Byte Fraction is a term used in computing to refer to the smallest unit of data that can be processed by a computer. A byte fraction is composed of 8 bits, which is the smallest unit of information that can be stored or manipulated in a computer. A BIT is represented by either a 0 or 1, and a byte is composed of 8 bits. Byte fractions are used to store and manipulate data in computers, and are essential for the functioning of modern computers.