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

Category: F

FRONT END LOAD

1. In Banking, this is beginning cost of a loan, like a mortgage, when interest charges and fees are higher. As time progresses, this cost or interest charge decreases, as seen in

FROZEN COLLATERAL

Collateral rendered unusable by legal ruling. Often occurs when a question of who owns the collateral arises. Situation causing the ruling needs to be resolved, or a change in the situation causes

FULL ASSESSMENT

Compliance with regulatory standards in all areas, for all scenarios, under all conditions is thoroughly checked. Records, interviews, and direct observations occur to determine that specific personnel, facilities, processes, and operations exist

FULL RECOURSE LOAN

A LOAN with repayment that may come from the proceeds of the project/ASSET being financed or the sale of specific COLLATERAL, or from the resources of the borrower if project/ collateral CASH

FUNCTIONAL BENCHMARKING

Establishing a baseline by comparing specific business functions in the same industry using two or more organizations

FUNCTIONALLY ORIENTED LAYOUT

Grouping equipment by function like machining vs. welding vs. finishing. Contrast to grouping by the sequence of operations performed, like on a manufacturing line in an auto factory.

FURTHEST MONTH

An EXCHANGETRADED DERIVATIVE contract with the longest maturity date featuring trading volume; contracts with even longer maturity dates that are inactive or dormant are not considered to be the furthest month contract.

FUTURES PUT

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

FACTORING

Financing accounts recievable. It can be maturity factoring, finance factoring, discount factoring, or undisclosed factoring. Refer to discounting of accounts reveivable and forfaiting.

FAILOVER

How a machine or system can transfer the failed operations to a back up without interupting flow.

FAMILY INCOME

The compensation for family members 15 and older in the same household. It can be wages or other forms.

FARM TEAM

A compan that trains employees to leave for another company with more advantages. It offers not ideal working conditions.

FATALISM

The idea that events are predetermined and nothing can be done about it. Free will is nonexistant.

FEATURE STORY

A material that is used for convenience. A human interest story is an example of this. AKA evergreen story with a long shelflife.

FEEDBACK LOOP

A path that starts with an effect abd returns to its cause making the same effect occur.

FIELD TEST

An experiment under controlled conditions of a lab. AKA field experiment.

FILL RATE

The percent customers order stock at hand. Inventory measures this.

FINANCE CHARGES

The total cost of borrowing. The interest charges, commitment fees, and other charges are included. Refer to cost of capital.

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