Cargar actividad: Evidencia 5: Summary “Export-import theory”

John Henry Pulido Barrera.

Ficha N°
1667959

INSTRUCTORA
JENY PAOLA HERNANDEZ LOPEZ

SERVICIO NACIONAL DE APRENDIZAJE - SENA

TECNOLOGO EN GESTION LOGISTICA
MODALIDAD VIRTUAL
AÑO 2019

1
Evidencia 5: Summary “Export-import theory”

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. 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

2
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

3
 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?
• Which legal structure is the most appropriate in light of the goals and
objectives of the export-import business? (Belay, 2009).

2. Elabore una lista de vocabulario sobre el texto, de por lo menos 15 palabras junto con su
respectivo significado en español.

4
vocabulario
Advantages: Circumstance or situation
that gives superiority in something.
Disadvantages: Circumstance of being
worse or being in a worse situation one
thing with respect to others of the same
nature with which it is compared. Less
favorable situation in which a person or
thing is with respect to others with
which it is compared.
Attorney: Person legally authorized to
advise and defend the rights and
interests of another person in legal
matters and represent it in a lawsuit.
Without: Indicates lack or lack of
something material or immaterial
Proprietorships: Property rights
In the right, the domain or property, is
the direct and immediate power over
an object or good, by which is
attributed to its owner the ability to
dispose of it, without further limitations
than those imposed by law.
Returns: The return is the act of giving
something back to someone. It is a
process that is based on a right of
possession of a certain person with
respect to a certain good that was
delivered with some type of specific
objective.
Applied: That puts effort, interest and
perseverance in the accomplishment of
a work or in the development of an
activity, especially in the study.
Loans: A loan is an operation by which
a financial institution puts at our
disposal a certain amount of money
through a contract.
5
significado
Ventajas: Circunstancia o situación
que da superioridad en alguna cosa.
Desventajas: Circunstancia de ser
peor o estar en peor situación una
cosa respecto a otras de la misma
naturaleza con la que se compara.
Situación menos favorable en que se
halla una persona o cosa respecto a
otras con las que se compara.
Abogado: Persona legalmente
autorizada para asesorar y defender
los derechos e intereses de otra
persona en materia jurídica y
representarla en un pleito.
Sin: Indica falta o carencia de algo
material o inmaterial.
Propietarios: Derecho de propiedad,
en el derecho, el dominio o propiedad,
es el poder directo e inmediato sobre
un objeto o bien, por la que se
atribuye a su titular la capacidad de
disponer del mismo, sin más
limitaciones que las que imponga la
ley.
Devoluciones: La devolución es el
acto de entregar algo nuevamente a
alguien. Es un proceso de se sustenta
en un derecho de posesión de una
determinada persona con respecto a
un determinado bien que fue
entregado con algún tipo de objetivo
específico.
Aplicado: Que pone esfuerzo, interés y
constancia en la realización de un
trabajo o en el desarrollo de una
actividad, en especial en el estudio.
Prestamos: Un préstamo es una
operación por la cual una entidad
financiera pone a nuestra disposición
una cantidad determinada de dinero
mediante un contrato.
 Skills: The ability is the innate aptitude,
talent, skill or ability that a person holds
to carry out and of course with
success, certain activity, work
Losses: The amount of money or
material that you lose in a business
way.
Upon: Heritage prefix of Latin origin
that enters the formation of names with
the meaning of 'above', 'besides'.
Judgment: Faculty of understanding, by
virtue of which man can distinguish
good from evil and true from false.
Income: Amount of money earned or
collected.
Little: That has a smaller size than
normal.
Sole: It applies to one or several things
of which or of whose species there are
no others.
Habilidades: La habilidad es la aptitud
innata, talento, destreza o capacidad
que ostenta una persona para llevar a
cabo y por supuesto con éxito,
determinada actividad, trabajo
Pérdidas: La cantidad de dinero o
material que pierde en un camino de
negocios.
Sobre: Prefijo patrimonial de origen
latino que entra en la formación de
nombres con el significado de ‘por
encima de’, ‘además de’.
Juicio: Facultad del entendimiento, por
cuya virtud el hombre puede distinguir
el bien del mal y lo verdadero de lo
falso.
Ingresos: Cantidad de dinero ganada
o recaudada.
Pequeño: Que tiene un tamaño menor
de lo normal.
Único: Se aplica a una o varias cosas
de las cuales o de cuya especie no
hay otras.

3. 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.

4. 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

ü How to carry out a business How to carrying out a business

6
 ü There are different forms and ways of There are differents forms of commerical
commercial organizations organizations
ü The director controls all export and import The director is controlling all export and import
operations operations

ü Only the propietors or owners are

responsable to authorize the operations Only the propietors or owners are responsable
for authorizing the operations

ü The owners are in charge of making all decisions The owners are in charging of making all
decisions

ü The individual companies are governmental The individual companies are being
governmental
ü The individual owners have a lower rate than The individual owners are having a lower rate
the tax rate than the tax rate

ü The owners are responsable for their business The owners are being responsable for their
business

5. 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 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
different processes why you should know what you should apply to have greater knowledge
and not have legal consequences in the environment even with a single administrator or
boss immediately co-author all the legal health and tax aspects for a better export or import
in order to provide the company with better quality and good recognition at the international
level and to conquer or reach large countries for its advertising and industry growth.