What is Freudian Motivation Theory? Freudian motivation theory posits that unconscious psychological forces, such as hidden desires and motives, shape an individual’s behavior, like their purchasing patterns. This theory was developed by Sigmund Freud who, in addition to being a medical doctor, is synonymous with the field of psychoanalysis. Key Takeaways Freudian motivation theory posits
What Is Frictional Unemployment? Frictional unemployment occurs with voluntary employment transitions within an economy. As workers choose to move from one job to another and new workers enter the workforce for the first time, a temporary period of unemployment is created. Frictional unemployment can be evident in a growing, stable economy and is regarded as
What Is Friction Cost? Friction cost is the total direct and indirect costs associated with the execution of a financial transaction. The friction cost comprehensively takes into consideration all of the costs associated with a transaction. Calculating the friction cost provides an investor with a full range of expected costs they can expect to incur.
Friedrich Engels was a German philosopher, writer, and social scientist during the 19th century. Known for his collaboration with Karl Marx, Friedrich Engels helped define modern communism. Friedrich Engels is the co-author of The Communist Manifesto, an 1848 pamphlet regarded as one of the world’s most influential political documents. Engels died on Aug. 5, 1895
Friedrich Hayek was a famous economist, well-known for his numerous contributions to the field of economics and political philosophy. Hayek’s approach mostly stems from the Austrian school of economics and emphasizes the limited nature of knowledge. He is particularly famous for his defense of free-market capitalism and is remembered as one of the greatest critics of
What Is a Friendly Takeover? A friendly takeover is the act of a target company’s management and board of directors agreeing to be absorbed by an acquiring company. Key Takeaways A friendly takeover is a scenario in which a target company is willingly acquired by another company.Friendly takeovers are subject to approval by the target
What Are Fringe Benefits? Fringe benefits are additions to compensation that companies give their employees. Some fringe benefits are given universally to all employees of a company while others may be offered only to those at executive levels. Some benefits are awarded to compensate employees for costs related to their work while others are geared to
What Is the Front-End Debt-to-Income (DTI) Ratio? The front-end debt-to-income (DTI) ratio is a variation of the DTI that calculates how much of a person’s gross income is going toward housing costs. If a homeowner has a mortgage, the front-end DTI is typically calculated as housing expenses (such as mortgage payments, mortgage insurance, etc.) divided by gross
What Is a Front-End Load? A front-end load is a commission or sales charge applied at the time of the initial purchase of an investment. The term most often applies to mutual fund investments, but may also apply to insurance policies or annuities. The front-end load is deducted from the initial deposit, or purchase funds
What Is a Front Fee? The front fee is the option premium paid by an investor upon the initial purchase of a compound option. A compound option is one where the underlying asset is also an option; it is an option on an option. The front fee gives the investor the right, but not the
