Self-Learning Materials

Business Ethics and Social Responsibility

2nd Semester

Name: ______________________________ Strand and Section: ___________________

SLM # ______________________________ Date: _______________________________

Business Ethics and Social Responsibility – Grade 12- Week 1

The Nature and Forms of Business Organizations

Background information for learners:

 Comparison of the Basic forms of Business Organizations

Forms of Business
Sole Proprietorship Partnership
Easiest to establish It could be easily to establish
like sole proprietorship
Limited Life Limited Life
Small amount of capital is Large amount of capital
needed to start a business
Ownership of all profits/losses Share of profits and losses
Unlimited liability Unlimited liability of the partner
Minimum legal requirements Subject to minimum
government regulations
Business secrecy Business secrecy
Personal interest of managing Each partner has a right to
the business participate
Tax savings Tax savings
Corporation
Hard to establish
Life is 50 yrs and can be
extended
Large amount of capital
Proportion to each
stockholder’s percentage of
ownership interest
Stockholders have limited
liability
Subject to numerous
government regulations
Lack of secrecy
Lack of personal interest
Several tax to pay as mandated
by laws and ordinances

Learning Competencies:
ABM_ESR12-IIIa-d-1.2 MELC: Give examples of the forms of business organizations

Activities:
General Instructions: On a clean sheet of Bus. Ethics NOTEBOOK, write the title of the SLM,
your name, strand, section, and date. Read and understand the directions before doing each activity.

Independent Assessment 1. Answer the following with understanding and honesty.

A. What form of business organization is best described by the following statements?

1. “I am the only owner of my business”.

2. “I take all the risks of doing business”.

3. “I keep all the profits”.

B. Tony and Alex own a saloon together. They share equal responsibility, and each

receive 50% of the profits. What form of business organization is this? ______

C. These are examples of what form of business? ____________________

Independent Assessment 2. Choose the letter of the correct answer.

1. Which is NOT a form of business ownership?

a. Sole Proprietorship b. Partnership c. Corporation d. Retail

2. Easy to start; owner is own boss; owner keeps all the profits and shoulders losses. These are some
descriptions of what type of business?

a. Sole Proprietorship b. Partnership c. Corporation d. Franchise

3. What form of business consists of two or more people to carry on, as co-owners of a business for
profit?

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

4. Your mother has Php 100,000. She wants to invest her money in the form of business that has the
least amount of personal liability. What form of business would you recommend?

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

5. How a corporation differs from a sole proprietorship?

a. Corporations are owned by only one person.

b. Corporations can sell stocks to large and small investors to raise money

for the business.

c. Sole proprietorships have limited liability for the owners.

d. Sole proprietorships require a legal charter to start the business.

Activity 3. Give examples of each Business Organizations and its advantages and disadvantages.
Cite only the specific name of the business organizations. Complete the data below.

Forms of Business
Sole Proprietorship Advantages Disadvantages
Specific Name of Business
Organization: ______________
Owner/Proprietor: __________
Address: __________________
Identify some Legal
requirements or valid
documents in operation:
1. ____________
2. ____________
3. ____________
Partnership Advantages Disadvantages

Specific Name of Business

Organization: ______________
Partners Name: ____________
______________________
______________________
(Note: If more than 3
partners, identify only 3)
Address: _________________
Identify some Legal
requirements present in
operation:
1. _______________
2. _______________
3. _______________
Corporation Advantages Disadvantages
Specific Name of Business
Organization: _______________
Identify some Legal
requirements in creation of
Corporation:
1. __________________
2. __________________
3. __________________

Be calm and be safe!

Note: Pls read other reference, related to the topic.