investment law topic 1 Flashcards
what is investment?
this is the contribution of capital in cash or in kind by an investor to create a new business or to expand, rehabilitate or diversify an already existing business either by purchasing the existing business from the government or an already existing private business.
who is an investor
this a person juristic or natural investing in the republic whether a citizen or not just in accordance with the act.
what if foreign investment?
this is the transfer of tangible or intangible assets from one country to another for the purpose of creating or generating wealth this is with total or partial control over the owner’s assets
what are tangible and intangible assets?
tangible assets are physical assets like money machinery and technology
and intangible assets are non-physical items usually right based like intellectual property and expertise.
what does the total or partial control over the owner’s assets intel?
it means that the investors in return for investing the republic gets to decide how the assets are applied by the receiving country.
what is foreign investment? according to the ZDA act
investment brought in from outside zambia
who is a foreign investor?
a person who makes a direct investment in the republic in the case of a natural person they should not be a citizen or a resident of the republic and in the case of a juristic person should not be incorporated in the state.
what is the most preferred definition of foreign investment?
the transfer of funds or materials from the capital country to the host country for the purpose of generating wealthy and retain having direct or indirect participation in its generation.
what is FDI?
this is the investment that involves the purchasing of an existing enterprise or entity or creating a new enterprise for the sole purpose of controlling the enterprise. it is done by foreign investors
what forms a transnational corporation?
the parent enterprise and a foreign affiliate.