LEON GUINTO MEMORIAL COLLEGE, INC.

Bachelor of Science in Business Administration major in

Financial Management

Introduction

ASM Laundry shop as the major name of the business,

originated from the name of the former mayor in Alabat, Quezon
abbreviation Artemio S. Mascariña. People will easy recognize where
the business is located. ASM Laundry shop was solely owns by Mrs.
Emelisa Fulledo who is the care taker of the former mayor of Alabat,
Quezon. Former mayor Artemio S. Mascariña allows Mrs. Emeliza
Fulledo to put up a laundry shop business on their place for free.

The laundry shop is located in Mascariña st. Barangay

Poblacion ll Alabat,Quezon, the business proposed for the
government employee and the residents of Alabat, Quezon because
not all the government employee and the residents have time to do
the laundry. ASM Laundry shop started on October 08, 2016. And it
is the first laundry shop built in Alabat,Quezon until today.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management

Problems to be resolve I

I. Operates a Business without completed the license

The researcher finds out that the laundry shop business only
have Barangay Permit which is not enough for the business to
operate. The Business operated lacking of several permits to
consider in putting up a business. The owner of ASM Laundry Shop,
do not have enough knowledge and awareness about Business
ethics since it is their first time.

Il. Proper Drying Area and arrangement of Clothes

Researcher recognized that drying area of clothes are untidy,

clothes are often dried and placed on the floor when they are no
longer fit in clothesline. The floors are often paved by people.
Laundry can be contaminated as it is a roadblock area. Washed
clothes often separated when the wind is strong and the
laundrywoman cannot identify the owner of the clothes. After the
clothes will dry there is another laundrywoman who is job is folding
the clothes, the improper arrangement of clothes has been sadly
neglected.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management

Effect of the Problem II

I. Operate a Business in not completed the License and Permit

Registering a small business in the Philippines is a long

process and many business owners specially, small business owners
tempting to operate a business without license and permit. The
unfavourable consequences according to Yaptinchay managing
director of Full Suite are in follow;

Government Fines

The initial damage would be monetary compensation. The criminal

penalty for “Failure to register,” or operating an unregistered
business according to BIR regulation is “Fine of not less than P5,000
but not more than P20,000 and imprisonment of not less than 6
months but not more 2 years.”

The compromise amount depends on the location of the

establishment: P20,000 in cities, P10,000 in 1 st class municipalities,
P5,000 in 2nd class municipalities, and P2,000 in 3 rd class
municipalities.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management

LGU Penalties

In addition to the obligation to the taxman, Mrs. Fulledo may

also receive penalties, which vary according to location or city hall
that have registered under.

Closure

In more extreme cases of delinquency, such as operating for

several years without a business permit or not having one in the first
place the local government can move to close down the operations
until Mrs. Fulledo have settled the deficiencies.

An attempt to run from the penalties by shuttering or

abandoning the business is also unwise, because there are also
regulation and procedures for the proper shutting down of a
business.

It will also leave a black mark on your record that LGU’s or the
BIR can see if the business owner decided to pursue it again in the
future. The cons far outweigh any possible pros by operating
illegitimately, so be sure to keep everything on the level as a
business owner.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management
Il. Improper Drying Area and Arrangement of the Clothes.

Mrs. Fulledo customers may lose out. The Researcher also

gathers information from the customers of Mrs. Fulledo and
according to them some of their clothes are missing and cannot be
found. Some customers of Mrs. Fulledo prefer to do their laundry
rather than to go in Mrs. Fulledo laundry shop because of what
happen to their clothes. And some costumers said that they are no
choice since ASM laundry shop is the only one laundry shop
established in Alabat, Quezon.

Root Cause of the Problem III

l. Operate a Business in not completed the License and Permit

According to Mrs. Fulledo she do not have any idea about the
process of registering and getting permit and licence for her laundry
shop Business and Mrs. Fulledo also told that the Local Government
of Alabat, Quezon allows

cannot go to DTI to register her business and to get license

and permit to the LGU, due to lack of time. And also Mrs. Fulledo told
that it may cost her some money.

Il.ASM Laundry shop Improper Drying Area and Arrangement of the

Clothes.
 Mrs. Fulledo told that due to lack of clothesline and nonstop
laundry coming to them there is not enough space for the other
clothes drying in clotheslines. The Laundrywoman who is job is
folding the clothes cannot identify the owners of the clothes and do
not have idea if the clothes are in a right owner.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration
major in Financial Management

Recommendations lll

l. Operate a Business in not completed the License and Permit

Mrs. Fulledo might perhaps follow the steps on how to make

the business legal. The first step is register her business name at the
Department of Trade and Industry (DTI) if the business name of Mrs.
Fulledo is available, fill out a business name application form and
submit it to Department of Trade and Industry office and wait for the
DTI certificate of registration before to move onto the next step. Once
Mrs. Fulledo received the certificate of registration from the
Department of Trade and Industry, it is time to go to barangay where
Mrs. Fulledo is located to fill out an application. Wait and claim the
Barangay Certificate of Business Registration. Next step, after
receiving the Barangay certificate of business registration, Mrs.
Fulledo may proceed in municipal office of Alabat, Quezon where
Mrs. Fulledo Laundry shop is located. Fill out an application
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major
in Financial Management

Il. ASM Laundry shop Improper Drying Area and Arrangement of the
Clothes.
LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major
in Financial Management