That's one of the many definitions we have for it, yes.
Plenty of people will disagree with it too.
Plenty of people will disagree with it too.
functions are invoked in an encapsulating way, and no state is kept between function-cup-up-segments-of-code, but there is a R.E.P.L that (replies) when you invoke a (parens) which is, in LISP-land known as a program.
However, now that I have mind-dumped that ^ I recall haskell and erlang also being called "functional" but I don't know their syntax any more than a chimpanzee knows that the sun is round.
Note that the above definition says nothing about how functions are to be evaluated: strictly, lazily, memoizing previously computed results, or using magic. No general-purpose programming paradigm can make such decisions for the programmer.