The Phrase "Ordinary and Necessary" Means That an Expense Must

question 67

True/False

The phrase "Ordinary and necessary" means that an expense must be appropriate in and helpful for generating a profit.

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Definitions:

Takeover Bid

In corporate law, the offer to buy the voting stock of a corporation.

Friendly Suitor

An entity or person who proposes a takeover or merger that is welcomed by the target company's board.

Legal Implications

The possible legal consequences or effects that actions or decisions can have, potentially influencing rights, duties, or liabilities.