Factors of production is the resources or inputs used in production. The main categories of the factors of production are land, labor and capital, with entrepreneurship sometimes treated as a fourth.

Fair trading is the supply of a good or service without restriction of competition or choice and in accordance with prevailing legislation.

Family life cycle (FLC) The stages through which families might pass as they mature over time.
Family life cycle is a summary demographic variables, combining the effects of age, marital status, career status (income) and presence/absence of children.

Stages of the family life cycle:
1) Bachelor Stage. (Young single people not living at home): (a) Few financial burdens, (b) Fashion/opinion leader led, (c) Recreation orientated, (d) Buy: basic kitchen equipment, basic furniture, cars, equipment for the mating game, holidays, (e) Experiment with patterns of personal financial management and control;
2) Newly married couples (Young, no children): (a) Better off financially than they will be in the near future, (b) High levels of purchase of homes and consumer durable goods, (c) Buy: cars, fringes, cookers, life assurance, durable furniture, holidays, (d) Establish patterns of personal financial management and control;
3) Full nest I. (Youngest child under six): (a) Home purchasing at peak, (b) Liquid assets/saving low, (c) Dissatisfied with financial position and amount of money saved, (d) Reliance on credit finance, credit cards, overdrafts etc., (e) Child dominated household, (f) Buy necessities - washers, dryers, baby food and clothes, vitamins, toys, books etc.;
4) Full nest II. (Youngest child six or over): (a) Financial position better, (b) Some wives return to work, (c) Child dominated household, (d) Buy necessities - foods, cleaning material, clothes, bicycles, sports gear, music lessons, pianos, holidays etc.;
5) Full nest III. (Older married couples with dependent children.: (a) Financial position still better, (b) More wives work, (c) School and examination dominated household, (d) Some children get first jobs; other in further/higher education, (e) Expenditure to support children's further/higher education, (f) Buy: new, more tasteful furniture, non-necessary appliances, boats, holidays, etc.; Full nest 3 (Older married couples with dependent children): (a) Financial position still better, (b) More wives work, (c) School and examination dominated household, (d) Some children get first jobs; other in further/higher education, (e) Expenditure to support children's further/higher education, (f) Buy: new, more tasteful furniture, non-necessary appliances, boats, holidays, etc.;
6) Empty nest I. (Older married coupes, no children living with them, head of family still in labor force): (a) Home ownership at peak, (b) More satisfied with financial position and money saved, (c) Interested in travel, recreation, self-education, (d) Make financial gifts and contributions, (e) Children gain qualifications and move to Stage 1. (f) Buy: luxuries, home improvements e.g. fitted kitchens etc.;
7) Empty nest II. (Older married couples, no children living at home, head of family retired): (a) Significant cut in income, (b) Keep home, (c) Buy: medical appliances or medical care, products which aid health, sleep and digestion, (d) Assist children, (e) Concern with level of savings and pension, (f) Some expenditure on hobbies and pastimes;
8) Solitary survivor I. (In labor force): (a) Income still adequate but likely to sell family home and purchase, (b) smaller accommodation., (c) Concern with level of savings and pension, (d) Some expenditure on hobbies and pastimes, (e) Worries about security and dependence;
9) Solitary survivor II. (Retired): (a) Significant cut in income, (b) Additional medical requirements, (c) Special need for attention, affection and security, (d) May Seek sheltered accommodation, (e) Possible dependence on 'others for personal financial, (f) management and control.

Fashion A currently accepted or popu-lar style in a given field. (Philip Kotler)

Feedback Information generated by a system which can be used to control performance in relation to standards, plans or targets.

Feedforward control Control action based on forecast feedback information.

Feel bad factor is a term used for describing depressed consumer and business confidence which results in flat or falling spending on products and investment goods.

Feel good factor is a term for describing buoyant consumer and business confidence.

Five forces see Structural analysis.

Field research is the collection of primary data in market research.

Filtered pricing A strategy of variable pricing that tries to restrict discounts and allowances to only those customers who probably won't buy without them. (Courtland L. Bovee, John V. Thill)

Financial accounting is the classification and recording of monetary transactions of an entity in accordance with established concepts, principles, accounting standards and legal requirements and presentation of a view of the effect of those transactions during and at the end of an accounting period.

Financial statements
Types of assets: 1. Fixed and 2. Current: 2.1 Socks, 2.2 Debtors, 2.3 Cash.
Types of liabilities: 1. Current and 2. Long-term liabilities. Liabilities: 1) Bank overdraft, Creditor, Taxation, Dividends.

Primary statements of financial statements: 1) Balance sheet, 2) Profit and loss account, 3) Cash flow statement.

First past the post is the candidate with the most votes cast in an election is the winner, irrespective of the distribution of votes to other contenders.

Fiscal policy Government policy on taxation, public borrowing and public spending.

Fixed asset Any asset, tangible or intangible, acquired for retention by an entity for the purpose of providing a service to the business, and not held for resale in the normal course of trading.

Fixed budget is a budget which does not include any provision for the event that actual volume of production may differ from those budgeted.

Fixed cost/fixed overhead/period cost see Overheads/costs/expenses.

Flexibility Ability to respond to change, new circumstances etc.

Flexible budget is a budget which, by recognizing different cost behavior patterns, is designed to change as volume of output changes. A major problem with flexible budgeting is the identification of the variable component of different costs. This variable component must be 'flexed' to appropriate level, whereas the fixed component remains unchanged.

Floating exchange rates Exchange rates which are allowed to fluctuate according to demand and supply conditions in the foreign exchange markets.

fmcg Fast moving consumer goods, such as perishable foods, soap powder and so on.

Focus-group interviewing Personal interviewing which consists of inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues. (Philip Kotler)
Focus groups are useful in providing the researcher with qualitative data.

Advantages of group discussions: 1) Less intimidating environment, 2) Chain reaction of ideas and experiences, 3) Highlighted differences between consumers, 4) Easier to observe groups, 5) Highlighted social and cultural influences, 6) Social context, 7) Cheaper and faster than depth interviews.

Disadvantages of group discussions: 1) Not-equal possibilities for different members of group, 2) Some groups may take a life of their own, 3) Analysis and interpretation can be difficult.

Main positive aspects of focus groups: 1) The interaction between different participants, 2) The opportunity to observe through a one-way mirror, 3) The possibility of getting results fairly quickly.

Main negative aspects of focus groups: 1) Interaction can lead to one or more individuals dominating the discussion, 2) Observing the proceedings may lead to a manager jumping to conclusions and formulating strategy from a very small sample, 3) Recruiting representative samples can pose problems, 4) The moderator's style bias the findings.

Folkways Appropriate patterns of behavior, violation of which are noticeable, but not severely punished. (E.g. in the UK, shaking hands on greeting - where in France, say, kisses on both cheeks would be more appropriate.)

Forecast is a statistical synthesis of probabilities and expert opinion. Accounts relevant factors to yield the best answer - what is most likely to happen. This tends to dictate final decisions. Stands alone. Intended to be regarded as an authoritative statement. A means of removing much of responsibility for the final decision - managers tend to rely on the central forecast. Fundamentally quantitative.
Forecasts can be: 1) short-term (usually up to 3 months), 2) medium-term (normally covering 1 or 2 years) and 3) long-term (3 years plus).

Also see Scenario.

Forecasting is the identification of factors and quantification of their effect on an entity, as a basis for planning. Forecasting is a statistical synthesis of probabilities and expert opinion. Accounts relevant factors to yield the best answer - what is most likely to happen. This tends to dictate final decisions. Stands alone. Intended to be regarded as an authoritative statement. A means of removing much of responsibility for the final decision - managers tend to rely on the central forecast. Fundamentally quantitative.
Forecasting is important because, by predicting future sales, the company can estimate revenue and therefore plan production and human resources accordingly.

Forecasting approaches include quantitative (objective) and qualitative (subjective) estimates of the future.

Subjective (qualitative) methods are based on judgment and feelings and although they result in quantitative of future demand, they are known as qualitative methods.
Qualitative methods of forecast: 1) Expert opinion, 2) Delphi method, 3) Executive judgment, 4) Marketing research(Consumer/user survey), 5) Demand/hazard forecasting, 6) Decision trees (Two stages: (i) drawing the tree itself to show all the choices and outcomes, (ii) putting in values to allow quantitative forecasts), 7) Sales force composite, 8) Depth interview, 9) Historical analogy, 10) Cross impact analysis, 11) Multiple scenario, 12) Bayesian decision theory (part quantitative and part qualitative) and Survey of buying intentions.

Objective (quantitative) methods use mathematical techniques to predict the future using historical data.
Quantitative methods of forecast: 1. Time series analysis: 1.1 Exponential smoothing, 1.2 Moving averages, 1.3 Rolling forecast, 1.4 Z-charts, 1.5 Trend analysis, 1.6 Random factor analysis, 1.7 Sesonality, 1.8 Cycle analysis; 2. Casual techniques: 2.1 Leading indications, 2.2 Simulation.

Market forecast is a forecast of expected market demand.

Three parts of market forecasts:1) The economy, including a review of PEST, 2) Market research which is designed to acquire information on specific markets and estimate total demand for a product, 3) An evaluation of market demand for both the firm and competitor products which are regarded as substitutes.

Company forecast or Sales forecast is the expected level of sales for the company based on chosen marketing plan and an assumed marketing environment(Kotler).

Overstatement of forecasts can lead to: 1) High targets for the sales force which can be demoralizing if the sales team do not achieve the target, 2) An recession in the share price if the City loses confidence, 3) Excess stocks in the warehouse, 4) Take of extra staff to cope with the expected level of sales.

Understatement of forecast can lead to: 1) Competitors benefiting from the organization's lost sales, 2) An increase in the amount of overtime required and therefore higher salary costs, 3) An increase in bonus payments to sales people who exceed their targets.

Sales forecasting: 1) Time series model take historical data and project trends in to the future (moving averages, seasonal aspects, cyclical fluctuations), 2) Causal models e.g. sales could be said to be a function of relative price, complementary goods sales and advertising, 3) Qualitative methods rely on expert opinions to predict the future (explorative and normative).

Sales budgets are usually based on company forecasts for sales but may be adjusted to take a prudent/conservative view of the expected volume and value of sales.

The factors considered in sales forecasting: 1) Past sales patterns, 2) The economic environment, 3) Results of market research, 4) Anticipated advertising during the budget period, 5) Competition, 6) Changing consumer tastes, 7) New technology, 8) Distribution and quality of sales outlets and personnel, 9) Pricing policies and discounts offered, 10) Legislation, 11) Environmental factors.

Improving the accuracy of forecast: 1) Good, up-to-date internal data and marketing intelligence are needed; 2) Sales statistics should be available in a suitable format; 3) All the factors affecting sales should be understood by the people involved in the forecasting process; 4) Appropriate methods of forecasting should be used, whether quantitative or qualitative or a mixture of the two; 5) Any assumptions made (such as the rate of inflation, exchange rates, rate of adoption of a product, increase in a competitor's promotional activity and so on should be clearly stated so that if any of them change markedly, adjustments can easily be made; 6) Forecasts should be reviewed regularly and should take into account any new information; 7) An organization's own marketing strategy must be taken into account. Increased advertising, sales promotions or a new price list must be considered when making forecasts; 8) Research has shown that accuracy increases with the number of different methods used and it is worth combining quantitative methods (essentially extrapolations of past sales levels) with qualitative methods (based more on judgment and gut feeling)

The consequences of incorrect forecast:
1) High forecasts can lead to high targets for the sales force. 2) If the company is quoted on the Stock Exchange, the effect on the City of overstating the forecast and having to issue a profits warning may lead to a loss of confidence that could affect the share price, 3) Sales forecasts feed into production plans. Over optimistic forecasts can lead to excess socks sitting around in the warehouse. Not only does this tie up capital, it also increases the likelihood of damage and waste; 4) Extra staff may have been taken on in sales or production to cope with the expected level of sales. If this does not materialize, there may need to be redundancies which can be very demoralizing to the rest of the workforce; 5) Relationships with suppliers of materials could be disrupted and damaged if forecast levels are not met.

Also see Demand function

Formal goals Goals imposed by dominant individual or group. People work to achieve these goals in order to sacristy their own.

Formal organization Aspect of an organization denoting authority and responsibility; officially sanctioned structure of working relationships within the organization.

Franchise see Trading organizations.

Fraud Using misrepresentation to obtain an unjust advantage in the knowledge that it is untrue, without belief in its truth or recklessly, not caring whether it be true or false.

Free-trade area A multinational market that encourages the free flow of goods and services between member countries but does not provide for the free flow of labor and capital or impose uniform tariffs on imports. (Courtland L. Bovee, John V. Thill)

Freedom of contract Principle that parties may contract on the terms, which they choose.

Freewheeling opportunism Approach to strategy which eschews planning processes.

Freight absorption pricing A form of delivered pricing in which the seller agrees to return freight costs to the buyer in the form of a discount. (Courtland L. Bovee, John V. Thill)

Frequency The number of times the average person in the target market is exposed to an advertising message during a given period. (Philip Kotler)

Frustration Discharge of contract by some outside event which makes further performance impossible in the form anticipated.

Fulfillment is a term used to describe a range of different activities including handling customer complaints, taking orders, offering advice and providing service and dispatching goods.

Full cost plus pricing Method of determining the sales price by calculating the full cost of the product and adding a percentage mark-up for profit.

Full costing (Absorption costing) see Overheads/costs/expenses.

Full-cost approach An approach to cost analysis that allocates direct, traceable, and untraceable costs to various business functions. (Courtland L. Bovee, John V. Thill)

Functional authority Staff authority enforced impersonally through standards, or only in specified cases a hybrid of line and staff authority.

Functional discount A price reduction offered by the seller to trade channel members who perform certain functions such as selling, storing, and recordkeeping. (Philip Kotler)

Functional classification of costs is a group of costs that were all incurred for the same basic purpose.

Functional organization See Organization structure.

Functional strategy Strategically important decisions made at lower levels e.g. product pricing (Johnson and Scholes).

Functional/departmental budget is a budget of income and/or expenditure applicable to a particular function.