What Is Gross Working Capital? Gross working capital is the sum of a company’s current assets (assets that are convertible to cash within a year or less). Gross working capital less current liabilities is equal to net working capital, or simply “working capital;” a more useful measure for balance sheet analysis. Key Takeaways Gross working
What Is a Ground Lease? A ground lease is an agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner. How a Ground Lease Works A ground lease indicates that improvements will be owned
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
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
What is Group Banking? Group banking is a term that refers to a type of banking plan offered to groups such as employees in a corporation of people instead of individuals. These plans provide incentives and other benefits for those who participate, which are not readily available to the bank’s other customers. Group banking can
What Is a Group Carve-Out Plan? A group carve-out plan is a type of life insurance benefit employers can use to reward key employees beyond what is available to them through the company’s group term life insurance policy. Key employees may include those with a long tenure at the company, executives, team leaders, or top
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 Group-Home Care? Group-home care is a type of care given to a group of people with similar disabilities within a residence. This kind of treatment option can be offered for those with intellectual disabilities, medical conditions, or a combination of both. Group-home care is also frequently helpful for elderly people who cannot be
What Is Group Life Insurance? Group life insurance is offered by an employer or another large-scale entity, such as an association or labor organization, to its workers or members. It is fairly inexpensive, may even be free for certain employees, and is pretty common nationwide. Group life often has a relatively low coverage amount and
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
