G

GAAP

See GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

GAIN

An increase in value; the profit received upon the sale of an asset.

GARNISHMENT

The legal means for a creditor to obtain the rights to a debtor’s personal property that is in the hands of a third party (the garnishee), thereby returning to the creditor that which is owed.

GATT

See GENERAL AGREEMENT ON TARIFFS AND TRADE.

GDP

See GROSS DOMESTIC PRODUCT.

GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)

A treaty among most countries of the world that provides a forum for negotiating mutual reductions in trade restrictions.

GENERAL CONTRACTOR

A construction or other type of company that enters into contracts for the performance of work and hires employees and subcontractors to accomplish the work. In several layers of contracting relationships, the general contractor is at the top, totally responsible for all work performance to the customer. Also called a PRIME CONTRACTOR.

GENERAL JOURNAL

In a small business, the only JOURNAL that records the transactions of the business; a record of accounting transactions in chronological order. See JOURNAL.

GENERAL LEDGER

The formal listing of accounts (LEDGER) containing all the financial statement accounts of a business and, thus, comprising the TRIAL BALANCE. CONTROL ACCOUNTS summarize the entries made in the separate SUBSIDIARY LEDGER accounts.

GENERAL LIEN

The right of a creditor to have all the debtor’s property sold to satisfy a debt. Unlike a specific lien against certain property, a general lien is directed against the individual debtor and attaches to all his or her property.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)

The conventions, rules and procedures defined by the FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) as proper accounting practices.

GENERAL PARTNER

A person or firm that agrees to share ownership of a business with full personal liability for the debts of the business; one of two or more partners who are jointly and severally responsible for the operation of the partnership including the debts of a PARTNERSHIP. The general partner’s liability is unlimited.

GENERAL PARTNERSHIP

An association of two or more people or firms that carry on a business for profit. See PARTNERSHIP.

GIVEAWAY

Something given free or sold cheaply to attract customers.

GLOBAL MARKETING

Selling the same product in the same way everywhere in the world. As opposed to INTERNATIONAL MARKETING that tailors a product and the marketing program to fit the country where sales are anticipated. Sometimes the two terms are used interchangeably.

GNP

See GROSS NATIONAL PRODUCT. For most uses, GNP has been replaced by GDP, GROSS DOMESTIC PRODUCT.

GOAL

In business, a predetermined objective to be achieved. For ease of determining success, goals must be quantifiable so that achievement can be compared later.

GOING PUBLIC

A securities industry phrase used when a private company first offers its shares of stock for sale to the public. The firm’s ownership thus shifts from a few private shareholders to a base which includes stock offerings for everyone. At the moment of going public, the stock is called an INITIAL PUBLIC OFFERING.

GOOD CREDIT RATING

An excellent record of paying loans, notes, accounts payable or other obligations; credit worthy; trust by a lender for extending credit. See CREDIT RATING.

GOODS

PRODUCTS or MERCHANDISE that are available for sale.

GOODS AND SERVICES

The total line of a business in terms of products (merchandise) and labor provided to customers.

GOODWILL

An intangible salable asset, such as reputation or location of a business, which makes the business worth more to a buyer than the BOOK VALUE; the expectation of continued public patronage. Although goodwill may be listed on a balance sheet as an asset, the stated value may be different than the salable market value.

GOVERNMENT PROCUREMENT

The purchase of goods and services by the U.S. government. Many opportunities are created for small businesses to sell products and services that fill the needs of the government.

GRANDFATHER CLAUSE

A provision in a law or regulation exempting some specified transactions that occurred before the date of enactment from being subject to the law or regulation.

GRANT

The act of conveying or transferring title to real property, as by a deed; a gift according to legal procedure. A person or a business may obtain a grant. Also, a not-for-profit organization may receive a grant, i.e., a gift, from either a public or private source, that may be tax deductible to the grantor.

GRANTEE

One who receives a GRANT; the person who receives from the GRANTOR a conveyance of real property; the receiver of a gift.

GRANTOR

One who gives a grant; the one who executes a deed conveying property title to the GRANTEE; the one who gives property.

GRANTOR RETAINED INCOME TRUST (GRIT)

An irrevocable trust established for the purpose of transferring ownership of a business to children or heirs.

GREEN CARD

A document issued by the U.S. government that authorizes an alien to work legally for a firm in the United States.

GRIT

SEE GRANTOR RETAINED INCOME TRUST.

GROSS

In finance, same as GROSS INCOME as opposed to NET INCOME.

GROSS DOMESTIC PRODUCT (GDP)

The total value of goods and services produced in the economy of the United States in a period of a year, including U.S. profits from foreign investments; published quarterly. The GDP growth rate is the primary indicator of United States economic status; GDP measures consumer purchases, government purchases, investments and the total value of exports. Supersedes GROSS NATIONAL PRODUCT.

GROSS INCOME

The gross revenue or SALES of a business over a period.

GROSS MARGIN

Gross margin is gross profit expressed as a percent of net sales; also called GROSS PROFIT RATE.

GROSS NATIONAL PRODUCT (GNP)

See GROSS DOMESTIC PRODUCT for the currently used indicator. GNP is the total retail value of the goods and services produced by the labor and assets of citizens in the United States economy in a period of a year; published quarterly.

GROSS PROFIT

NET SALES less the COST OF GOODS SOLD. The PROFIT before OVERHEAD (operating expenses) has been deducted. Sometimes, commonly used to mean the same as GROSS MARGIN. See also NET PROFIT.

GROSS PROFIT RATE

A measure of profitability of a business; a measure of the ability to pay overhead since all costs associated with obtaining and selling are subtracted out; divide GROSS PROFIT by GROSS SALES and express as a percent. When compared to other periods, it measures the efficiency of the purchasing and marketing functions. Same as GROSS MARGIN.

GROSS SALES

Total sales at invoice values, not reduced by customer discounts, returns, allowances or other adjustments. See also SALES; NET SALES.

GROSS WORKING CAPITAL

Total cash and cash equivalents (CURRENT ASSETS); used when discussing cash flow as opposed to discussing assets. See also WORKING CAPITAL; NET WORKING CAPITAL.

GROUP BENEFITS

FRINGE BENEFITS purchased by the company for all employees (the group) and apply to each employee in the group.

GROUP COVERAGE

Insurance purchased by a company that applies equally to all employees (the group).

GROUP INSURANCE

A type of insurance coverage offered by insurance companies wherein the policy written covers all the people in the similar risk category, called a group. Thus an employer can purchase an insurance policy that covers all the employees employed by the firm. Group insurance commonly carried by employers includes hospitalization, health and life.

GROWTH

In business, growth generally refers to a situation where one amount of money or financial condition will be larger at a future time.

GUARANTEE

To take responsibility for payment of the debt of another person if the other person fails to repay. A guarantee is a CONTINGENT LIABILITY of the grantor.

GUARANTEED LOAN

A loan made by a bank upon which the Small Business Administration has insured partial reimbursement to the bank in the event the borrower fails to repay. Also called INSURED LOAN. See also LOAN GUARANTEE; PREFERRED LENDER PROGRAM; CERTIFIED LENDER PROGRAM.

GUARANTOR

The person or firm that makes or gives a GUARANTY; one who promises to uphold a guaranty.

GUARANTY

A promise that merchandise will perform as claimed. A guaranty differs from a warranty in that a warranty is absolute assurance to the effect that failure to perform may void the basic contract. A guaranty merely provides that the guarantor will be liable. Sometimes used interchangeably with product WARRANTY. See also GUARANTEE.

GUESTIMATE

A rough approximation; an estimate with less certainty or accuracy than an estimate. A guestimate often applies to an approximation of a financial amount.

 

All definitions were taken from www.small-business-dictionary.org.