BUSINESS TURMS “F to J “

F

Face Value: The value stated on the face of a security or insurance policy. This is the value on maturity or death.


Factor: A merchant who buys and sells on commission the goods if the bill drawn is not honored.


Free on Board (F.O.B.): It means that the sale price covers all charges, including delivery of goods free on board, truck, car or vessel at a designated point, either at the origin or the destination of a shipment.


Free on Rail (F.O.R.): It means all expenses up to loading of goods in rail will be borne by the seller.


Fraud: Securing consent to a contract by misrepresentation made with knowledge or by trick.

G

Goodwill: Value of a firm’s reputation.


Gilt-edged Securities: Stock on which interest is not only safe but also sufficiently high.


Grace Period: Any period beyond due date granted to a debtor by a creditor.


Gross Profit: Total allocable receipts of a period’s operations less the cost of the goods sold, before allowing for operating expenses and income tax.

H

Hire-purchase: A system for the purchase of goods, by which they are obtained on hire and each payment, is also treated as a past payment of purchases.


Hypothecation: Means Pledging of goods or a shop.

I

Imports: Commodities or services brought from foreign countries.

Impost: A tax, particular used to describe import duties.

Indent: An indent is an order for the goods. In large storehouses/factories workshops, etc., it is also used as a requisition for stores.

Indemnity: Security against damage or loss.

Indorsee: One to whom an instrument is transferred by endorsement.

Inland Bill: A bill of exchange drawn and payable within the country.

Inter Alia: Among other things.

J

Jerquer: Customs official who searches ships for dutiable articles. He also checks ship’s papers relating to imported goods.

Jettison: The throwing overboard a ship of goods etc., on account of bad weather or enemy action, etc. The owner of the property is sacrificed, for the preservation of the whole, has a claim upon the owners of the property preserved, who are bound to share his loss with him.

Jury: A body of person chosen and sworn to hear and pass verdict upon evidence brought forward in a trail, inquest or inquiry.