Business Cessation
/ˈbɪznəs sɛˈseɪʃən/
Definitions
- (n.) The formal or informal act of ending business operations or activities, often for legal, financial, or operational reasons.
The company announced its business cessation following several years of unprofitability.
- (n.) The point in time at which a business permanently stops conducting its commercial activities, triggering certain legal and regulatory obligations.
Upon business cessation, the firm must settle all outstanding liabilities and notify tax authorities.
Forms
- business cessation
Related terms
See also
Commentary
Business cessation often triggers specific statutory duties such as notification to authorities, settlement of debts, and may affect licenses or permits; drafters should specify whether cessation is temporary or permanent.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.