1 [fak-shuhn]
a group or clique within a larger group, party, government, organization, or the like: a faction in favor of big business.
party strife and intrigue; dissension: an era of faction and treason.

1500–10; < Latin factiōn- (stem of factiō) a doing, company, equivalent to fact(us) done (see fact) + -iōn- -ion

2. discord, disagreement, schism, split, friction.
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2 [fak-shuhn]
noun Informal.
a form of writing or filmmaking that treats real people or events as if they were fictional or uses them as an integral part of a fictional account.
a novel, film, play, or other presentation in this form.

1965–70; blend of fact and fiction

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Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
faction1 (ˈfækʃən)
1.  a group of people forming a minority within a larger body, esp a dissentious group
2.  strife or dissension within a group
[C16: from Latin factiō a making, from facere to make, do]

faction2 (ˈfækʃən)
a television programme, film, or literary work comprising a dramatized presentation of actual events
[C20: a blend of fact and fiction]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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Word Origin & History

c.1500, from L. factionem (nom. factio) "political party, class of persons," lit. "a making or doing," from facere "to do" (see factitious). In ancient Rome, "one of the companies of contractors for the chariot races in the circus."
Online Etymology Dictionary, © 2010 Douglas Harper
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American Heritage
Cultural Dictionary

faction definition

A group formed to seek some goal within a political party or a government. The term suggests quarrelsome dissent from the course pursued by the party or government majority: “His administration is moderate, but it contains a faction of extremists.”

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Example sentences
There are other forms of freezing out, bullying, and creating factions.
The first is that he has severely disabled the system of factions which had
  long run the party.
Showing favoritism in your decision making will almost certainly create
  factions in the department.
Of course, you're in an area where there are many armed factions floating
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