Guideline Public Company Method

General Partner (GP)

The manager(s) of a venture capital or private equity fund, who are compensated based on the returns made on investments by the fund. See Also Private equity group, venture capital....

Generally Accepted Accounting Principles (GAAP)

The common set of principles, standards, and procedures established by the Financial Accounting Standards Board (FASB) that companies use to compile their financial statements. Tips Many small businesses do not...

Go-Shop

A clause included in a letter of intent that permits the seller to continue marketing their company for sale and negotiating with prospective buyers. See Also Letter of intent (LOI)....

Goodwill

An intangible asset associated with the acquisition of a company. This is normally carried on the acquiring company’s balance sheet, and is the portion of the purchase price allocated to...

Gross Profit

The total revenue minus the cost of goods sold, or the profit a company makes after deducting the direct costs of goods from the total revenue. See Also Cost of...