1. **State the problem:** Reduce the improper fraction $\frac{14}{12}$ to its lowest terms. 2. **Formula and rules:** To reduce a fraction, divide the numerator and denominator by their greatest common divisor (GCD). 3. **Find the GCD of 14 and 12:** - Factors of 14: 1, 2, 7, 14 - Factors of 12: 1, 2, 3, 4, 6, 12 - Common factors: 1, 2 - Greatest common factor is $2$. 4. **Divide numerator and denominator by the GCD:** $$\frac{14}{12} = \frac{\cancel{2} \times 7}{\cancel{2} \times 6}$$ 5. **Simplify the fraction:** $$= \frac{7}{6}$$ 6. **Final answer:** The fraction $\frac{14}{12}$ reduced to lowest terms is $\frac{7}{6}$.