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GOODWILL
An intangible asset, which provides a competitive advantage, such as a strong brand, reputation, or high employee morale. In an acquisition, goodwill appears on the balance sheet of the acquirer in the amount by which the purchase price exceeds the net tangible assets of the acquired company.
GRACE PERIOD
Time allowed a debtor in which legal action will not be undertaken by the creditor when payment is late.
GROSS PROFIT
Net sales minus cost of sales. Also called gross income.
GROSS SALES
Total sales before deductions for returns and allowances.
GUARANTEE
Pledge by a third party to repay a loan in the event that the borrower cannot. A special case is a personal guarantee in which you personally guarantee an obligation.
GUARANTEED LOAN
A loan made and serviced by a lending institution under agreement that a governmental agency will purchase the guaranteed portion if the borrower defaults.
GUARANTEED/INSURED LOANS
Programs in which the federal government makes an arrangement to indemnify a lender against part or all of any defaults by those responsible for repayment of loans. An example is a small business loan guaranteed by the SBA.
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