ACTIVIDAD DE APRENDIZAJE 15

EVIDENCIA 5: SUMMARY “EXPORT-IMPORT THEORY”

DANIEL FELIPE JAIME REYES

TECNOLOGIA EN GESTION LOGISTICA

SERVICIO NACIONAL DE APRENDIZAJE – SENA

2019
 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 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.

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

su respectivo significado en inglés.

 To import: purchase of goods and services that come from foreign

companies.
 To export: send or sell a product from the land or industry to a foreign
country.
 Company: entity in which capital and labor intervene as factors of
production of industrial or commercial activities or for the provision of
services.
 Organization: group of people and organized media for a specific purpose.
 Property: fact or circumstance of someone possessing a certain thing and
being able to dispose of it within the legal limits.
 Owner: (person) that has the property of a thing, especially a real estate
property.
 Legal: that is established by law or is in accordance with it.
 Experience: knowledge of something, or ability for it, that is required to
have done, lived, felt or suffered one or more times.
 Advise: advise or inform someone about a certain thing.
 Company: association of two or more people to jointly assume the risk of
an economic activity in order to obtain a benefit.
 Corporations: group of companies and societies that perform various jobs
and services independently in order to achieve a common enrichment.
 Assets: total value of what a commercial company owns.
 Income: amount of money earned or collected.
 Taxable: that can be taxed with a tax; which, by its characteristics, gives
rise to the application of a tax: taxable capital, taxable income, taxable
profits.
 Responsibility: the individual is ability to understand and assume that
everything that happens is a consequence of their own decisions and
actions and is not caused by others.
 Risk: possibility of a mishap or misfortune that someone or something suffer
damage or harm.
 Regulation: is the establishment of norms, rules or laws within a certain
scope.