Glossary

The meaning and elements of fraud vary by jurisdiction and by the specific type of alleged fraud. However, in general, fraud is the intentional use of deceit, trick or dishonest means to secure an unfair or unlawful gain, or to deprive another of his or her (or its) money, property or legal right.

The fraud triangle describes the three factors that are commonly found in instances of fraud. The three factors of the fraud triangle are opportunity, motivation and rationalization.

In simple terms, a fraudulent conveyance (or fraudulent transfer) is a transfer of property made, or a debt incurred, with the actual intent to defraud creditors (i.e., an actual fraudulent transfer) or by an insolvent company for less than reasonably equivalent value (i.e., a constructively fraudulent transfer).

A measure of financial performance that shows how much cash a business generates after accounting for capital expenditures, which is a fundamental basis for stock pricing.

The initials FOB stand for either "free on board" or "freight on board." Either way, it has the same definition. When using the term in business, buyers and sellers attach FOB to the beginning of a location to show the point at which freight changes hands from seller to buyer. 

A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.  This is particularly important in the valuation of inventory in ABL facilities.