Factoring

Where a bank will buy a firm's debtors of them, but will only pay 80% of the invoiced value.

Factors of Production

The 4 resources which are the basis for all businesses.  They are Land, Labour, Capital and Entrepreneurship.

Fast Moving Consumer Goods (FMCG)

Products that sell quickly and in large volumes, such as yogurts.

Fax (facsimile machine)

Transmits printed document along telephone lines to another fax machine.

Fiscal Policy

Decisions taken by the Government about taxes and public spending.

First In First Out (FIFO)

A method of stock control that rotates stock so that the earliest is used first.

Fiscal Policy

Government policy used to control the economy through taxation and government spending.

Fixed costs

Costs which have to be paid whether or not the business is making a profit e.g. rent, business rates, salaries.

Fixtures and Fittings

Things that are fixed inside a building, e.g. shelving.

Flat Organisation

An organisation with few layers of hierarchy.

Flexitime

Where employees are allowed to work their contracted hours to suit them.

Float Time

The amount of spare time within a project, according to critical path analysis.

Flow Production

Sometimes called mass production.  Continuous production, often using conveyor belts, where products are worked upon as they move through a factory.

Formal Communication

Where messages are transmitted down the official channels, as approved by management.

Forward Integration

Where a business merges or takesover a business at the next stage of production.

Franchisee

A person who pays fees and royalty payments for the privilege of trading under another firm's name.

Franchiser

A firm which allows another person or business, for a fee, to use its tried and tested products and to trade under its name e.g McDonalds.

Frictional Unemployment

A temporary form of unemployment, when a worker is "between" jobs.

Fringe Benefits

Something received by a worker in addition to their wage or salary.

Full Costing

Where a business tries to allocate all costs to different parts of the business, called cost centres.

Function

The job a person performs in a business. Eg personnel manager's function is to recruit new employees and to look after the general welfare of the workforce.