organization that has a separate legal

personality from its owners. Ownership in a stock corporation is represented
by shares of stock.

Cooperative

A cooperative is a business organization owned by a group of individuals

and is operated for their mutual benefit.

PRE-TEST:
Multiple Choice. Choose the letter that corresponds the correct answer. Write
your answers in your notebook.
1. A sari-sari store is an example of a corporation.
A. true B. false C. both D. neither A or B
2. Which of the following is not an example of a single/sole proprietorship?
A. ABC Bakeshop B. Ana’s Sari-sari Store
C. LCP Corporation D. XYZ Motor Repair Shop
3. NORECO is an example of _______________________.
A. Single/Sole Proprietorship B. Partnership
C. Corporation D. Cooperative
4. Zycy owns a beauty supply store in the town where she resides. Which form of
business organization is being described by the statement?
A. Single/Sole Proprietorship B. Partnership
C. Corporation D. Cooperative
5. Which of the following is an example of partnership?
A. Elm & Casper Trading B. LCP Corporation
C. BAYAN MO Cooperative D. N and T Furnitures
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IV. What You Need To Know
DISCUSSION

Example of the Forms of Business Organization

Sole Proprietorship Examples

Jane owns a beauty supply store in the town where she resides. Business
has picked up for Jane so she decides to order several months’ worth of supplies
in advance, at a cost of about P12,000.00, which is to be paid in monthly
installments.

A couple of months after Jane purchased the large order of inventory, the
mill in her town closed, laying off more than 200 employees. Suddenly the town
is experiencing an economic recession, and Jane can’t sell her products quickly
enough to make her payments.

In this example of a sole proprietorship of the business, Jane is personally

liable for the debt. This means that the supply company, and any other
creditors, can file a civil lawsuit against Jane and go after her business assets, as
well as her personal property, including her home. (Sole Proprietorship n.d.)

Other examples of Single/Sole Proprietorship

➢ ABC Bakeshop

➢ Ana’s Sari-sari Store

➢ XYZ Motor Repair Shop

➢ Bahandi Optical

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Partnership Business Examples: Everything You Need to Know

There are many partnerships business examples. One type of partnership is

co-branding, which is an advertising partnership and strategic marketing that
exists between two brands. The success of one company depends on the
success of the other. This can be a good way to get into new markets, build
more business, and increase awareness. A partnership needs to be a win-win
situation for both sides in order for it to be successful.

Red Bull & GoPro

One example of a partnership business is the relationship between Red Bull

and GoPro. GoPro sells more than portable cameras, while Red Bull sells more
than energy drinks. They are both lifestyle brands that have similar goals. They
have the following in common:

• Fearless

• Adventurous

• Extreme

• Action-packed

These make them the perfect fit to pair up for campaigns, particularly when it
comes to action sports. GoPro gives adventurers and athletes the tools they
need to capture their stunts, sports events, and races from the athlete's
perspective. In turn, RedBull puts on and sponsors the events.

Sherwin-Williams & Pottery Barn

One of the largest advantages of doing a co-branding campaign is

having the opportunity to showcase a service or product to a new audience.
That's what Sherwin-Williams and Pottery Barn did when they got together in
2013. They created an exclusive line of paints together, and then put a new

27
section up on Pottery Barn's website to allow customers to easily pick which
paint colors they wanted so it would go with their furniture choices. This was
mutually beneficial for both brands, and they wrote articles to show how
customers could decorate and paint on their own.

West Elm & Casper

Casper is an online bedding and mattress store that is known for selling
mattresses in a box. They have popular YouTube videos that show the mattress
unboxing process and even have a 100-day return policy. However, some
shoppers might not want to buy the mattress if they can't test it for themselves
first. Casper decided to partner with West Elm so people could try out the
mattress in person before they bought it. West Elm was also able to show off their
stylish bedroom furniture.

Dr. Pepper & Bonne Belle

Bonne Belle first launched the first flavored lip balm in the world, Lip
Smacker, in 1973. The original flavors included lemon, strawberry, and green
apple. In 1975, they decided to partner with Dr. Pepper to create one of the
most popular flavors of lip balm ever, the Dr. Pepper lip balm. They even
teamed up for their new slogans to promote the lip balm.

Louis Vuitton & BMW

Louis Vuitton and BMW may seem like a strange partnership initially.
However, they have several traits in common. They both promote travel, as Louis
Vuitton is known for their elegant luggage lines. They both consider luxury to be
important, and they're both popular brands that are known for their high-quality
products. BMW created a car named the BMW i8, and Louis Vuitton created a
four-piece set of bags and suitcases that seamlessly fit into the rear parcel shelf
in the BMW. This partnership showed the shared values of technological
innovation, creativity, and style.

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Spotify & Uber

Spotify partnered with Uber because they both had the same goal of
getting more users even though they had different products. Uber riders can
pick out a Spotify playlist to choose what they'll listen to during their ride. This
helps both Spotify and Uber fans have a better experience during their ride in
the car. (Business Partnership Examples)

Corporation Examples

Corporation example includes General Motors Corporation or GMC an

icon of American craftsmanship, Apple Corporation as one of the famous tech
companies, Amazon Corporation founded by Jeff Bezos is the world’s leading
eCommerce and innovation company, Domino’s Pizza is a global food chain
company delivering quality food worldwide.

Amazon was founded in 1994 and is a world leader in e-commerce. It has

taken massive business away from the brick-and-mortar stores by providing the
facilities to order products at home. Amazon.com provides millions of products
on its website which can be ordered by the consumers and delivered at their
doorstep. The Company has become the largest retailer and one of the favored
stocks on the exchanges.

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 J.P. Morgan Chase & Co. is one of the oldest financial institutions in the
United States of America started in 1799. It’s one of the biggest financial
institutions with annual revenue of more than ₱105 billion. The firm boasts of
maximizing shareholders’ value, and a return of asset ratio at 1.01% maximum in
the financial sector. The firm caters to the needs of the customers both retail
banking and corporate banking, trading desks, investment management,
underwriting, risk management, etc.

Microsoft was started by Bill Gates in 1975 and built a software Windows.
The Company went on to build Ms. Office – Ms. Word, Ms. Excel, Powerpoint,
Outlook, and much other software which are used on a day-to-day basis by
professionals and almost every Company. The Company is currently led by
Satya Nadela and earned a revenue of ₱110 billion in 2018 with revenue growth
of 14.28%. The Companies founder Bill Gates and his spouse Melinda Gates are
involved in many social causes around the world through their foundation called
Bill and Melinda Gates Foundation. They work to uplift people from poverty,
hunger, health problems.

Google is a multinational tech company mainly known for its search

engine. The Company is the biggest corporation in internet services with a web
of its apps like the search engine, Gmail, google maps, youtube, etc. It has
varied products including advertising services, cloud computing, software, etc.
The Company was founded by Sergey Brin and Larry Page in 1998.

Popular Course in this category

Apple was founded in April 1976 by Steve Jobs and has become a tech
giant. Its products Mac, iPhone, Ipad, and other smart devices are used by
millions of people so much so that the new product launches are awaited by
tech enthusiasts. In 2018, Apple recorded the highest revenue of ₱ 265 billion.
With a strong presence of more than 500 stores all over the world, the Company
is expanding in sales and revenue year on year.
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 3M. The Company known for its many products and patents is in
Minnesota. It has worldwide revenue of ₱ 23 bn and makes products like
reflective materials, circuits in printers and cellphones, dental supplies, medical-
related products, safety products, and industrial materials like tapes, adhesives,
etc. It was started in 1902 and the organization was built through innovation and
need-driven products for the consumers.

Domino’s Pizza. The largest pizza chain has more than 8300 stores around
the world including Company-owned and franchised stores. The Company was
started in 1960 in Michigan. The Company has a revenue of more than ₱ 2.47
bn.

Exxon Mobil is the world’s largest oil company and one of the
largest publicly traded companies. The Company is involved in oil and gas
exploration, production, supply, transportation. The Company’s oil refineries can
produce 6 million barrels per day to be transported to about 100 countries and
operate under different brands like Exxon, Esso, Mobil.

CorpGeneral Motors Corporation also called General Motors or GM

specializes in automobiles. They have many brands like Chevrolet, Buick, GMC,
Cadilac, Holden, Isuzu, Opel among others. The Company was founded in 1908
in Detroit. The Company is ranked amongst the top 10, fortune 500 Companies
and manufactures vehicles in 37 Countries with sales of more than 10 million
vehicles. (Examples of Corporation n.d.)

Other Examples of Corporation

➢ Dynamic Development Corporation – Lee Super Plaza and Lp Hypermart

➢ Philsouth Properties and Development Corporation
➢ San Miguel Corporation
➢ Uy Matiao Trading Corporation

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Cooperative Business Examples

What do these businesses look like in the real world? Let’s look at some
examples:

Producer & Worker Cooperatives

Groups of agricultural producers or industrial workers may opt to form
cooperatives in order to access goods/services, find qualified workers, market
their goods, or collaborate in storage or distribution.
Examples:

• Do it Best: A member-owned producer of hardware, building materials, and

lumber. It is one of the largest co-ops in the industry.
• Dairy Farmers of America: A national milk marketing cooperative that
is owned by over 16,000 dairy farmers. Members of the cooperative
produce over 20 percent of raw milk in the U.S.
• Ocean Spray: An agricultural cooperative organization based out of
Lakeville, Massachusetts. Its member-growers produce 70 percent of all
cranberries in the U.S.

Credit Unions
Credit unions are markedly different than banks. They are owned by
consumers; those who take part in their financial services are member-owners.
They come in a variety of sizes and may opt to provide services for people with
specific needs or who meet certain qualifications.

Examples:

• Navy Federal Credit Union: Servicing military and government personnel and
their families for decades, this credit union is the largest in the nation by a
wide margin.

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• The Union Credit Union: A credit union formed to serve union members. It is
operated entirely by union staff and management.
• Alliant Credit Union: A member-owned credit union from Chicago, Illinois that
was founded by United Airlines employees over 80 years ago.

Retail Stores & Wholesalers

Member-owned retail stores and wholesale operations are designed to
decrease production/distribution costs and meet community needs. They exist in
a wide range of industries, though the methods in which they streamline food
production are notable.

Examples:

• Associated Wholesale Grocers: The largest co-op food wholesaler for

independent supermarkets in America.
• Park Slope Food Coop: This is one of the oldest and largest food co-ops in
America, located in Brooklyn, New York. In exchange for working a few years
every month, members can buy foods and other goods at a substantial
discount.
• People’s Food Co-op: A food cooperative in Portland, Oregon with several
thousand members. Its members have a strong focus on environmental
sustainability.

Housing Cooperatives
Also known as resident-owned communities, real estate cooperatives can
include apartments, groups of homes, or individual homes. Members (tenants)
pay for the mortgage and maintenance of the property. While there are usually
more restrictions for such property, each member also has a say in how things
are operated.
Examples:

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• Berkeley Student Cooperative: A student housing cooperative mostly
serving full-time students at the University of California.
• Co-op City, Bronx: Located in the Bronx in northeast New York City, this is the
largest cooperative housing development in the world.
• Greenbelt Homes, Inc.: A cooperative of 1,600 homes in Greenbelt,
Maryland. Many of the homes have historical value, as they were the original
houses built in 1936 by the federal government as part of the New Deal.
(What is a cooperative n. d.)

Other examples of Cooperative

➢ Cooperative Bank of Negros Oriental – Head Office

➢ Dumaguete Cathedral Credit Cooperative (DCCCO)

➢ Negros Oriental II Electric Cooperative Inc.

➢ Perpetual Help Community Cooperative (PHCCI)

➢ Silliman University Community Cooperative

V. What Have I Learned

SUM IT UP!

Examples of the Forms of Business Organization

Sole Proprietorship Examples
➢ ABC Bakeshop
➢ Ana’s Sari-sari Store
➢ XYZ Motor Repair Shop
➢ Santillan Optical

Partnership Business Examples: Everything You Need to Know

Red Bull & GoPro
Sherwin-Williams & Pottery Barn
West Elm & Casper
Dr. Pepper & Bonne Belle
Louis Vuitton & BMW
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Spotify & Uber

Corporation Examples
Amazon
J.P. Morgan Chase & Co.
Microsoft
Google
Apple
3M
Domino’s Pizza
Exxon Mobil

Other examples of Corporation

➢ Dynamic Development Corporation – Lee Super Plaza and Lp Hypermart
➢ Philsouth Properties and Development Corporation
➢ San Miguel Corporation
➢ Uy Matiao Trading Corporation

Cooperative Business Examples

Producer & Worker Cooperatives
Do it Best
Dairy Farmers of America
Ocean Spray
Credit Unions
Navy Federal Credit Union
The Union Credit Union
Alliant Credit Union
Retail Stores & Wholesalers
Associated Wholesale Grocers
Park Slope Food Coop
People’s Food Co-op
Housing Cooperatives
Berkeley Student Cooperative
Co-op City, Bronx
Greenbelt Homes, Inc.:
Other examples of Cooperative
➢ Cooperative Bank of Negros Oriental – Head Office
➢ Dumaguete Cathedral Credit Cooperative (DCCCO)
➢ Negros Oriental II Electric Cooperative Inc.
➢ Perpetual Help Community Cooperative (PHCCI)
➢ Silliman University Community Cooperative

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EVALUATION/POST TEST:
Modified Identification. Choose the correct answer from the choices below and
write only the letter of the correct answer.

A. Single/Sole Proprietorship
B. Partnership
C. Corporation
D. Cooperative

_____ 1. Philsouth Properties and Development Corporation

_____ 2. Lee Super Plaza and Lp Hypermart

_____ 3. Santillan Optical

_____ 4. Navy Federal Credit Union

_____ 5. Louis Vuitton & BMW

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ADDITIONAL ACTIVITIES

Direction: Direction: Give at least three (4) examples of businesses in your

locality/community and explain its importance. Write your answer in your activity
notebook.

Forms of Business Name of Business each Importance

Organization (5points each) (5points each)

Sole Proprietorship

Partnership

Corporation

Cooperative

37
 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

JOELYZA M. ARCILLA, EdD

Assistant Schools Division Superintendent

MARCELO K. PALISPIS, EdD

Assistant Schools Division Superintendent

NILITA L. RAGAY, EdD

OIC - Assistant Schools Division Superintendent
CID Chief

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ELISA L. BAGUIO, EdD

Division Education Program Supervisor – MATHEMATICS

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

GWEN A. GALVEZ
Writer

BB. BOY JONNEL C. DIAZ

Lay-out Artist
_________________________________

ALPHA QA TEAM
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD G. TOLENTINO
DIDITH T. YAP

BETA QA TEAM
ELIZABETH A. ALAP-AP
EPIFANIA Q. CUEVAS
NIDA BARBARA S. SUASIN
VRENDIE P. SYGACO
MELBA S. TUMARONG
HANNAHLY L. UMALI

38
 REFERENCES

Sole Proprietorship
Retrieved July 29, 2020 from
https://legaldictionary.net/sole-proprietorship/

Partnership Business Example

Retrieved July 29, 2020 from
https://www.upcounsel.com/partnership-business-examples

Corporation examples
Retrieved July 29, 2020 from
https://www.wallstreetmojo.com/corporation-examples/
What is a Co-op?
Retrieved July 29, 2020 from
https://www.fiscaltiger.com/what-is-a-co-op/

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 SYNOPSIS AND ABOUT THE AUTHOR

This Self Learning Kit (SLK) is ANSWER KEY

about examples of the forms of
business organization. These
forms include: single/sole
proprietorship, partnership,
corporation, and cooperative.
Here you will learn the examples
for each form of business
organization.
Realistic examples are
provided for you along with the
discussion on the importance of
knowing the different examples
of the forms of business
organization.
Enjoy and have fun
learning.

GWEN A. GALVEZ is an Accountancy Business and

Management (ABM) teacher at Dauin National High School,
Division of Negros Oriental. She is currently teaching
specialized and applied subjects for Senior High School
students.
In her love and trust for Foundation University, Dumaguete
City, she finished her Secondary Education in the said
institution. She graduated Bachelor of Science in Commerce
major in Management Accounting and earned her degree
in Master of Business Administration at the same school.
In order for her to be qualified to teach in the Department of
Education, she took her Continuing Program Education at
Foundation University, Dumaguete City.
She was a former Branch Manager of one of the branches of
M.Lhuillier Financial Services (Pawnshops), Inc. for seven years.

40