Small Business Encyclopedia
Letter: F

Factoring

A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital

Fair Labor Standards Act

A federal law enforcing minimum standards that employers must abide by when hiring employees

Family Businesses

A business actively owned and/or managed by more than one member of the same family

Family Medical Leave Act (FMLA)

The 1993 law that entitles a covered employee to take up to 12 weeks of leave in a 12-month period for the birth or adoption of a child or the serious health condition of the employee or the employee's child, spouse or parent

Fictitious Name Certificate

A legal document showing the operating name of a company, as opposed to the legal name of the company. In the case of a corporation, a fictitious business name is any name other than the corporate name stated in its articles of incorporation.

Financial Projections

Estimates of the future financial performance of a business

Financial Statement

A written report of the financial condition of a firm. Financial statements include the balance sheet, income statement, statement of changes in net worth and statement of cash flow.

First In, First Out (FIFO)

An accounting system used to value inventory for tax purposes. Under FIFO, inventory is valued at its most recent cost.

Flexible Work Arrangements

Arrangements that allow employees to have a more variable schedule as opposed to complying with the standard 8-hour workday

Focus Group

A controlled group interview of a target audience demographic, often led by a facilitator. A set series of questions or topics are covered, and the results are used to guide marketing efforts.

Franchisable Business

A business that has the potential to be sold as a franchise opportunity, generally having the following characteristics: It is established, offers a unique concept, is teachable and can provide an adequate return to potential franchisees.

Franchising

A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees).

Friends/Family Financing

Monies, usually in the form a loan, that a business owner gets from either family members or friends in order to help finance their startup or growing business

Fulfillment

The process of receiving, packaging and shipping orders for goods

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