LSDefine

Simple English definitions for legal terms

balance-sheet test

Read a random definition: cancel

A quick definition of balance-sheet test:

A balance-sheet test is a way to determine if a company is insolvent, which means they cannot pay their debts. This happens when a company's liabilities (what they owe) are more than their assets (what they own). Some states have laws that prevent a company from giving money to their shareholders if they are balance-sheet insolvent. This is different from equity insolvency, which is when a company cannot pay their debts as they become due.

A more thorough explanation:

Definition: The balance-sheet test is a measure of insolvency where a debtor's liabilities exceed its assets. This means that the debtor is unable to pay its debts as they fall due or in the usual course of business.

For example, if a company owes more money than it has in assets, it is considered balance-sheet insolvent. This can prevent the company from making distributions to its shareholders under some state laws.

Another type of insolvency is equity insolvency, which occurs when a debtor cannot meet its obligations as they fall due. This also prevents a corporation from making distributions to its shareholders under most state laws.

Overall, the balance-sheet test is an important measure of a company's financial health and ability to meet its obligations.

balance-sheet insolvency | bale

General

General chat about the legal profession.

General >T14 Off Topic

👍 Chat vibe: 0 👎

babycat

10:40

t4 is a concept being perpetuated by Big Chicago

soap

10:41

Chicago rejected me in undergrad, so I have beef

shaquilleoatmeal

10:41

Was there an hls ii wave yesterday?? Didn’t go online at all and feel out of the loop lmfao

m10

10:42

@BulbasaurNoLikeCardio: Did not know that but it makes sense. That sounds like a cool career. I would have liked to have done that too. I really would have just liked to have gone OCONUS once.

m10

10:44

I was talking to this 88H in a bar last weekend and he had some wild story about being interrogated by the FBI and CIA and shit to get a top-secret clearance or something so he could drive a forklift around Europe, Korea, and Africa. It sounded like a bunch of bullshit to me but do you know if something like that could be true?

babycat

10:45

@shaquilleoatmeal: yeah so I’ve heard

jackfrost11770

10:46

i don't know any of this military talk but i was going to be a combat medic or trauma surgeon for so long before i went this track lol, so my only exposure is seriously looking and visiting places like west point for recruitment lol. i speak russian so everyone always told me that raises your chances at those places lol

jackfrost11770

10:46

my brother is a combat medic too

BulbasaurNoLikeCardio

10:46

@m10: was a great career, the main job is being a cultural expert building rapport and relationships with foreign nationals, militaries and even people hostile to make the area safer and at times bring in the ODAs or three letter guys to train, arm and fund them to aid in their(our) cause. OCONUS is great but not necessary, I only did two real deployments but a lot of missions to places. That is all 110% BS. I have a TS-SCI, worked with federal agencies they do nothing crazy like that.

shaquilleoatmeal

10:47

Damn - 3rd invite missed smh no love for me from hls

m10

10:49

@jackfrost11770: That's like a huge pitfall. People say it's easy to get into like med school or law school through West Point and it is not at all. Yeah, Russian would make you very valuable to them. You will see West Point people in law school but that's very few compared to how many went through the prelaw program there. Best just to enlist and become a combat medic. I've seen like 4 of em here anyway so you didn't really miss anything by going straight to law school.

BulbasaurNoLikeCardio

10:49

I "speak" Dutch but never used it after training back in 2012. Russian is great if you can get into INTEL but outside of that they would just assign you a lot of NATO roles if you go EUCOM. If you go Jag it may score you a nice job in Europe but at this point with the lack of benefits the military would give you just go state department as an attorney and you will travel the world.

m10

10:50

@BulbasaurNoLikeCardio: Oh yeah, I get that. My buddy just got back from Jordan and he gained like 25 lbs there just being a fat ass doordashing for 50 cents a delivery.

glovediedthisishismom

10:50

https://youtu.be/BM-Yf-DXhMM?si=dtiskk_90ckDOjwo

jackfrost11770

10:50

yeah haha i mean i was like 15 so i didn't know anything, and yeah that makes complete sense. my main thing was that i knew i didn't want to go to medical school and i didn't want to straight out enlist so that kinda closed the door on that

glovediedthisishismom

10:50

please listen

m10

10:51

@BulbasaurNoLikeCardio: indeed, it could but I could also just like visit on my own time. Though I have met like 10 or so JAG officers that got an Italian or French or Spanish wife while over in Europe so that is cool.

jackfrost11770

10:52

but i'd love to talk to you about that sometime if that's alright because i've been seriously considering INTEL and other similar roles but i know quite literally nothing about it and don't know where to start researching

m10

10:52

@glovediedthisishismom: oh my god that guy is a psychopath. Tjhat guy scares me.

m10

10:52

@jackfrost11770: Best bet if going law route is Law School to JAG to either Mead or Gordon imo then.

m10

10:53

NSA shit to start. If you can go straight into a GS job then you should go for it.

m10

10:54

https://www.usajobs.gov/Search?k=attorney

BulbasaurNoLikeCardio

10:54

@jackfrost11770: I have my undergrad in Intelligence and Terrorism and worked a good bit in the IC so I can answer some broad questions but not many direct because the nature of the field. If you want to go to law school and get your JD it really depends what intel work you would want to do and where you want to live.

jackfrost11770

10:56

thank you!! yeah i also know they always need STEM grads ofc, so i know i have that going for me as well

m10

10:58

Fuck now that Gary Gensler is resigning, this is like a dream job for me. Would love to do securities: https://www.usajobs.gov/job/819640900

m10

10:58

Best job on the wbesite rn.

BulbasaurNoLikeCardio

11:00

If you do it from the attorney side you will be skirting the left and right limits of laws like the NDAA to conduct domestic espionage or how to kidnap or spy on people in foreign countries without committing war/international crimes. JAG would be very very general and location based. At one unit you can be the personal attorney to a commander not even having your own office or desk, next one you can be leading the prosecution of terrorist and rapist and the next one be the legal OK for drone striking people. It is a very varied job you have little control over.

Dkk

11:01

Lmfao, so true.

BulbasaurNoLikeCardio

11:02

The last jag I worked with had a folding picnic table as his desk and had to bring his office chair home every night because people would steal it and he hated using a bucket as a seat. All he did was keep commanders from being fired cause they kept doing illegal shit. It is a varied journey.

Dkk

11:04

This is so true. I still have my folding table. I put alcohol on it now and it is my home bar.

LSD+ is ad-free, with DMs, discounts, case briefs & more.