SHS Business Ethics Module 1 PDF

SHS S BUSINESS ETHICS Module 1 Business Ethics Grade 12: Module 1 First Edition, 2021 Copyright © 2021 La Union Schools Division Region I All rights reserved. No part of this module may be reproduced in any form without written permission from the copyright owners....

SHS S BUSINESS ETHICS Module 1 Business Ethics Grade 12: Module 1 First Edition, 2021 Copyright © 2021 La Union Schools Division Region I All rights reserved. No part of this module may be reproduced in any form without written permission from the copyright owners. Development Team of the Module Author: Donna M. Casilla, T II Editor: SDO La Union, Learning Resource Quality Assurance Team Illustrator: Ernesto F. Ramos Jr., P II Management Team: Atty. Donato D. Balderas, Jr. Schools Division Superintendent Vivian Luz S. Pagatpatan, Ph.D Assistant Schools Division Superintendent German E. Flora, Ph.D, CID Chief Virgilio C. Boado, Ph.D, EPS in Charge of LRMS Lorna O. Gaspar, EPS in Charge of ABM Michael Jason D. Morales, PDO II Claire P. Toluyen, Librarian II  Target A business is an activity that is part and parcel of human society: it is an entity in which economic resources or inputs, such as materials and labor, are put together and processed to provide goods or services or outputs to customers. Business are usually complex enterprises involving major activities like purchasing, manufacturing, marketing, advertising, selling, and accounting. Thus, business make the goods and services you see each day. That includes the products and services used by This module will provide you with information and activities that will help you understand the forms of business organization. After going through this module, you are expected to: 1.1 differentiate the forms of business organizations in terms of their purpose and role in socioeconomic development ABM_ESR12-IIIa-d-1.1-3 Before going on, check how much you know about this topic. Answer the pretest on the next page in a separate sheet of paper.  Lesson The Role of Business in Socio- 1 economic Development Jumpstart Activity 1: Read me! Understand me! Directions: Read and analyze each question. Choose your answer from the given choices. Write the letter only. ____1. A small barber shop is owned and operated by Roy in their barangay. What form of business organization is owned by Roy? A. Corporation B. Joint Venture C. Partnership D. Sole Proprietorship ____2. Which of the following is likely to be the most suitable form of business organization for a group of three dentists? A. Corporation B. Joint Venture C. Joint Stock Company D. Partnership ____3. What is the form of business organization that is authorized to act as a legal entity regardless of the number of owners? A. Corporation B. Distributor C. Partnership D. Sole Proprietorship ____4. Which of the following is NOT an advantage of the corporate form of business organization? A. Continuous life B. Transferability of ownership C. Limited liability of shareholders D. Unlimited personal liability for stockholders ____5. How are sole proprietorships taxed? A. As individual B. As corporation C. There is no tax liability D. Profits are reported separate from personal income ____6. Which is TRUE about partnership form of business organization? A. Separately legal entity’ B. Enjoys an unlimited life C. Has a limited liability D. A common form of organization for service-type businesses ____7. Which is CORRECT about sole proprietorship form of business organization? A. Must have at least three owners in most sales B. Represents the largest number of business in the Philippines C. Combines the records of the business with personal records of the owner D. Characterized by a legal distinction between the business as an economic unit and the owner ____8. Which of the following shows an advantage of a corporation? A. Not required to consult with anyone when it comes to making business decisions. B. There are no shareholders to pacify and no board of directors to appease. C. Owners are not required to consult with anyone when it comes to making business decisions. D. In raising capital for the business, it has the ability to raise funds through the sale of stock. ____9. Which is NOT an advantage of a sole proprietorship? A. Can retain all the profits B. Can make all the marketing decisions C. Can make all hiring decisions D. Must consult agencies to determine the business location ___10. Rene and Rey have opened a convenience store through a general partnership agreement. They have been solid friends since college. However, if times get tough and Rey runs out on the business, is Rene protected by the partnership arrangement against the partnership debts? A. There is no enough information provided to make a determination regarding Rene’s responsibility for the partnership. B. No, since partners typically have joint and several liabilities, Rene can be held responsible for 100% of the partnership debts. C. Yes, the Uniform Partnership Act guarantees that all bills and debt are split equally between partners. D. Yes, since Rene and Mark have entered into a partnership, Rene would only be held responsible for his share of the partnership debts.  Discover The Role of Each Form of Business Organization in the Socioeconomic Development Small businesses owned by sole proprietors are well recognized worldwide as vital and significant contributors to economic development, job creation, and the general health and welfare of economies. Microbusinesses (firms that employ fewer than ten people) form a dynamic, integral part of the market economy, providing goods and services and a dynamic gateway by which millions enter the economic and social mainstream of society. On the other hand, the Industrial Revolution brought with it new forms of machine production that enabled businesses to make massive quantities of goods to ship and sell in national markets. These changes, in return was the large organizations to manage the enormous armies of people that had to be mobilized to process the output of these machines on long assembly lines in huge factories. The result was the large corporation that came to dominate our economies. These large businesses, in general, offer better jobs than small businesses, in terms of both compensation and stability. Also, corporations provide such benefits as: links with suppliers, increased consumer spending, the transfer of knowledge from one firm to another, and the sharing of pools of workers. However, competitive forces sometimes fail to steer companies in a socially beneficial way and instead, lead them to act in a socially harmful manner. For example, a company might knowingly pollute a neighborhood with substance that is not yet illegal, in order to save the costs of reducing its pollution and thereby be more competitive. This wave of large corporations has brought with it a host of new ethical issues, including the possibilities of exploiting the workers who labor at the new machines, manipulating the new financial markets that finance these large enterprises, and producing massive damage to the environment. Thus, those forms of business organizations drive socioeconomic stability and growth by providing valuable services, products and taxes that directly contribute to the progress and development of a community. They also provide employment and strengthens the economic health of each community where a business is put up. Even a business that is placed elsewhere, employing people at each local business contributes to the success of that region, as with the wages they earn, people buy properties, works, shops and otherwise invest in where they live. Taxes from the different business organizations are used to maintain infrastructure of a country. In other words, business development and increase of sales means collecting more taxes, which can directly translate to better maintenance and offerings of local infrastructure and services that benefit the community.  Explore Here are some enrichment activities for you to work on to master and strengthen the basic concepts you have learned from this lesson. Activity 1: Match the characteristics of the forms of business organization under the appropriate heading. - No board of director to appease - Total undivided authority - Has a separate legal existence from its owners - Used by large businesses - Complete control over the company’s finances - Easy and cheap to organize - Resources are limited to those of the owner - Used by small businesses - Combines the skills of more the one person - Co-ownership of property - Shareholders have limited liability - Unlimited liability - Can obtain large amounts of resources by issuing stock - Transferable ownership rights - Subject to numerous government regulations Sole Proprietorship Partnership Corporation Assessment 1 Directions: Using the graphic organizers below, cite the role of each form of business organization in the socioeconomic development. A. Sole Proprietorship B. Partnership C. Sole Proprietorship Activity 2: Answer each question in not less than 5 sentences. (5 points each) 1. What is the importance of business organizations in the Philippines socioeconomic development? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ 2. What are the forms of business organization? Compare and contrast. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ 3. Explain the difference between those forms of business organization. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ 4. Explain the role of each business organizations in the socioeconomic development. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________  Rubric for Scoring Score Completion Accuracy Comprehensi Organizatio Conventions on n 5 The answer is All Content Content is No major complete. informatio demonstrates well- grammatical or n provided a deep organized spelling errors. is understanding and easy to No more than two accurate. of, and read. Points minor errors. engagement follow a with, the logical text(s). progression. 4 The answer is All Content Content is No major missing slight informatio demonstrates well- grammatical or details n provided understanding organized spelling errors. is of, and and easy to No more than five accurate. engagement read. Points minor errors. with, the follow a text(s), logical progression. 3 The answer is Most Content Content is Some major and missing informatio demonstrates organized minor errors that multiple n provided basic and easy to don’t necessarily details. is understanding read. Points impair accurate. of the text(s). follow a communication. mostly logical progression. 2 Content Some Content Content may Major and minor suggests lack informatio demonstrates be errors of preparation n provided less than basic unorganized significantly or is understanding and difficult weaken quality of comprehensio accurate. of the text(s). to read. communication, n. Points do not although still follow a comprehensible. solidly logical progression. 1 Content only A small Content Content is Communication marginally amount of demonstrates unorganized, seriously related to the the a lack of illogical, and impaired by question/ informatio understanding difficult to multitude of prompt. n is of the text(s). read. spelling/grammat accurate. ical errors. Assessment 2 Directions: Write T if the statement is TRUE. If the statement is FALSE, underline the word or phrase that makes the statement incorrect, then make the statement or sentence true. ___________ 1. The forms of business organizations drive socioeconomic stability and growth. ___________ 2. Small businesses offer better jobs than large businesses, in terms of both compensation and stability. ___________ 3. Taxes from the different business organizations are used to maintain infrastructure of a country. ___________ 4. Corporations provide benefits as: links with suppliers, increased consumer spending, the transfer of knowledge from one firm to another, and the sharing of pools of workers. ___________ 5. They also provide employment and strengthens the economic health of each community where a business is put up. ___________ 6. Business development and increase of sales means collecting less taxes. ___________ 7. Competitive forces always succeed to steer companies in a socially beneficial way and lead them to act in a socially harmful manner. ___________ 8. Small businesses owned by sole proprietors are not recognized worldwide ___________ 9. Microbusinesses form a dynamic, integral part of the market economy, providing goods and services. ___________ 10. Business that are placed elsewhere, employing people at each local business contributes to the success of that region. Great job! You have understood the lesson. Are you now ready to summarize? Deepen Direction: Make a graphic organizer showing the difference between the forms of business organizations in terms of their purpose and role in socioeconomic development. Be guided by the rubrics below. Rubric for Scoring the Graphic Organizer Excellent Good Fair Poor 4 points 3 points 2 points 1 point Completeness Graphic Graphic At least 1/2 of Less than 1/2 of Contains ALL Organizer Organizer is the assignment the assignment information as labeled as labeled. was attempted. was attempted requested. directed. Definitions are Some and/or Definitions, if mostly definitions are complete. Most used, are complete. There missing. definitions are complete. are good Examples are missing. Examples are examples on not complete. Examples are given as most of the The concept incomplete. The directed. The subjects. The shows one or concept shows concept is clear. concept is two more than two adequate. misconceptions. misconceptions  Legibility All writing is Majority of the Writing is Writing is not Is the student's legible and writing is somewhat legible and writing legible? graphic legible and legible and the graphic organizer is most of the assignment is a organizer is not neat. graphic bit messy. neat. Shows a organizer is lack of neat. understanding or carelessness. Accuracy All of the Most of the At least 1/2 of Less than 1/2 of Did the student assignment is assignment the assignment the assignment recheck the correct and (more than 1/2) is correct. is accurate. assignment? neat. is complete but graphic Definitions are the definitions organizer is not accurate and and/or graphic accurate complete. organizer is not accurate. Requirements Goes beyond More than 1/2 At least 1/2 of Less than 1/2 of Did the student the of the the the follow the requirements of requirements requirements requirements directions the assignment. are met. are met. are met. given? Information are written in detail. Grammar There are no There are 1-2 There are 3-4 There are more Did the student grammatical grammatical grammatical than 4 check spelling? and/or and/or and/or grammatical mechanical mechanical mechanical and/or mistakes on the mistakes on the mistakes on the mechanical graphic graphic graphic mistakes on the organizer. organizer. organizer. graphic organizer. Gauge Directions: Read each statement carefully. Write the letter of the correct answer before each number. _____ 1. Which of the following describes a sole proprietorship? I. Not required to consult with anyone when it comes to making business decisions II. All partners are responsible for making decisions that will impact the business III. Can maintain complete control over all aspects of the business IV. It has the ability to raise funds through the sale of stock A. I and II B. I and III C. II and IV D. I and IV _____ 2. What is corporation form of business? A. Owned by its stockholders B. Terminates when of its original shareholders’ dies  C. Not a separate legal entity in most states D. Requires that shareholders be personally liable for the debts of the business _____ 3. What are the advantages of a sole proprietorship form of business? I. Unlimited liability II. Limitation on size III. Low organizational cost and license fees IV. Tax savings A. I and II B. II and III C. III and IV D. IV and I _____ 4. Which situation shows a partnership form of business? A. Anita owns a sari – sari store in the barangay. B. ABC Company opens three branches in San Fernando City. C. Grace, Ana, and Karen decided to put up a computer shop that opens 24 hours. D. Lala owns a food stall in the market. _____ 5. Deny and Dane are friends since high school, after a graduating in college they decided to put up a fashion boutique. What form of business organization did Dane and Deny put up? A. Corporation B. Joint Venture C. Partnership D. Sole Proprietorship _____ 6. Which of the following is INCORRECT about the role of business organizations? A. It provides employment to people. B. It gives massive damage to the environment. C. It strengthens the economic health of a community. D. It contributes to the progress and development of a country. _____ 7. What are the importance of business organizations in the socioeconomic development? I. It stimulates local economy. II. Business organizations help stimulate socioeconomic development by providing jobs to people. III. It pays high taxes that helps generate more infrastructure. IV. It provides a lot of improvement in living standards, and expanding existing markets and opening new ones. A. I and II B. II and III C. I, II, and III D. I, II, III, and IV _____ 8. Which is CORRECT about the comparison of sole proprietorship and partnership?  sole proprietorship partnership A. Unlimited liability Limited liability B. Association of Owned by an individual individuals C. Tax savings Taxed as separate entity D. Co- ownership of No restrictions on type property of business _____ 9. Which is TRUE about the role of a corporation in the socioeconomic development? A. It pollutes the environment. B. It only gives harmful substance from companies. C. It offers a lot of goods and services only in the locality. D. It provides better jobs in terms of both compensation and stability. _____ 10. Which is FALSE about the comparison of the forms of business organization? A. Corporation offers better jobs than in sole proprietorship. B. Partnership pays more taxes than a sole proprietorship. C. Sole proprietorship helps more in the socioeconomic stability than a corporation. D. Corporation provides more benefits as: link with suppliers and increased consumer spending than a partnership business. References: Printed Materials: Department of Education, (2014). K to 12 Senior High School Accountancy, Business, and Management Strand, Curriculum Guide in Business Ethics, Pasig City, Philippines Racelis, Aliza (2017). Business Ethics and Social Responsibility, Samploc, Manila, Philippines: Rex Bookstore, Inc.  Answer Key Jumpstart Activity 1 1. D 2. D 3. A 4. D 5. D 6. D 7. D 8. D 9. D 10. C Explore Assessment 2 1. T 2. F 3. T 4. T 5. T 6. F 7. F 8. F 9. T 10. T Gauge 1. B 2. A 3. C 4. C 5. C 6. B 7. D 8. C 9. D 10. C