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Simple English definitions for legal terms

continuity of business enterprise

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A quick definition of continuity of business enterprise:

Continuity of Business Enterprise: A rule that applies to when one company buys another company. The buying company must keep doing the same kind of business that the other company was doing before, or use a lot of the other company's things to start a new business. This is important because it helps the buying company avoid paying taxes on the purchase right away.

A more thorough explanation:

Continuity of business enterprise is a rule that applies to mergers and acquisitions. It states that the acquiring company must continue the target company's historical business or use a significant portion of its assets in a new business to qualify for tax-deferred treatment.

For example, if Company A acquires Company B, and Company B is primarily in the business of manufacturing widgets, Company A must continue to manufacture widgets or use a significant portion of Company B's assets to manufacture widgets to qualify for tax-deferred treatment. If Company A decides to sell off Company B's widget manufacturing business and use the proceeds for a different business, the acquisition would not qualify for tax-deferred treatment.

Another example would be if Company A acquires Company B, and Company B is primarily in the business of providing consulting services. Company A could continue to provide consulting services or use a significant portion of Company B's assets to provide consulting services to qualify for tax-deferred treatment.

Overall, the continuity of business enterprise rule ensures that companies cannot use mergers and acquisitions solely for tax benefits without continuing the target company's business or using its assets in a similar business.

continuity | continuity-of-enterprise doctrine

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JumpySubsequentDolphin
11:57
wear a mask
JumpySubsequentDolphin
11:57
go back to Covid days
m10
11:58
Nah nah she would not like that. She is conservative.
BulbasaurNoLikeCardio
11:58
Tell her you just got over a cold and if she wants to try and steal your germs its on her but no one likes being sick so hopefully she is chill
m10
11:59
We will see. This is enough feedback. Thank you all.
12:00
tell her you wanna test and see if your immune systems are compatible, that gets the ladies going
m10
12:00
Lol, maybe
babycat
12:00
lmao when you give the republican baddie the ick by masking up
12:01
LOL
Dkk
12:02
Just part of the culture.
BulbasaurNoLikeCardio
12:04
I wish that wearing a mask when sick stuck around as an okay thing like it is in the rest of the world, not all of us have enough sick days to be ditching work.
Dkk
12:04
Unless its like an N95 i dont think it will really do anything
12:04
there's even a mask ban in some places. altho one of my coworkers wears a mask anyway despite customers being rude to her about it
12:05
good morning
12:05
why does umiami ask "Are you applying, or have you applied, to other law schools? If so, please list them."
BulbasaurNoLikeCardio
12:05
One manager came in sick wearing a mask, got roasted and stopped wearing it that day. The entire office has been cycling sickness for two weeks now. It may not be super effective but it may help in slowing the spread during meetings when we have to be so close
12:05
am i the only one who has never gotten my status checker to work on here?
BulbasaurNoLikeCardio
12:06
@ChowieBean: want to see what schools they share an applicant pool with, think it is all data harvesting stuff no a +/- for the applicant
12:06
ok good cuz idk whether i wanna tell them or not
12:06
thanks bulbasaur
12:08
not to be that guy again but berkeley person/applicant id is back and Shiny New Logo
be that guy
EW THE NEW LOGO IS SO UGLY
WTF
12:09
need to send in my berkeley app rawwwww
BulbasaurNoLikeCardio
12:09
@ChowieBean: should be required to tell them, the schools who asked I only told them the schools in their area not all of them.
BulbasaurNoLikeCardio
12:10
*shouldnt be
12:12
@jackfrost11770: if i get a berk A today and they have that logo im withdrawing (/s /s /s /j /j /j)
babycat
12:12
@ChowieBean: me too lol. you applying to public interest scholars program?
12:14
yes def applying public interest
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