Actividad de aprendizaje 15

Evidencia 5: Summary “Export-import theory”

By: Danilo Rengifo Ruales.

Ficha: 2348352

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 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

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

1. COMPANY: is an organization or institution dedicated to activities

that seek economic or commercial benefit.
2. JUDGMENT: Faculty of under standing, by virtue of which man can
distinguish good from evil and true from false
3. BUSINESS: is to carry out a project or set up an activity that carries out
commercial operations, buying and selling merchandise or services.
4. KNOWLEDGE: is the familiarity, awareness or understanding of
someone or something, such as facts, skills or objects
5. EXPORT: is any good or service sent outside the national
territory. Exports are the set of goods and services sold by a country in
foreign territory for use. Together with imports, they are an
essential tool for national trade.
6. IMPORTS: are the transport of goods and services from abroad, which are
acquired by a country to distribute them within it.
7. ENTREPRENEUR: is a person who identifies an opportunity and,
knowing the risks, undertakes the action of organizing the
necessary resources to become the creator or founder of a company or
business.
8. PROPERTY OR DOMAIN: is a direct and immediate power over a thing,
which attributes to its owner the ability to enjoy and dispose of the thing
without more limitations than those established by law.
9. ATTORNEY: Person legally authorized to advise and defend the right sand
interests of another person in legal matters and represent it in a law
suit.
10. TAX: is a kind of tribute governed by public law, which is characterized by
not requiring a direct or determined consideration by the tax
administration.
11. MANAGING: implies optimizing the use of scarce resources through the
tasks of planning, organization, execution and control
12. RETURNS: The return is the act of giving something back to someone. Itis 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.
13. GOVERNMENT: is the main pillar of the State; the authority that directs,
controls and administers its institutions, which consists of the general
political conduct or exercise of the executive power of the State.
14. SOCIETY : refers to a polysemic concept that designates a particular type of
grouping of individuals that occurs both among humans and among some
animals.
15. LEGAL ENTITY: is the term used to refer to individuals, corporations, or
other types of organizations that are legally authorized to own property,
enter into commercial contracts or agreements, and conduct
business transactions.
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

If the company wants to import and The company is exporting and
export, it must have a legal structure importing with all legal documents up
that allows it to carry out international to date
trade tasks.
The company examines the different The company is examining different
forms of administrative structure for the
forms of commercial organizations:
organization sole proprietorships, partnerships,
corporations, and limited liability
companies.
She must know everything right about She knows everything right about
trading trading
You should always know the You know all the governmental terms
government minimums
The owner assumes all the risks The owner is assuming the risk that is
that’re happening when exporting and happening when exporting and
importing importing
5. Organice las ideas en un solo resumen, de manera que se conecten
coherentemente, en 15 líneas.

To have a solid structure in the company, it is important to incorporate adequate

administrative and commercial organization processes since being well structured
helps us to comply with all the requirements that the government demands of a
company that wants to carry out international trade. there is always documentation
and regulations that vary over time and that the company must be constantly
updated. At the same time, know the risks of exporting and importing. remember
that international trade in addition to having advantages, also has disadvantages,
so it is good to be up to date with all legal requirements, since there are always
import and export tariffs, and thus compete with other international markets.

Now, knowing well that each legal form imposes different processes, the company
must know what are those rules to which it must submit. This in order to avoid legal
and juridical consequences. Some laws are related to the environment, import and
export tariffs, and even legal documentation of the personnel that works.The
owners or shareholders of the company must know all these rules and make
decisions regarding their business.
Nota: para el desarrollo de esta evidencia se debe tener en cuenta el material de
formación “Using simple present and progressive to export” y el material
complementario asociado a esta actividad de aprendizaje.

Desarrolle esta evidencia con la herramienta ofimática de su preferencia y envíe el

archivo al instructor a través de la plataforma virtual de aprendizaje en formato
.doc o .pdf.

Pasos para enviar la evidencia:

1. Clic en el botón "Ver Evidencia".

2. Adjuntar el archivo el cual debe estar previamente guardado en el equipo.
3. Dejar un comentario al instructor (opcional).

Nota: esta evidencia es de carácter individual. Recuerde revisar la guía de

aprendizaje con el fin de verificar que ha realizado todas las actividades
propuestas, saber cómo desarrollarlas y entregarlas correctamente.
 Criterios de evaluación
Realiza resúmenes de la información relevante y detallada de un texto técnico en
inglés.