EVIDENCIA 5 SUMMARY? EXPORT-IMPORT THEORY?

Apprentice
MILTON HAIR GARCIA CAÑON

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HEIDY PAOLA RADA ESTRADA

SERVICIO NACIONAL DE APRENDIZAJE SENA

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CENTRO PARA EL DESARROLLO AGROECOLOGICO Y AGROINDUSTRIAL

REGIONAL ATLANTICO

SEPTEMBER 2021
 Evidence 5: Summary “Export-import theory”

Contar con los conocimientos necesarios para realizar un proceso de exportación, requiere
no solo de manejar habilidades lectoras para apropiar las normas y pasos a seguir, sino
también comprender y extraer los aspectos más importantes de cada texto. Existen gran
cantidad de textos referentes exportación e importación en inglés, por lo cual es necesario
fortalecer las competencias en dicha lengua.

Para reforzar lo mencionado, realice las siguientes actividades:

1. Lea el siguiente texto:

Export-Import Theory

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 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?
 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, mínimo de 15 palabras y escriba su
respectivo significado en inglés.

 Accrual: Acquire the right to any receipt or remuneration by reason of work,

service or other title.
 Advantageous: That provides some advantage or benefit to something.
 Assets: Object or service that satisfies a human need and is acquired in the
market through a payment.
 Attorney: A law graduate who is dedicated to defending the rights and
interests of his client in court.
 Concerns: Prevent someone from acquiring something.
 Debts: Obligation someone has to pay, return, or give an amount of money to
another person.
 Degree: Degree that proves that a person has completed university studies.
 Exempt: That it is free of a burden or obligation.
 Fulfills: Satiate a need, desire, passion, etc.
 Funds: Indivisible formed by the contributions of different investors that may
be of different nature.
 Movement: Governing authority of a unit, which aims to direct it.
 Liability: Compliance with obligations or care when doing or deciding
something.
 Loans: Single benefit financial operation and multiple consideration.
 Offset: Neutralize the negative effects of one thing with the positive effects
of another.
 Whether: Conditioning imposed on something else.

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
Every business organization has its
important considerations that can become
advantages or disadvantages based on
accounting and legal experiences.
Setting up a one-man export and import
company is simple because you don't
need special government permits, a single
person is in charge of making decisions
and their accounting is simple.
They can be easily managed; the owner
can withdraw money or assets from the
company without legal effect.
Sole proprietorships have few
government regulations.
The owner of a sole proprietorship pays
taxes as a natural person and not as an
entrepreneur.
A disadvantage is that the owner of these
companies is responsible for the debts
that the company acquires, and this could
lead to the case of non-payment of legal
penalties, such as seizure of the owner's
personal property, bank accounts.
Another disadvantage is bank loans
because they are limited to the capital of
the owner and not of the company.
Present Progressive Tense
Every business organization has its
important considerations that are
becoming advantages or disadvantages
based on accounting and legal
experiences.
Setting up a one-man export and
important company is simple because you
don’t need special government permits. A
single person is changing and making
decisions and their accounting is simple.
They can be easily managing; the owner
could withdraw money or assets from the
company without legal effect.
Sole proprietorships are having a few
government regulations.
The owner of a sole proprietorship is
paying taxes as a natural person and not
as an entrepreneur.
A disadvantage is that the owner of these
companies is responsible for the debts
that the Company is acquiring, and this
could lead to the case of non-payment of
legal penalties, such as seizure of the
owner's personal property, bank accounts.
Another disadvantage is that the bank is
doing loans because they’re limited to the
capital of the owner and not of the
company.

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

15 líneas.

Each business organization has its important considerations that can return to advantages or
disadvantages depending on accounting and legal experiences, however, establishing a sole
proprietorship for export and import is simple, because you do not need special permits
from the government, a single person is in charge of make decisions and your accounting is
simple
Such companies can be easily managed, the owner can withdraw money or assets from the
company without legal effect., Although, on the other hand, sole proprietorships have few
regulations by the government.

Taking as an example that the owner of a sole proprietorship pays taxes as a natural person
and not as an entrepreneur, although this type of business also brings disadvantages, one of
them is that the owner of these companies is responsible for the debts that the company
acquires, and this could result in the case of non-payment of legal sanctions, such as seizure
of the owner's personal property, bank accounts.

Another disadvantage of this type of organization is bank loans, because they are limited to
the owner's capital and not to the company itself.