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. |