ENTREPRENEURSHIP LAS 2nd-QUARTER-Final

Note: Practice Personal Hygiene Protocols at all Times
Table of Contents
Competency Page No.
Demonstrate the 4Ms of Operations in Relation

to the Business Opportunity ------------- 1
Forecast the Revenue of the Business ------------- 9
Forecast the Cost to be Incurred ------------- 12
Compute for Profits ------------- 15
Implement the Business Plan ------------- 18
Manifest Understanding and Operating
a Simple Business ------------- 23

ENTREPRENEURSHIP
Name of Learner: Grade Level: ___
Section: Date: ___
LEARNING ACTIVITY SHEET

4 Ms of Operations in Relation to the Business Opportunity and Developing Business
Model
Background Information for Learners
In developing a business plan, we must consider the importance of 4Ms of operations in all business
opportunities. This helps you identify the problems of the business in the future and in actual situation
especially in the production process and marketing. In application of your 4M’s of production, it is best to
consider the customer’s point of view in terms of their influences as to why they will buy the product, does
your product aim to answer each consumer’s wants or needs and meet their expectations over the product, and
how do suppliers value chain and supply, and how this affect business and production.
Let’s take a look at each one:
1. Methods – suggest the process of combining raw materials and how these are going to be transformed using
the other factor inputs of production. This resource input is also called technology or techniques of production
since it prescribes the intensity in the use of factor inputs.
If labor is abundant and cheap in the locality, the firm might use more labor-intensive techniques. This only
means that they will use labor more than other factor inputs. However, if labor is expensive and capital is
cheap the firm or company may implement a capital-intensive technology. This means that will use more
capital compare to the other factor inputs.
Example. In the production of pandesal, the mixing of ingredients will use manual labor intensively as applied
by small bakeries. On the other hand, large bakeries in urban areas will use modern baking equipment and
utensils that are capital intensive.
2. Manpower – the right human resources who will handle certain business operations. It is one of the highest
costs of operating the business, but also the most instrumental to its success.
- It does not only include labor or muscular power but also intellectual, creative abilities and other qualities of
individuals that can contribute to the production.
As the business grows, the entrepreneurs should hire qualified employees that can handle operational
functions even without his assistance, so that he will be free from daily activities and can focus on thinking of
new strategies and functions of the business.
Example. In the production of pandesal, manpower resources include the baker, and his assistants who will
implement the recipe using the available equipment and technology. The manager, salesclerks, and janitors
are also part of the manpower of the bakery.
3. Machine – technology used in efficiently operating the business. It was also described as the “best friend”
of manpower in producing goods and offering services. Machines are not limited only to physical equipment
but can also pertain to new technologies. It also represents all man- made physical capital used in the
production process. Aside from machines, tools, durable equipment, and the physical plant are also part of it.
Without machines, business operations will be too unmanageable, costly, and with low quality.
1
Example. In the production of pandesal, the machinery comprises the oven, baking utensils and the bakery
itself.
4. Materials – to be used in creating a product or performing a service, which includes supply chain
management.
Example. In the process of producing pandesal, we need several materials that serve as intermediate inputs
which include flour, sugar, butter, eggs, salt, and other ingredients.
Make sure that your supplier of raw materials should have consistent and have enough supplies that can
accommodate the demand of your company.
The selection of the supplier depends on how they will not cause interruptions in the production of goods
and serving customers.
Materials Requisitioning Options
Manufacturing own products or offer services – In this case, entrepreneurs need to prepare huge capital
for the materials, machines, and manpower which we all know will cause the company a greater risk. However,
through this, entrepreneur can closely monitor the quality of his product and can build his own name overtime
making his own brand identity.
Outsourcing of manufacturing or service activities to a third party – this is the process where a company
appoint a third-party manufacturer to do the manufacturing operations of the business. Expertise wise, these
third-party companies have more experience and can handle manufacturing products tailored to the
entrepreneur’s needs at a lower cost. It also saves the entrepreneur from buying expensive machineries, but
has it also had its risk such as: Profit shared with the third party, they run out of supply, when the outsource
party closes its business and if they produced sub-standard products.
When outsourcing the entrepreneur must protect its product through a trademark or a patent and a
noncompeting or nondisclosure agreement.
o Patent – the right to protect the entrepreneur to exclude others from making or using the product or service.
o Trademark – a sign or symbol that helps to distinguish the product from the others.
o Nondisclosure Agreement – states that the third party will be given full access to any confidential
information if it should be disclosed to anyone else.
Purchasing own products or services from present suppliers – this is where entrepreneurs purchased
finished products from manufacturer or offering the services of another company. The company can save the
cost of the machines and manpower. However, the entrepreneur cannot own the brand name of the product or
service and the manufacturer is not restricted to sell to the entrepreneur’s competitors.
Traditionally, these are the crucial four (4) domains of production where one cannot function properly without
the other. However, allow me to add another M in this list.
Money – it is a financial resource used to purchase all the resources needed by the firm for its operation. The
owners of the company contribute seed money for the initial operations of the firm. It is also needed to
purchase raw materials, pay salaries of the workers and managers and durable equipment needed for the
company.
Product description is one of the important aspects of selling, you must visualize what your target market
will patronize and would like to have.
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Here are the 3 Rules to Visualize a Product Descriptions That Sell.
1. Know who your target audience is – you might want to highlight the things that might interest your
potential buyers. You can do this by knowing what specific demographics you are going to cater. Is it for
teens? Young professionals or Seniors? By knowing such, you will have a specified goal to achieve once you
roll your product.
2. Focus on the Product Benefits – know the difference between product features and benefits. A product
feature is a factual statement about the product that provides technical information. A product benefit, on the
other hand, tells how the product can improve the buyer’s life. If you are the customer, I know you will
choose the latter. However, you can always convert the features into benefits.
3. Use good product images – aside from the description, a quality image will do the trick. Why? Because
63% of customers think that a product image is more important than the description or even the reviews. So,
an important aspect of your product description must be in the photo itself. Quality photos will show the
customer all the key features about your product. They will also allow the customer to imagine having this
product in her life.
Once you already have a clear vision of what should be the description of your product, we can now create
our own prototype.
Prototype is an initial creation of a product that shows the basics of what product will look like, what it will
do and how it will work. However, it is not meant to be the final version as there will be lots to improve.
Advantages of Prototypes:
1. Creating prototype gives you the opportunity to test and refine the functionality of your design.
2. It will test the performance and quality of the materials.
3. It will help you describe your products more effectively with potential buyers.
4. It will encourage others to treat you more seriously.
Product Description - Is the promotion that explains what a product is and why it is worth buying? The
purpose of a product description is to provide customers with details around the features and benefits of the
product, so they are obliged to buy. - Know who your target market is, focus on the product benefits, tell the
full story, use natural language and tone, use power words that sell, and use good images. These are guidelines
for you to have a good product description; since some customers are very particular with it and they always
consider the welfare of their family, if it is safe to use. Prototyping. A duplication of a product as it will be
produced, which may contain such details as color, graphics, packaging, and directions.
One of the important early steps in the inventing process is making a prototype. Benefits are the reasons why
customers will decide to buy the products such as affordability, efficiency, or ease of use. The features of the
product or service merely provide a descriptive fact about the product or service. It is better to test your product
prototype to meet customers’ needs and expectations; and for your product to be known and saleable.
Pretesting of the product or service is similar to a sample of the product or service given to the consumer free
of cost in order that he/she may try the product before committing to a purchase.
Supplier. An entity that offers goods and services to another business. This entity is among of supply chain
of a business, which may offer the main part of the value contained within its products. Certain suppliers may
even involve in drop shipping, where they ship goods directly to the customers of the buyer. Suppliers are
your business partners; without them your business will not live. You need them as much as you need your
customers to be satisfied. But as an entrepreneur you must choose a potential supplier that has loyalty and
value your partnership and a supplier that would lead you to the fulfillment of your business objectives,
mission, and vision.
3
Value chain is a method or activities by which a company adds value to an item, with production, marketing,
and the provision of after-sales service. The main goal and benefit of a value chain, and therefore value chain
analysis, is to make or support a competitive benefit.
A supply chain is a structure of organizations, people, activities, data, and resources involved in moving a
product or service from supplier to customer.
The main objective of supply chain management includes management of a varied range of components and
procedures, for instance, storing of raw materials, handling the inventory, warehousing, and movement of
finished product from the point of processing to the point of consumption.
Business model describes the reasons of how an organization creates, delivers, and captures value in
economic, social, cultural, or other contexts. The development of business model construction and variation
is also called business model innovation and forms a part of business plan.
Business plan is an important tool for you to have an idea about the future of your business. Your business
plan will be your guide in the moment you will be implementing and operating your business proposal.
The following are the components found in a Business Plan:
• Introduction- this part discusses what the business plan is all about.
• Executive Summary- is part of the business plan which is the first to be presented but the last to be
made.
• Management Section- shows how you will manage your business and the people you need to help
you in your operations.
• Marketing Section- shows the design of your product/service; pricing, where you will sell and how
you will introduce your product/service to your market.
• Financial Section- shows the money needed for the business, how much you will take in and how
much you will pay out.
• Production Section- shows the area, equipment, and materials needed for the business.
• Competitive Analysis- is the strategy where you identify major competitors and research their
products, sales, and marketing strategies.
• Market- The persons who will possibly buy the product or services.
• Organizational chart- is the diagram showing graphically the relation of one official to another, or
others of a company.
STATEMENT OF VISION, MISSION AND VALUES

VISION: It is a description or statement of what the proponent sees if the problem/need is solved.
MISSION: It is a clear description of goals and objectives that presents practical steps to achieve the vision.
VALUES: It is a clear statement of values critical to the culture, integrity, and activities of the business.
SOCIAL IMPACT: This part should enumerate the impact of the business activity to its employees,
consumer, and the community as well. Social impact should also emphasize social responsibility to sound
environment and sanitation practices. The impact should be stated in a clear and concise statement that is
anchored on the mission, vision, and values of the business.
Learning Competency with code

Describe the 4M’s (Manpower, Machine, Materials Method) of operations in relation to the business
opportunity (TLE_ICTAN11/12EM-Ia-2)
4
ACTIVITY 1: Suppose that you are going to put up a new business venture, how will you plan to do your
operations? What Method will you use? Who will you hire for a specific task? Will you use Machineries?
How about the materials? Apply what you have learned regarding the 4Ms of production/operation. Explain
your answers.
METHOD______________________________________________________________________________
______________________________________________________________________________________
MANPOWER___________________________________________________________________________
______________________________________________________________________________________
MACHINE_____________________________________________________________________________
______________________________________________________________________________________
MATERIALS___________________________________________________________________________
_______________________________________________________________________________________
Rubrics for the 4 3 2 1

Activities Areas
of Assessment
Ideas Presents ideas in Presents ideas in Ideas are too Ideas are vague
an original a consistent general or unclear
manner manner
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Word Choice Sophisticated Nouns and verbs Needs more Little or no use
use of nouns and make essay nouns and verbs of nouns and
verbs make the informative verbs
essay very
informative
Sentence Sentence Sentence Sentence No sense of
Structure structure structure is structure is sentence
enhances evident; limited; structure or flow
meaning; flows sentences sentences need
throughout the mostly flow to flow
piece
Mechanics Few (if any) Few errors Several errors Numerous
error errors
ACTIVITY 2: Make your own concept paper to support your business ideas and plans. Suppose you will
put up a store, what product will you offer your customer? Draw or paste cut-outs of your product prototype
and give a brief description that will entice your customer to make a purchase. Do it in a separate sheet of
paper.
5
TITLE OF YOUR CONCEPT PAPER:
INTRODUCTION:
OBJECTIVES:
PRODUCT (INSERT/PASTE THE PICTURE OF YOUR PRODUCT)
PRODUCT DESCRIPTION:
SOCIAL IMPACT:
ACTIVITY 3: Business Plan Making
Below is a template for business plan.
You need to fill this out using the business This section will show how you will
you want to pursue. manage your business and the people you
need to help you in your operations
MANAGEMENT SECTION
a. Manager: ______________________________
b. Workers: ______________________________
MARKETING SECTION This section shows the design of your

product/service; pricing, where you will
sell and how you will introduce your
product/service to your market.
a. Product Description: _______________________________________
b. Price: ___________________________________________________
c. Selling location: ___________________________________________
d. Promotional Activity: ______________________________________
FINANCE SECTION This section shows the money needed for

the business, how much you will take in
and how much you will pay out
6
a. Capital Amount: __________________________
b. Expected Daily Sales: ______________________
c. Expected Daily Expenses: ___________________
d. Income per Day: ___________________________
PRODUCTION SECTION This section shows the area, equipment

and materials needs for the business.
a. Draw a lay out of your production area:
b. Enumerate the equipment needed:
c. Enumerate the materials needed:
RUBRIC FOR BUSINESS PLAN MAKING
Content The content was well- 15

thought, guide
questions were
thoroughly answered
Organization The paper was well- 10
written with ideas
easily conveyed to
readers.
Development Points are thoroughly 5
developed
TOTAL 30
What I Have Learned: Write down lessons you have learned about 4 M’s of production
and its importance in the field of business.
1.__________ ______________________________________________________________
2. ________________________________________________________________________
3. ________________________________________________________________________
4. ________________________________________________________________________
5. ________________________________________________________________________
References:
The 4Ms of Operations: ENTREPRENEURSHIP by Dr Eduardo A. Morato, Jr.
Part I-Developing-a-Business-Plan-: ENTREPRENEURSHIP by Dr Eduardo A. Morato, Jr.
Morato, Eduardo A. Entrepreneurship. Manila. Rex Bookstore, Inc. 2016.
7
Batisan, Ronaldo S. Entrepreneurship Module, Diwa Senior Highschool Series, Diwa
Learning System Inc. Legaspi Village, Makati City Philippines, copyright 2016.
Ronaldo S. Batisan, DIWA Senior High School Series: Entrepreneurship Module. Diwa
Learning Systems Inc.
Dr. Eduardo A. Morato Jr., Entrepreneurship, 2016
Villanueva, et. al., Business Management III, Adriana Publishing Co. Inc., pp. 74-76, Cubao, Quezon City
Prepared by:
BABYLYN T. IMPERIO
Teacher III
8
ENTREPRENEURSHIP
Name of Learner: __________________________________ Grade Level: _____________
Section: __________________________________________ Date: ___________________

Forecast the Revenue of the Business
Forecasting is the tool used in planning that aims to support management or a business owner in its
desire to adjust and cope up with uncertainties of the future. Forecasting makes use of data from past and
present to come up with estimates for future revenues and costs.
Revenue is the income generated through normal business operations. Revenue is recognized at the
time it was earned, regardless of collection of payment. Revenue is oftentimes connected to words Sales and
Service Income. Sales is the revenue earned when indulging into a merchandising or manufacturing business.
Service Income is used to record revenues from rendering of services.
In calculating for the mark-up price, the formula is as follows:

Mark Up Price = (Cost x desired mark-up percentage)
In calculating for the selling price, the formula is as follows:

Selling Price = Cost + Mark Up Price
In calculating for the forecasted revenue, the formula is as follows:

Projected Revenue = Selling Price x Projected Volume or Average number of items sold
Learning Competency with the code:

Forecasts the revenue of the business (TLE_ICTAN11/12EM-la-2)
Exercise #1: MULTIPLE CHOICE

Directions: Choose among the options the proper factor that serve as basis in forecasting revenues of the
business which is described by the statement/s.
1. When the economy grows, its growth is experienced by the consumers. Consumers are more likely to
buy products and services. The entrepreneur must be able to identify the overall health of the economy
to make informed estimates.
A. The competing businesses or competitors
B. Changes happening in the community
C. The economic condition of the country
D. The internal aspect of the business.
2. Observe how your competitors are doing business. Since you share the same market with them,
information about the number of products sold daily or the number of items they are carrying will give
your idea as to how much your competitors are selling. This will give you a benchmark on how much
products you need to stock your business to cope up with the customer demand. This will also give
you a better estimate as to how much market share is available for you to exploit.
9
3. Changes happening in the environment such as customer demographic, lifestyle, and buying behaviour
gives the entrepreneur a better perspective about the market. The entrepreneur should always be keen
in adapting to these changes to sustain the business. For example, teens usually follow popular
celebrities especially in their fashion trend. Being able to anticipate these changes allows the
entrepreneur to maximize sales potential.
4. Plant capacity often plays a very important role in forecasting. For example, a “Puto” maker can only
make 250 pieces of puto every day; therefore he/she can only sell as much as 250 pieces of puto every
day. The number of products manufactured and made depends on the capacity of the plant, availability
of raw materials and labour and also the number of salespersons determines the amount of revenues
earned by an entrepreneur.
Exercise #2: PROBLEM SOLVING

Directions: Solve the given problem then choose among the options the correct answer. Show your solutions.
1. Lesterr Light sells banana cue in nearby schools in the city. Every day he can sell 50 pieces of banana
cue at 10 pesos each. How much is Lesterr’s daily sales?
A. P 50.00 B. P 150.00 C. P 500.00 D. P 600.00
2. Aira Shine sells cultured shirts online. She gets each shirt for P 130.00 from a local supplier. She then
adds P 100.00 as mark-up for each shirt. How much is the selling price of each shirt?
A. P 200.00 B. P 250.00 C. P 230.00 D. P 280.00
3. Mang Oyiee is a fruit vendor selling at the local public market. He gets his apples from a supplier at
20 pesos per kilo and sells it at 35 pesos per piece to his customers. How much mark-up has Mang
Oyiee added to arrive at his selling price?
A. P25.00 B. P30.00 C. P15.00 D. P20.00
Exercise #3: COMPLETE ME

Directions: Fill-in the missing items on the table. Consider the estimates below.
HAKDOG CORPORATION
PROJECTED MONTHLY REVENUES
MONTH January February March April May June

REVENUE P120,640
MONTH July August September October November December

REVENUE
10
Additional information: Past experience shows the following monthly estimates:
• February to May Increase of 5% from previous revenue
• June Increase of 10% from previous revenue
• July Increase of 5% from previous revenue
• August The same from previous revenue
• September to October Loss 5% from previous revenue
• November Increase 5% from previous revenue
• December Increase 10% from previous revenue
Reflection
1.I learned that ______________________________________________________________
___________________________________________________________________________
2.I enjoyed most on

___________________________________________________________________________
___________________________________________________________________________
3.I want to learn more

___________________________________________________________________________
___________________________________________________________________________
References:
https://www.accountingcoach.com/?fbclid=IwAR14M5NpDbOC_aAzeemeC9-
UzzuaICJ8i7JUOZd_WAExuxLbTPiSanlbpP8
https://www.accountingcoach.com/?fbclid=IwAR3Psn444MMkA0de0zZH8cJCJFPVXdnzRYx2IqUVSwge
tJhTaWQyhOuEzXY
Prepared by:
ARJAY C. ROMERO
Teacher II
11
ENTREPRENEURSHIP
Section: __________________________________________ Date: ___________________

Forecast the Costs to be Incurred
In production, retail, and accounting, a cost is the value of money that has been used up to produce
something or deliver a service, and hence is not available for use anymore. In other words, it is the amount
paid to manufacture a product, purchase inventory, sell merchandise, or get equipment ready to use in a
business process.
Cost of Goods Sold / Cost of Sales refer to the cost incurred associated to merchandise or goods sold
by the business for a given period of time.
Merchandise Inventory, beginning refers to goods and merchandise at the beginning of operation of
business or at the end of the previous accounting period.
Merchandise Inventory, end refers to goods and merchandise left at the end of current accounting
period.
Purchases refer to the merchandise or goods purchased during the accounting period.
Freight-in is the transportation cost associated with the delivery of goods from a supplier to the
receiving entity. For accounting purposes, the recipient adds this cost to the cost of the received goods.
Operating expenses are expenses/costs in relation to operation of the business. Examples of these are:
Utilities expense such as water and electric bills.
In calculating for the Cost of goods sold, the formula is as follows:

Merchandise Inventory, beginning P XXX
Net Purchases PXXX
Add: Freight-in XXX
Net Cost of Purchases XXX
Cost of Goods Available for Sale P XXX
Less: Merchandise Inventory, end XXX
Cost of Goods Sold P XXX
In calculating for the forecasted cost, the formula is as follows:

Projected Cost = Cost x Projected Volume or Average number of items sold

Forecasts the cost to be incurred (TLE_ICTAN11/12EM-la-2)
12
Exercise #1: COMPUTATION
Directions: Solve the given problem then choose the correct answer among the given options.
1. Your business has a beginning inventory of P9, 000, Purchases during the period amounted to P5,
000 while ending inventory totalled P2, 000. Find for the value of Total Goods Available for sale.
A.P 5, 000.00 B. P 9, 0000.00 C. P 4, 000.00 D. P 14, 000.00
4. 2. Assuming the data given on item 1, what is Cost of goods sold?

A.P 3, 000.00 B. P 7, 000.00 C. P 2, 000.00 D. P 12, 000.00
5. 3. The amount of ending inventory for the month of January is P550, 000 while the ending inventory
for the month of February is 300, 000. The business had purchases amounting P410, 000 during the
month. Freight- in is P55, 000. What is the amount of total goods available for sale?
A.P715, 000 B. P1, 015, 000 C. P765, 000 D. P465, 000
6. 4. Assuming the data given on item 3, what is Cost of goods sold?

A. P715, 000 B. 1, 315, 000 C. P465, 000 D. P265, 000
Exercise #2: COMPLETE ME

Directions: Fill-in the missing items on the table. Consider the estimates below.
HAKDOG CORPORATION
PROJECTED MONTHLY COSTS
MONTH January February March April May June

COGS
EXPENSE
MONTH July August September October November December

COGS
EXPENSE
Information for the month of January:

Electric Expense P15, 000
Miscellaneous Expense P5, 000
Internet Expense P10, 000
Beginning inventory for January is P20, 000 while ending inventory is P5, 000. The total of purchases during
January is P27, 000 and freight-in is P13, 000.
Additional information: Past experience shows the following monthly estimates:

• February to May Increase of 5% from previous cost
• June Increase of 10% from previous cost
• July Increase of 5% from previous cost
• August The same from previous cost
• September to October Decrease 5% from previous cost
• November Increase 5% from previous cost
• December Derease 10% from previous cost
13
Reflection
1.I learned that _______________________________________________________________________
___________________________________________________________________________________
2.I enjoyed most on

___________________________________________________________________________________
___________________________________________________________________________________

___________________________________________________________________________________
___________________________________________________________________________________
References:
tJhTaWQyhOuEzXY
Prepared by:
ARJAY C. ROMERO
Teacher II
14
ENTRPRENEURSHIP
Section: __________________________________________ Date: ___________________

Compute for Profits
Making a profit is one of the most important objectives of a business. Calculating your profit cannot
only help you determine your level of success, but it also provides information about where your business is
making money and where you are spending it. The concept of cost of goods sold and operating expenses have
been discussed previously, this time you will be introduced to the concepts of Net sales, finance cost, net
profit, and loss.
Net sales are the sum of a company's gross sales minus its returns, allowances, and discounts.
Finance cost is the cost of borrowing money. It is also known as interest expense.
Net profit is a company's total earnings after subtracting all expenses. It is synonymous to net income.
This is commonly referred to as a company's “bottom line” and is a true indicator of a company's profitability.
A net loss, on the other hand, is when expenses exceed the income or total revenue produced for a
given period of time. It is sometimes called a net operating loss (NOL). Businesses that have a net loss do not
necessarily go bankrupt because they may opt to use their retained earnings or loans to stay afloat.
Profitability is a measurement of business’s efficiency and ultimately its success or failure. Also,
profitability is a business's ability to produce a return on an investment based on its resources in comparison
with an alternative investment.
An income statement is a financial statement that shows the company’s income and expenditures. It
also shows whether a company is making profit or loss for a given period. The income statement is also known
as a profit and loss statement, statement of operation, statement of financial result or income, or earnings
statement.
In calculating for the Profit, the formula is as follows:

Net Sales P XXX
Less: Cost of Goods Sold/ Cost of sales XXX
Gross Profit PXXX
Less: Operating Expense XXX
Operating Profit P XXX
Less: Finance Cost XXX
Profit P XXX
PROFITABILITY RATIOS
Gross Profit Margin = Gross profit

Sales
Operating Profit Margin = Operating profit

Sales
Net Profit Margin = Net profit

Sales
15
The gross profit margin measures the percentage of gross profit to sales, indicating the profit that the
business realizes from the sale of the product.
The operating profit margin of the business measures the percentage of profit available after
deducting the cost of sales & operating expenses of the business. A higher operating profit margin is favorable
to the business.
Net profit margin helps investors assess if a company's management is generating enough profit from
its sales and whether operating costs and overhead costs are being contained. Net profit margin is one of the
most important indicators of a company's financial health.

Compute for profits (TLE_ICTAN11/12EM-la-2)
Exercise #1: PROBLEM SOLVING

Directions: Solve the given problem. Show complete solution.
7. 1. Carl Joshua went to Baguio and bought 20 jars of strawberry jam for P5, 000.00 with 10% discount.
When he got back to Peǹablanca, he sold 10 of the jars for a total of P3,000.00 and the rest at P320.00
each. How much profit did Carl gain?
8. 2. A watch owner sold a total of 1,000 watches for P1, 000 each for the month of January. He bought
those watches from a supplier at P400 each. The business paid utilities amounting to P40, 000,
miscellaneous P30, 000, internet connection P10, 000 and interest expense of P50, 000 for January.
How much is the profit/ loss for the period?
Exercise #2: PROFITABILITY RATIO

Directions: Compute for the profitability ratios. Show complete solution.
HAKDOG CORPORATION
INCOME STATEMENT
For the period ended January 2021
Net Sales P 500, 000
Less: Cost of Goods Sold/ Cost of sales 150, 000
Gross Profit PXXX
Less: Operating Expense 100, 000
Operating Profit P XXX
Less: Finance Cost 50, 000
Profit P XXX
Compute for:
A. Gross Profit Margin
B. Operating Profit Margin
C. Net Profit Margin
16
Reflection
1.I learned that

___________________________________________________________________________
___________________________________________________________________________
2.I enjoyed most on

___________________________________________________________________________
___________________________________________________________________________

___________________________________________________________________________
___________________________________________________________________________
References:
tJhTaWQyhOuEzXY
Prepared by:
ARJAY C. ROMERO
Teacher II
17
ENTREPRENEURSHIP
Name of Learner: _________________________ Grade Level: ______________
Section: _________________________________ Date: ____________________

Implement the Business Plan
Background Information of Learners
Business Implementation-this is a vital stage in planning. This is the process of executing a plan into practice.
Business Implementation involves establishing structures and activities needed to introduce a business into
the marketplace. Even on a start-up or already well-established organization.
Implementation is the process of executing a plan or policy so that a concept becomes a reality. Managers
must implement a plan properly, they should communicate concrete goals and expectations, and supply
employees with the resources needed to help the company achieve its goals.
Business Implementation Strategies
1. Get Staff and Management Involved. A business idea can start with any member of the staff but
getting the company to accept the implementation of a new idea requires the entire staff to be involved
in some way with the planning.
2. Invest in Training. Any new business idea must be done effectively, invest in training at every phase
of the process. For instance, at least 60 days prior to implementing a new business idea, training should
focus on alerting the staff to the impeding change then introduce how such changes will benefit the
company.
3. Consider Outside Factors. Implementing a new idea for the business could affect the vendors or
customers. In planning the implementation of the strategy, consider how any change, big or small,
will affect the entities to do business with. Targeted market research of the clients and vendors can
give an indication of how the changes will affect business before implementing them. Discuss the
ideas with the largest vendors or clients to determine if they need to make any alterations to the plans.
4. Open Communication-. Implementing change is easier if you allow free and open communication
within your organization. Encourage employees to give their input about your proposed changes and
maintain an open communication policy throughout the implementation process.
There are several government agencies you must register with when starting a business. It is essential to
register your business to avoid any legal problems once business operations begin. Below are the government
agencies that you must contact to give your business a legal identity.
• Department of Trade and Industry (DTI) – This is the government agency where single proprietorship
enterprises register and secure its certificate of registration.
• Securities and Exchange Commission (SEC)– This is the government agency responsible for the
registration and supervision of all corporations and partnerships organized in the Philippines.
Licensing of representative offices and branch offices is likewise under this agency.
18
• Bureau of Internal Revenue (BIR) – This is the government agency mandated by the law to assess
and collect all national internal revenue taxes, fees, and all charges. All types of business entities are
required to be registered here.
• Philippine Health Insurance Corporation (PhilHealth) – This is the government agency which
requires all employees to be registered. The National Health Insurance Program under this aimed at
providing health insurance coverage and ensure affordable health care services for all the citizens of
the Philippines.
• Social Security System (SSS) – This is the government agency where employers and employees are
required to be registered. Funded through mandatory payroll contribution, this is where citizens who
are retired, currently unemployed or unemployable due to disability are assisted.
• PAG-IBIG – This is the government agency where employees who are members of the Social Security
System (SSS) are required to register.
• Mayor’s Business Permit (LGU) – Where local government permits and licenses necessary for the
operation of the business are secured.
Steps on How to Register A Sole Proprietor Business
1. Register your business name at the Department of Trade and Industry (DTI)
Make sure to search the DTI website to see if there are any businesses in existence that have a name
similar to yours. If the business name that you want is available, fill out a business name application form,
and submit it to DTI’s office. You must wait for your DTI certificate of registration before you move onto the
next step of opening your own sole proprietor business.
2. Register with the Barangay
Once you have received your certificate of registration from the DTI, it is time to go to the Barangay where
your business is located to fill out an application. In addition to your application, you will need to submit your
DTI Certificate of Business Registration, two valid IDs, and a proof of residence. Wait and claim your
Barangay Certificate of Business Registration.
3. Register your sole proprietor business with the Mayor’s Office (LGU)
The next step, after receiving your Barangay certificate of business registration, is registering your business
at the municipal office in the city where your business is located. You will need to fill out an application, as
well as submit your Certificate of Business Registration from the DTI, your Barangay Clearance Certificate,
two valid IDs, and proof of residency.
4. Register with The Bureau of Internal Revenue (BIR)
After you receive your certificates and permits from DTI and LGU, it is time to register your sole proprietor
business with the BIR. To do this, you will need to visit your regional district office in the city where your
business is located. You will be required to fill out a BIR form 1901, which is an application to register your
sole proprietorship. In addition to your completed BIR form 1901, you will need to submit your Certificate of
Registration from DTI, your Barangay Clearance Certificate, your Mayor’s Business Permit, proof of
residency, and valid ID. You will also have to pay for registration, (BIR Form 0605), and register your book
of accounts and provide any receipts or invoices you have for the business. After completing all of these, you
will be able to claim your certificate of registration, (BIR form 2303).
Make sure you have covered all additional clearances, permits, or licenses you need to obtain before opening
your business to the public. There are certain categories of business that require additional documentation.
19
After you have completed the four steps listed above, you can focus on a strategy to succeed in your new
business venture.
Learning Competency with code

Implement the business plan (CS_EP11/12BENTREP-IVa-i-1)
Exercise 1: Match Column A with Column B. Write the letter on the space provided.
_____1. Bureau of Internal Revenue A. This is the government agency which requires
all employees to be registered. The National
Health Insurance Program under this aimed at
providing health insurance coverage and ensure
affordable health care services for all the citizens
of the Philippines.
_____2. Department of Trade and Industry B. This is the government agency where single
proprietorship enterprises register and secure its
certificate of registration.
_____3. Mayor’s Business Permit (LGU) C. This is the government agency where
employers and employees are required to be
registered. Funded through mandatory payroll
contribution, this is where citizens who are
retired, currently unemployed or unemployable
due to disability are assisted.
______4. Social Security System (SSS) D. This is the government agency mandated by
the law to assess and collect all national internal
revenue taxes, fees, and all charges. All types of
business entities are required to be registered
here.
______5. PHILHEALTH E. Where local government permits and licenses

necessary for the operation of the business are
secured.
Exercise 2: TRUE or FALSE. Write T if the statement is true and if false, underline the word that makes it
incorrect and write the correct word or phrase on the space provided.
_______1. The first step in registering your sole proprietor business is to register your
business name at the Department of Trade and Industry (DTI).
_______2. You go to the Bureau of Internal Revenue (BIR) when you get Tax Identification
Number (TIN).
20
_______3. You go to the office of the Department of Trade and Industry (DTI) if you will
register your corporation business.
_______4. Employers are the only one to pay contribution at the Social Security System (SSS).
_______5. The office to visit when registering your solely owned business is the Securities and
Exchange Commission (SEC).
Exercise 3: Based on your own observations, describe the business operations of the following by indicating
the strategies they used, and the activities manifested during the current year.
1. Baker’s Percent
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Mariton’s Fresh
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. Red Ribbon
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
4. Jollibee
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
5. Robinson’s Mall
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Reflection
1.I learned that

_______________________________________________________________________________________
_______________________________________________________________________________________
2.I enjoyed most on

_______________________________________________________________________________________
_______________________________________________________________________________________
21
_______________________________________________________________________________________
_______________________________________________________________________________________
References:
Book:
Agustin-Acierto, M, (n.d.), Entrepreneurship, K to 12 Basic Education Curriculum, Senior High School

Applied Track Subject, Unlimited Books Library Services & Publishing Inc.
Online sources:
https://kittelsoncarpo.com/business-registration/government-agencies/
https://www.thebalancesmb.com/writing-a-business-plan-implementation-plan-1200844
Prepared by:
MA. ROSARIO P. MARCHAN

Teacher II
22
ENTREPRENEURSHIP
Name of Learner: _________________________ Grade Level: ________________
Section: _________________________________ Date: ______________________

Manifest Understanding and Operating a Simple Business
A Business record is a document (hard copy or digital) that records business dealing. Business records
including meeting minutes, memoranda, employment contracts, and accounting source documents.
REASONS FOR KEEPING BUSINESS RECORDS
1. Monitor the progress of the business.
You need good records to monitor the progress of your business. Records can show whether your business
is improving, which items are selling, or what changes you need to make. Good records can increase the
likelihood of business success.
2. Prepare the Financial Statements.
You need good records to prepare accurate financial statements. These include income (profit and loss)
statements and balance sheets. These statements can help you in dealing with your bank or creditors and
help you manage your business.
An income statement shows the income and expenses of the business for a given period.
A balance sheet shows the assets, liabilities, and equity in the business on a given date.
3. Identify Sources of Income.
You will receive money or property from many sources. Your records can identify the sources of your
income. You need this information to separate business from non-business receipts and taxable from non-
taxable income.
4. Keep track of the Deductible Expenses.
Unless you record them when they occur, you may forget expenses when you prepare your tax return.
5. Keep track as the Basis in Property.
Your basis is the amount of your investment in property for tax purposes. You will use the basis to figure
the gain or loss on the sale, exchange, or other disposition of property, as well as deductions for
depreciation, amortization, depletion, and casualty losses.
23
6. Prepare the tax returns.
You need good records to prepare your tax returns. These records must support the income, expenses,
and credits you report. Generally, these are the same records you use to monitor your business and prepare
your financial statement.
7. Support items reported on your tax returns.
You must always keep your business records available for inspection by the Bureau of Internal Revenue
(BIR). If the BIR examines any of your tax returns, you may be asked to explain the items reported. A
complete set of records will speed up the examination.
Bookkeeping-is the recording of financial transactions and is part of the process of accounting in business.
Transactions include purchases, sales, receipts, and payments by an individual person or an
organization/corporation.
PERFORM KEY BOOKKEEPING TASK
Bookkeeping Systems
1. Single-entry system- uses only income and expense accounts, recorded primarily in a revenue and
expense journal. This is adequate for many small businesses. The primary bookkeeping record in
single-entry bookkeeping is the cash book, which is similar to a checking account register, but
allocates the income and expenses to various income and expense accounts.
2. Double-entry system-at least two accounting entries are required to record each financial transaction.
These entries may occur in asset, liability, equity, expense, or revenue accounts.
Petty Cash Book
A petty cash book is a record of small-value purchases before they are later transferred to the ledger
and final accounts; it is maintained by a petty or junior cashier.
Journals
Journals are recorded in the general journal daybook. A journal is a formal and chronological record
of financial transactions before their values are accounted for in the general ledger as debits and credits.
Ledgers
A ledger is a record of accounts. The ledger is a permanent summary of all amounts entered in
supporting journals which list individual transactions by date. These accounts are recorded separately,
showing their beginning/ending balance.
Recording Transactions
Bookkeeping (and accounting) involves the recording of the financial transactions. The transactions
will have to be identified, approved, sorted, and stored in a manner so they can be retrieved and presented
in the financial statement of the company’s and other reports.
24
Here are a few examples of some of the financial transactions of a company:
• The purchase of supplies with cash;

• The purchase of merchandise on credit;
• The sale of merchandise on credit;
• Rent for the business office;
• Salaries and wages earned by employees;
• Buying equipment for the office;
• Borrowing money from a bank.
HOW TO IDENTIFY WHERE THERE IS A PROFIT OR LOSS FOR A BUSINESS
Profit is determined by the money you get from sales, cost of stock (if you sell product/s) and of course all
the expenses you incur. Keeping a close eye on each of these will ensure you are maximizing the profit in
your business.
How do I calculate profit?
The simplest formula is total revenue-total expenses=profit
Example:
A merchandise business buys P5,000 of stock in February and agrees to pay for it in three months’ time. It
sells the stock in the month in which it purchased it (February) for P8,000 cash. The profit for the month is
P3,000.
Learning Competency with Code
Manifest understanding of starting and operating a simple business. (CS_EP11-12-ENTREP-Iva-i-1)
Exercise 1: TRUE or FALSE. Write A if the statement is true and B if the statement is false.
________1. Records are not sources of documents.
________2. Record keeping is not necessary in business operation.
________3. Good records can increase the likelihood of business success.
________4. An income statement shows the assets, liabilities and equity of a business
on a given date.
________5. Your records can identify the sources of your income.
________6. Bookkeeping is the recording of financial transactions, and is part of the

process of accounting in business.
________7. You need good records to prepare accurate financial statements.
________8. Profit will not be determined by the money you get from sales, cost of stock
and of course, all the expenses you incur.
________9. A double-entry system uses only income and expense accounts, recorded
primarily in a revenue and expense journal.
25
________10. A petty cash book is a record of small-value purchases before they are
later transferred to the ledger and final accounts.
Exercise 2: Using the table below, prepare recording transactions with the following situations:
1. Lance deposited P1,500,000.00 in the bank on January 15.

2. On January 22, Lance withdrew from the bank P750,000.00.
3. Lance bought on that same day a laptop worth P65,000.00.
4. Lance paid all the bills for the month of December worth P35,000.00.
5. Lance bought new tables and chairs on January 25 worth P50,000.00.
DATE PARTICULARS EXPENSE INCOME BALANCE

(DEBIT) (INCOME)
Reflection
1.I learned that

_____________________________________________________________________________________
_____________________________________________________________________________________
2.I enjoyed most on

_____________________________________________________________________________________
_____________________________________________________________________________________

_____________________________________________________________________________________
_____________________________________________________________________________________
26
References:
Book:
Agustin-Acierto, M, (n.d.), Entrepreneurship, K to 12 Basic Education Curriculum, Senior High School

Applied Track Subject, Unlimited Books Library Services & Publishing Inc.
Online sources:
https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records
https://informi.co.uk/finance/how-do-i-calculate-profit
Prepared by:
MA. ROSARIO P. MARCHAN

Teacher II
27

ENTREPRENEURSHIP LAS 2nd-QUARTER-Final

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Note: Practice Personal Hygiene Protocols at all Times

Competency Page No.

Demonstrate the 4Ms of Operations in Relation

Note: Practice Personal Hygiene Protocols at all Times

Section: Date: ___

LEARNING ACTIVITY SHEET

Background Information for Learners

Let’s take a look at each one:

Materials Requisitioning Options

The following are the components found in a Business Plan:

STATEMENT OF VISION, MISSION AND VALUES

Learning Competency with code

Rubrics for the 4 3 2 1

PRODUCT (INSERT/PASTE THE PICTURE OF YOUR PRODUCT)

ACTIVITY 3: Business Plan Making

Below is a template for business plan.

MARKETING SECTION This section shows the design of your

a. Product Description: _______________________________________

c. Selling location: ___________________________________________

d. Promotional Activity: ______________________________________

FINANCE SECTION This section shows the money needed for

b. Expected Daily Sales: ______________________

c. Expected Daily Expenses: ___________________

d. Income per Day: ___________________________

PRODUCTION SECTION This section shows the area, equipment

a. Draw a lay out of your production area:

b. Enumerate the equipment needed:

c. Enumerate the materials needed:

RUBRIC FOR BUSINESS PLAN MAKING

Content The content was well- 15

The 4Ms of Operations: ENTREPRENEURSHIP by Dr Eduardo A. Morato, Jr.

Part I-Developing-a-Business-Plan-: ENTREPRENEURSHIP by Dr Eduardo A. Morato, Jr.

Morato, Eduardo A. Entrepreneurship. Manila. Rex Bookstore, Inc. 2016.

Dr. Eduardo A. Morato Jr., Entrepreneurship, 2016

LEARNING ACTIVITY SHEET

Background Information for Learners

In calculating for the mark-up price, the formula is as follows:

In calculating for the selling price, the formula is as follows:

In calculating for the forecasted revenue, the formula is as follows:

Learning Competency with the code:

Exercise #1: MULTIPLE CHOICE

Exercise #2: PROBLEM SOLVING

Exercise #3: COMPLETE ME

MONTH January February March April May June

MONTH July August September October November December

1.I learned that ______________________________________________________________

2.I enjoyed most on

3.I want to learn more

LEARNING ACTIVITY SHEET

Background Information for Learners

In calculating for the Cost of goods sold, the formula is as follows:

In calculating for the forecasted cost, the formula is as follows:

Learning Competency with the code:

4. 2. Assuming the data given on item 1, what is Cost of goods sold?

6. 4. Assuming the data given on item 3, what is Cost of goods sold?

Exercise #2: COMPLETE ME

MONTH January February March April May June

MONTH July August September October November December

Section: _____________ Date:

Section: ___________ Date: