Definition of «legitimate business purpose»

The term "legitimate business purpose" refers to a valid, lawful or acceptable reason for conducting a particular action or engaging in a specific activity. In legal and financial contexts, it is often used to describe a justifiable motive for undertaking a commercial transaction or pursuing a course of action that has some tangible benefit or advantage. The concept is typically applied as a criterion for determining the validity or propriety of an action, with the intention of ensuring compliance with applicable laws and regulations, and preventing fraudulent or improper behavior.

Sentences with «legitimate business purpose»

  • Isn't there an exception for legitimate business purposes that would cover them? (law.stackexchange.com)
  • The cash buildup in life insurance policies held for legitimate business purposes is not counted towards the accumulated earnings limitation. (thinkadvisor.com)
  • A quick perusal of the internet seems to suggest that lawyers and other professionals in the area don't think that FLPs formed with legitimate business purposes have much to fear. (blogs.findlaw.com)
  • (see all sentences)
a b c d e f g h i j k l m n o p q r s t u v w x y z