Evidencia 5 Summary Export Import Theory

Aprendiz
Víctor Guardo Castro

Ficha
2282160

Instructor

GABRIEL JAIME TORO HINCAPIE

Complejo Tecnológico Agroindustrial Pecuario y Turístico

SENA REGIONAL ANTIOQUIA

2022
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:

 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 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).

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

escriba su respectivo significado en inglés.
VOCABULARIO
Advantages: a condition giving a greater
chance of success.
Applied: That puts effort, interest and
perseverance in the accomplishment of a
work or in the development of an activity,
especially in the study.
Attorney: Person legally authorized to
advise and defend the rights and interestsof
another person in legal matters.
Busines: the activity of buying and
selling goods and services.
SIGNIFICADO
Ventajas:. una condición que brinda
mayores posibilidades de éxito.
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.
Abogado: Persona legalmente autorizada
para asesorar y defender los derechos e
intereses de otra persona en materia
jurídica.
Negocio: la actividad de comprar y vender
bienes y servicios.
Disadvantages:. a condition or situation that
causes problems, especially one that causes
something or someone to be less
successful than other things or people
Income: money that is earned from doing
work or received from investments
Judgment: the ability to form
valuableopinions and make good
decisions.
Little: That has a smaller size than normal.
Loans: an amount of money that is
borrowed, often from a bank, and has to be
paid back, usually together with an extra
amount of money that you have to pay as a
charge for borrowing.
Loss: the fact that you no longer have
something or have less of something
Proprietorships: Propertyrights
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.
Skills: an ability to do an activity or job
well, especially because you have practised
it
Sole: being one only.
Desventajas: una condición o situación que
causa problemas, especialmente una que
causa que algo o alguien sea menos
exitoso que otras cosas o personas.
Ingresos: dinero que se gana haciendo
trabajo o recibido de inversiones.
Juicio: la capacidad de formar opiniones
valiosas y tomar buenas decisiones.
Pequeño: Que tiene un tamaño menor de
lo normal.
Prestamos: una cantidad de dinero que se
toma prestado, a menudo de un banco, y
que debe devolverse, generalmente junto
con una cantidad adicional de dinero que
debe pagar como cargo por el préstamo:.
Pérdidas: el hecho de que ya no tienes
algo o tienes menos
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.
Habilidades: la capacidad de hacer bien
una actividad o trabajo, especialmente
porque lo has practicado
Único: siendo uno solo.
 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 “Identifyingthemain idea” para conocer cómo se
puede encontrar la idea principal en un párrafo escrito en inglés.

 Because of the unlimited liability it is recommended to choose a good insurance

to avoid personal financial ruin.
 In the following section you read about sole proprietorships: a company that is
owned and operated by one person.
 One advantage is, that it is easy to maintain and organize because the registration
procedures are cheap and require almost no governmental approval at all.
 The owner has total control over the finances and other assets.
 Compared to other forms it is lowly regulated by government.
 As a sole proprietor you pay less taxes.
 Because of the unlimited liability it is recommended to choose a good insurance
to avoid personal financial ruin.

3. Luego de analizar el material complementario, por favor escribalas 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

It is important to choose the right form It is being important to choose the right
of business organization form of business organisation
In the following section you read about In the following section you are reading

sole proprietorships: a company that is about sole proprietorships: a company

owned and operated by one person. that is owned and operated by one
person.
One advantage is, that it is easy tomaintain One advantage is, that it is easy tomaintain
and organize because the registration and organize because the registration
procedures are cheap and require almost no procedures are being cheap and require
governmental almost no
approval at all. governmental approval at all.
The owner has total control over the The owner is having total control over
finances and other assets. the finances and other assets.
Compared to other forms it is lowly Compared to other forms it is beinglowly
regulated by government. regulated by government.
As a sole proprietor you pay lesstaxes. As a sole proprietor you are payingless
taxes.
 Because of the unlimited liability it is Because of the unlimited liability it is being
recommended to choose a good insurance to recommended to choose a good insurance
avoid personal financialruin. to avoid personal financialruin.

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

coherentemente, en 15líneas.
It is important to choose the right form of business organization. In the following section
you can read about the sole proprietorships: in this case, a company that is owned and
operated by one person. One advantage is, that it is easy to maintain and organize
because the registration procedures are cheap and require almost no governmental
approval at all.The owner has total control over the finances and other assets.Compared
to other forms it is lowly regulated by government.As a sole proprietor you pay less
taxes.Because of the unlimited liability it is recommended to choose a good insurance to
avoid personal financial ruin.