Glossary of Business Terms – “F”
Facsimile Machine (FAX) – Machine capable of transmitting written input via telephone lines.
Factor – A variable investigated in a statistical study.
Feasibility Study – An investigation into a proposed plan or project to determine whether and how it can be successfully and profitably carried out.
Federal Funds – Deposits held in reserve by the Federal Reserve System.
Feedback – The communication of responses and reactions to proposals and changes or to the findings of performance appraisals with the aim of enabling improvements to be made.
FIFO – First In First Out, a method of inventory control where the stock of a given product first placed in store is used before more recently produced or acquired goods or materials.
Finance – The money needed by an individual or company to pay for something, for example, a project or stocks.
Financial Statements – Documents that show your financial situation.
Fiscal – Relating to financial matters, especially in respect to government collection, use. and regulation of money through taxation.
Fixed Asset – A long term asset of a business such as a machine or building that will not usually be traded.
Fixed Cost – A business expense that is constant regardless of the amount of bussiness being done.
Fixed Expenses – Those costs which don’t vary from one period to the next. Generally, these expenses are not affected by the volume of business.
Float – The period between the presentation of a check as payment and the actual payment to the payee.
Floating Rate – An interest rate that is not fixed and which changes according to fluctuations in the market
Floor – A lower limit on an interest rate, price, or the value of an asset.
Flow Chart – A graphic representation of the stages in a process or system or the steps required to solve a problem.
Forecast – A prediction of the value of a variable in a statistical study
Forward Pricing – The establishment of the price of a share in a mutual fund based on the next asset valuation.
Forward Rate – An estimate of what an interest rate will be at a specified future time.
Franchise – An agreement enabling a third party to sell or provide products or services owned by a manufacturer or supplier. The franchise is regulated by a franchise contract, or franchise agreement, that specifies the terms and conditions of the franchise.
Franchise Chain – A number of retail outlets operating the same franchise. A franchise chain may vary in size from a few to many thousands of outlets and in coverage from a small local area to worldwide.
Fraud – The use of dishonesty, deception. or false representation in order to gain a material advantage or to injure the interest of others.
Freebie – A product or service that is given away, often as a business promotion.
Free Enterprise – The trade carried on in a free-market economy, where resources are allocated on the basis of supply and demand.
Free Market – A market in which supply and demand are unregulated except by the country’s competition policy, and rights in physical and intellectual property are upheld.
Freight – Goods loaded for onward transport, most often by sea or by air.
Freight Forwarder – An organization that collects shipments from a number of businesses and consolidates them into larger shipments for economics of scale.
Fulfillment – The process of responding to customer inquiries, orders, or sales promotion offers.
Future – A contract to deliver a commodity at a future date.
Futures Market – A market for buying and selling securities, commodities, or currencies that tend to fluctuate in price over a period of time. The market’s aim is to reduce the risk of uncertainty about future prices.
Fundraising – Events staged to raise revenue.