Evidencia 5 Summary Export import theory V2 PDF

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Actividad de aprendizaje 15 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 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.

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

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 exportimport 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. 

Entrepreneur: Is a person who designs, launches and starts a business, based on an innovation.

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Business: It is an economic activity that seeks to obtain profits mainly through the sale or exchange of products or services that meet the needs of customers.

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Attorney: Is a professional who bases his training on the study of the norms or precepts that guide the citizen behavior of any nation. Its main function is to offer legal advice to its clients and serve as legal representative in cases of litigation.

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Accountant: Is the professional dedicated to applying, managing and interpreting the accounting of an organization or person, with the proposal of producing reports for management and for third parties that serve to make decisions.

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Sole proprietorships: The owner and the company are the same entity in the payment of taxes. Company earnings are personal earnings and will be taxed as personal income. The owner is financially responsible for his business and personal property will be used to cover losses or debts incurred by the business.

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Partnerships: This type of structure is very similar to a sole proprietorship - all partners are financially responsible for the company's debts and the partners will bear the tax burden on a proportional.

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Limited liability companies: Is a separate legal entity. Different from both its shareholders and its directors and managers. The liability of the shareholders is limited to the amount contributed or the issued share capital.

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Government approval: To establish a commercial structure, the current legal framework in each country must be considered for approval by the local government.

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Tax returns: Is a form or document that is presented to the government collection institutions. This document must reflect the amount of income earned in a specific year.

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Accounting records: In these records, all accounting movements of the economic entity are reflected in order to provide financial information about it. They are the physical documents of all operations within a company.

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Business name: Is the sign or denomination that identifies a company in commercial traffic and that serves to identify, individualize and distinguish from other companies that carry out identical or similar activities.

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Calendar year: A calendar year is one that coincides with the solar calendar, beginning on January 1 and ending on December 31 of the same year. This organization of time arises from the so-called Gregorian calendar, promoted by Pope Gregory XIII.

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Cash: It is money in the form of coins or paper money that is used to make cash payments. The cash that a company owns is part of the current assets and its function is to face the possible short-term obligations that may appear.

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Accrual method of accounting: Is the accounting method by which transactions and other events are recognized when they occur. When the accrual basis of accounting is used, an entity shall recognize items as assets, liabilities, equity, income and expenses when they meet the definitions and recognition criteria provided.

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Retirement accounts: They are a simple way to save for retirement as they offer many tax advantages and the opportunity to generate income during retirement, allowing you to move towards achieving your goals and financially supporting your family.

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 To meet the business objectives, the entrepreneur must select the correct business organization

Present Progressive Tense To be meeting business goals, the entrepreneur must be selecting the right business organization

different forms of business organizations are examined

different forms of business organizations are being examined

a sole proprietorships, the individual have full control over all commercial operations It is simple and inexpensive to set up a sole proprietorship and requires little or no government approval

by being sole proprietors the individual is acquiring full control over all commercial activities Setting up an export and import business as a sole proprietorship is simple and inexpensive and requires little or no government approval

The sole proprietorships are more flexible to manage than larger the sole proprietorships are being more flexible to manage than larger associations or corporations associations or corporations The sole proprietors obtain different Currently, the sole proprietors are benefits related to the reduction of tax obtaining different benefits related to the reduction of tax rates and payment rates and payment facilities facilities. direct an export and import company some of the main disadvantages of as a sole proprietorship has several running an export and import company disadvantages as a sole proprietorship

5. Organice las ideas en un solo resumen, de manera que se conecten coherentemente, en 15 líneas.

 To meet business objectives, the entrepreneur must select the correct business organization examining different forms of business organizations. In a sole proprietorship, the individual has full control over all business operations.

Setting up a sole proprietorship is simple and inexpensive and requires little or no government approval and is more flexible to manage than larger associations or corporations. The sole proprietors obtain different benefits related to the reduction of the tax rates and the payment facilities. However, there are some disadvantages to running an export and import company as a sole proprietorship that are related to the individual's management skills and the ability to acquire capital.

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. 2. 3. 4.

Clic en el título de la evidencia. Clic en Examinar mi equipo y buscar el archivo previamente guardado. Dejar un comentario al instructor (opcional). Clic en Enviar.

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....