The document discusses different forms of business organization according to ownership. It defines sole proprietorship, partnership, corporation, and limited liability company (LLC). For each form of organization, it provides the key advantages and disadvantages. Sole proprietorship offers total flexibility but the owner is fully liable for debts. Partnerships allow for shared resources but each partner is fully liable. Corporations limit owner liability but involve more complex paperwork. LLCs combine advantages of partnerships and corporations while mitigating some disadvantages.

1. BUSINESS
ETHICS
Prepared By:
Ms. Karen I. Gumatay

2. BUSINESS ETHICS
What I Know
I. Fill in the blanks.
Instructions: Below are the definitions of business and organization.
Write BUSS if it describes a business and ORG if it describes
an organization.
1. _____is an activity of exchanging goods and services, for gaining profit.
2. _____is a group of people who work together to achieve common goals.
3. _____is a collection of people with particular purpose in the society.
4. _____is an organization where goods and service are exchange for one
another or for money.
5. _____social unit of people that is structured and managed to meet a need
or to pursue collective goals.

3. LESSON 1:
FORM OF ORGANIZATION
JOIN THE CLUB

4. FORM OF ORGANIZATION
Have you ever been part of school organization or club? It
was indeed a happy and fulfilling day in your Senior High
School years.
Are you a part of a music or glee club? Maybe, you are also
a varsity player of the school’s basketball and volleyball teams
or are you a school paper writer who participates in different
journalism contests outside the school?

5. By joining different clubs and student
organizations, you allow yourself to step outside your
comfort zone and discover the things that you are
good at. Being completely aware of your strengths,
weaknesses, needs, desires, and habits as early as now
will help you choose a career path that is perfectly
suited for you.
FORM OF ORGANIZATION

6. FORM OF ORGANIZATION
5 Reasons Why You Should Join a Student
Organization
1. It helps you discover more about yourself.
2. It makes you a responsible person.
3. It develops your “people skills” and expands your
network.
4. It serves as your productive breaks.
5. It looks good on your resume.

7. What’s In
Activity 1:
Business as usual. Nowadays, many businesses are closed
due to the COVID -19 pandemic and only those businesses
which are considered essential such as food businesses and
medical services remained.
FORM OF ORGANIZATION

8. Can you list down the name/s of business/es which is/are still in operation during the
quarantine period? Identify the services/ products they offer.
Name of the Business Products/services offered
1. _____________________________ ___________________________
2. _____________________________ ___________________________
3. _____________________________ ___________________________
4. _____________________________ ___________________________
5. _____________________________ ___________________________
FORM OF ORGANIZATION

9. Essential businesses are those that provide the public
with the necessities they need to survive. In a pandemic,
these are groceries and financial, pharmaceutical, and
healthcare establishments. These types of businesses
have remained operational while adhering to sanitation
and safety measures.
FORM OF ORGANIZATION

10. The Success Story behind the
National Bookstore
Socorro Ramos entered the publishing
and retail industry by working as a
salesgirl at a bookstore. At the age of
19, she opened National Book Store in
Escolta, Manila with her husband
with a capital of only P 200.00, selling
books and school supplies to students
FORM OF ORGANIZATION

11. At that time, Manila was under Japanese occupation who imposed
censorship on books and periodicals. To augment their earnings, she
and her husband resorted to selling other items like candles and soaps.
After the post-war boom, the Ramoses opened a nine-story building
along Avenida which made their bookstore more profitable.
At 95, she still believes in the time-honored tradition of “hands-on
approach” in business. She even designed the company’s logo herself.
FORM OF ORGANIZATION

12. May this success story of Nanay Coring give inspiration and
encouragement to all. You need someone like her that will
serve as a model to bring out the best in yourselves to survive
the crisis brought by COVID-19 pandemic. All good things are
blessings from the Almighty God and granted to anyone whom
He loves at His pleasure.
FORM OF ORGANIZATION

13. From the story you have read, please answer the following
questions:
1. What form of business organization did they put up?
2. Aside from being hands on in your own business, what else
do you think is/are the key characteristic/s of the owner/s of
National Bookstore in their business success?
FORM OF ORGANIZATION

14. Forms of Business Organization
According to Ownership
Sole Proprietorship is the type of business entity
owned and operated by a single person.
Advantages of sole proprietorship:
• All profits are subject to the owner
• There is very little regulation for proprietorships
• Owners have total flexibility when running the business
• Very few requirements for starting—often only a business
license

15. Forms of Business Organization
According to Ownership
Disadvantages:
• Owner is 100% liable for business debts
• Equity is limited to the owner’s personal resources
• Ownership of proprietorship is difficult to transfer
• No distinction between personal and business income

16. Partnership is a business owned by two or more person
who contribute resources into the entity. The partners
divide the profits of the business among themselves.
Forms of Business Organization
According to Ownership
Advantages of partnerships:
• Shared resources provides more capital for the business
• Each partner shares the total profits of the company
• Similar flexibility and simple design of a proprietorship
• Inexpensive to establish a business partnership, formal
or informal

17. .
Forms of Business Organization
According to Ownership
Disadvantages:
• Each partner is 100% responsible for debts and losses
• Selling the business is difficult—requires finding new
partner
• Partnership ends when any partner decides to end it

18. Corporation is an enterprise chartered by law with most
of the legal rights of a person including to conduct a
business, to own and sell property, to borrow money, to
sue and be sued. A corporation is a business
organization that has a separate legal personality from
its owners.
Ownership in a stock corporation is represented by shares of
stock.
Forms of Business Organization
According to Ownership

19. Forms of Business Organization
According to Ownership
Advantages of a corporation:
• Limits liability of the owner to debts or losses
• Profits and losses belong to the corporation
• Can be transferred to new owners fairly easily
• Personal assets cannot be seized to pay for
business debts

20. Forms of Business Organization
According to Ownership
Disadvantages:
• Corporate operations are costly
• Establishing a corporation is costly
• Start a corporate business requires complex
paperwork
•With some exceptions, corporate income is taxed twice

21. Forms of Business Organization
According to Ownership
Limited Liability Company (LLC)
Similar to a limited partnership, an LLC provides owners
with limited liability while providing some of the income
advantages of a partnership. Essentially, the advantages of
partnerships and corporations are combined in an LLC,
mitigating some of the disadvantages of each.

22. Forms of Business Organization
According to Ownership
Advantages of an LLC:
• Limits liability to the company owners for debts or losses
• The profits of the LLC are shared by the owners without double-taxation
Disadvantages:
• Ownership is limited by certain state laws
• Agreements must be comprehensive and complex
• Beginning an LLC has high costs due to legal and filing fees

23. Forms of Business Organization
According to Ownership

24. Forms of Business Organization
According to Ownership

25. Forms of Business Organization
According to Ownership