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Organization and Management – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 4: The Forms and Roles of Business Organizations and the
Phases of Economic Development
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.

Published by the Department of Education, Division of Palawan

Schools Division Superintendent:
Natividad P. Bayubay, CESO VI
Assistant Schools Division Superintendents:
Loida P. Olavario, Ph.D.
Felix M. Pamaran

Development Team of the Module

Writers: Robert O. Mag-apan
Content Editors: Sidney D. Saldevia
Mark G. Javillonar
Language Editor: Marianne R. Valdez
Reviewers: Eric N. Quillip
Layout Artist: Mark G. Javillonar
Management Team: Aurelia B. Marquez
Rodgie S. Demalinao
Eric N. Quillip

Printed in the Philippines by ________________________

Department of Education – MIMAROPA Region – Schools Division of Palawan

Office Address: PEO Road, Bgy. Bancao-Bancao, Puerto Princesa City

Telephone: (048) 433-6392
E-mail Address: [email protected]
Website: www.depedpalawan.com

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

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Introductory Message
For the facilitator:

Welcome to the Organization & Management – Grade 11 Modular Distance

Learning (MDL) Self-Learning Module on the Forms and Roles of Business
Organizations and the Phases of Economic Development!

This module was collaboratively designed, developed and reviewed by educators

from public institution to assist you, the teacher or facilitator in helping the
learners meet the standards set by the K to 12 Curriculum Most Essential Learning
Competencies (MELCs) in the “New Normal” situation while overcoming their
personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator, you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

iv
For the learner:

Welcome to the Organization & Management – Grade 11 Modular Distance

Learning (MDL) Self-Learning Module on the Forms and Roles of Business
Organizations and the Phases of Economic Development!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways; a story, a
song, a poem, a problem opener, an activity
or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

v
 Additional Activities In this portion, another activity will be given
to you to enrich your knowledge or skill of
the lesson learned.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

vi
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master the forms and economic roles of business organizations and also its phases
and impact to business environment. The scope of this module permits it to be
used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the
standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.

The module is divided into two lessons, namely:

• Lesson 1 – Forms and Economic Roles of Business Organization
• Lesson 2 – Phases of Economic Development and its Impact to Business
Development

After going through this module, you are expected to:

• Lesson 1
1. Identify forms of business organizations;
2. analyze the different forms and roles of business organizations; and
3. cite practices done by the business towards socioeconomic development
of a particular barangay.

• Lesson 2
1. define the phases of economic development;
2. differentiate the phases of economic development;
3. evaluate the impact of economic development to business environment;
and
4. cite evidences about the phases of economic development and its
impact to business environment in one’s barangay.

1
 What I Know

Choose the letter of the best answer. Write the letter of your answer on a separate
sheet of paper.

1. A group of individuals who form a business enterprise for the purpose of mutual
benefit is called what?
a) Partners c.) Incorporators
b) Proprietors d.) Stockholder

2. Which of the following pertains to the owners of a stock corporation whose

names are reflected in the certificate of stock?
a) Sole proprietor c.) Member
b) Partner d.) Stockholder

3. This is a collective term for individuals who are vested with the right to manage
and conduct the business of a non-stock corporation.
a) Board of Trustees c.) Board of Directors
b) Incorporators d.) Proprietors

4. A business organization formed by at least 5 but not exceeding to 15

incorporators, and is considered a “legal person” in the context of the law.
a) Sole Proprietorship c.) Corporation
b) Partnership d.) Cooperative

5. A form of business organization in which the owner owns all the assets and
personally shoulders all liabilities or losses.
a) Sole Proprietorship c.) Corporation
b) Partnership d.) Cooperative

6. Which business organization enjoys advantages such as greater ability to attract

capital, transferable ownership, continuity of life, and limited liability?
a) Sole proprietorship c.) Corporation
b) Partnership d.) Cooperative

7. Which of the following government agencies is tasked to formulate,

institutionalize, and administer fiscal and tax policies?
a) Bureau of Customs c.) Department of Finance
b) Securities and Exchange Commission d.) Bureau of Internal Revenue

8. Which of the following gives more importance on generating profits by creating

business to exploit market and business opportunities?
a) Business development c.) Environmental development
b) Economic development d.) Industrial development

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9. Which of the following statements describes economic development?
a) It focuses on markets c.) It creates business
b) It attracts business d.) It originates in private sectors

10. Which of the following is/are role/s of business in the economy?

a) Supplies goods c.) Provides services
b) Meets the demands of the consumers d.) All of the choices

11. Over the years, Palawan has significantly increased its production level in
agriculture and tourism industries which resulted to an economic shift
characterized by being independent on factor inputs, use of technological
innovation, and increases in real per capita income. In what phase of economic
development does the province of Palawan belong?
a) Take-off c.) Age of mass consumption
b) Pre-conditions for take-off d.) Drive to maturity

12. In this phase of economic development, the activities shift to the tertiary sector
and economic growth are supported by middle class consumers.
a) Pre-conditions for take-off c.) Take-off
b) Age of mass consumption d.) Drive to maturity

13. In this phase of economic development, agriculture becomes more mechanized

and more output is traded. Savings and investment grow although they are still
small percentage of national income (GDP).
a) Pre-conditions for take-off c.) Take-off
b) Age of mass consumption d.) Drive to maturity

14. Which of the following is not among the five stages of economic development as
mentioned by Economist Rostow?
a) Traditional society c.) Drive to maturity
b) Age of mass consumption d.) Lay-off

15. This business environment is driven by local conditions and market

characteristics.
a) Both local and international business environment
b) International business environment
c) Local business environment
d) None of the choices

3
Lesson
Forms and Economic Roles
1 of Business Organizations

A business is a common technical term for a profit generating project of certain

individuals who are directly involved in it. It is an organization that utilizes
economic resources to provide goods and services to customers in exchange for
money or other equivalent products and services. One of the primary decisions an
investor or a business owner has to consider is how the business is built up and
operates. Knowing that all business establishments are required to settle the
needed documents that describe the rights and liabilities of business owner in the
ownership, control, personal liability, lifespan, and financial configuration, any
decision made how the business shall be structured will have a long-term impact to
the business.

This chapter of the module will help you- young individuals understand the
different forms of business organizations and its great contribution to
socioeconomic growth and development of a particular locality or country as a
whole. This will likewise lead you to having a clear understanding on the vital role
of the business to national economy particularly on this COVID-19 pandemic.

What’s In

In the previous lesson, you have learned the various forces/elements influencing
local and international business environment using PEST and SWOT strategies. To
recall the lesson, you have to answer the Activity 1 below.

Activity 1. Let us Recall!

Part I. Multiple choice.

Directions: Write you’re the letter of your answer on a separate sheet of paper.

1. Which of the following affects the internal business environment?

a) Promotion c. Products
b) Price d. All of the choices

2. In a SWOT analysis, which of these are often related to the business’ internal
environment?
a) Opportunities and Threats c. Strengths and Weaknesses
b) Strengths and Threats d. Opportunities and Strengths

4
3. It is a tool that allows one to focus on strength while minimizing threats, and
taking the greatest possible advantage of available opportunities.
a) TWOS Analysis c. PEST Analysis
b) SWOT Analysis d. PESTLE Analysis
4. What is the aim of using SWOT Analysis?
a) Focusing on your strengths c. Taking advantage of opportunities
b) Minimizing threats d. All of the choices
5. He was the person who is often credited with the formulation of the SWOT
Analysis Tool.
a) Henri Fayol c. Lian Fernando
b) Albert Humphrey d. Frank Gilbreth
6. In PESTLE Analysis, P stands for
a) People c. Partnership
b) Political d. Promotion

Part II. Classify the SWOT Analysis

How do you consider STRENGTHS, WEAKNESSES, OPPORTUNITIES, and

THREATS as a part of your business environmental analysis? Put each word on
the box according to how you classify it.

INTERNAL EXTERNAL
HELPFUL

7. 9.

8. 10.
HARMFUL

Notes to the Teacher

Begin the lesson by letting the students do the Activity No 1. Let
the students answer the given questions which will help them
recall the topic on the previous lesson. However, activity 2 is
designed to help students familiarize with the key terms as well
as the concept of the different forms of business organizations.

5
 What’s New

Below activity will help you check how much you know about the different forms of
business organizations.

Activity No 2: Read-Arrange-Define
Directions: After reading the shuffled letters on the first column, arrange it in
order for you to get the target word and put your answers on the next column.
Briefly define each word according to your prior knowledge and provide examples.

Read Arrange Definition and Example

CRATIORONPO

NESHPATRIPR

LOSE PRSTRIEOROPHIP

OMNICE

UBSISSNE

Rubrics on Rating Activity 2: Read-Arrange-Define

Score
Case Facts
3 points 2 points 1 point
Arranged and got
Arrange - -
the answer correctly
Clearly defined the Clearly defined the Either the student
Define terms and cited 2 term and cited 1 defined the term or
specific examples specific example cited an example

6
 What is It

You were able to define five (5) key terminologies relative to the forms and economic
roles of business organizations in activity No. 1. In this part of the module, you will
learn further about its concepts, how these forms of businesses differ from each
other, and its roles to economic development.

What are the common forms of business organizations?

Each form has its advantages and disadvantages when it comes to many aspects
and it has its unique characteristics where in people has to clearly understand and
fully understand before venturing into a profit generating project generally called as
business.

Forms of Business
Organizations

Sole Proprietorship Partnership Corporation

It is managed and owned by a single

What is a Sole individual and is the simplest type of
Proprietorship? business.

Two or more partners bind themselves to

contribute money, property, or industry to
What is a a common fund. Their intention is to
Partnership? divide the profits among themselves. A
partner may be considered as a general
partner, limited partner, capitalist, or
individual partner.

Is an artificial being creating by operation

of law, having the right of succession, and
What is a the powers, attributes, and properties
Corporation? expressly authorized therein or incident to
its existence. It is composed of 5 to 15
original members who are called
incorporators.

7
How do these forms of business organizations differ from each other?

Characteristics Sole Proprietorship Partnership Corporation

Ownership Only 1 proprietor 2 or more 5 to 15

partners incorporators

Depends of
Capitalization Based on the Based on the the types of
capacity of the partners’ business as
proprietor agreement prescribed
by law

Terms of
It’s all up to sole Depends to 50 years and
Existence
owner both partners renewable

Management Managed by the Managed by Managed by

structure owner the partners the BOD

Profit To
All goes to the sole To the both stockholders
distribution owner partners or based on
the BOD

Reporting of
To Municipal To Municipal
requirements
Office, Office,
To Municipal Office BIR,SSS,SEC, BIR,SSS,SEC
PhilHealth or ,PhilHealth
HDMF or HDMF

Income
Taxation Pays
Pays corporate tax
individual tax and
Pays individual tax
based on individual
profit sharing tax for
stockholder

What is the role of business in relation to the economy?

The fundamental role of business has remained relatively constant: providing the
goods and services that people need or want.

What has changed dramatically over time are the expectations placed on
businesses. Boards of Directors, management and investors of large corporations
are now expected to address an array of social, economic, and ecological
challenges.

8
Business drives its social legitimacy and right to operate from the economic value it
creates for society at large, from its performance for investors and a wider network
of constituencies, its partnership with government and other agents in solving
social problems, and the trust its leadership inspires in employees and society as a
whole.
Its roles to economy are as follow:

✓ As its main role to business economy, businesses generally provide jobs to

common individuals who are in the first place have met the certain
requirements needed for employment who in turn are able to buy goods and
services.

✓ Businesses on the other hand, pay taxes as one of the major sources to finance
government spending and operations.

✓ Businesses are the entities that introduce new products and innovation that
would lead to changes in standards of living.
✓ Economic competition usually pushes businesses to act socially desirable
manner. Most common activities that businesses are doing are practicing
service beyond profit-known as corporate social responsibility (CSR).

Notes to the Teacher

The brief discussion above provided enough information for the
students to do the activities on the succeeding pages. Such
activities are designed for individual preparation and lesser
teacher intervention.

9
 What’s More

Activity 3: Please, Know Me!

Directions: Analyze whether the sentence/ word is referred to as a Sole
Proprietorship, Partnership, or a Corporation.

1. A type of business that is owned and managed by 2 or more

owners.
2. Owns all the assets of his/her business and personally shoulders
all liabilities and losses.
3. Stronger potential to access to greater amounts of capital.
4. Flexible in providing capital
5. Ownership can be transferred by selling its stocks
6. Least costly among the forms of ownership
7. Limited liability
8. Low operational overhead
9. Developing partnership agreements is required in forming this
business.
10. A form of business mainly composed of 5 to 15 incorporators.
11. Board of Directors
12. Limited and General Partners
13. Has a complete control and authority of its own.
14. Its registration is through the Bureau of Trade Regulation and
Consumer Protection (BTRCP) of the Department of Trade and
Industry (DTI).
15. A juridical entity that registered with the Securities and Exchange
Commission generally composed of maximum of 15 qualified and
trusted individuals.

Notes to the Teacher

Activities 3, 4 and 5 are designed to develop and enrich students’
knowledge on the forms and roles of business organizations. The
activities ensure that students’ full understanding of the lesson is
achieved. The scoring rubrics are provided to guide the students
in doing the activity No. 5.

10
 What I Have Learned

At this point, let us see how much you have gained from the discussions and
activities you have undergone.

Activity 4: Self-Check
Direction: Complete the sentences below by filling in the blanks of the correct word
or phrase.

There are three common forms of business organizations: the Sole proprietorship,
Partnership, and the Corporation. Sole proprietorship is being managed and owned
by a 1.) and is being referred to as the simplest type of
business. However, in a contract of partnership, two or more persons bind
themselves to contribute 2.) , 3.) or industry to a
common fund. Their intention is to divide the profits among themselves. A partner
may be considered as a 4.) , 5.) ,
6.) , or 7.) . On the other hand, a
corporation is a type of business that keeps the dealings, assets, and bank
accounts separate from his/her personal assets. It is an 8.)
creating by operation of law, having the 9.) , and the
10.) , 11.) , and properties expressly
authorized therein or incident to its 12.) . It is composed of 13.)
original members who are called 14.) . This type of a
business once registered with the 15.)
and is issued a certificate, it has already acquired its legal personality separate and
distinct from its stockholders.

11
 What I Can Do

This activity will help you transfer into real-life situations the knowledge and skills
you have learned from this module.

Activity 5: Trace Its Benefits

Directions: List down at least 3 establishments in your barangay and determine
the practices done by these businesses towards socioeconomic development. Give
your point of view on these practices.

Case Facts Business #1 Business #2 Business #3

Name of the 1.) 1.) 1. )

establishment

Corporate Social 1.) 1.) 1.)

Responsibility

2.) 2.) 2.)

Point of view

12
 Rubrics in Rating Activity 5: Trace Its Benefits
Score
Case Facts 5 3 1
Number of Listed 3 or more Listed 2 out of 3 Listed 1 out of 3
business business business business
establishment establishments establishments establishments
listed
List of business Enumerated at Enumerated at No observation
activities least 2 CSR least 1 CSR
practices practices
Shared insightful, Gave relevant but Stated ideas with
Point of view
timely and untimely ideas less relevance to
relevant ideas to the topic
the topic

13
Lesson Phases of Economic
2 Development and its Impact
to Business Environment

In general, the stages of the country’s economic development can be defined and
examined in terms of different rates of growths or in terms of changes in the key
factors of economic influence. The highly developed the economy, the more
attractive it is to local and foreign investors that would lead to sustainable
economic growth and development.

On this lesson, you will learn about the different phases of economic development
as your baseline information on answering the various exercises prepared on this
part of the module. Moreover, it will lead you to clearly understand how each
economy will be classified to and what its significant impact to business
environment is in general.

What’s In

In the previous lesson, you have learned the different forms of business
organizations and its roles to economic development. To recall the lesson, you have
to answer the Activity 1 below.

Activity 1: Let us Recall!

Part I. Enumeration

Directions: Enumerate the three common forms of business organizations and the
two classifications of partners.

The three common forms of business organizations

1.
2.
3.

Two classifications of partners

4.

5.

14
Part II. Modified True or False

Direction: Write True if the statement is correct while encircle the word or phrase
that made the sentence False or wrong and write the correct word on the space
provided.

6. A sole proprietor has the full control on the business assets,

liabilities, and losses.
7. Partnership and corporation are both considered as juridical
entities.
8. Lifespan of a corporation can last up to 50 years and is renewable.
9. Monetary contribution is mandatory to become a business partner
in a partnership type of a business.

10. As to formation, partnership is the easiest among the forms of

business organizations.

Notes to the Teacher

Begin the lesson by letting the students do Activity No 1. Let the
students answer the questions which will help them recall the
topic that has been tackled on the first lesson. Likewise, ask the
students answer the activity 2 as unlocking difficulties of the
lesson.

15
 What’s New

Below activity will help you check how much you know about the phases of
economic development and its impact to business environment.

Activity 2: Picture Analysis

Directions: Using your analytical ability, identify the phases of economic
development depicted on the illustrations inside the box. Write your answer on the
space provided.

The Phases of Economic Development

Pre-conditions for take-off Age of mass consumption Take off
Drive to maturity Traditional society

Sources: https://www.google.com

Sources: https://www.google.com

Source: https://www.google.com

Source: https://www.google.com

Sources: https://www.google.com; https://www.roadtraffic-technology.com

16
 What is It

In Activity 2, you were able to test your prior knowledge on the content of the
lesson. Now, you are encouraged to read the text below in order for you to acquire
knowledge and understanding on the different phases of economic development
and its impact to business environment.

Knowledge Acquisition
Economic Development
It is the process by which a nation seeks to improve the economic well-being and
the standard of living of the people by creating job opportunities and/ or retaining
jobs and supporting incomes and the tax base. As long as the people do have jobs
and earned reasonable incomes, local and or national economy will continue to
grow and will have an assurance of sustainable economic development. Aside from
that, when a nation is economically developed, the greater the possibility of
becoming attractive to local and foreign investors.

Walt Whitman Rostow (W.W. Rostow) was an economist in the Lyndon B. Jonson
administration from 1966-1969 who came up with the five (5) stages of economic
development.

1. Traditional Society
Phases of Economic Development

2. Pre-conditions for take-off

3. Take-off

4. Drive to Maturity

5. Age of mass consumption

1. Traditional Society. This is an agricultural economy of mainly subsistence

farming, little of which is traded.
2. Pre-conditions for take-off. Agriculture becomes more mechanized and more
output is traded. Savings and investment grow although they are still small
percentage of national income (GDP). Some external funding is required- for

17
example in the form of overseas aid or perhaps remittance incomes from migrant
workers living overseas.
3. Take-off. Manufacturing industry assumes greater importance, although the
number of industries remains small. Political and social institutions start to
develop- external finance may still be required. Savings and investment grow,
perhaps to 15% of GDP. Agriculture assumes lesser importance in relative terms
although the majority of people may remain employed in the farming sector. There
is often a dual economy apparent with rising productivity and wealth in
manufacturing and other industries contrasted with stubbornly low productivity
and real incomes in rural agriculture.

4. Drive to maturity. Industry becomes more diverse. Growth should spread to

different parts of the country as the state of technology improves- the economy
moves from being dependent on factor inputs for growth towards making better
use of innovation to bring about increases in real per capita income.
5. Age of mass consumption. Output levels grow, enabling increased consumer
expenditure. There is a shift towards tertiary sector activity and the growth is
sustained by the expansion of a middle class of consumers.

Notes to the Teacher

The brief discussion above provided enough information for the
students to do the activities on the succeeding pages. Activities 3,
4, 5 and 6 are designed to develop and enrich students’
knowledge on the phases of economic development and its impact
to business environment in general. The activities ensure that
students’ full understanding of the lesson is achieved. The
scoring rubrics will guide the students in doing the activities.

18
 What’s More

Activity 3: True or False

Directions: Read and comprehend the following statements carefully. Write True if
the statement is correct and False if it is incorrect. Place your answer on the space
provided before each number.

1. There are 5 phases of economic development such as traditional

society, pre-conditions for take-off, lay-off, drive to maturity, and age of mass
consumption.
2. Age of mass consumption is the fifth phase of economic
development.
3. At take-off phase, manufacturing industry assumes greater
importance and the number of industries becomes bigger.
4. At take-off phase, social institutions were only developed.
5. Growth has spread to different parts of the country as the state of
technology became more developed towards making better use of innovation to
bring about increases in real per capita income at the stage of drive to maturity.
6. The age of mass promotion significantly increased consumers’
expenditures.
7. There was a shifting towards tertiary sector activity and the growth
is sustained by the expansion of a upper class of consumers.
8. There is often a dual economy apparent with rising productivity
and wealth in manufacturing and other industries contrasted with stubbornly low
productivity and real incomes in urban agriculture during the take-off phase.
9. At Pre-conditions for take-off phase, agriculture becomes more
mechanized but less output is traded.

10. Savings and investment grow although they are still small
percentage of national income (GDP) during the pre-conditions for take-off phase.

11. Traditional Society is an agricultural economy of mainly

subsistence farming, little of which is traded.
12. Agriculture assumes lesser importance in relative terms although
the majority of people may remain employed in the farming sector.

13. At pre-conditions for take-off phase, some external funding is

required- for example in the form of overseas aid or perhaps remittance incomes
from migrant workers living overseas.

14. Take-off is the third phase of economic development.

15. Walt Whitman Rostow (W.W. Rostow) was an economist who came
up with the four (4) stages of economic development.

19
 What I Have Learned

At this point, let us see how much you have gained from the lesson and activities
you have undergone.

Activity 4: Self-Check
Directions: Complete the sentences below by filling in the blanks the correct word
or phrase.

Traditional Society is a 1.) of mainly subsistence

2.) , little of which is traded.

In 3.) , agriculture becomes more mechanized

and more output is traded. 4.) and 5.) grow
although they are still small percentage of national income (GDP). Some external
funding is required- for example in the form of overseas aid or perhaps remittance
incomes from migrant workers living overseas.
For take-off, 6.) assumes greater importance,
although the number of industries remains 7.) . Political and
8.) start to develop- external finance may still be required.
Savings and investment grow, perhaps to 15% of GDP. There is often a 9.)
_______________________ apparent with rising productivity and wealth in
manufacturing and other industries contrasted with stubbornly low productivity
and 10.) in rural agriculture.

Moreover, in the phase of drive to maturity, industry becomes 11.) .

Growth should spread to different parts of the country as the state of technology
improves- the economy moves from being dependent on factor inputs for growth
towards making 12.) to bring about increases in
real per capita income. However, output levels grow at the of 13.
, and enabled to increase 14.) . There is
a shift towards15.) activity and the growth is sustained
by the expansion of a middle class of consumers.

20
 What I Can Do

This activity will help you transfer into real-life situations the knowledge and skills
you have gained or learned from this lesson.

Activity 5: Assess Its Status

Directions: Assess the current economic status of your locality. Identify at what
phase of economic development it belongs, and cite at least three evidences to
support your claim or observation.

ASSESS: Local economic status

_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

CATEGORIZE: Phase of economic development

_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
CITE: Evidences
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

21
 Rubrics in Rating Activity 5: Assess Its Status
Score
Case Facts
5 4 3
Keywords Mostly of the Some of the Fewer of the
keywords were keywords were keywords were
enumerated and enumerated and enumerated and are
aligned to the topic aligned to the topic less accurate to the
topic
Thought Condition of the Condition of the Condition of the
economic economic economic
development of the development of the development of the
locality was well locality was given locality was
emphasized and emphasis but is not emphasized but no
discussed by citing convincing due to supporting
observable evidences used are evidences for the
evidences not parallel to the details stated.
subject
Cited evidences are With fewer errors Needs more
Evidences
convincing and observed improvement
accurate to subject

22
 Assessment

Directions: Choose the letter of the best answer. Write the chosen letter on the
space provided before the number.
1. Which of the following pertains to the owners of a stock corporation whose
names are reflected in the certificate of stock?
a) Sole proprietor c.) Member
b) Partner d.) Stockholder

2. A group of individuals who form a business enterprise for the purpose of

mutual benefit is called what?
a) Partners c.) Incorporators
b) Proprietors d.) Stockholder

3. A business organization formed by at least 5 but not exceeding to 15

incorporators, and is considered a “legal person” in the context of the law.
a) Sole Proprietorship c.) Corporation
b) Partnership d.) Cooperative

4. This is a collective term for individuals who are vested with the right to manage
and conduct the business of a non-stock corporation.
a) Board of Trustees c.) Board of Directors
b) Incorporators d.) Proprietors

5. A form of business organization in which the owner owns all the assets and
personally shoulders all liabilities or losses.
a) Sole Proprietorship c.) Corporation
b) Partnership d.) Cooperative

6. Which business organization enjoys advantages such as greater ability to

attract capital, transferable ownership, continuity of life, and limited liability?
a) Sole proprietorship c.) Corporation
b) Partnership d.) Cooperative

7. Which of the following statements describes economic development?

a) It focuses on markets c.) It creates business
b) It attracts business d.) It originates in private sectors

8. Which of the following government agencies is tasked to formulate,

institutionalize, and administer fiscal and tax policies?
a) Bureau of Customs c.) Department of Finance
b) Securities and Exchange Commission d.) Bureau of Internal Revenue

9. Which of the following gives more importance on generating profits by creating

business to exploit market and business opportunities?
a) Business development c.) Environmental development
b) Economic development d.) Industrial development

23
10. Which of the following is/are role/s of business in the economy?
a) Supplies goods c.) Provides services
b) Meets the demands of the consumers d.) All of the choices

11. Over the years, Palawan have significantly increased its production level in
agriculture and tourism industries which resulted to an economic shift
characterized by being independent on factor inputs, use of technological
innovation, and increases in real per capita income. In what phase of economic
development does the province of Palawan belong?
a) Take-off c.) Age of mass consumption
b) Pre-conditions for take-off d.) Drive to maturity

12. In this phase of economic development, agriculture becomes more mechanized

and more output is traded. Savings and investment grow although they are still
small percentage of national income (GDP).
a) Pre-conditions for take-off c.) Take-off
b) Age of mass consumption d.) Drive to maturity

13. Which of the following is not among the five stages of economic development as
mentioned by Economist Rostow?
a) Traditional society c.) Drive to maturity
b) Age of mass consumption d.) Lay-off

14. This business environment is driven by local conditions and market

characteristics.
a) Both local and international business environment
b) International business environment
c) Local business environment
d) None of the choices

15. In this phase of economic development, the activities shift to the tertiary sector
and economic growth is supported by middle class consumers.
a) Pre-conditions for take-off c.) Take-off
b) Age of mass consumption d.) Drive to maturity

24
 Additional Activities

Let us reinforce the skills/knowledge that you have gained from this lesson by
doing the next activity.

Activity 6: Evaluate Its Impact

Directions: Answer the question below. Write your answer on the given worksheet.

Question: Based on your assessment done in activity No. 5, how does level of
economic development of a particular locality attract and influence new entrants
to invest businesses regardless of the number of rivalry?

Rubrics in Rating Activity 6: Evaluate Its Impact

Score
Case Facts
5 4 3
Keywords Mostly of the Some of the keywords Fewer of the keywords
keywords were were enumerated and were enumerated and
enumerated and aligned to the topic are less accurate to
aligned to the topic the topic
Thought Condition of the Condition of the Condition of the
economic economic development economic
development of the of the locality was given development of the
locality was well emphasis but is not locality was
emphasized and convincing due to emphasized but no
discussed by citing evidences used are not supporting evidences
observable evidences parallel to the subject for the details stated.
More convincing and Somewhat convincing Reasons are
Reasoning
realistic and idealistic acceptable but not
power powerful and
encouraging

25
 26
Activity 1 Activity 3
Activity 2
1. False
Part I Illustration 1- Traditional society
2. True
1. Sole proprietorship Illustration 2- Pre-conditiond for take-off
3. False
2. Partnership Illustration 3- Take-off
4. False
3. Corporation Illustration 4- Drive to maturity
5. True
4. Limited Partners Illustration 5- Age of mass consumption
6. True
5. General Partners
7. False
8. False
Part II
9. False
6. True
10. True
7. True
11. True
8. True
12. True
9. False
13. True
10. False
14. True
15. False
Activity 4 Activity 6
Activity 5
1. agricultural economy Students’ answers Students’ answers
2. farmers might vary. Scoring might vary. Scoring
3. pre-conditions for take-off will be based on the will be based on the
4. savings Rubrics Rubrics
5. investment
6. manufacturing industry
7. small
8. social institutions
9. dual economy
10. real incomes
11. more diverse
12. better use of innovation
13. age of mass consumption
14. consumer expenditures
15. tertiary sectors
Answer Key
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27
For inquiries or feedback, please write or call:

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