Continuity of Business Enterprise

Continuity of Business Enterprise means:
a judicial concept in the area of tax-free corporate reorganization that requires the acquiring corporation either to continue the target corporation's historic business or to use a significant portion of the target corporation's historic business assets in a new business. Continuance of one or more of the target corporation's significant lines of business is sufficient to satisfy this doctrine. Former Tax Regulation (check if this Reg. is current here) §1.368-l(d)(2).

See also other Tax Terms and Definitions in U.S.A.

continuity of interest concept.