STO NIÑO FORMATION AND SCIENCE SCHOOL

Rosario, Batangas
A.Y. 2020-2021

Name: ____________________________________ Business Enterprise (ABM 12-1)

Strand and Section: __________________________

Module No. 2 – FOURTH QUARTER

INTRODUCTION
A would-be-entrepreneur will never know if his or her business plan will lead to success if he or
she does not implement or execute it. The aspiring entrepreneur will not know the positives and negatives of
his or her plan unless he or she applies it in real life.

Successful business simulation exercises don’t just teach your learners about the scenarios
they’re facing, they show them how they can work together and learn from other people’s experiences. Business
simulations seek to put the learner in a realistic scenario that they will encounter in their work life. Immersing
them in an environment that recreates the real world lets them see the effects of their decisions immediately.

Business Enterprise Simulation crystallizes the key concepts and processes of accounting,
business, and management. It includes real-life activities that will guide students in following the business
cycle—business opportunity search, product or service development, business formation and organization,
business implementation and control, business wind-up, and relevant management reporting in the context of
ethical standards and the corresponding social responsibility. Business Simulation is a bridge between
classrooms learning and real-life challenges in that you can learn even more by taking a role outside of your
limitation.

Content Standard: The learners demonstrate an understanding of… the key concepts of Accounting, Business
and Management through identification in potential business opportunities.

Performance Standard: The learners shall be able to undertake research on and analysis of business
opportunities present in their community

Learning Resources: Business Enterprise Simulation (Second Edition) Diwa Publishing House

Learning Outcomes for the Unit:

o Demonstrate an understanding of management execution and decision-making.

MODULE 4: WINDING UP THE BUSINESS

Learning Objectives:

At the end of this module, the students can:

1. Show an understanding of the concepts related to winding up a business;
2. Apply these concepts to a business;
3. Prepare a culminating report that includes key insights and important values gathered during the course of
your actual business implementation experience.

Important Note:
Read and understand the key concepts and its explanation.

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 The life cycle of a business ends when it winds up, meaning, the business is closed down. Winding up is
the process of selling all the assets of the business, paying all creditors, and distributing the remaining assets to
the entrepreneur. Winding up the business is basically terminating the business which is the process of selling
all the assets of the business, paying all creditors, and distributing the remaining assets to the entrepreneur. To
avoid risks and losses, a detailed plan is also needed in closing or winding up a business.

Engagement Activity No. 1

Directions Write TRUE is the statement is correct, and FALSE if it is incorrect.

____________1. A proper way of winding up the business also provides creditors and customers a clear picture on what
is going to happen next with the business.
____________2. Settle all tax dues of the business with the Bureau of External Revenue.
____________3. Informing customers about the status of your business shows your genuine concern for your customers
and their needs.
____________4. Allocate funds for contingent obligations that could arise from the simulation of the business.
____________5. One important step in implementing a business enterprise simulation is analyzing what transpired
during the execution of the business.
____________6. Winding up a business gives off a positive connotation in that it signals the closing of a business.
____________7. Inform your customers about the cessation of your business.
____________8. Discharge business assets that you do not need.
____________9. The business enterprise simulation culminating report features the noteworthy principles learned in
the entire business simulation experience.
___________10. The winding up of a business selling goods is not different from winding up a service business.

Engagement Activity No. 2

Directions: Answer the following questions.

1. Why is it important to cancel the business name with the DTI and to settle all tax dues with the BIR?

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2. Why is it important to settle obligations with creditors and suppliers before closing the business?

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--End of Module—
Keep Safe Always 

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