FASE DE EJECUCIÓN

ACTIVIDAD DE PROYECTO 6

ACTIVIDAD DE APRENDIZAJE 15

EVIDENCIA 5

SUMMARY “EXPORT-IMPORT THEORY”

HOLMAN ARIEL CASTILLO LABAO

SERVICIO NACIONAL DE APRENDIZAJE -SENA-

CENTRO INDUSTRIAL Y DE DESARROLLO EMPRESARIAL DE SOACHA

TECNOLOGIA EN GESTIÓN LOGÍSTICA

2021
 Evidencia 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 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

1
Belay, S. (2009). Export-Import Theory, Practices, and Procedures. (2a ed.). New York: Routledge.
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?

o 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.

No. VOCABULARY DEFINITION

1 Entity A corporation is an entity created under state law.

2 Inexpensive Not costing a lot of money

3 Government The group of people who officially control a country

4 Accounting The process of keeping financial records

5 Attach To join one thing to another

Money that you get from selling something for more

6 Profit
than it cost you to buy or produce

A situation in which a company spends more money

7 Loss
than it earns
 Something that someone says or writes officially. A

8 Statement written or spoken announcement, especially an

official one.

The activity of putting documents, electronic

9 Filing
information, etc. Into files

Money that you have to pay to the government from

10 Tax
what you earn or when you buy things

11 Accrual A gradual increase in an amount of money

12 Concerning About something. Involving or about sth

The total property, money etc of a person, company

13 Assets
etc.

The money that you regularly get, for example from

14 Income
your job

To balance one influence against an opposing

15 Offset influence, so that there is no great difference as a

result

The fact that someone is legally responsible for

16 Liability
something

An agreement in which you pay a company money

17 Insurance and the company gives you money in the future if

you have an accident, are hurt, etc.

 Past tense and past participle of buy (to get
18 Bought
something by giving money for it).

(Enough of an amount of money) to pay for the

19 Cover
entire amount

An opinion about someone or something after

20 Judgment
thinking carefully

The total property, money etc of a person, company

21 Assets
etc

22 Loans Money that someone borrows

Not having something, or not having enough of

23 Lack
something

The ability to do an activity or job well, especially

24 Skills
because you have done it many times

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.

a. Set up the business

The legal structure will determine the export-import business organization

and requires experience and advice.

 b. Ownership structure

We will examine different forms of business organizations

c. Sole proprietorships

A sole proprietorship is a business that is owned and operated by an

individual.

1. They are easily organized and controlled with little or no government

approval and maintain records at the state and federal level.

2. The owner makes the operational and management decisions

concerning, transferring or terminating the business.

3. They are subject to minimal government regulations.

4. The advantage is that the taxes to be paid are low and the disadvantage

is that the business is dependent on the owner.

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

The legal structure determines the The legal structure determines the

export-import business organization export-import business organization

and requires experience and advice. and requires experience and advice.

We examine different forms of We are examing differents forms of

business organizations business organizations

The sole proprietorship is a business A sole proprietorship is a business that

that is owned and operated by an is belonging and operating by an

individual. individual.

They are organize and controlle with They are organizing and controlling

little or no government approval and your business with little or no

maintain records at the state and government approval and are keeping

federal level. records at the state and federal level.

The owner makes the operational and The owner is making the operational

management decisions concerning, and management decisions related to

transferring or terminating the the transfer or termination of the

business. business.

They are subject to minimal They are subjecting themselves to

government regulations. regulations minimal governmental.

They pay taxes low but the business is They are paying low taxes but the

dependent on the owner. business depends on the owner.

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

coherentemente, en 15 líneas.

Setting up a business in the legal structure will determine the export-import

business organization and will require experience and advice; In the ownership

structure there are different forms of business organization such as sole

proprietorship, which is a business that is owned and operated by an individual.

In addition, these companies are easily organized and controlled with little or no

government approval and maintain records at the state and federal level.

Its owner makes the operational and management decisions regarding the

transfer or termination of the business, and they are also subject to minimal

government regulations.

They have the advantage that the taxes to be paid are low and the disadvantage

is that the business depends on the owner.