Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: F

FULL AND OPEN COMPETITION

All qualified, registered, responsible participants are eligible to compete in this standard form of competition.

FULLY AMORTIZING LOAN

Typical loan with no balloon payment at the beginning or end of the loan. Has only regular, periodic payments.

FUNCTIONAL BASED ACCOUNTING

A means to evaluate performance, determine status quo, determine organizational stability. An accounting method using organizational units to measure outcomes, statistical standards and benchmarks.

FUNCTIONAL VERIFICATION

Assurance a product or part meets all performance and material requirements. Confirmation dynamically by peer review or statically by approved scripts and cases. A process of quality control.

FUTURES OPTION

An EXCHANGEtraded OPTION contract granting the buyer the right, but not the obligation, to buy or sell a FUTURES contract at a prespecified STRIKE PRICE. See also FUTURES CALL, FUTURES PUT.

FACTOR ENDOWMENT

The labor that is exploited in a country. A country with large factor endowments are better off.

FAILED TRADE

A transaction that won’t settle on the date contracted. It happens when parties disagree on the quality of items delivered.

FARM SURPLUS

Goods not sold but bought by the government at a good price for farmers. It is a controversy in the US.

FATAL DEFECT

1. serious defect that causes death or shut down. 2. defect that makes a contract null and void.

FEATHERBEDDING

The labor union that require hiring, limit overtime, and offer fulltime employment.

FEEDBACK

How an output is retruned to the next step. It helps regulate machines and is part of all interactions no matter how much. It involves the reaction to the stimulus. Refer to

FIBERBOARD

1. a term for corregated paperboard that containers are made of. 2. a compressed material for building that is durable and strong. AKA insulation board.

FILL OR KILL (FOK)

Instructions for the order to be cancelled if it cannot be done fast. It doesn’t allow a partial fill.

FINANCIAL CONTAGION

When a faltering economy in one country makes other economies have problems as well. It happens to nieghboring regions. It is a big problem in a troubled economy for business partners. Refer

FINANCIAL INCENTIVE

A benefit given to customers or companies to get them to do something they normally wouldn’t. It is money offered to get them to try something new offered. The event might not

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