Roman Catholic Diocese of Urdaneta

Diocesan Schools of Urdaneta

Urdaneta City

MODULE IN
BUSINESS ETHICS AND SOCIAL RESPONSIBILITIES
ABM-12
QUARTER 1 MODULE 2

Name: ___________________________________ Score: ______

Section: __________________________________

Topic: FORMS OF BUSINESS ORGANIZATION

Objectives:
1. Differentiate the forms of business organizations;
2. Give examples of the different forms of business organizations found in your locality;
and
3. Show appreciation on how these organizations contribute to socioeconomic development.

Overview:
Traditionally, there are three major forms of business organizations in the Philippines
recognized by the law: single or sole proprietorship, partnership, and corporation. In recent
years, a fourth form of business organization was included in the list- the cooperative. These
various forms of business organizations are confronted with ethical issues of varying kinds of
degrees.

Lesson Proper:

Single or Sole Proprietorship

It is defined as a business unit where the manager is also the owner. Single proprietorship
is the easiest to set up that you may already be engaged in one without you knowing that it is
called a single or sole proprietorship.

Partnership
Is a business owned by two or more person who contributes resources into the entity. The
partners divide the profits of the business among themselves.

Corporation
An enterprise chartered by law with most of the legal rights of a person including to
conduct a business, to own and sell property, to borrow money, to sue and be sued. A
corporation business is a business organization that has a separate legal personality from its
owners.

Cooperative
Defined as an autonomous and duly registered association of persons with a common
bond of interest, who have voluntarily joined together to achieve their social, economic, and
cultural needs and aspirations by making equitable contributions to the capital required,
patronizing their products and services and accepting a fair share of the risk and benefits of the
undertaking in accordance with universally accepted cooperative principles.
 ACTIVITY 1
WHAT I KNOW!
Direction: Below are the definitions of business and organization. Write BUSS if it describes a
business and ORG if it describes organization.

1. ___________ is and activity of exchanging goods and services for gaining profit.
2. ___________ is a group of people who work together to achieve common goals.
3. ___________ is a collection of people with particular purpose in a society.
4. ___________ is an organization where goods and services are exchanged for one another
or for money.
5. __________ social unit of people that is structured and managed to meet a need ort to
pursue collective goals.
ACTIVITY 2
WHAT I HAVE LEARNED!
Direction: Identify what form of business organization is the best described by the following
picture.

_________________________

_________________________

_________________________

__________________________

References:
Cortez, Franz Giuseppe F., 2016. “Business Ethics and Social Responsibility”
Vibal Group, Inc. pp. 20-24