Evidencia 5: Summary “Export-import theory”

Presentado por:
PAULA CAMILA RUIZ ROMERO

SERVICIO NACIONAL DE APRENDIZAJE (SENA)

Tecnólogo en Gestión Logística
Ficha de caracterización No. (1881653)
Junio de 2020
 1. Lea el siguiente texto:

Export-Import Theory1

Setting up the business

Whether it is a new or existing export-import business, the legal form, or

structure, will determine how the business is to be conducted, its tax
liability, and other important considerations. Each form of business
organization has its own advantages and disadvantages, and the
entrepreneur has to select the one that best fulfills the goals of the
entrepreneur and the business. Selection of an appropriate business
organization is a task that requires accounting and legal expertise and
should be done with the advice of a competent attorney or accountant.

Ownership structure

In this section, we examine different forms of business organizations: sole

proprietorships, partnerships, corporations, and limited liability companies.

Sole proprietorships

A sole proprietorship is a firm owned and operated by one individual. No

separate legal entity exists. There is one principal in the business who has
total control over all export-import operations and who can make decisions
without consulting anyone. The major advantages of sole proprietorships
are as follows:

1
Belay, S. (2009). Export-Import Theory, Practices, and Procedures. (2a ed.). New York: Routledge.
1. They are easy to organize and simple to control. Establishing an export-
import business as sole proprietorship is simple and inexpensive and
requires little or no government approval. At the state level, registration of
the business name is required, while at the federal level, sole proprietors
need to keep accurate accounting records and attach a profit or loss
statement for the business when filing individual tax returns (Schedule C,
Internal Revenue Service Form 1040). They must operate on a calendar
year and can use the cash or accrual method of accounting.

2. They are more flexible to manage than partnerships or corporations. The

owner makes all operational and management decisions concerning the
business. The owner can remove money or other assets of the business
without legal or tax consequences. He or she can also easily transfer or
terminate the business.

3. Sole proprietorships are subject to minimal government regulations

versus other business concerns.

4. The owner of a sole proprietorship is taxed as an individual, at a rate

lower than the corporate income tax rate. Losses from the export import
business can be applied by the owner to offset taxable income from other
sources. Sole proprietors are also allowed to establish tax exempt
retirement accounts. (Harper, 1991; Cheeseman, 2006a)
The major disadvantage of running an export-import concern as a sole
proprietorship is the risk of unlimited liability. The owner is personally liable
for the debts and other liabilities of the business. Insurance can be bought
to protect against these liabilities; however, if insurance protection is not
sufficient to cover legal liability for defective products or debts, judgment
creditors’ next recourse is the personal assets of the owner. Another
disadvantage is that the proprietor’s access to capital is limited to personal
funds plus any loans that can be obtained. In addition, very few individuals
have all the necessary skills to run an export-import business, and the
owner may lack certain skills. The business may also terminate upon the
death or disability of the owner.
 Establishing an appropriate business organization: pointers

 Does the entrepreneur intend to be the sole owner of the export-import

business? If not, how many people have an ownership interest?

 Does the entrepreneur need additional capital and/or expertise?

 What legal form provides the greatest flexibility for management?

 What legal form affords the most advantageous tax treatment for the
business concern and individual entrepreneurs?

 Which legal structure is easy and less expensive to establish and subject
to a low degree of government regulation?

 How important is it to limit personal liability of owners?

o Which legal structure is the most appropriate in light of the goals and
objectives of the export-import business? (Belay, 2009).

1. Elabore una lista de vocabulario sobre el texto, mínimo de 15 palabras y escriba

su respectivo significado en inglés.
Ingles Español
Tax: Amount of money to be paid to Impuesto: Cantidad de dinero que hay
the Administration to contribute to the que pagar a la Administración para
public finances. contribuir a la hacienda pública.
Task: Work or work that someone Tarea: Labor o trabajo que realiza
does. alguien.
Entrepreneur: Owner or manager of a Empresario: Propietario o directivo de
company. una empresa.
Advice: It can refer to the meeting of Consejo: Puede referirse a la reunión de
the members that make up the los miembros que integran el consejo.
council.
Attorney: It is the professional who Abogado: es el profesional que ejerce
exercises legal defense in a trial, as la defensa jurídica en un juicio, así
well as the judicial and administrative como los procesos judiciales y
processes caused or suffered by it. administrativos ocasionados o
 sufridos por ella.
Entity: Association of people of any Entidad: Asociación de personas de
kind, especially that which is cualquier tipo, en especial la que se
dedicated to a work activity. dedica a una actividad laboral.
Owenrship: Thing that belongs to a Propiedad: Cosa que pertenece a una
person, especially if it is real property, persona, especialmente si es un bien
such as land or a building. inmueble, como un terreno o un edificio.
Partrenships: Union of individuals Asociaciones: Unión de individuos con
with a specific purpose. un fin determinado.
Approval: Generalized consideration Aprobación: Consideración
that something is good or valid. generalizada de que algo es bueno o
válido.
Accrual: Acquire someone entitled to Devengo: Adquirir alguien derecho a
an amount of money as payment for a una cantidad de dinero como pago
job, a service, a tribute, etc. por un trabajo, un servicio, un tributo,
etc.
Offset: Give a thing or make a benefit Compensar: Dar una cosa o hacer un
to a person as reparation for damage, beneficio a una persona como reparación
injury or nuisance that has been de un daño, perjuicio o molestia que se le
caused. ha causado.
Liability: Quality of the responsible Responsabilidad : Cualidad de la
person. persona responsable.

Method: An orderly and systematic Método: Modo ordenado y

way of proceeding to reach a certain sistemático de proceder para llegar a
result or end. un resultado o fin determinado.

Assets: Set of properties or wealth Bienes: Conjunto de propiedades o

that belong to a person or group. riquezas que pertenecen a una
persona o grupo.

2. El texto sugerido al inicio de esta evidencia cuenta con varios párrafos, y al

interior de cada párrafo se encuentran varias ideas principales. Por favor, lea el
material complementario “Identifying the main idea” para conocer cómo se
puede encontrar la idea principal en un párrafo escrito en inglés.

MAIN IDEAS
 How to carry carry out out a a businessb
 There are different forms of commercial organizations
 The director controls all export and import operations
 The sole aproprietors are simple and low in costs
 The owners are in charge of making all the decisions
 The individual companies are governamental
 The owners are responsable for their business
3. Luego de analizar el material complementario, por favor escriba las ideas
principales de cada párrafo, en presente simple, en inglés. No haga
transcripción literal de los párrafos. A continuación, transforme la oración a
presente progresivo, también en inglés.

Simple Present Tense Present Progressive Tense

How to carries out a business
There's are different forms
commercial organizations
The director controls all export and
import operations
The sole proprietors are simple
and
lows in costs
The owners are in charges of make
all
the decisions
The individual companies are
governamental
The owners are responsible for their
business
How to carriesing out a business
of There's are differenting forms of
commercial organizations
The director controlling all export and
import operations
The sole proprietors are simple
and
low in costsing
The owners are in charges of making
all the decisions
The individual companying are
governamental
The owners are being responsible for
their deal

4. Organice las ideas en un solo resumen, de manera que se conecten

coherentemente, en 15 líneas.
How to carry out an export and import business, in different forms of commercial
organizations since the director controls all export and import operations, where
the sole proprietors are simple and low in cost and make all the decisions in front
of the business. Individual companies are governmental and have a lower rate
business. Individual companies are governmental and have a lower rate than the
tax rate, thus carrying the responsibility of the business. Knowing well that each
legal form in which the company has its legal bases will apply company a better
export or import in order to provide the company with better quality and Good
recognition at the international level and