Factoring is a financial transaction where a business sells its accounts receivable to a third party (a factor) at a discount. This provides the business with immediate cash flow. Factoring can be a useful financing option for companies with slow-paying customers.

FMV is the price at which an asset would sell in an open and competitive market. It is determined by supply and demand and is used for various purposes, including taxation, investment analysis, and legal settlements. Accurate FMV assessments are critical for financial reporting and business transactions.

A feasibility study is an analysis of the viability of an idea. This includes a detailed assessment of market demand, financial projections, and technical requirements. Its purpose is to determine whether the project or business idea is worth pursuing.

Fiduciary duty is the legal or ethical obligation to act in the best interest of another party. In business, this often applies to relationships where trust is essential, such as between company directors and shareholders. Breaching fiduciary duty can result in legal consequences.

Financial leverage involves using borrowed funds to finance the purchase of assets, with the expectation that the income from the assets will exceed the cost of borrowing. High leverage can amplify returns but also increases the risk of financial distress. It’s a common strategy in real estate and corporate finance.

Financial projections are estimates of a company’s future financial performance, including revenue, expenses, and profits. They are essential for business planning, attracting investors, and securing loans. Accurate projections help in setting realistic goals and managing cash flow.

Financial ratios are metrics used to evaluate a company’s financial health and performance. Common ratios include profitability, liquidity, and debt ratios. These ratios help investors and managers make informed decisions.

This refers to the competitive edge gained by the initial significant occupant of a market segment. Being first allows a company to establish strong brand recognition and customer loyalty before competitors enter the market. However, it also comes with risks such as higher research and development costs.

A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting. It may or may not coincide with the calendar year. Understanding the fiscal year is important for tax planning and financial analysis.

Fixed assets are long-term tangible assets that a business uses in its operations to generate income. Examples include buildings, machinery, and equipment. These assets are not expected to be converted into cash within a year.

Fixed costs are expenses that do not change with the level of goods or services produced by a business. Examples include rent, salaries, and insurance. Understanding fixed costs is important for budgeting and financial planning.

A fixed price contract is an agreement where the seller agrees to deliver a product or service at a predetermined price. This type of contract reduces the risk for buyers but can be risky for sellers if costs exceed expectations. It is commonly used in construction and manufacturing.

A flash sale is a discount or promotion offered by an e-commerce store for a very short period. The urgency and limited availability can drive a significant spike in sales and attract new customers. However, it requires careful planning to manage inventory and logistics.

A flat organization has few or no levels of middle management between staff and executives. This structure promotes better communication, faster decision-making, and increased employee involvement. However, it may also present challenges in scaling and managing large teams.

An FSA is a tax-advantaged account that allows employees to set aside pre-tax money for eligible healthcare or dependent care expenses. Contributions are deducted from the employee’s paycheck. FSAs help employees save on taxes and manage healthcare costs.

These are employment setups that allow employees to have non-traditional work schedules or locations. Examples include remote work, flexible hours, and job sharing. These arrangements can improve employee satisfaction and productivity.

A follow-on offering is an issuance of stock after the company's initial public offering (IPO). It can be used to raise additional capital for expansion, debt reduction, or other corporate purposes. It can impact the company's stock price and shareholder value.

In business, footprint refers to the geographic presence or market reach of a company. This can include physical locations, distribution networks, and customer bases. Expanding a company's footprint is often a key growth strategy.

Forecasting is the process of making predictions about future financial performance based on historical data, trends, and analysis. It helps businesses plan for the future, manage resources, and make informed decisions. Accurate forecasting is essential for strategic planning and risk management.

FDI involves investing in a business or establishing business operations in another country. It can take the form of mergers, acquisitions, or the establishment of new facilities. FDI is crucial for global business expansion and economic growth.

The formative stage is the early phase in the development of a business or product. This stage involves research, development, and initial testing. Decisions made during the formative stage can have a lasting impact on the business's success.

Forward integration is a business strategy where a company expands its operations to include activities closer to the end customer, such as distribution or retail. This can help a company gain more control over its supply chain and improve profit margins. It is the opposite of backward integration, which involves expanding towards raw material suppliers.

A founder is an individual who establishes and initiates a new business or organization. Founders are often the primary visionaries and leaders during the early stages of a startup. Their roles can encompass a wide range of activities, from fundraising to product development.

A franchise is a business model where a franchisee gains the right to operate a business using the branding, products, and operational methods of an established franchisor. In return, the franchisee pays a fee and often a percentage of the revenue. This model allows for rapid expansion and brand consistency.

A franchise fee is the upfront cost paid by the franchisee to the franchisor for the right to operate a franchise. It covers the use of the brand, training, and initial support. This fee is separate from ongoing royalties or other operating costs.

A franchisor is the company that grants the license to a third party (franchisee) to operate a business under its brand. The franchisor provides the franchisee with support, training, and a proven business model. In return, the franchisor receives fees and a portion of the revenue.

Fraud detection involves identifying and preventing fraudulent activities within a business. This can include measures such as internal audits, data analysis, and employee training. Effective fraud detection is crucial for protecting assets and maintaining trust.

FCF is the cash generated by a company that is available for distribution to its investors. It is calculated by subtracting capital expenditures from operating cash flow. Positive FCF indicates that a company can reinvest in its business, pay dividends, or reduce debt.

Free trade refers to the elimination of barriers to the exchange of goods and services between countries. This can include the removal of tariffs, quotas, and import restrictions. Free trade can lead to increased market access, economic growth, and consumer choice.

Freemium is a business model where basic services are provided free of charge, while more advanced features must be paid for. This model is common in digital services and software. It helps attract a large user base, some of whom may convert to paying customers.

Freight cost is the expense incurred by a business to transport goods from one location to another. It includes shipping, handling, and insurance costs. Efficient management of freight costs is important for maintaining profitability.

A freight forwarder is an agent who arranges the transportation of goods on behalf of other companies. They handle logistics, including storage, shipping, and documentation. Freight forwarders help businesses streamline their supply chain operations.

FOB is a term used in shipping to indicate when the ownership of goods is transferred from seller to buyer. FOB shipping point means the buyer takes ownership at the point of origin, while FOB destination means the seller retains ownership until the goods reach the buyer. This term affects shipping costs and liability.

In a business context, front-end refers to the part of the business that interacts directly with customers, such as sales and customer service. It contrasts with back-end operations, which involve internal processes like production and logistics. A strong front-end operation is crucial for customer satisfaction and business growth.

FTE is a unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts. One FTE is equivalent to one full-time worker. It's a useful metric for understanding workforce size and productivity.

Funding refers to the money required to start and grow a business. Entrepreneurs can secure funding through various sources such as personal savings, loans, investors, or grants. Adequate funding is crucial for covering initial costs and sustaining operations until the business becomes profitable.

A sales funnel is a marketing concept that illustrates the journey potential customers go through from initial awareness to making a purchase. It typically includes stages like awareness, interest, decision, and action. Understanding the funnel helps businesses optimize their marketing strategies to convert leads into customers.