ENTREPRENEURSHIP

Name: Justine C. Mimay Section: 12– STEM BLENDED 1

Subject Teacher: Mrs. Ma. Fatima Rabulan Date: May 19, 2022

Module 3: ORGANIZATION PLAN, PRODUCTION

PLAN, AND OPERATIONAL PLAN
o PRE-TEST:
1) A
2) D
3) B
4) A
5) C

o PRACTICE TASKS:

Practice Task 1 – CONNECT ME!

DIRECTIONS: Look for words inside the box which are connected to Organization Plan, Production
Plan, and Operation Plan.
Questions:

1. What does the organization plan cover?

 The organizational plan covers the form of the business organization, liability of the owner or
owners, organizational structure, roles and responsibilities, and salary requirements.

2. What are the five (5) important areas under production plan?
 The five important areas under production plan are production schedule, production process,
processing plant and equipment, source of material, and production cost.

3. What are the significant factors in the operation plan?

 The significant factors in the operation plan are evaluation of suppliers, materials requisition and
receiving procedures, storage and inventory control system, shipment system and control, and
functions of support services.

Practice Task 2 – JUSTIFY ME.

DIRECTION: Write True if the statement is correct. Otherwise write False and state
your reason briefly/change the word/s that make it false.

1. Any form of business organization fits the proposed business.

 TRUE

2. In most instances the sole proprietor and partners have limited liability.
 FALSE - In most instances the sole proprietor and partners have unlimited
liability.

3. The different positions and the relationships of the positions in the business are
usually depicted in the organizational chart.
 TRUE

4. The roles and responsibilities of the management must also be included in the
organizational plan.
 TRUE

5. The production schedule shows the total material needed to produce a product.
 TRUE

6. The production schedule reflects the exact process of making a product.

 FALSE - The production process reflects the exact process of making a product.

7. The selection of the production plant site must be provided with a clear description
as to its proximity to the source of raw materials.
 TRUE
 8. The suppliers of raw materials need not be reviewed and evaluated as long as they
extend credit terms to the business.
 FALSE - The suppliers of raw materials need to be reviewed and evaluated as long
as they extend credit terms to the business.

9. Anybody in the business can receive the goods shipped by the supplier as long as the
order has been authorized.
 TRUE

10. The functions of other service departments need not be included in the operation
plan since they do not have any direct participation in making the product.
 FALSE - The functions of other service departments need to be included in the
operation plan since they do not have any direct participation in making the
product.

Practice Task 3 – REFLECT ON ME!

Students should choose Supplier B with a bottomless printer since it is

more cost-effective than Supplier A with a cartridge printer. Even though,
Supplier B's price is more than A's at the time of purchase, Martha will save more
in the following days due to the quality of service provided by the bottomless
printer. It is fine if you spend more money at first since you'll have more costs
afterward if you consider the quality of service you'll use.

o POST-TEST:
ANSWER ME!
1-5. Identify the important areas that must be properly described in the organization plan.
1. Form of the business organization
2. Liability of the owner or owners
3. Organizational structure
4. Roles and responsibilities
5. Salary requirements

6-15. Name the critical areas that must be included in the production plan and the
operation plan.
6. Production Schedule
7. Production Process
 8. Processing Plant and equipment
9. Sources of Material
10. Production Cost
11. Evaluation of suppliers
12. Materials requisition and receiving procedures
13. Storage and inventory control system
14. Shipment system and control
15. Functions of support services

16-22. State some factors that must be considered in selecting the form of organization
that is best suited to the business.
16. Capital requirement
17. Liability of the owner or owners
18. Management and supervisory skills
19. Tax implications
20. Government intervention
21. Nature of the Business
22. External financing requirement

23-25. Enumerate at least 3 factors involved in selecting the machinery and equipment
for the production of goods.
23. Finance
24. Marketing
25. Operation/Human resources