Define: Cost of Doing Business

The meaning of “Cost of Doing Business” differs based on where it is used. We list many below, then combine them into one or more market-standard definitions.

How is Cost of Doing Business defined in a legal contract?

  • Cost of Doing Business means all expenses incurred during the purchasing, processing, selling and other activities related to the item in question. These include labor costs, rent, interest on borrowed capital, depreciation, cost of selling, equipment maintenance, delivery costs, credit losses, cost of all licenses, taxes, insurance, and advertising. Seen in 3 SEC filings
  • Cost of Doing Business means the total operational cost of the establishment for the prior [number]-month period. This includes direct and indirect costs such as product cost, freight charges, labor costs, cost of equipment, rental and maintenance expenses, management fees, depreciation, selling costs, interest expenses, delivery costs, all types of licenses and taxes, insurance, advertising and all administrative expenses. Seen in 2 SEC filings

Please note that the specific number inside the [number]-month period could change in different contracts.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of cost of doing business' yourself to verify these results. We are always keen to point people to source documents.

Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

Genie Definition 1

  • Cost of Doing Business means all direct and indirect expenses incurred in operational activities, inclusive of labor, rental, licenses, taxes and advertising.

Relevant Contract Types

Relevant Circumstances

  • Evaluating franchise costs
  • Calculating profit margins
  • Risk assessment
  • Financial reporting

Relevant Sectors

Genie Definition 2

  • Cost of Doing Business means the total operational costs incurred over a [number]-month period, considering all types of business-related expenses.

Relevant Contract Types

Relevant Circumstances

  • Establishing a joint venture
  • Starting a new business
  • Evaluating potential partnerships
  • Negotiating licensing terms

Relevant Sectors

What is the most popular definition of 'Cost of Doing Business'?

Cost of Doing Business means all direct and indirect expenses incurred in operational activities, inclusive of labor, rental, licenses, taxes and advertising.

Are you creating, reviewing or negotiating a document?

Genie is the way the world agrees. Know market standards, set your rules, and close deals 70% faster by autotransacting on standard terms while negotiating only what matters.

Whether you're creating from scratch, need a trusted template, want to edit or review an existing document or get simple explanations to complex legal questions, try Genie for free.