Business Glossary - F


Fair And Reasonable Price - A price that is fair to both parties, considering the agreed-upon conditions, promised quality, and timeliness of contract performance. “Fair and reasonable” price is subject to statutory and regulatory limitations.

Federal Acquisition Regulation (Far) - The body of regulations which is the primary source of authority governing the government procurement process. The FAR, which is published as Chapter 1 of Title 48 of the Code of Federal Regulations, is prepared, issued, and maintained under the joint aus

Fiduciary - A person legally appointed and authorized to hold assets in trust for another person and manage those assets for the benefit of that person.

Financial Reports - Reports commonly required from applicants request for financial assistance, e.g.: *** Balance Sheet - A report of the status of a firm’s assets, liabilities and owner’s equity at a given time. *** Income Statement - A report of revenue and expense which s

Financing - New funds provided to a business, by either loans or purchase of debt securities or capital stock.

Fiscal Tax Year - 12 consecutive months ending on the last day of any month other than December, or a 52-53 week year.

Fixed Costs - expenses that do not change regardless of production increases or decreases, for example, rent, insurance, interest on loans, etc.

Flow Chart - A graphical representation for the definition, analysis, or solution of a problem, in which symbols are used to represent operations, data, flow, equipment, etc.

Foreclosure - The act by the mortgagee or trustee upon default, in the payment of interest or principal of a mortgage of enforcing payment of the debt by selling the underlying security.

Franchising - A continuing relationship in which the 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 consideration. Franchising is a form of

Full And Open Competition - With respect to a contract action, “full and open” competition means that all responsible sources are permitted to compete.