Worksheet - Business Ethics12 Week 1
Worksheet - Business Ethics12 Week 1
Worksheet - Business Ethics12 Week 1
Department of Education
REGION IV-A CALABARZON
CITY SCHOOLS DIVISION OF BIÑAN CITY
MELC: _Differentiate the forms of business organizations in terms of their purpose and role in
socio-economic development.
References: __Business Ethics and Social Responsibility by Aliza Racelis
Reminders: Read the lecture first and answer the activities for you to understand the lesson
further. Write your answers on a separate sheet.
LECTURE:
BUSINESS AND BUSINESS ORGANIZATION
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. The objective of the most businesses is to earn a
profit (although this is not the only aim as what we shall see in the remainder of this course).
Profit is the difference between the amount earned and the amount spent in buying, operating, or
producing something. In this course, we focus on businesses operating to earn a profit, even though many of the
same concepts and principles also apply to not-for-profit organizations. The fundamental reason for examining
the activities of business from a moral perspective is that business organizations, in principle, should help in the
promotion of the common good and in the protection of persons’ rights and interests.
Thus, business make the goods and services you use each day. That includes the products and
services used by other businesses as well as those needed by individual consumers. There are generally three
types of business organizations operated for profit: service, merchandising, and manufacturing businesses.
Service business provide services rather than products to customers. Merchandising businesses sells products
they purchase from other businesses to customers. Manufacturing business change basic inputs into products
that are sold to customers.
Limited Liability Company (LLC) ● 10% of business organizations in the United States.
combines the attributes of a (combined with partnerships)
partnership and a corporation. ● Often used as an alternative to a partnership.
● Has tax and legal liability advantages for owners.
ACTIVITIES:
DEVELOPMENT:
Learning Task 1:
Address: P. Burgos St. Brgy. Sto. Domingo, Biñan City Laguna
Website: depedbinancity.com.ph
Email: [email protected]
Telephone no: 511-4143/ 511-8620/ 511-4191/ 511-8746
TRUE OR FALSE. Directions: Analyze each sentence below and write whether it is True or False. Write your
answers on a separate sheet of paper.
1. Business is a passive process.
2. Tax preparation is more difficult in a sole proprietorship than in a corporation.
3. A corporation is a separate entity distinct from all the owners.
4. Your liability as a shareholder is only limited to the amount of your investment.
5. A partnership may generate funds through selling shares of stocks.
6. A corporation may be owned by one person.
7. Handling money for a sole proprietorship is easier than partnership.
8. Book stores and sari-sari stores fall under the service businesses category.
9. Manufacturing businesses include baked goods and cosmetics.
10. The sole proprietor can pass the business down to his/her heir.
ENGAGEMENT:
Learning Task 2:
CASE ANALYSIS:
NEGOSYO Company began as a small enterprise buying and selling various food products. After a few
years of successful operations, it added apparel and footwear to its wares. During this initial stage, NEGOSYO
managed to work on the basis of its proprietor’s capital, borrowing from its bank from time to time when needed.
After more years of operation, NEGOSYO found that it needed to draw larger amounts of funds through
bank borrowing, as well as to hire more personnel for the growing marketing needs and services, apart from
administrative functions like accounting, among others. The proprietor carefully weighed his options: “Shall I
incorporate my business so that I can have greater and easier access to funds, especially larger loans from
banks? If I hire more people as my company goes bigger, will I be able to manage and control well the personnel
working for me? If I begin offering ownership shares to other people outside my family, will serious
disagreements arise among us in terms of products and services to offer in the future as well as managerial
style?”
These and other questions occurred to the proprietor of NEGOSYO Company. He has approached you
for advice.
GUIDE QUESTIONS: Based on the situation above, give the owner of NEGOSYO Company appropriate advice
regarding whether or not to incorporate his business. You might wish to categorize the pros and cons into the
following:
1. business size issues
2. issues related to mission and objectives
3. procedures for incorporation
4. personnel issues
5. funding source issues
B. Directions: Match the terms in Column A to its corresponding definition in Column B. Write the letters of your
answers on a separate sheet of paper.
A B
6. Corporation A. It is a business owned by one person only.
7. Sole proprietorship B. It is the amount received minus the amount spent.
8. Business C. It is an independent entity distinct from its owners.
9. Partnership D. It involves important operations like advertising, marketing, etc.
10. Profit E. It is a business venture by two or more people.
C. Directions: Read each sentence and write the letter of your answer on a separate sheet of paper.
11. Which is not true about a corporation?
A. The life of a corporation has no limit.
B. The business does not have any independent legal status.
C. The business operates even without any real oversight from the owners.
D. Corporation files taxes separately from its owners.
12. All of these are advantages of a partnership, except:
A. there is sharing of burden.
B. the partners both own and control the business.
C. there is better decision-making because two heads decide.
D. it has lower start-up cost.
13. Which of the following is not a nature of business?
A. It aims to earn profits.
B. There are four forms of business organization.
C. It is an active process.
D. It involves significant operations such as buying, assembling, etc.
14. Which of the following is not a role of a corporation to the economy?
A. Corporation provides benefits such as connections with suppliers, etc.
B. Corporation makes massive quantities of goods.
C. Corporation hires huge number of workers.
D. Corporation finds it difficult to raise capital.
15. The following are the advantages of a sole proprietorship, except:
A. there could be difficulty in raising capital.
B. tax preparation is a lot faster.
C. the sole proprietor can pass the business down to his/her heir.
D. handling money for the business is easier.