ACCOUNTING

SDO TAGUIG CITY AND PATEROS

Introductory Message
For the facilitator:
This module was collaboratively designed, developed and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while overcoming their
personal, social, and economic constraints in schooling.
As a facilitator, you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:
This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part
of the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer Let’s Try before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with
it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!

1
 Let’s Learn

This module was prepared and written to help you achieve the required competency
in accounting. This will be the source of information for you to acquire knowledge
and skills in this specialization, with minimum supervision or help from your teacher.
With the aid of this material, you will acquire the competency independently and at
your own pace.
WEEK 3

After going through this module, you are expected to:

1. Differentiate the branches of accounting.

2. Explain the type of services rendered in each of these branches.
3. Make a list of business within the community on the types of
accounting services they require.
WEEK 4

After going through this module, you are expected to:

1. Define external and internal users of accounting information.

2. Give examples of external and internal users of accounting
information.
3. Identify the type of decisions made by each group of users.

WEEK 3

Let’s Try

Directions: Identify the branches of accounting. Choose your answer from the
choices given. Write the answer only on a separate sheet of paper.

1. Creates new knowledge of accountancy.

2. Reviews tax compliance of the business.
3. Reports on the total cost of materials and labor used in the production.
4. Conducts lectures on accounting topics.
5. Develops future accountants by creating relevant accounting curriculum.
6. Helps clients follow rules set by tax authorities.
7. A subset of management accounting.

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 8. Develops new standards that will address recent issues in business.
9. Methods used are classroom discussion and feasibility studies.
10. Enables students to have a feel of the application of
accounting in real life.

Lesson
BRANCHES OF ACCOUNTING
2 (Tax Accounting, Cost Accounting,
Accounting Education and Accounting Research)
Week 3
This lesson presents accounting as a broad field of profession that will always be
in demand. It is divided into several branches to better serve the needs of different
users with varying information requirements. We will focus on the branches of
accounting, namely: tax accounting, cost accounting, accounting education and
accounting research.
Learning Objectives:
1. Differentiate the branches of accounting.
2. Explain the type of services rendered in each of these branches.
3. Make a list of business within the community on the types of
accounting services they require.

Let’s Recall

Directions: Identify the branches of accounting according to the services

rendered. Use a separate sheet of paper.

1. It is focused on the needs of external users.

2. Deals with the financial transactions of a business.
3. Reports on the spending of government funds.
4. Examines financial statements of a company independently.
5. Prepares reports for the use of managers in their decision-making.

Let’s Explore

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 Let’s Elaborate

BRANCHES OF ACCOUNTING
There are eight branches o f a c c o u n t i n g w i t h various services
p r o v i d e d . And sometimes they overlap and are often closely intertwined.
1. Tax Accounting
 Taxes are the lifeblood of the government.
 Without the taxes the citizens pay, the government cannot perform
its functions. Thus, the collection of taxes is unhindered.
 Helps clients follow rules set by tax authorities.
 Includes tax planning and preparation of tax returns.
 Involves determination of income tax and other taxes, tax advisory
services such as ways to minimize taxes legally, evaluation of the
consequences of tax decisions, and other tax-related matters.
 Lays down the different treatments of the taxing authorities regarding
financial transactions.
Purpose of Information: Helps in determining the amount of
taxes payable
Report Generated: Tax returns to be used by taxing
authorities to determine the amount of
taxes payable
Frequency of Reports: Periodic (annually, quarterly, monthly)
Intended Users: Taxing authorities
Standards/Basis of Presentation: NIRC

2. Cost Accounting
 Refers to the recording, presentation, and analysis of manufacturing
costs.
 Very useful in manufacturing businesses since they have the most
complicated costing process.
 Cost refers to the resources sacrificed to achieve an objective (money,
resources, time). It is considered as a subset of management accounting.
 Cost accountants analyze actual and standard costs to help managers
determine future courses of action regarding the company's operations.
 Cost accounting will help the owner set the selling price of his products.
For example, if the cost accounting records shows that the total cost to
produce one can of sardines is PHP50, then the owner can set the selling
price at PHP60.
 Finds out the cost of specific objects to help in the functions of financial
and management accounting.

Purpose of Information: Finds the cost of a particular object

Report Generated: Cost of production report; other cost
reports
Frequency of Reports: Whenever management asks for
a report

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 Intended Users: Internal users only
Standards/Basis of Presentation: None

3. Accounting Education
 Deals with developing future accountants by creating relevant accounting
curriculum.
 Accounting professionals can become faculty members of educational
institutions.
 Accounting educators contribute to the development of the profession
through their effective teaching, publications of their research and
influencing students to pursue careers in accounting.
 Accounting teachers share their knowledge on accounting so that
students are informed of the importance of accounting and its use in our
daily lives.
 Deals with the promulgation of accounting knowledge to various interested
parties that will aid them in achieving their individual goals.
Bachelor of Science in Accountancy (BSA)
 composed of subjects in accounting, audit, administration and
business laws and taxation; normally a 5-year program
Board Exam
 before a BSA graduate can practice accountancy, he/she needs to pass
the Certified Public Accountant Licensure Examination (a
comprehensive test composed of six subjects)
Purpose of Information: To educate students in the field of
accountancy.
Report Generated: N/A
Frequency of Reports: N/A
Intended Users: Students and members of the academe
Standards/Basis of Presentation: None

4. Accounting Research
 Plays an essential part in creating new knowledge. Accountants
conduct accounting research on solving problems for a client or group
of clients.
 Helps standard-setting bodies around the world develop new standards
that will address recent issues.
 Continuous improvement of the accountancy field through
researches and studies
Purpose of Information: To guide internal and external users in
their economic decisions
Report Generated: Research results
Frequency of Reports: Varies
Intended Users: Members of the academe
Standards/Basis of Presentation: None

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 Let’s Dig In

ACTIVITY 1
Directions: List down three business within your community and identify
the types of accounting services they require. Use a separate sheet of paper.

ACTIVITY 2
Directions: Analyse the questions and answer in one sentence only. Use a
separate sheet of paper.
1. Why are taxes considered the lifeblood of the government?
2. Where do you think taxes go?
3. Why is cost accounting useful in manufacturing?
4. When can a BSA graduate practice accountancy?

ACTIVITY 3
Directions: Browse the website provided below to answer the guide
questions. Use a separate sheet of paper.

https://en.wikipedia.org/wiki

/Bureau_of_Internal_Revenue_
(Philippines)

1. What are the functions of the Bureau of

Internal Revenue?
2. When was BIR created?
3. Describe Republic Act No. 10963.
4. Who signed the Tax Reform for
Inclusion and Acceleration Act of 2017?

Let’s Remember

Directions: Enumerate the branches of accounting and state the various

services each provides. Use a separate sheet of paper.

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 Let’s Apply

Directions: Suppose you are already a Certified Public Accountant, what branch
of accounting will you focus on? Create a three-line conversation describing your
choice. Include the type of service rendered. Use a separate sheet of paper.

Traits 5 4 3
Focus and details Main idea is Main idea is Main idea
clear and clear but not and details
supported by supported are
details by details unclear
Grammar and No errors in Few errors in Numerous
spelling grammar and grammar and errors in
spelling spelling grammar
and
spelling

Let’s Evaluate

Directions: Read each item carefully and choose the letter of the correct
answer. Use a separate sheet of paper.
1. Information produced by this branch of accounting aims to educate
students in the field of accountancy.
a. Accounting education c. Cost accounting
b. Accounting research d. Tax accounting

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2. Lifeblood of the government.
a. Cash b. Tax c. Properties d. Money
3. These are the resources sacrificed to achieve an objective.
a. Expenses b. Costs c. Benefits d. Revenues
4. Controls the accountancy profession in the country.
a. Accounting education c. Cost accounting
b. ccounting research d. Tax accounting
5. Which of the following is not a branch of accounting?
a. Auditing b. Education c. Recording d. Research
6. What type of report is generated by accounting research?
a. Research results c. Financial results
b. General results d. Tax results
7. Its intended users are the students and members of the academe.
a. Accounting education c. Cost accounting
b. Accounting research d. Tax accounting
8. A BSA graduate needs to pass the to practice accountancy.
a. CPA Board Ex am in at io n c. CPA General Examination
b. CPA Career Examination d. CPA Licensure Examination
9. It is normally a 5-year program composed of subjects in accounting,
audit, administration, business laws, and taxation.
a. Bachelor of Arts in Accountancy
b. Bachelor of Arts in Accounting
c. Bachelor of Science in Accountancy
d. Bachelor of Science in Accounting
10. It helps the owner set the selling price of his products.
a. Accounting education c. Cost accounting
b. Accounting research d. Tax accounting

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 Let’s Extend

Directions: Browse the link provided below to watch the video. Prepare a five-
sentence answer/reflection on the question posted. Use a separate sheet of paper.

https://www.youtube.com/watch?v=CM
A654upY2Y

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 WEEK 4

Let’s Try

Directions: Write letter of the correct answer on a separate sheet of paper.

1. Which of the following is not an internal user of accounting information?
A. Employees B. Government C. Manager D. Owner
2. Who is not an external user of accounting information?
A. Customers B. Government C. Management D. Public
3. Why are users of accounting information interested with accounting data?
A. To have money for capital.
B. To have basis for their decisions.
C. To have sales for the company.
D. To have payment for employees.
4. Which users of accounting information decides whether to extend
credit or not?
A. Creditors B. Government C. Investors D. Managers
5. Who determines whether to keep or give up the business?
A. Employees B. Government C. Owner D. Public
6. Who uses accounting information to evaluate tax returns?
A. Employees B. Government C. Investors D. Managers
7. Which user of accounting information asks if the business has improved?
A. Creditors B. Employees C. Government D. Owners
8. Who are the main source of income of businesses?
A. Customers B. Employees C. Government D. Managers
9. Who determines if the business is reporting the correct amount of income?
A. Employees B. Government C. Management D. Public
10. The users of accounting information that do not plan to transact with
the business.
A. Employees B. Government C. Management D. Public

Lesson
USERS OF ACCOUNTING
3 INFORMATION
Week 4

This lesson presents the different users of accounting information – the external users
and the internal users. It also includes the types of information needed and the
decisions to be made by each user.

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Learning Objectives:
1. Define external and give examples.
2. Define internal users and give examples.
3. Identify the type of decisions made by each group of users.

Let’s Recall

Directions: Identify what branch of accounting renders the following

services. Write your answer on a separate sheet of paper.
1. Helps in determining the amount of taxes payable.
2. Educate students in the field of accountancy.
3. Improvement of the accountancy field through researches and studies.
4. Finds the cost of a particular object.
5. Students and members of the academe are the intended users.

Let’s Explore

In business, lots of questions has to be answered and many decisions has to be

made.

But who makes those decisions? What kind of decisions do they make?

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 Let’s Elaborate

Accounting, as the language of business, helps users to make better financial

decisions. Let’s find out more about them!
USERS OF ACCOUNTING INFORMATION
There are two groups of users of financial information:
1. internal users
2. external users

INTERNAL USERS

Internal users of accounting information are those individuals inside a company

who plan, organize, and run the business. These users are directly involved in
managing and operating the business.

1. Management

 The brain of the company.

 Employees that can make decisions for the company.
 Board of directors, top management, middle-level managers, supervisors.
 Uses financial information to estimate economic performance.
 Concerned with the overall performance of the economy.
Information need: income for the period, sales, available cash Decisions
supported: analyze the organization's performance to improve the
company results

2. Employees

 Persons in the company who do not have authority to do or implement

decisions.
 Laborers, field workers, non-managerial employees.
 Check if the business is profitable enough to provide compensation and
other benefits
Information need: profit for the period, salaries paid to employees
Decisions supported: job security, consider staying in the company or look
for other employment opportunities

3. Owners
 Owners, stockholders, partners, proprietors.
 Founders of the company.
 Existing investors of the company
 Concerned mostly with the profits of the company and with the returns
earned from their investment.
 Owners taking active roles in the operations of the business.

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  Also make decisions.
Information need: profit or income for the period, assets and liabilities of
the business
Decisions supported: additional investment, e x p a n d i n g t h e business,
borrowing funds

 Accounting information is presented to internal users in the form of

budgets and financial statements.
 This information will support the decisions of the internal users.

EXTERNAL USERS

External users are individuals and organizations outside a company who want
financial information about the company. These users are not directly involved
in managing and operating the business.

1. Customers
 Main source of income of businesses.
 Most businesses are established solely for the service of their customers.
 They are people or entities that acquire goods or services for a fee.
 Determine if it will be profitable to transact with the business.
 Whether or not to build relationship with the business or to
have any dealings with the business.

2. Creditors
 Banks, lending institutions, suppliers and wealthy individuals.
 Sometimes the government can also lend resources to a company.
 Use accounting information to evaluate the risks of granting credit or
lending money or for determining the credit worthiness of an
organization.
 Providers of additional funds.
 Lend resources to businesses usually in the form of money in
exchange for a fee.
 The fee is the payment for the use of their resources.
 Prior to granting loans, the creditors first analyze the financial
statements.
 Most businesses require additional funds to operate the business.
 Concerned with the profits of a company because it will be the source
of funds available to repay the loan.
 Whether or not to lend resources to the business.
 Try to see if the business is not very risky before lending funds.

3. Potential Investors
 Providers of additional funds.
 Wealthy individuals and other businesses planning to invest
 Invest resources to earn returns
 Use accounting information to make decisions to buy shares of a company
or invest in a company.
 Concern with the ability to earn a reasonable return on their investment

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 before they commit any financial resources.
 Comparable to creditors, however, investors may win or lose in their
investment, unlike creditors who are assured of interest and fees.
 Financial statements provide potential investors the information to make
decision if they will invest. The information is a key factor if an investment
will make profit.
 Whether or not to invest in the business.

4. Government

 Different government agencies, taxing authorities and government

officials.
 Regulatory agencies such as Securities and Exchange Commission
(SEC), Bureau of Internal Revenue (BIR), Department of Labor and
Employment (DOLE), Social Security System (SSS), and Local
Government Units (LGUs), Tax Authorities (BIR).
 Regulate businesses.
 Checks the accuracy of the financial statements to compute for the
correct amount of taxes payable.
 Ask questions whether employees are paid according to what the law
states or do they get the benefits required or is the business paying the
correct amount of tax.
 Looks at the income, revenues and expenses of a business. The revenues
and expenses are scanned closely for purposes of taxing.
 Oversees business operations to improve the economy.

5. Academe

 Include professors, researchers, teachers and students.

 Benefit from the accounting information.
 Utilize financial statements primarily for academic purposes.
 Use of financial statements for academic purposes is not confined
in the accountancy field.
 Other fields of study like banking and finance, entrepreneurship make
use of financial statements.
 Uses accounting information in teaching accountancy.
 Researches improvements in the field of accountancy.

6. General
public

 Citizens and residents of the country.

 Common people not connected with the company even though they
do not plan to transact with the business.
 Use financial statements to measure the condition of the economy.
 Needs the answer to whether or not it is wise to start an enterprise
given the current condition.
 Uses financial information in making business decisions;
 Why does the general public concern themselves with the condition of
a company even though they do not have any plans to deal with said

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 company? Businesses affect the whole economy by creating jobs for the
public. By analyzing the financial statements of companies, the public
can properly respond to the various economic cycles.
 Allows management to identify problems immediately and to respond
accordingly.

Let’s Dig In

ACTIVITY 1
Directions: Search the puzzle for the nine users of accounting information.
Write your answer on a separate sheet of paper.

ACTIVITY 2
Directions: Define the internal and external users of accounting information.
Use a separate sheet of paper.

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ACTIVITY 4

Directions: Browse the website provided below to answer the guide

questions. Use a separate sheet of paper.

1. Give examples of internal and external users of accounting information.

2. Tax authorities and regulatory authorities are what type of external users?
3. Explain why suppliers are categorize as external users.

Let’s Remember

Directions: Complete the table by supplying what is being asked. Copy and
answer on a separate sheet of paper.
Users of Accounting Decisions to be Made
Information
1. Owner 1.
2. Creditors 2.
3. Customers 3.
4. Potential Investors 4.
5. Academe 5.
6. Management 6.
7. Government 7.
8. General Public 8.
9. Employees 9.

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 Let’s Apply
Directions: Answer the following questions through a 100-word essay. Use a
separate sheet of paper.

Criteria 5 4 3
Writing flows Writing flows Writing flows
Organization with clear with structure without
structure structure
Main idea is Main idea is Main idea and
Focus and clear and clear but not details are
details supported by supported unclear
details by details
No errors in Few errors in Numerous errors
Grammar grammar and grammar and in grammar and
and spelling spelling spelling
spelling

Let’s Evaluate

Directions: Read each item carefully. Write True if the statement is correct and
False if it is incorrect. Use a separate sheet of paper.

1. Government uses accounting information to evaluate tax returns.

2. Employees ask if the business has improved.
3. Managers work out an extension of loans.
4. The public verifies if the business is reporting the correct amount of income.
5. Having more benefits are the concern of employees.
6. Owners consider the expansion of a company.
7. Employees are interested to know if the wages could be raised.
8. Investors are the main source of income of businesses.
9. Managers are users of accounting information that do not transact with
the business.
10. A bank is an example of a creditor.

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 Let’s Extend

Directions: Browse the link provided below to watch the news video of the
face shield scam victims. Give one helpful tip to each of the three users
(owners, customers, general public) before they make decisions, so as not to
be in the same situation. Use a separate sheet of paper.

References
Printed Materials:
Florendo, Joselito G. (2016). “Fundamentals of Accountancy, Business, and
Management 1, 1st ed. Rex Book Store, Inc.

Online Resources:
https://www.teacherph.com/fundamentals-abm-1-senior-high-school-teaching-
guide/

file:///C:/Users/User/Downloads/ABM_Fundamentals%20of%20ABM%201%2
0C G.pdf

https://ledgerbench.com/wp-content/uploads/2020/04/page-05.jpeg

http://www.clker.com/clipart-tree-leaves-2.html

https://en.wikipedia.org/wiki/Bureau_of_Internal_Revenue_(Philippin

es)

https://upload.wikimedia.org/wikipedia/commons/5/54/Bureau_of_Internal_Re
ve nue_%28BIR%29.svg

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https://www.youtube.com/watch?v=CMA654upY2Y

Week 4

Printed Materials:
Florendo, Joselito G. (2016). “Fundamentals of Accountancy, Business, and
Management 1, 1st ed. Rex Book Store, Inc.

Online Resources:
https://www.teacherph.com/fundamentals-abm-1-senior-high-school-teaching-
guide/

file:///C:/Users/User/Downloads/ABM_Fundamentals%20of%20ABM%201%2
0C G.pdf

https://www.livecareer.com/resources/interviews/questions/entrepreneurial-
informational-interviewing

https://www.youtube.com/watch?v=yS5N61dT508

http://accountingcorner.org/wp-content/uploads/2015/10/what-is-
accounting- users-1024x768.png

19
 Let’s Learn

This module was prepared and written to help you achieve the required
competency in accounting. This will be the source of information for you to
acquire knowledge and skills in this specialization, with minimum supervision
or help from your teacher. With the aid of this material, you will acquire the
competency independently and at your own pace.

WEEK 5

After going through this module, you are expected to:

1. differentiate sole proprietorship from partnership

2. identify the advantages and disadvantages of each form
3. make a list of business entities in the community and identify
the form of business organization.

WEEK 6

After going through this module, you are expected to:

1. differentiate corporation from cooperative

2. identify the advantages and disadvantages of each form
3. make a list of business entities in the community and identify
the form of business organization.

WEEK 5

Let’s Try

Directions: Read each sentence carefully. Choose and write the letter of
the correct answer on a separate sheet of paper.

1. The simplest and most common form of business organization.

a) Partnership c) Sole proprietorship
b) Corporation d) Cooperative
2. A voluntary decision by two or more individuals to carry on a
business enterprise for profit as co - owners.
a) Sole proprietorship c) Corporation
b) Partnership d) Cooperative
3. The following are the advantages of single proprietorship, except:
a) The owner keeps all the profits.
b) The owner makes all the decisions.

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 c) It is easy to form and operate.
d) It is operated with two or more individuals.
4. What government agency is in charge of regulating the trade
names of sole proprietorship businesses?
a) Securities and Exchange Commission
b) Department of Trade and Industry
c) Department of Labor and Employment
d) Department of Education
5. What factors affect the business ownership?
a) Capital
b) Nature of the business
c) Number of people interested to join the business
d) All of the above
6. The owner of a business-like sari-sari store is known as
a) Sole Proprietor c) Partner
b) Incorporator d) Stockholder
7. Repair shops are example of what form of business organization?
a) Partnership c) Sole proprietorship
b) Corporation d) Cooperative
8. Which form of business organization is best for merchandising
business that sells only one line of goods and does not require
much capital?
a) Cooperative c) Corporation
b) Partnership d) Sole proprietorship
9. The following are general features of partnership, except
a) Limited life c) Mutual agency
b) Partnership agreement d) Limited liability
10. Which of the following is an advantage of a sole proprietorship?
a) pride of ownership c) ease of starting a business
b) being your own boss d) all of these

Lesson
FORMS OF BUSINESS ORGANIZATIONS
4 (Sole Proprietorship and Partnership)

Week 5
There are four different forms of business organizations in terms of nature of
ownership. This lesson presents the two forms – Sole Proprietorship and Partnership.
It also includes the advantages and disadvantages of each form. These will help
entrepreneurs have an idea on what form of business to venture on in the future.
Learning Objectives:
1. Differentiate sole proprietorship from partnership.
2. Identify the advantages and disadvantages of each form.
3. Make a list of business entities in the community and identify
the form of business organization.

21
 Let’s Recall

Directions: Identify the following users of financial information. Write I

for internal and E for external. Use a separate sheet of paper.

1. Management 6. Investors
2. Customers 7. Creditors
3. Public 8. Academe
4. Owner 9. Bankers
5. Government 10. Employees

Let’s Explore

Let’s Elaborate

Businesses are organizations commonly made to earn profit. A company deals

with multiple groups of individuals to achieve its end goal of profit generation.
So, if you already have enough capital, let us discover what forms of business
organizations you could choose to establish!

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 FORMS OF BUSINESS ORGANIZATION

1. SOLE PROPRIETORSHIP

 A business enterprise owned and operated by one individual.

 Most common form of business organization.
 Best suited for professional and service enterprises such as
beauty parlor, dental clinics, flower shops, repair shops, and
among others.
 Has no separate legal existence (a person or entity with a
capability to sue and be sued)
 Takes fictitious (created by the imaginations) names, also
known as trade names.

Advantages:

1. Ease of formation.
 Easier to establish than other forms of business organizations.
 Does not have to go through a difficult business registration
and permits process because it can register in the local municipal
hall.
 The whole process is easy and inexpensive.
 Can be formulated even with small amount of capital

2. The owner has full control of the business.

 Can easily make decisions to solve problems faced by the business.
 Does not experience internal conflict regarding business decisions.

3. The owner can freely mix personal assets with business assets.
 This is so because sole proprietorships are not separate juridical
entities distinct from the owners.
 If a business is experiencing financial difficulties, the
owner may use personal assets to help the business recover.

4. The owner has all the profits for himself.

 All profits belong to the owner.

5. Simple taxation.

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  The owner needs only to declare the income of the business in his
tax return and it will be taxed accordingly.

Disadvantages:
1. Unlimited liability.
 Means that creditors, customers, the government, and other outside
parties can go after the personal assets of the owner even after
extinguishing all the assets of the business as payment through court
proceedings.
2. Difficulty in raising additional capital.
 When all of the initial investments are used up, the owner is the only
person that can provide additional capital.
 In case the sole proprietor does not have enough resources to use as
capital, the only remedy available to the business is to look for
creditors willing to lend additional funds.
3. Owner’s bias.
 Only the sole proprietor has the authority to make decisions for
the business. When deciding how the company will move
forward, the owner always has the final word.
2. PARTNERSHIP

 A voluntary decision by two or more individuals to carry on

business enterprises for profit as co-owner.
 A contract whereby two or more persons bind themselves to
contribute money, property or industry to a common fund, with
the intention of dividing the profit among themselves.
 May be formed for the exercise of a profession.
 Profits are divided among partners based on their agreed sharing.
 The owner is called a partner.

24
 General Features of a Partnership

 Separate legal existence.

A partnership can also be defined as an artificial being created by
operation of law. Being an artificial person, a partnership can
perform the acts that the partners can do except those acts that are
purely personal in nature.
 Mutual agency.
Means that the acts of a partner are binding on a partnership even
though he has no authority to do so as long as the act concerns the
normal business operations of the partnership.
 Unlimited liability.
Even a partnership has separate legal existence, partners are still
liable for debts and obligations that cannot be paid by partnership
assets. Creditors and other parties can go after the personal assets of
the partners when partnership assets are not enough to satisfy their
claims. Creditors can claim the deficiency from any partners or from
all the partners.
 Limited life.
The life of a partnership can be easily ended through partnership
dissolution or liquidation.
 Co-ownership of partnership property.
In the formation of a partnership, partners contribute money,
property, and industry into a common fund. Once a partner has
contributed his or her money and/or property, it does not belong to
him anymore. The contributed money and property belong to the
partnership and the partners only have a proportionate share of
partnership assets.
 Partnership agreement.
The definition provided by the law that a partnership is a contract.
Contracts are perfected through oral or written agreement. Thus, a
partnership can be formed orally or in written form. To protect the
interests of all partners, it is ideal to form partnership in written
contract. The written contract is called the articles of partnership.

Advantages:
1. Easier to create than corporation.
2. Better ability to acquire additional capital than sole proprietorship.
3. Larger pool of human capital than sole proprietorships.
Disadvantages:
1. Unlimited liability.
2. Mutual agency.
3. Limited life.
4. The profits are divided among the partners.

25
 Let’s Dig In
ACTIVITY 1
Directions: Fill-in the blanks with the correct answer. Use a separate
sheet of paper.
1. Businesses are organizations commonly made to ear __________.
2. Fictitious names are also known as____________ name.
3. ____________are divided among partners based on their agreed sharing.
4. The owner may use personal___________ to help the
business recover.
5. The ___________ of a partnership can be easily ended through
partnership dissolution.
6. _____________ are perfected through oral or written agreement.
7. The written contract is called the _______________ of
partnership.
8. It is ideal to form partnership in ______________ contract.
9. A partnership is an artificial being created by operation of
___________________.
10.The business may look of _________________ willing to
lend additional funds.

ACTIVITY 2
Directions: Browse the link provided below to watch the video. Answer the
questions that follow. Use a separate sheet of paper.

1. Why did entrepreneur no.1 choose sole proprietorship?

2. State one reason why entrepreneur no.2 decided to have a partner.

26
 Let’s Remember
Directions: Differentiate the two forms of business organizations. Write your
answer on a separate sheet of paper.

Let’s Apply

Directions: Browse the link provided below to watch the video. Read carefully
anddo what is asked on a separate sheet of paper.

5 4 3
Stated complete Stated complete Stated
advantages and advantages but incomplete
disadvantages incomplete advantages
disadvantages (vice and
versa) disadvantage
s
Indicated clearly the Indicated the chosen Did not indicate
chosen form of form of business the chosen
business organization organization form of
business
organization

27
 Let’s Evaluate
Directions: Write True if the statement is correct and False if it is incorrect.
Write your answers on a separate sheet of paper.

1. Sole proprietorship is a business enterprise owned and operated

by one individual.
2. Articles of partnership is the written contract use to protect the
interests of all partners.
3. Knowledge refers to the skills and expertise of a person.
4. Department of Trade and Industry is the government agency in
charge of regulating the trade names of sole/single proprietorship
businesses.
5. Capital is the only factor that affects the business ownership.
6. The owner of a business-like sari-sari store is known as partner.
7. Only the sole proprietor has the authority to make decisions.
8. Limited life is one of the advantages of sole proprietorship.
9. Mutual agency is one of the general features of partnership.
10. Unlimited liability is an advantage of a partnership.

Let’s Extend

Directions: List five businesses you are familiar with in your community.
Identify the form of business organization each company is. Write your answer
on a separate sheet of paper.

28
WEEK 6

Let’s Try
Directions: Read and analyze each item. Write the letter of the best answer
on a separate sheet of paper.
1. Which of the following is true about a cooperative?
a. It is the most common form of business organization.
b. A voluntary decision by two or more individuals to carry on a business.
c. Owned by 25 or more individuals who buy shares in the
business on voluntary basis.
d. The owners are called stockholders or shareholders.
2. Ownership is held by various natural or juridical persons through the
purchase of shares of capital stock.
a.) Corporation c.) Both a and b
b.) Cooperative d.) All of these
3. Which is not true about a corporation?
a.) The business is initiated by individuals known as incorporators.
b.) A corporation can enter into contracts and transactions under its
name.
c.) It is the most common form of business organization.
d.) The owners are called stockholders or shareholders.
4. The government agency primarily tasked to regulate private corporations
in the Philippines.
a. Security and Exchange Commission
b. Department of Trade and Industry
c. Department of labor and Employment
d. Department of Education
5. The owners of a corporation are called
a.) Managers c.) Stockholders
b.) Supervisors d.) Incorporators
6. What is the role of Cooperative Development Authority (CDA) as a
government agency in regulating cooperative business?
a.) Promotes the viability and growth of cooperatives as instruments
of equity, social justice and economic development.
b.) Responsible for registering all types of cooperative in the Philippines
c.) Formulates, adopts, implements and integrates comprehensive plans and
programs in cooperative development
d.) All of the above
7. San Miguel and Jollibee are examples of what forms of business
organization?
a.) Cooperative c.) Both a and b
b.) Corporation d.) None of these
8. The following are purposes of cooperative, except
a.) To promote and advance the economic, social and educational status of
the members.
b.) To encourage thrift and savings mobilization among the

29
 members.
c.) To develop expertise and skills among its members.
d.) Ownership rights in a corporation are presented by stocks.
9. Which is not a general feature of a corporation?
a.) Limited liability c.) Separate legal existence
b.) Double Taxation d.) Transferable ownership rights
10. Which of the following best describes a cooperative?
a.) A cooperative is owned by 25 or more individuals who buy shares
in the business on voluntary basis.
b.) An organization whose main objective is to produce commodities
that they need daily.
c.) The members are expected to patronize their products and
services.
d.) All of the above.

Lesson
FORMS OF BUSINESS ORGANIZATIONS
4 (Corporation and Cooperative)
Week 6

As mentioned in our previous lesson, there are four different forms of business
organizations in terms of nature of ownership. This lesson presents the other two
forms – Corporation and Cooperative. It also includes the pros and cons of each form.
These will help entrepreneurs have an idea on what form of business to undertake.

Let’s Recall
Directions: Answer the following questions on a separate sheet of paper.

1. What is a sole proprietorship?

2. Define partnership.
3. State one advantage and disadvantage of each form of business
organization.

30
 Let’s Explore

Directions: Rearrange the jumbled letters below. Write your answer on a

separate sheet of paper.

R C R P T N O O A I O

1.

E V T C O E P O A I R

2.

Let’s Elaborate

As previously discussed, businesses are organizations commonly made to earn

profit. A company deals with multiple groups of individuals to achieve its end goal
of profit generation. There are also organizations established not for the pursuit of
profit. Let us know more about these business organizations.

FORMS OF BUSINESS ORGANIZATIONS

1. CORPORATION

31
 This is formed when five or more people decide to go into business.
 The business is initiated by individuals known as incorporators.
 It is a business organized as a separate legal entity (artificial person)
under the corporation law with ownership divided into transferable
shares of stocks.
 The owners are called stockholders or shareholders.

General Features of a Corporation

1. Separate legal existence.
 A corporation can enter into contracts and transactions under its name

2. Limited liability.
 The personal assets of the stockholders of a corporation are
protected from the claims of creditors and other outside
parties.
 Even if the corporation is bankrupt or has unpaid claims due to
accidents and lawsuits, the stockholders cannot be obligated to
pay any deficiency.

3. Transferable ownership rights.

 Ownership rights in a corporation are presented by stocks.
 Stock is an intangible (no physical form) asset evidencing a
proportionate share in the properties of a corporation.

4. Virtually unlimited life.

 Shall exist for a period not exceeding 50 years from the date of
its formation. The term of a corporation may be extended.

5. Corporation management.
 Stockholders are the owners of a corporation.
 They may elect a board of directors to manage the corporation.
 Board of directors represents the interest of the stockholders and
they are responsible for creating operating policies for the
company.
 Stockholders can also be a member of the board of directors.
6. Government regulations.
 Subject to stricter government regulation.
 Major contributors to the income of the whole economy.
 Operations are closely monitored.
7. Double taxation.
 Income of the corporation is taxed on the corporate level
and the individual level.
 Once a stockholder receives his share of the income, it is
included in his tax return and will be taxed for the second time.
8. Dividends.
 The income distributed to the stockholders.
 Will only be received once the board of directors approves the
distribution.

32
 ADVANTAGES DISADVANTAGES
 Ability to acquire additional  Heavily regulated by the
capital government
 Transferable ownership rights  Double Taxation
 Limited liability of stockholders  Not easy to form
 Virtually unlimited life  More expensive to form than sole
 Large pool of human capital proprietorship and partnership

2. COOPERATIVE

 Owned by 25 or more individuals who buy shares in the

business on voluntary basis.
 An organization whose main objectives is to produce commodities
that they need daily.
 The members are expected to patronize their products and services.
 Cooperative Development Authority (CDA) is the government
agency that in regulates cooperative business.

Purposes of Cooperative
1. To encourage thrift and savings among the members
2. To generate funds and extend credit to the
members for productive purposes
3. To encourage among members systematic
production and marketing
4. To provide goods and services to the members
5. To develop expertise and skills among its members
6. To acquire lands and provide housing benefits
for the members
7. To insure against losses of the members
8. To promote and advance the economic,
social, and educational status of the members.

33
 ADVANTAGES DISADVANTAGES

 Enjoys certain tax  Limited distribution of surplus

exemption privilege.  Requires continuous education programs
 Promotes the conceptof formembers.
sharing resources.  Members have active and direct
participation.

Let’s Dig In

Activity 1
Directions: Complete the table below by supplying the necessary information
needed. Use a separate sheet of paper.

Corporation Cooperative
1. Purpose
2. Number of owners
3. Management

Activity 2
Directions: Write down two advantages and disadvantages of a corporation and a
cooperative. Use a separate sheet of paper.

Corporation Cooperative
Advantages: Advantages:
1. 1.
2. 2.
Disadvantages: Disadvantages:
1. 1.
2. 2.

Activity 3
Directions: Make a list of five business enterprises in your community. Identify
whether it is a corporation or a cooperative. Use a separate sheet of paper.

34
 Let’s Remember

Directions: Answer the question on a separate sheet of paper.

Is cooperative the same as a corporation? Explain your answer.

Let’s Apply

Directions: Browse the website provided below. View the illustration about
cooperative and write a 100-word essay about it. Use a separate sheet of paper.

Criteria 5 4 3
Content Main idea is clear Main idea is clear Main idea and
and supported by but not supported details are
details by details unclear
Convention No errors in Few errors in Numerous errors
capitalization, capitalization, incapitalization,
grammar and grammar and grammar and
spelling spelling spelling

Let’s Evaluate

Directions: Identify whether the following statements are characteristics of a

corporation or a Cooperative. Answer on a separate sheet of paper.

35
 1. It is regulated by the CDA.
2. Pure gold is an example of this form of business organization.
3. Subject to stricter government regulation.
4. Owned by 25 or more individuals who buy business shares on voluntary
basis.
5. Main objectives is to produce commodities they need daily.
6. Members are expected to patronize their products and services.
7. Owners are called stockholders or shareholders.
8. Ownership is held by various natural/juridical persons through capital
stocks.
9. Initiated by individuals known as incorporators.
10. It can enter into contracts and transactions under its name.

Let’s Extend

Directions: Browse the link provided below. Read the article and answer
the questions on a separate sheet of paper.

1. What is the name of the business?

2. Who is the founder of the business?
3. When did the business started?
4. Identify its form according to the nature of business.
5. Give one advantage and disadvantage of the chosen form of
business organization.

36
 References

Week 5

Printed Materials:
Florendo, Joselito G. (2016). “Fundamentals of Accountancy, Business, and
Management 1, 1st ed. Rex Book Store, Inc.
Rojo, Luz Villanueva, et al. “Effective Technology & Home Economics”,
Adriana Publishing Co., Inc.
Online Resources:
https://www.teacherph.com/fundamentals-abm-1-senior-high-school-teaching-
guide/

https://www.kcsourcelink.com/guides/start-a-business/register-and-license-your-
business/forms-of-business-organization

https://www.youtube.com/watch?v=bTmTOS1sUEI
https://www.youtube.com/watch?v=A-Up-JUkaj0

Week 6
Printed Materials:
Florendo, Joselito G. (2016). “Fundamentals of Accountancy, Business, and
Management 1, 1st ed. Rex Book Store, Inc.
Rojo, Luz Villanueva, et al. “Effective Technology & Home Economics”,
Adriana Publishing Co., Inc.
Online Resources:
https://www.teacherph.com/fundamentals-abm-1-senior-high-school-teaching-
guide/
https://www.kcsourcelink.com/guides/start-a-business/register-and-license-your-
business/forms-of-business-organization

http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---
coop/documents/image/wcms_659552.jpg

https://francescaenglish.files.wordpress.com/2010/12/cooperative-principles.jpg

https://img.pngio.com/teamwork-design-and-round-color-round-cooperation-png-
and-vector-teamwork-png-650_651.png

https://c1.iggcdn.com/indiegogo-media-prod- cld/image/upload/fl_progressive:
semi, q_auto, f_auto, c_limit, w_695/v1504876631/l dkmohudtjpzqqzpb19r.png

37
 Let’s Learn

This module was prepared and written to help you achieve the required competency in
accounting. This will be the source of information for you to acquire knowledge and
skills in this specialization, with minimum supervision or help from your teacher. With
the aid of this material, you will acquire the competency independently and at your own
pace.

WEEK 7
After going through this module, you are expected to:

1. compare and contrast service business and merchandising

business
2. identify the advantages and disadvantages of each type of business
3. make a list of businesses in the community according to activities.
WEEK 8
After going through this module, you are expected to:

1. define manufacturing business

2. identify the advantages and disadvantages of manufacturing
business
3. make a list of manufacturing businesses in the community.

WEEK 7

Let’s Try

Directions: Read each sentence carefully. Write the letter of the correct answer
on a separate sheet of paper.
1. What is the difference of a merchandising company over a service
campany?
a. It does not need employee c. It provides tangible
products
b. it has no inventory d. It has production facilities
2. A merchandising company that sells goods directly to customers.
a. Retailer c. Manufacturer
b. Wholesaler d. Inventor
3. Which of the following is considered a merchandising company?
a. National Book store c. Allan’s Convenience store
b. SM Hypermarket d. All of these
4. Services performed by service companies may include all, except
a. Professional services c. Transportation services

38
 b. Legal services d. Market venues
5. Which of the following is considered a service type of business?
a. Shara’s cakes and pastry bakery c. Dresses by Pauline
b. Melanie’s meat shop d. Tricia’s school for toddlers
6. A merchandising company that sells goods directly to retailers is called
a. Major Retailer c. Manufacturer
b. Wholesaler d. Middleman
7. Selling in small quantities directly to the ultimate consumer
for personal or household consumption.
a. Retailing c. Manufacturing
b. Wholesaling d. Production
8. Is an organization that converts inputs or resources such as
materials, labor, and overhead into outputs which are usually
either goods or services.
a. Production c. Companies
b. Business d. Establishments
9. Which of the following statements about merchandising companies is
false?
a. Merchandising companies provide tangible products
b. Merchandising companies may sell directly either to costumers or
retailers.
c. Merchandising companies by raw materials, convert
them into finished products and sell it to the customers.
d. Merchandising companies generally incur less cost relative
to other types of business they consume less conversion time
and effort.
10. The following are advantages of service business, except
a. Difficult valuation c. No inventory needed
b. No production facilities d. Low start-up costs

Lesson

5 TYPES OF BUSINESS ACCORDING TO

ACTIVITIES
Week 7
(Service Business and Merchandising
Business)

There are three types of business according to activities - service, merchandising

and manufacturing. Each type has its own advantages and disadvantages. In this
lesson, you will learn about service and merchandising.

39
Learning Objectives:
1. Compare and contrast service business and merchandising
business.
2. Identify the advantages and disadvantages of each type of
business.
3. Make a list of businesses in the community according to activities.

Let’s Recall

Directions: Identify whether the statement describes a corporation or cooperative.

Write your answer on a separate sheet of paper.

Let’s Explore

40
 Let’s Elaborate

TYPES OF BUSINESS ACCORDING TO ACTIVITIES

1. Service business
 Provides certain professional support to its clients gives an activity or
the performance of a task with a commercial purpose.
 Offers professional skills and consultations.
 Engage in rendering services to people and other companies.
 In this type of business, sincerity, dedication and honesty
are the guiding principles.

41

Advantages
 No inventory needed- If you
sell a service, you usually
don't have any inventory. No
tangible goods held by the
company.
 No production facilities
 Lower start-up costs- it has a
much lower barrier to entry
than starting a business that
deals with physical products.
 Lack of inventory and
manufacturing
 Enables local marketing
 Adaptable to changing wants
and needs
Disadvantages
 Difficult valuation- Your service
business is harder tovalue than a
manufacturing or retail company.
 Demand cutback- In difficult
economic times, consumers
usually cut back on services
 Intangibles- Unlike products,
services are intangible. This means
that there is nothing to
demonstrate or display for
prospective buyers.
 Maintaining human capital
 Time - Services take time to
perform and time to sell
 Mistrust - potential clients are
more likely to mistrust service
providers than products.

2. Merchandising business
 Any act of promoting goods or services for retail sale, including
marketing strategies, display design, and discount offers.
 There are two types of merchandising business (retailers, wholesalers)
 Unlike service business, merchandising companies sell tangible
products.
 This type of business buys at wholesale and later sells the products
at retail.
 They make a profit by selling the merchandise or products at
prices that are higher than their purchase costs.
 This type of business is also known as "buy and sell"

42
For service companies, the major phases of their operating cycle include paying
out money for employees and other operating expenses, performing the services,
and collecting cash payments from customers.

Operating Cycle of Service Companies

43
 The operating cycle of a merchandising company is typically longer than
that of a service company. It starts with the purchase of goods to be held for resale,
also known as inventory. The company eventually sells the inventory to
customers. The cycle ends with the receipt of cash payments. As you can see, the
purchase of inventory and its subsequent sale lengthen the cycle.

Operating Cycle of Merchandising Companies

Let’s Dig In

ACTIVITY 1
Directions: Write down two advantages and disadvantages of a service business
and a merchandising business. Use a separate sheet of paper.

service company merchandising company

advantages disadvantages advantages disadvantages
1. 1. 1. 1.
2. 2. 2. 2.

44
ACTIVITY 2
Directions: Browse the link provided below to watch the video. Answer the
question on a separate sheet of paper.

ACTIVITY 3
Directions: Unscramble the letters to identify what is described in each number. Write
your answer on a separate sheet of paper.

ACTIVITY 4
Directions: List down ten businesses in the community and classify them
according to their activities. Answer using the given format on a separate sheet of
paper.

45
 Let’s Remember

Directions: Complete the sentence below. Copy and answer on a separate sheet
of paper.
A service company is _________________________ while a
merchandising company is _________________________.

Directions: Browse the link provided below to watch the video. Answer the
questions on a separate sheet of paper.

https://www.youtube.com/w
atch?v=edfrHeNfWHo

1. What are the two types of products an enterprise could offer?

2. How many types of business operate in the Philippines according to
activities?

Let’s Evaluate

Directions: Write True if the statement is correct and if it is False, change the
underlined word to make it correct. Write your answers on a separate sheet of
paper.
1. Wow Beauty Salon is a service type of business.
2. Retailing is selling in small quantities directly to the ultimate consumer
for personal or household consumption.
3. Merchandising companies provide intangible products
4. Inventory are goods to be held for resale.
5. Operating cycle is the time it takes for a company to create and sell
products and collect cash payments from customers.
6. SM Hypermarket is considered a service company.
7. Service companies may perform transportation services.

46
 8. Retailers and wholesalers are two types of merchandising.
9. No inventory needed is one disadvantage of service business.
10. Services are tangible.

Let’s Extend

Directions: Read carefully and reflect on the incomplete statements. Write your
answer on a separate sheet of paper.
1. Someday, when I become an entrepreneur, I plan to be involved in
________________.
2. I will buy and sell __________________/
I will render _______________________.
3. I choose to engage in this type of activity because ________________________.

WEEK 8

Let’s Try

Directions: Read and analyze each item. Write the letter of the best answer on a
separate sheet of paper.

1. The different types of business according to activities are

a. Manufacturing, Corporation, Service
b. Service, Manufacturing, Merchandising
c. Service, Partnership, Corporation
d. Sole proprietorship, Partnership, Corporation
2. Which of the following is not considered as manufacturing company?
a. Car company c. Bakery shop
b. Bank d. Oil company
3. One of the advantages of manufacturing company is
a. Existence of inventory c. High conversion cost
b. Capital outlay d. Quality control
4. Which of the following is considered a manufacturing company
a. Samsung c. Abenson
b. Robinsons Appliances d. SM Appliances Center
5. Manufacturing companies are also known as
a. Retailers c. Manufacturers
b. Wholesalers d. Sole proprietorship

47
 6. Another term for production.
a. selling c. manufacturing
b. producing d. retailing
7. Operating cycle of manufacturing companies starts with
a. Cash on hand c. Raw materials
b. Sales inventory d. Finish products
8. Business is relatively complicated than other business activities.
a. Service business c. Manufacturing business
b. Merchandising business d. Both A and B
9. It produces its own products through the use of machinery and
equipment.
a. Service Business c. Merchandising Business
b. Manufacturing Business d. Cooperative Business
10. This business activity has the longest period of operating cycle.
a. Manufacturing business c. Merchandising business
b. Service business d. Cooperative business

Lesson TYPES OF BUSINESS ACCORDING TO

5 ACTIVITIES
(Manufacturing Business)
Week 8

There are three types of business according to activities - service, merchandising

and manufacturing. Each type has its own advantages and disadvantages. In this
lesson, you will learn about manufacturing.

Learning Objectives:
1. Define manufacturing business.
2. Identify the advantages and disadvantages of manufacturing
business.
3. Make a list of manufacturing businesses in the community.

Let’s Recall

Directions: Differentiate service from merchandising business and give examples

of each. Use a separate sheet of paper.

48
 Let’s Explore

Let’s Elaborate

TYPES OF BUSINESS ACCORDING TO ACTIVITIES

1. Manufacturing Business

 Production or manufacturing is the process of converting raw materials into

goods by workers through the use of machinery and equipment.
 Manufacturers create their own products.
 Manufacturing companies or simple manufacturers are relatively
complicated organization than service and merchandising companies.
 It often employs machines, robots, computers, and humans to produce the
merchandise.
 Typically use an assembly line, which enables a product to be put together
step by step, moving from one workstation to the next.
 It can choose to sell their products directly to consumers, to other
manufacturers, to distributors or to wholesalers.

49
  Similar to merchandising companies, they earn revenues from the sales of
manufactured products.
 Employ large-scale production which is done in manufacturing plants.

Since a manufacturing company produces its own products, its operating cycle
generally has the longest period compared to service and merchandising. The cycle
has an additional phase which is the production of goods. These goods are also held
as inventory and later sold to its customers. Likewise, the operating cycle of a
manufacturing company ends with the collection of cash payments.

Operating Cycle of Manufacturing Companies

50
 Advantages Disadvantages
 More efficient  Generally, needs
inventory management production
 Smoother production facilities
workflow  Implementation
 Quick access to period can be
reports and costing mildly disruptive
 Better  Have to train
purchasing workers to
planning understand new
 Extra time made to system
spend on growing  High
business conversion
 All of your costs
manufacturing  Cost of
overhead costs are tax quality control
deductible.  Managing inventory
 visible products

Let’s Dig In

ACTIVITY 1
Directions: Write TRUE if the statement is correct and FALSE if
it is incorrect. Write your answers on a separate sheet of paper.

1. Manufacturing is the process of converting raw materials into goods

by workers through the use of machinery and equipment.
2. Beauty Salon is an example of manufacturing business.
3. Manufacturing companies are relatively complicated organization
than service and merchandising companies.
4. Similar to merchandising companies, manufacturing business also
earn revenues from the sales of manufactures products.
5. High conversion costs is one of the advantages of manufacturing
business.

51
 ACTIVITY 2

Directions: Browse the link provided below to watch the video on

outsourcing a manufacturing business. Answer the question on a separate
sheet of paper.

Let’s Remember

Directions: Answer what is being asked. Use a separate sheet of paper.

Let’s Apply

Directions: In a sample tree below, list five manufacturing businesses in your

community. Make a brief description of each business. Use a separate sheet
of paper.

52
 5 4-3 2-1
Complied with Complied with 3-4list Complied with 2 orless
complete list list
Complied with Complied with 3-4 Complied with 2 or
complete description description less

Let’s Evaluate

Directions: Fill in the blanks with the correct answer. Use a separate sheet of
paper.
1. The types of business according to activities are service, merchandising
and __________________.
2. A bakery shop is considered a _________________________.
3. In manufacturing, ________________ should be trained to understand
new system.
4. Manufacturing companies are also known as _____________________.
5. Companies employ machines, computers, and humans to produce
__________________.
6. _____________________ line enables a product to be put together step by step.
7. The operating cycle has an additional phase which is the ________________ of
goods.
8. The products can be sold directly to consumers, retailers and other
_______________________.
9. It earns revenues from the ___________________ of manufactured products.
10. ________________ create their own products.

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 Let’s Extend

Directions: Browse the link provided below to watch the video. Answer the
questions on a separate sheet of paper.

1. What available raw materials at home can you recycle?

2. What finished product could be made out of the recycled materials?

54
 References

Week 7

Printed Materials:
Argana, A. & Atis – Cardenas T. (2007). Accounting Principles 1.4th ed.
National Bookstore
Pasion, D., Pasion, W. & Pasion E. (1990). Introductory to Accounting Part one,
Phoenix Publishing House

Online Resources:
https://www.teacherph.com/fundamentals-abm-1-senior-high-school-teaching-
guide/

https://www.powerhomebiz.com/starting-a-business/business-types/how-to-
successfully-start-and-run-a-service-business.htm

https://www.powerhomebiz.com/starting-a-business/business-types/how-to- start-a-
product-based-business.htm

https://www.youtube.com/watch?v=edfrHeNfWHo

Week 8

Printed Materials:

Argana, A. & Atis – Cardenas T. (2007). Accounting Principles 1.4th ed.

National Bookstore
Pasion, D., Pasion, W. &Pasion E. (1990). Introductory to Accounting Part one,
Phoenix Publishing House

Online Resources:

https://www.teacherph.com/fundamentals-abm-1-senior-high-school-teaching-
guide/

https://www.powerhomebiz.com/starting-a-business/business-types/how-to- start-a-
product-based-business.htm

https://www.youtube.com/watch?v=imzl_Xn6Ij0&feature=youtu.be
https://youtu.be/RdfGYnlaagA

55
 Chairperson: DR. MARGARITO B. MATERUM – Schools Division Superintendent

Vice- Chairperson: DR. GEORGE P. TIZON – SGOD Chief

DR. ELLERY G. QUINTIA – CID Chief

Ex-Officio Members: EDUCATION PROGRAM SUPERVISORS & ELEMENTARY SCHOOL PRINCIPALS

Secretariat: QUINN NORMAN O. ARREZA

Team Leader/Facilitator: DR. MELEDA H. POLITA, SDS (Ret)

EVALUATORS/REVIEWERS/CONTENT ILLUSTRATORS/LAY OUT

WRITERS
VALIDATORS ARTISTS

MARY JEAN V. DELA CRUZ

NOLITO R. ESTILLES, OIC Principal KRISTINE JEHAN J. MAYUGA

KRISTINE JEHAN J. MAYUGA DR. ANGELA K. ALAMAN, Head Teacher IV MARISSA D. SALVADOR

MARISSA D. SALVADOR DR. RONALDO J. LASIN, Master Teacher I JASPER T. AGUILAR

SANTIAGO P. ALVIS, Principal II MICHELLE D. VERDERA

Format and Language Validators: PRIVATE INTERNATIONAL SCHOOLS REPRESENTATIVES

School Heads In-charge: DR. REA M. CRUZ, Principal IV

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PRINTING SPONSOR: CITY GOVERNMENT OF TAGUIG

For inquiries, please write or call:

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Telefax: 8384251

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57