Business law and ethics for tourism questions.

Withholding tax can always be expected from companies only.

Legal obligation to sell merchantable goods and /services by the buyers is the only legal obligation that warrants all buyers to get merchantable goods and / services.

Read the following scenario and respond to the questions that follows

It is a fact that East African Community is composed of several countries, Tanzania inclusive. However, there is sufficiently common market inter se for each and every opportunity in business. Assuming that all business laws availbale in all East African countries are similar to those of Tanzania, and assuming that you want to start and operate business in one of the East African countries (apart from Tanzania);

What are the basic ten (10) legal aspects that you will need to investigate for you to operate a leggally established business.

Write down the status of contractual relationship established by the parties involved in the established mode of business in the following forms of business.

1. The whole group (a sum of all) members of the firm.
2. An individual who starts, operates and owns the business of his own.
3. A person who receives instructions from another and acts on the same in an Agency.
4. A group of people voluntarily forming a joint venture
5. A person who receives payment of a fee to grant a license so as to confer rights to the other person for that other person to operate under his intellectual property right (IPR) in franchising.

Read and understand the following scenario and thereby respond  accordingly.

“A” and “B”  agree to register and operate business through a company. They register a share capital of Tsh.500 mil for which they agree to contribute evenly. In their contemplation, they want their liability ceiling according to their shares of subscription.

After registering a company , the two sharholders earn exorbitant profit. After phasing out first round profit, the company contracts further an assignment worth Tsh. 200ml. Unfortunately, before they fully discharge obligations under this assignment, one shareholder dies, and all contract money is spent for his burial ceremony.After the burial ceremony , customers are claiming either the performance of the assignment OR repayment of their money. All of the customers` demands are impossible because there is neither the money for performance nor money to settle off the debit.

1. What is the kind of the company should “A) and “B” register as they contemplate to restrict their liability on their subscribed shares?
2. How much in terms ofTshs. has “A” contributed in the capital of the company?
3. How much (in terms of percentages %) has “A” contributed in the capital of the company?
4. How much money in Tshs. is one shareholder capable of  paying back in full after the death of the other shareholder?
5. After the death of one shareholder , suppose the shareholder wants to transform a company into “a public company” from which he is to gather a promising capital for the company, what document does he need to go public?