Which of the following best defines a "lapse" regarding business entity registration?

A "lapse" in the context of business entity registration refers to a situation where the entity has failed to maintain its registered status, resulting in the loss of its ability to operate legally. This typically occurs when an entity has not renewed its registration as required by law, leading to the conclusion that it is no longer a legally recognized entity.

When an entity lapses, it can no longer provide services or engage in business activities until it has reinstated its registration. This underscores the importance of timely renewal and compliance with registration requirements to ensure that a business can operate without interruption.

In contrast, the other options do not accurately capture the essence of a "lapse." An entity that has failed to renew but is still operational suggests it may still be functioning in some capacity, which does not align with the definition of a lapse. Additionally, prior completion of paperwork without payment indicates an incomplete registration process rather than a lapsed one. Lastly, a business in the process of renewal is still active and has not reached a status where it can no longer operate, further distinguishing it from a lapsed registration.