Applied Economics

Quarter 2

Individual Activity #2:

Direction: Read the story carefully. Analyze the business. Then answer the questions at
the end of the story.

Anne and Cherry are friends since high school. Anne is good in baking and Cherry is
good in selling. To increase their income, they decided to put up an online business of
bakery products. They contributed PhP10,000 each to start the business and decided to
split the profit equally as business partners. The friends agreed that Anne will be in
charge the production while Cherry will be in charge in the online site for taking
marketing and promotion. Cherry started taking orders while Anne is busy on baking
products. The business started to get big orders from their regular clients and other who
visited their online site. After one year of operation, while Cherry continues with her
regular work Anne as in-charge of the production, started getting sick and advised to
rest. Now, Anne can no longer continue baking for their business.

1.What went wrong with the business?

2.Do you think Anne and Cherry were right in how they manage their business?
3.Are they right in their decision of equal sharing of profit? Explain your answer.

Rubric:10 points- comprehensive and analytical, 8-9 points- well written and some
includes analysis; 5-7 points-well written but lacks analysis. 2-4 points- weak essay;
1 point Poorly written and lack strength