G
- general partnership
A form of organization in which two or more persons carry on a business with a view to profit. Each general partner assumes unlimited liability. The partnership is not a taxable entity; net income is distributed to the partners who, in turn, must report this income on their personal income tax return. Compare to Limited Partnership.
- generally accepted accounting principles
The rules and guidelines followed in the preparation of Financial Statements. They include the Cost Principle, the Revenue Principle, the Matching Principle, the Objectivity Principle, the Consistency Principle and the Fiscal Year.
- goodwill
The amount by which the purchase price of a business exceeds the fair market value of its net assets. This extra amount could be attributed to factors such as the value of good customer relations, high employee morale, a well-respected business name, or other intangible attributes of the business which are not quantifiable, but contribute to purchasers' expectations for the income potential of the business.
- graduated payment mortgage
An innovative loan arrangement in which the periodic payments made by the borrower increase in size over all, or a portion of, the term of the mortgage contract.
- gross debt service ratio
The percentage of gross income which is the maximum amount a mortgagor is allowed to pay annually in principal, interest, and property taxes. For example, a mortgagor may pay $270 out of $1000 gross income as P.I.T. payments. This ratio is usually expressed as a percentage i.e., P.I.T. payments can be 27% of gross income. Compare to Loan-to-Value Ratio. See also Ratio and Total Debt Service Ratio.
- gross income
The amount earned through employment or investment before taking taxes or other deductions into consideration. This amount may or may not be the same as gross income for purposes of mortgage lending.
- gross lease
A lease in which the landlord pays for all the operating expenses. Contrast to Net Lease.
- gross potential rent
The rent which would be collected if all units were leased at market rents.
- gross potential revenue
Similar to Gross Potential Rent, except it also includes income from other sources such as parking income or laundry income (in the case of an apartment building, for example).
- gross realized rent
Gross Potential Rent less Vacancy Allowance and Bad Debt Allowance.
- gross realized revenue
Gross Potential Revenue less an allowance for Vacancy and Bad Debt. Note that different rates may be used for the different income sources (i.e., 5% vacancy rate for units, 2% vacancy rate for parking spaces).
- guarantor
One who becomes contingently or secondarily liable for another's debt or performance.