Glossary

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Firm

Economy Term

Firm is a term used in economics to refer to an organization that produces and sells goods and services. It can be further defined as any business entity or organization, whether for-profit or non-profit, that engages in economic activities to create value and generate revenue.

In the industry, firms play a critical role in creating products and services that satisfy the needs and wants of consumers. They are responsible for bringing goods and services to the market, conducting research and development to innovate new products and technologies, and utilizing resources to produce output efficiently.

Firms use various economic tools, such as marginal analysis, cost-benefit analysis, and production function, to make business decisions that maximize revenue and minimize costs. They also have to strategically manage their resources and finances to remain competitive and sustainable in the long run.

In addition to producing and selling goods and services, firms also provide employment opportunities and contribute to overall economic growth by generating income and taxes for governments. Thus, they are significant players in the industry and have a significant impact on the well-being of individuals, communities, and countries as a whole.

More Glossary Terms Beginning with F

Factory Inventories
inventories represent the value of the end-of-month stocks regardless of stage of fabrication (whether in the form of purchased materials and supplies, work in process, or finished goods). These inventories are valued at cost using any valuation method other than LIFO. Inventories associated with the non-manufacturing activities of your company are excluded.

Economy Term Letter: F
Factory New Orders
A new order is a communication of an intention to buy for immediate or future delivery. Orders data are not collected from industries that have mostly immediate deliveries.

Economy Term Letter: F
Factory Shipments
Manufacturers? shipments measure the dollar value of products sold by manufacturing establishments and are based on net selling values, f.o.b. (free on board) plant, after discounts and allowances are excluded. Freight charges and excise taxes are excluded. Where the products of an industry are customarily delivered to distributors or consumers by the manufacturing establishment (such as in certai

Economy Term Letter: F
Factory Unfilled Orders
Generally, unfilled orders at the end of an accounting period are equal to unfilled orders at the beginning of the period, plus new orders net of cancellations received during the period, less net sales. This includes orders that have not yet passed through the sales account and funded orders (or portions of orders) for which the value of work done has not been reported as sales.

Economy Term Letter: F
Facultative Reinsurance
The reinsurance of all or a portion of the insurance provided by a single policy. Each policy reinsured is separately negotiated.

Insurance Term Letter: F
Fair Access to Insurance Requirements FAIR Plan
The reinsurance of all or a portion of the insurance provided by a single policy. Each policy reinsured is separately negotiated.

Insurance Term Letter: F
Fair Value
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Financial Term Letter: F
Fair Value Hedge
A derivative instrument designated in a hedging relationship that mitigates exposure to changes in the fair value of a recognized asset or liability or a firm commitment.

Financial Term Letter: F
Fannie Mae
Federal National Mortgage Association

Financial Term Letter: F
FASB
Financial Accounting Standards Board.

Financial Term Letter: F
Fast Track
Fast track designation is granted to expedite the review process of applications for approval of new drugs intended to treat serious or life-threatening conditions where potential to address an unmet medical need is demonstrated.

Health Care Term Letter: F
FDA Food and Drug Administration
The Food and Drug Administration of the United States, which, among other functions, regulates medical devices and other therapeutic products used in the United States. The U.S. FDA ensures that medicines, medical devices, and radiation-emitting consumer products are safe and effective. Authorized by Congress to enforce the Federal Food, Drug, and Cosmetic Act and several other public health laws,

Health Care Term Letter: F

More in this Category

Advance monthly sales
The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey (MARTS) to provide an early estimate of monthly sales by kind of business for retail and food service firms located in the United States. Each month, questionnaires are mailed to a probability sample of approximately 5,000 employer firms selected from the larger Monthly Retail Trade Survey (MRTS). Firms respo

Economy Term
Affiliate
means with respect to any entity, an entity that is controlled by a other company although the other company owns less than a majority of the other entity.

Economy Term
Agents and Brokers
Persons or organizations that act as a representative for others in negotiating contracts, purchases, or sales. Agents and brokers typically earn a commission or fee for their services and do not take possession of, or title to, any goods.

Economy Term
ARPU
Average revenue per user

Economy Term
Balance of payments
Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).

Economy Term
Balance on current account
Current receipts from the rest of the world less current payments to the rest of the world, formerly called "net foreign investment." Current receipts equal exports of goods and services plus income receipts from the rest of the world; current payments are the sum of imports of goods and services, income payments to the rest of the world, and current taxes and transfer payments to the rest of the

Economy Term
Balance on goods and services
Record of the difference between exports of goods and services and imports of goods and services. In the broad sense, this balance is conceptually equal to net exports of goods and services, which is a component of gross domestic product (GDP).

Economy Term
Bonded Warehouses Manufacturing
Warehouses that are authorized by the United States Customs for storage or manufacturing of goods on which payment of duties is deferred until the goods are removed into Customs Territory. These goods are not subject to duties if reshipped to foreign points.

Economy Term
Brokers
Persons or organizations that act as a representative for others in negotiating contracts, purchases, or sales. Agents and brokers typically earn a commission or fee for their services and do not take possession of, or title to, any goods.

Economy Term
Business sector
All corporate and noncorporate private entities organized for profit and certain other entities that are treated as businesses in the national income and product accounts (NIPAs), including mutual financial institutions, private noninsured pension funds, cooperatives, nonprofit organizations that primarily serve businesses, Federal Reserve banks, federally sponsored credit agencies, and government

Economy Term
CE-marked
A compliance symbol indicating that a product meets the requirements of the European Union (EU) directives that apply to that product. CE stands for Conformit?e Europ?enne, which means European Conformity.

Economy Term
CFTC Commodity Futures Trading Commission
Commodity Futures Trading Commission, an independent agency with the mandate to regulate commodity futures and option markets in the United States.

Economy Term