A more thorough explanation:

An entertainment expense is a cost incurred while providing entertainment that is directly related to or associated with a business purpose. This can include expenses for meals, events, or activities that are intended to promote or further a business.

For example, if a company takes a client out to dinner to discuss a potential business deal, the cost of the meal would be considered an entertainment expense. Another example would be if a company hosts a holiday party for its employees, the cost of the party would be considered an entertainment expense.

Entertainment expenses are partially tax-deductible, meaning that businesses can deduct a portion of the cost on their taxes. However, there are certain rules and limitations on what can be deducted and how much.

Overall, entertainment expenses are a common part of doing business and can help build relationships and promote growth.