Ground-Rent Affiliation

Ground-Rent Affiliation

What Is a Ground-Rent Arrangement? A ground-rent arrangement is a situation in which someone owns a building but not the land on which the building is located, requiring monthly land-rental payments. Hotels and office buildings are sometimes subject to ground-rent arrangements. Homeowners also use ground-rent arrangements in certain situations. For example, ground-rent arrangements are common

Flooring-Up Loss Definition

Flooring-Up Loss Definition

What Is Ground-Up Loss? Ground-up loss is the total amount of loss that is covered by an insurance policy. Ground-up loss does not include deductibles paid by the insured, nor does it include liabilities ceded to a reinsurance company. Key Takeaways Ground-up loss is the total amount of loss that is covered by an insurance policy.Deductibles

Group Depreciation Definition

Group Depreciation Definition

What Is Group Depreciation? Group depreciation combines similar fixed assets into a pool with a common cost base for calculating depreciation on financial statements. The assets grouped together should be similar in the way they function, or each asset should be small enough that it is not considered material on its own. Because modern accounting software easily records depreciation for

What Is Groupthink? Definition, Characteristics, and Causes

What Is Groupthink? Definition, Characteristics, and Causes

What Is Groupthink? Groupthink is a phenomenon that occurs when a group of individuals reaches a consensus without critical reasoning or evaluation of the consequences or alternatives. Groupthink is based on a common desire not to upset the balance of a group of people. This desire creates a dynamic within a group whereby creativity and individuality

Emerging-Equity Mortgage

Emerging-Equity Mortgage

What Is a Growing-Equity Mortgage (GEM)? A growing-equity mortgage (GEM) is a type of fixed-rate mortgage where monthly payments increase over time according to a set schedule, rather than remaining fixed and equal over the loan term. The interest rate on the loan does not change, and there is never any negative amortization. Instead, the