Senior High School

Organization & Management

Quarter II
Module 16
The Basic Concept of Small Family Business

Writer:
JONER G. MAGLALANG
MT-I Sta. Maria HS, Macabebe
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
JONER G. MAGLALANG – MT- I
 What I Need to Know

This module was designed and written with you in mind. It is here to help you master
the Basic Concepts of Small Family Business. The scope of this module permits it to
be used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

The module is contains:

 Lesson 1 – The Basic Concepts of Small Family Business

After going through this module, you are expected to:
1. explain how to start a small-family business
2. identify the business legal forms and requirement
3. appreciate the role of small-family business in an improving economic status

What I Know

Before you start studying this module, take this simple test to find out what you
already know about the topic.

Choose the letter of the correct answer. Write your answer on your notebook.
1. Developing new ideas, create, risk taking, positive growth behavior, giving
opportunity to the people and organization that create new product and
services.
a. Entrepreneurial ventures
b. Entrepreneurship
c. Large Business
d. Small Enterprise
2. Organizations that persistently pursue opportunities are characterized by
creative, innovative activities that have service, growth, and profitability as
principal goals.
a. Entrepreneurial ventures
b. Entrepreneurship
c. Large Business
d. Small Enterprise
3. A business that has fewer than 100 – 500 workers.
a. Big Entrepreneur
b. Macro Business
c. Large Business
d. Small Business
4. A written description of business.
a. Building blocks
b. Business Plan
c. Tax payer

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 d. DTI
5. It is a company’s objective and it’s approach to reach those objective.
a. Mission and Vision
b. Flexible
c. Persistent
d. Confident
6. It is a type of business owned by several members of the group
a. Sole Proprietorship
b. Partnership
c. Cooperative
d. Corporation
7. A government requirement that order new business owners to furnish
government agencies with necessary information prior to the legal operation of
their business organization.
a. Business Registration
b. Business Plan
c. Accounting Flow
d. Financial Data
8. Owned and operated by only person.
a. Single Proprietorship
b. Partnership
c. Corporation
d. Cooperative
9. A business owned and financially controlled by members of a family
a. Family Business
b. Entrepreneur
c. Entrepreneur
d. Organization
10. Any projected task or work; undertaking
a. Family Business
b. Enterprise
c. Entrepreneur
d. Organization
11. Joined operation of two or more partners.
a. Single Proprietorship
b. Partnership
c. Corporation
d. Cooperative
12. Five or more person owning the business.
a. Single Proprietorship
b. Partnership
c. Corporation
d. Cooperative
13 .Must registered to the CDA or Cooperative Development Authority.
a. Single Proprietorship
b. Partnership
c. Corporation
d. Cooperative
14.A written document that tells what you plan to do and how you plan to do in
the business.
a. Business Registration
b. Business Plan
c. Accounting Flow

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 d. Financial Data
15. A person owned the business.
a. Entrepreneur
b. Entrepreneurship
c. Legal Forms
d. Legal documents

Well, how was it? Do you think you did well? Compare your answers with those in the
Answer Key
If all your answers are correct, very good! This goes to show that you already know
much about the topics in this module. You may still study the module to review what
you already know. Who knows? You might learn a few new things as well.
If you got a low score, don’t feel bad. This means that this module is for you. It will
help you to understand important concepts that you can apply in your daily life. If you
study this module carefully, you will learn the answers to all the items in the test and
a lot more! Are you ready?

You may go now to the next page to begin Lesson 1.

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Lesson
The Basic Concepts of Small
1 Family Business
We are ruled by the ventures of entrepreneurs. All our basic needs, appliances gadgets
and equipment and other things we use or consume daily are all products of
entrepreneurial ventures. Therefore, it is important to recognize our dependence on
the innovative and creative nature of entrepreneurs. The important role of
entrepreneurs is to continuously look into the needs and wants of society.

According to the article INC. A family-owned business may be defined as any business
in which two or more family members are involved and the majority of ownership or
control lies within a family. Family-owned businesses may be the oldest form of
business organization. Farms were an early form of family business in which what we
think of today as the private life and work life were intertwined. In urban settings it
was once normal for a shopkeeper or doctor to live in the same building in which he or
she worked and family members often helped with the business as
needed.(https://www.inc.com/encyclopedia/family-owned-businesses.html)

What’s In

Let’s have a review about the previous lesson.

Review:

What are the nature and role in the firm in the

different functional areas of management? Explain.

What’s New

Let’s investigate, observe and analyze the small business that existing and
sustainable in your place.

A. Name 10 small business in your place. In your own understanding, what do

you think are the strategies and procedures that small the business becomes
sustainable and stable? Are they legal and what form of business they are
register in?

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Small Business Types of Business
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Strategies and Procedures

B. Picture Analysis: Identify the type of business you see in the picture if it is Sole
proprietorship, Partnership, Corporation or Cooperative and explain?

1.

_________________________________________________________________________

2.
_____________________________________________________________________________________
_____________________________________________________________

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3.
_____________________________________________________________________________________
_____________________________________________________________

4.

C. Interview 2 friends using your messenger to find out if they are interested in
becoming entrepreneurs and to have a family business someday. Find out the specific
entrepreneurial venture that they are planning to pursue and the reason for their
choice.
1.___________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
__________.

2.___________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
__________.

What is It

Let’s start the lesson with brief discussion and discover and learn new thoughts and
expertise.

1. What can you say about the activity? In your observation and investigation to
the small business what are the common characteristics in their strategies and
procedures, what type of business they are engaged in?
2. In the future how can you see yourself? Are your career professional or an
entrepreneur? If entrepreneur, what type of business would you like to create?

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 Why? Explain? Do you have any experience putting up a small business or
family business?
3. What would be the contribution of their plan in an improving economy?

Mini Lesson
Let’ begin with the lesson and learn new things.

Entrepreneurship – innovative, creative, risk-taking, growth-oriented behaviour that

brings new opportunities for individuals or organizations to start new business and to
produce new products or services that are beneficial to society.

Entrepreneurial ventures- organizations that persistently pursue opportunities are

characterized by creative, innovative activities that have service, growth, and
profitability as principal goals.

Small business – a business that has fewer than 100 – 500 workers (depending on the
prevailing commercial law in a particular country), independently owned, operated,
and financed; not always entrepreneurial in orientation and does not dominate its
industry; capital is low but capable of producing goods or rendering services designed
to satisfy particular needs of customers.

What are the Entrepreneurial Procedure?

Steps in Entrepreneurial Procedure

 Formulate the business vision and mission statements

 Segment of the market
 Find the target market
 Understand the environment
 Develop the business Plan

Business plan is a written description of your business's future, a document that tells
what you plan to do and how you plan to do it. If you jot down a paragraph on the
back of an envelope describing your business strategy, you've written a plan, or at
least the germ of one. Business plans are inherently strategic.

Business Plan

- Executive summary - Products and services

- Environmental analyst - Operations
- Industry analysis - Management and ownership
- Market analysis - Financial Data
- Company description - Time table
- Marketing and sales activities

 Implement and monitor the business venture

 Maximize the utilization of business resources
 Creative and Innovative * Good Planners
 Customer-oriented * Open-minded
 Flexible * Persistent
 Confident * Organized
 Updated/Well-informed * Team players
 Knowledgeable * Risk-takers

Business Registration – a government requirement that order new business owners

to furnish government agencies with necessary information prior to the legal operation
of their business organization.

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The legal forms of business is determined by its ownership or proprietorship.

Family Business- a business owned and financially controlled by members of a family

Enterprise – any projected task or work; undertaking

What are the Forms of Business?

Single or Sole Proprietorship – a business owned by one person only. The owner and
the business are considered as one, meaning the owner’s income and the business
income are one and the same and the business income is taxed as a personal income.
Decision making is the sole responsibility of the owner and if the business succeeds,
he or she gets all the profits. It it fails, then he or she suffers all the losses and must
pay whatever debt are incurred. The business ends upon the death of the owner or
single proprietor.
Partnership – a business formed when two or more partners formally agree to be joint
owners of a business. The resources (money and other assets) and talents (skills,
experience, and management expertise) of all involved may be pooled together. All
partners share the profits equally, unless otherwise specified in their partnership
agreement.

Corporation – a business entity involving five or more persons owning it. It is

registered and recognized by law as a “legal person” that has legal rights and
responsibilities, can sue or be sued in court, can own and sell properties, and can
transact or enter into contracts. Corporation ownership is divided into units known as
shares of stocks and owners of these are called stockholders. A board of directors,
elected by the stockholders on a regular basis, manage the corporation which is run
according to terms specified by their by-laws and articles of incorporation. The
corporation’s life does not end with the death of stockholder or by the selling of the
stocks of a particular stockholder.

Cooperative - a group enterprise made up of several traders, consumers, or producers

who are interested to produce or trade as a group. The cooperatives’ original purpose
was to supply those involved with goods or services at lower costs compared to those
bought from retailers. Later types of cooperative have emerged that include farmers,
producers, and credit cooperatives. A group of officers, called board of directors and
committees, headed by a chairman, manage the cooperative’s activities. The
cooperative’s life is not affected by the death of any of its members nor by the selling of
a member’s shares. It can, however, be dissolved by a majority vote of the board of
directors and a resolution signed by at least two-thirds of the general membership.

Government agencies where the business to be registered:

 Department of Trade and Industry(DTI)

 Securities and Exchange Commission (SEC) (Partnership and Corporation)
 Cooperative Development Authority (CDA)
 Barangay clearance and securing Community Tax Certificate
 Mayor’s Permit and license to operate
 Fire Safety Clearance – Bureau of Fire Protection (BFP)
 Bureau of Internal Revenue (BIR)
 Pag-ibig Fund (Home Development Mutual Fund)
 Department of Labor and Employment (DOLE)
 Social Security System(SSS)
 Philippine Health Insurance Corporation(Philhealth)

Let’s condition our mind with the song in youtube about Family Business, Littlest Pet
Shop – Biskit Family Busines, https://www.youtube.com/watch?v=bHlkkb0-nP4

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 Let’s learn about the Process Flow of Registering a Business.

Here are the Sample of Legal Form of Business

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 What’s More

Let’s answer the simple question below to find out if you understand and learned
skills of the topic.

Choose the letter of the correct answer and write your answer on your notebook

1. Innovative, creative, risk-taking, growth-oriented behavior that brings new

opportunities for individuals or organizations to start new business and to
produce new products or services that are beneficial to society.
a. Small Business
b. Entrepreneurial ventures
c. Entrepreneurship
d. Entrepreneur
2. Organizations that persistently pursue opportunities are characterized by
creative, innovative activities that have service, growth, and profitability as
principal goals.
a. Small Business
b. Entrepreneurial ventures
c. Entrepreneurship
d. Entrepreneur
3. A government requirement that order new business owners to furnish
government agencies with necessary information prior to the legal operation of
their business organization.
a. Business Registration
b. Business Ownership
c. Business Plan
d. Business Portfolio
4. The owner and the business are considered as one, meaning the owner’s
income and the business income are one and the same and the business
income is taxed as a personal income.
a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative
5. It is divided into units known as shares of stocks and owners of these are called
stockholders.

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 a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative

Compare your answers with those in the Answer Key

What I Have Learned

Let’s find out. What you have learned? Choose the correct answer on the box below
and write the answer on your notebook.

1. _________________ is innovative, creative, risk-taking, growth-oriented behavior

that brings new opportunities for individuals or organizations to start new
business and to produce new products or services that are beneficial to society.
2. _________________ are organizations that persistently pursue opportunities are
characterized by creative, innovative activities that have service, growth, and
profitability as principal goals.
3. _________________ is a business that has fewer than 100 – 500 workers
independently owned, operated, and financed.
4. _________________ is a written description of your business's future, a document
that tells what you plan to do and how you plan to do it.
5. __________________ is a government requirement that order new business
owners to furnish government agencies with necessary information prior to the
legal operation of their business organization.
6. The _________________ of business is determined by its ownership or
proprietorship.
7. __________________ a business owned by one person only.
8. __________________ is a business formed when two or more partners formally
agree to be joint owners of a business.
9. __________________ is a business entity involving five or more persons owning it.
10. __________________ is a group enterprise made up of several traders, consumers,
or producers who are interested to produce or trade as a group.
11. __________________ is a business owned and financially controlled by members
of a family
12. __________________ any projected task or work; undertaking

Enterprise Family Business Single Proprietorship Partnership

Cooperative Legal Forms Business Registration

Business Plan Small Business Entrepreneurship Corporation

Entrepreneurial Venture

Well, this is almost the end of the module! Congratulations for having gone this far.
You have been a very hardworking and patient learner. Did you like the module?
Did you learn something useful from it?

11
 What I Can Do

Analyze business in the Philippine and why that entrepreneurship becomes

successful? How will you adopt the strategies, mission and vision to your own
business in the future?

A. If you are an entrepreneur, what kind of business will you create?

B. Search on 10 Business Corporation in the Philippines and discuss the business
they are engaged in.

Business Business they are engaged

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Choose two and discuss their successes?
_____________________________________________________________________________________
_____________________________________________________________________________________
________________________________________________

C. Are you getting more excited to operate a business? Why? Explain. Soon you’ll
be ready to open and start your own family business.
D. List down 2 sari-sari store or any small family business in your place. As them
what are their strategies/secret ingredients in running a small family business
and their success stories?

Assessment

You will find out how much you learned from the module by taking this test.
A. Choose the letter of the correct answer. Write your answer on your notebook.

1. Businesswoman Joana wants her business to pursue different opportunities

that design, innovate different activities and the principal goals of the business
are the growth and profitability. What ventures it is?
a. Entrepreneurial ventures
b. Small Business
c. Micro Business
d. Leadership
2. Innovative, creative, risk-taking, growth-oriented behaviour that brings new
opportunities for individuals or organizations to start new business and to
produce new products or services that are beneficial to society.
a. Entrepreneurship
b. Organization

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 c. Management
d. Accounting
3. Which of the following best describe the Small Business?
a. Organizations that persistently pursue opportunities are characterized by
creative, innovative activities that have service, growth, and profitability as
principal goals.
b. Business that has fewer than 100 – 500 workers (depending on the
prevailing commercial law in a particular country), independently owned,
operated, and financed; not always entrepreneurial in orientation and does
not dominate its industry; capital is low but capable of producing goods or
rendering services designed to satisfy particular needs of customers.
c. It is inherently strategic.
d. Innovative, creative, risk-taking, growth-oriented behaviour that brings new
opportunities for individuals or organizations to start new business and to
produce new products or services that are beneficial to society.
4. Adrian now living in Toronto, Canada her business was inherent to his parents
and now owned and operated by his two children. What kind of business they
are engaged in?
a. Family Business
b. Large Business
c. Money Business
d. Foundation
5. Any projected task or work; undertaking
a. Entrepreneurship
b. Enterprise
c. Family Business
d. Government Agencies
6. Capital is low but capable of producing goods or rendering services
designed to satisfy particular needs of customers.
a. Small Business
b. Entrepreneurial ventures
c. Entrepreneurship
d. Entrepreneur
7. A group enterprise made up of several traders, consumers, or producers
who are interested to produce or trade as a group.
a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative
8. A business formed when two or more partners formally agree to be joint owners
of a business.
a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative
9. The students task to do a written document to start a small business
with mission, vision, product description, target market personnel and
financial data. What kind of documents the student will create?
a. Business Plan
b. Student’s Portfolio
c. Student’s Handbook
d. Student’s Profile

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 10.Paul and Arlene created a small business they agreed upon equal share
in all financial needs of the business. What forms of business is it?
a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative

B. Matching Type : Write the letter of the correct answer. Choose from the letter
below and write your answer on your notebook.

1. A government requirement that order new business owners to furnish government

agencies with necessary information prior to the legal operation of their business
organization.
2. Sarah Jane wants to put up her own business all the advantages and dis
advantages are her own responsibilities. What type of business it is?
3. A business entity involving five or more persons owning it. It is registered and
recognized by law as a “legal person” that has legal rights and responsibilities, can
sue or be sued in court, can own and sell properties, and can transact or enter into
contracts.
4. The cooperative’s life is not affected by the death of any of its members nor by the
selling of a member’s shares.
5. The resources (money and other assets) and talents (skills, experience, and
management expertise) of all involved may be pooled together.

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

Additional Activities

Let’s do additional activity that enrich and remember your knowledge and skill
of the lesson we learned.

1. Make 1 page Business Plan.

One Page Business Plan

 Description of Business
 Product and Services
 Target market
 Competition
 Personnel
 Financial data

2. What are the different forms of business and give example of each type?

Congratulations for the job well done. Thank you.

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Criteria for Activities

Areas of 4 3 2 1
Assessment
Ideas Presents ideas in Presents ideas in Ideas are too Ideas are vague
an original a consistent general or unclear
manner manner
Organization Strong and Organized Some No organization;
organized beg/mid/end organization; lack
beg/mid/end attempt at a beg/mid/end
beg/mid/end
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Word Choice Sophisticated use Nouns and verbs Needs more Little or no use
of nouns and make essay nouns and verbs of nouns and
verbs make the informative verbs
essay very
informative
Sentence Sentence Sentence Sentence No sense of
Structure structure structure is structure is sentence
enhances evident; limited; structure or
meaning; flows sentences mostly sentences need flow
throughout the flow to flow
piece
Mechanics Few (if any) errors Few errors Several errors Numerous
errors

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 16
What I have learned
1. Entrepreneurship
2. Entrepreneurial
Venture
3. Small Business
4. Business Plan
5. Business
Registration
6. Legal Forms
7. Single
Proprietorship
8. Partnership
9. Corporation
10. Cooperative
11. Family Business
12. Enterprise
B 5.
D 4.
What I Know What's More C 3.
A 2.
1. B 1. C E 1.
2. A 2. B
3. D 3. A B.
4. B 4. A
B 10.
5. A 5. C
A 9.
6. C
D 8.
7. A
D 7.
8. A
A 6.
9. A
B 5.
10. B
A 4.
11. B
B 3.
12. C
A 2.
13. D
A 1.
14. B
15. A A.
Assessment
Answer Key