Business Ethics: Forms of Business Organization Part 1
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Questions and Answers

What is one advantage of a sole proprietorship?

  • Difficult to raise capital
  • Limited liability
  • All profits go to the owner (correct)
  • Complexity of profit sharing

A partnership has more complex profit sharing arrangements than a sole proprietorship.

True (A)

What is a disadvantage of a sole proprietorship related to liability?

Unlimited liability

One of the main disadvantages of a partnership is __________ between partners.

<p>conflicts</p> Signup and view all the answers

Match the following business types with their respective advantages:

<p>Sole Proprietorship = Complete and direct control Partnership = Availability of capital</p> Signup and view all the answers

The module aims to help learners acquire the 5 Cs of 21st-century skills.

<p>True (A)</p> Signup and view all the answers

The City Government of Pasig collaborated in the development of this module.

<p>True (A)</p> Signup and view all the answers

What may a government agency impose as a condition for exploiting its work for profit?

<p>Payment of royalties (A)</p> Signup and view all the answers

Which business type involves only one owner?

<p>Sole Proprietorship (B)</p> Signup and view all the answers

In a partnership, consent of partners is not needed for management decisions.

<p>False (B)</p> Signup and view all the answers

What is the life of a business considered in a sole proprietorship?

<p>Unstable business life</p> Signup and view all the answers

A partnership usually has ______ owners.

<p>two or more</p> Signup and view all the answers

Match the following business types with their characteristics:

<p>Sole Proprietorship = Only one owner Partnership = Two or more owners Corporation = Limited liability for owners Limited Liability Company = Limited but flexible capital</p> Signup and view all the answers

Which of the following is true regarding capitalization in a sole proprietorship?

<p>Limited finance (C)</p> Signup and view all the answers

Partnerships have more flexibility in capitalization than sole proprietorships.

<p>True (A)</p> Signup and view all the answers

Describe the formation of a partnership in comparison to a corporation.

<p>Easier to form than a corporation</p> Signup and view all the answers

What is a significant advantage of a sole proprietorship regarding taxation?

<p>Profits are taxed as personal income. (D)</p> Signup and view all the answers

Sole proprietorships have limited liability for their owners.

<p>False (B)</p> Signup and view all the answers

What is one main reason why raising capital is difficult for sole proprietorships?

<p>Unlimited liability makes lenders hesitant.</p> Signup and view all the answers

In a sole proprietorship, the owner has _____ control over business decisions.

<p>complete</p> Signup and view all the answers

Match the following disadvantages of sole proprietorships with their descriptions:

<p>Unlimited liability = Owner is fully responsible for all debts Difficult to raise capital = Lenders find it high risk Limited managerial expertise = Owner may lack knowledge in certain areas Hard time finding qualified talent = Competition from larger companies for employees</p> Signup and view all the answers

Which of the following is a disadvantage of operating a sole proprietorship?

<p>Consumes a significant amount of personal time. (C)</p> Signup and view all the answers

Sole proprietorships can easily dissolve whenever the owner wishes.

<p>True (A)</p> Signup and view all the answers

What is a key benefit of sole proprietorships in terms of government oversight?

<p>Few specific policies and laws imposed.</p> Signup and view all the answers

What is the primary goal of a business?

<p>To earn a profit (D)</p> Signup and view all the answers

A sole proprietorship has a legal separation between the owner and the business.

<p>False (B)</p> Signup and view all the answers

What type of business organization is owned and operated by only one person?

<p>Sole proprietorship</p> Signup and view all the answers

In a sole proprietorship, the owner has __________ liability for all the business obligations.

<p>unlimited</p> Signup and view all the answers

Match the following types of business organizations with their descriptions:

<p>Sole Proprietorship = Owned by one person with unlimited liability Partnership = Owned by two or more individuals sharing profits and liabilities Corporation = A business that is a separate legal entity from its owners Cooperative = A business owned and operated by a group of individuals for their mutual benefit</p> Signup and view all the answers

Which of the following is NOT an advantage of a sole proprietorship?

<p>It offers limited liability (B)</p> Signup and view all the answers

The owner of a sole proprietorship does not have to adhere to strict laws and policies.

<p>True (A)</p> Signup and view all the answers

Give an example of a common business that operates as a sole proprietorship.

<p>Sari-sari store</p> Signup and view all the answers

Flashcards

Sole Proprietorship

A business structure where a single person owns and manages the business, keeping all profits but also bearing full liability.

Partnership

A business structure involving two or more partners sharing ownership, responsibilities, and profits, but also sharing liability.

Corporation

A business structure with a legal entity separate from its owners, forming a corporation with shares representing ownership, offering limited liability to shareholders, and subject to corporate taxes.

Cooperative

A business structure with a legal entity separate from its owners, formed by a group of individuals, with shared liability, and often organized for non-profit purposes.

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Partnership Agreement

A legal document outlining the terms and conditions of a partnership, including profit sharing, decision-making, and liabilities.

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Franchise

A business structure where a franchisor (a company) grants a franchisee (an individual) the right to operate a business using the franchisor's trademarks, business methods, and branding.

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Limited Liability Company (LLC)

A business structure where the owner retains full liability and profits but the business has a separate identity from the owner, often used to reduce personal liability.

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Non-Profit Organization

A non-profit organization that seeks to serve a social or public benefit, not driven by profit, often managed by a board of directors.

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Self-Learning Module (SLM)

A document or set of materials designed for independent learning, often covering specific subjects or topics.

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K to 12 Curriculum

The overarching set of goals, objectives, and standards that govern the educational system in a country.

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Most Essential Learning Competencies (MELC)

Essential learning competencies that are considered most important for students to master in a specific subject. These are prioritized for teaching and learning.

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21st Century Skills

A set of skills and qualities crucial for success in the 21st century. These include communication, collaboration, creativity, critical thinking, and character.

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Business Ethics

The study of moral principles and values applied to business practices and the impact businesses have on society.

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Social Responsibility

The responsibilities businesses have to various stakeholders, including customers, employees, communities, and the environment.

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Forms of Business Organization

The different legal structures through which businesses can operate, each with its own advantages and disadvantages.

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Independent Learning

The process of teaching and learning that takes place with learners independently or with minimal teacher guidance.

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What is a Business?

A business is an organization that operates commercially to produce goods or services for society's needs and wants.

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What is a Business? (Part 2)

A business is a collection of people working together to achieve a common goal, typically to earn a profit.

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Single Proprietorship

A sole proprietorship is a business owned and operated by one person, where the owner and the business are legally considered the same.

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Unlimited Liability

In a sole proprietorship, the owner is personally responsible for all business debts and obligations.

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Advantages of a Sole Proprietorship

A sole proprietorship is easy and inexpensive to set up, requiring minimal legal requirements.

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Profit Distribution

In a sole proprietorship, the owner receives 100% of the profits because they are the sole investor and operator.

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Sole Proprietorship Examples

Examples of sole proprietorships include small shops like 'sari-sari' stores and individuals engaged in online selling.

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Suitability of a Sole Proprietorship

A sole proprietorship can be a good choice for starting a simple, low-risk business with limited capital.

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Easiest to Set Up

An advantage of a sole proprietorship, offering ease of set-up with minimal paperwork and low initial costs.

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Difficulty Raising Capital

A disadvantage of a sole proprietorship, where it can be difficult to raise capital due to reliance on personal funds or limited borrowing options.

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Business Life

The ability of a business to continue operating beyond the involvement of its initial founders or owners.

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Limited Life of Sole Proprietorship

The relatively short lifespan of a sole proprietorship business due to its dependence on the owner's involvement.

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Limited Life of Partnership

The lifespan of a partnership is often limited, as it relies on the continued involvement of all partners.

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Ease of Formation

The ease with which a business can be established, involving minimal legal formalities and costs.

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Capitalization

The process of providing capital or funds to a business.

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Limited Managerial Expertise

The owner may lack expertise in areas like accounting, marketing, or legal matters, hindering efficient business management.

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Difficulty Finding Talent

Attracting skilled employees can be difficult as large companies often offer more competitive salaries and benefits.

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Complete Control

The owner is directly responsible for all business decisions without needing to consult with others.

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Freedom from Regulations

The business is not bound by complex regulations and can operate with greater flexibility.

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Ease of Dissolution

Sole proprietorships are easier to set up and close down compared to more complex business structures.

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No Special Taxation

Business profits are taxed directly as personal income for the owner.

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Study Notes

Business Ethics and Social Responsibility

  • Forms of Business Organization Part 1 is a module for Senior High School students.
  • It is part of the Accountancy, Business, and Management curriculum.
  • The module covers the first part of the topic.
  • The module is part of Quarter 3.
  • The learning material aims to engage students in guided and independent learning.
  • It seeks to help learners develop 21st century skills (Communication, Collaboration, Creativity, Critical Thinking, and Character).
  • Republic Act 8293, Section 176 states that no copyright shall subsist in any work of the Philippine Government. Copyright approval is necessary for profit exploitation, and agencies may impose royalties.
  • Borrowed content belongs to their respective copyright holders.
  • The publisher and authors do not claim ownership of borrowed materials.

Module Information

  • Writer: Eunice H. Mariposque
  • Editor: Hedelita B. Calonia and Edna D. Camarao
  • Reviewers: Hedelita B. Calonia, Dennis T. Alex
  • Layout Artist: Aillen G. Sumagaysay, Edna D. Camarao, Clifchard D. Valente
  • Management Team: Ma. Evalou Concepcion A. Agustin (OIC-Schools Division Superintendent), Carolina T. Rivera, EdD (OIC-Assistant Schools Division Superintendent), Victor M. Javeña EdD (Chief, School Governance and Operations Division and OIC-Chief, Curriculum Implementation Division)
  • Education Program Supervisors: Listed

Introduction

  • The module covers Business Ethics and Social Responsibility for Grade 12.
  • The module is for the Forms of Business Organization part 1.
  • The module is part of Quarter 3.
  • The module is developed collaboratively by educators in Pasig City.
  • The module’s development utilized the most essential learning competencies (MELC).

For the Learner

  • This module is designed for guided and independent learning.
  • It has sections for Expectations, Pre-test, Recap, Lesson, Activities, Wrap-Up, Valuing, and Post-test.

Expectations

  • Students are expected to define business, differentiate sole proprietorship and partnership businesses, and discuss the advantages and disadvantages of them.

Pre-test

  • The pre-test assesses prior knowledge about sole proprietorship and partnership businesses. The pre-test questions involve assessing whether descriptions/facts are "True" or "False."

Recap

  • The Recap section reviews previously learned concepts & skills.

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Related Documents

Bus Ethics Soc Res - Q3 - M1 PDF

Description

This quiz evaluates knowledge on the initial concepts of business organization, tailored for Senior High School students in the Accountancy, Business, and Management curriculum. Engage in guided and self-directed learning to develop essential 21st-century skills.

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