Organization and Management

General Academic Strand│Accountancy, Business, and Management

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2.5 Forms of Business Organization

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20 minutes

Learning Competency
Differentiate the various forms of business organizations (ABM_AOM11-Ic-d-9).

Recall
● According to its ownership structure, businesses are classified as a sole
proprietorship, partnership, and corporation.
○ Sole proprietorship is owned by only one person who generally
has full control and authority over the business.
○ Partnership pertains to two or more partners sharing the
ownership.
○ Corporation has a legal entity that is separate and distinct from its
owner. The owners are known as shareholders.
● Business organizations can also be classified according to their business
activities, products, or services offered to the market.
○ Service business focuses on providing assistance to help and
support its clients.
○ Merchandising business purchases products from other
businesses and sells them to customers at a higher price.
○ Manufacturing business converts inputs into finished goods or
outputs.
○ Hybrid business has the combined characteristics and nature of
other business organizations.

Lesson 2.5: Forms of Business Organization 1

Organization and Management
General Academic Strand│Accountancy, Business, and Management

● Republic Act 9178 or the Barangay Micro Business Enterprises

(BMBEs) Act of 2002 provides a basis for the categorization of business
enterprises according to their asset sizes and the number of employees.

Instructions

Accurately identify the different forms of business organizations in the given

scenario.
Product

Identify which form of business organization is being described by the following business
cases. Provide a simple explanation for your answers.

1. Maria is the owner of MKT Beauty Products, an online retailing shop specializing in
beauty soaps, lotions, moisturizers, makeup, etc. She’s the only one managing the
online shop. Maria founded the company last May 2020 and is currently expanding
its customer reach. She has also established a physical store in Morayta, Manila,
that caters to the demand in that area. Currently, her business owns Php 315,000
worth of equipment and computers needed for order transactions. The shop only
has one employee who serves as Maria’s assistant.

Based on ownership structure: ____________________________________________

Based on its nature: ____________________________________________
Based on its asset size: ____________________________________________

Explanation:
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Lesson 2.5: Forms of Business Organization 2

Organization and Management
General Academic Strand│Accountancy, Business, and Management

2. Eddie, Marissa, and Emily own Cafe Mucho, a famous chain of coffee shops and
restaurants in Tarlac. They have been co-owners of the business for the last three
years. They have known each other since their freshman year in college. Because of
their bond and friendship, they always mutually agreed on how they would make
decisions in their business. Because of its popularity, the business already has ten
shops in Tarlac. In total, the business has Php 13,500,400 worth of land, building,
equipment, and other assets. Currently, they have a total of 99 employees.

Based on ownership structure: ____________________________________________

Based on its nature: ____________________________________________
Based on its asset size: ____________________________________________

Explanation:
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3. Myrna is a shareholder in a multinational oil and gas company based in the

Philippines. The company expanded its operations in several countries in the
Southeast Asian region. Currently, she has a total of Php 1,257,130 shares. The
company has a total of Php 568,000,000 worth of assets and properties. It also
employed a total of 3,456 rank and file employees, 754 managerial employees, and
eight employees who have executive positions.

Based on ownership structure: ____________________________________________

Based on its nature: ____________________________________________
Based on its asset size: ____________________________________________

Explanation:
______________________________________________________________________________________________
______________________________________________________________________________________________
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Lesson 2.5: Forms of Business Organization 3

Organization and Management
General Academic Strand│Accountancy, Business, and Management

Suggested Rubric for Grading

The rubric below is a suggested one. Your teacher may modify the rubric based on your
needs. Consult your teacher for the final rubric.

Performance Levels

1 2 3 Suggested
Criteria Score
Beginning Proficient Advanced Weight

Proficiency Proficiency

Correctness of At most, three of the At least six of the All of the prompts

Answers
prompts are prompts are are identified ×3
identified correctly. identified correctly. correctly.

Organization of The answer shows The answer shows The answer

little or no some organization of effectively
Thoughts and ×2
organization of ideas. organizes ideas and
Ideas thoughts and ideas. is logical.

Depth of The answer lacks The answer The answer

ideas and examples. demonstrates basic demonstrates an
Discussion
knowledge and in-depth knowledge
reflection on the of and reflection on
topic. It also includes the topic. It also ×1
minimal details and includes
examples. comprehensive
examples and
additional ideas.

Total Possible Score 18

Teacher’s Feedback
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Lesson 2.5: Forms of Business Organization 4