UNIVERSITY ESSENTIALS

- STUDENTS:
full-time student = redovni student
part-time student = izvanredni student
first-year student (freshman) = brucoš
second-year student (sophomore) = student druge godine
third-year student (junior) = student treće godine
senior student = student zadnje godine
undergraduate student = student preddiplomskog studija
graduate student = diplomirani student
postgraduate student = postdiplomski student (MA/PhD)
study programme = studij
to major in = diplomirati na smjeru
to graduate from = diplomirati na fakultetu
She is a major/majored in Finance. = Diplomirala je na smjeru financija.
She graduated from the Faculty of Economics and Business in Finance. = Diplomirala je na Ekonomskom
fakultetu u Zagrebu, smjer Financije.
- ORGANIZATION:
The Faculty of Economics and Business = Ekonomski fakultet  Dean (dekan) and Vice-Dean (prodekan)
The University of Zagreb = Sveučilište u Zagrebu  Rector/Vice-Chancellor (rektor)
Department (e.g. of Accounting) = katedra (pr. za računovodstvo)  Head of Department (pročelnik katedre)
Student Administration Office = referada
- FACULTY (TEACHING STAFF):
professor (teacher) = nastavnici
lecturers = predavač
assistants = asistent
assistant lecturer/teaching assistant = asistent
assistant professor = docent
associate professor = izvanredni profesor
full professor = redovni profesor
senior lecturer = viši predavač
- COURSES:
core course (primary; pr. Osnove ekonomije) ≠ non-core course (secondary; pr. Business English)
compulsory (mandatory, obligatory) course ≠ elective (optional) course
curriculum (pl. curricula) = nastavni program
syllabus (pl. syllabi) = program predmeta (nastavni plan)
course = predmet (kolegij)
to take a course in ≈ to attend a course in = pohađati predmet iz
to enrol on a course = upisati predmet
to participate in classes = sudjelovati u nastavi
enrolment = upis
class attendance = pohađanje nastave
class participation = sudjelovanje na nastavi
lectures = predavanja
seminars = seminari
tutorials = konzultacije
practicals = vježbe (praktikum)
required literature = obavezna literatura
He read (studied) History at Oxford. = Studirao je povijest na Oxfordu.
- PAPERS AND EXAMINATION:
written exam ≠ oral exam
final (comprehensive) exam = završni ispit
mid-term (preliminary) exam = kolokvij
progress test = test „napretka“; provjera znanja u svrhu procjene nastavnog programa
pop quiz = nenajavljena provjera znanja
to sign up for an exam ≈ to apply for an exam = prijaviti se na ispit
to take an exam = pisati ispit
to retake the exam = ponovno pisati ispit
to pass an exam = proći ispit
to fail an exam = pasti ispit
(seminar) paper = (seminarski) rad
to write a paper on (monetary policy) = pisati rad o (monetarnoj politici)
to submit a paper ≈ to hand in a paper = predati rad
to correct a paper = ispraviti rad
to grade a paper ≈ to mark a paper = ocijeniti rad
grades ≈ marks = ocjene
- ACADEMIC DEGREES:
Bachelor's degree (first degree)  Bachelor of Arts (BA) = humanističke znanosti ≠ Bachelor of Science (BSc)
= STEM; baccalaureus (prvostupnik)
Master's degree (second degree)  Master of Arts (MA) ≠ Master of Science (MSc); magistar
Doctor's (doctoral) degree, doctorate  Doctor of Philosophy (PhD)
She is a Bachelor of Economics. ≈ She has a BA in Economics.
She is a Master of Business Administration (MBA). ≈ She has a Master's degree in Business Administration.
She holds a Doctor's degree. ≈ She has received his PhD from the University of Zagreb.
- CHOOSING THE RIGHT SCHOOL:
to apply for college = prijaviti se na fakultet
Grade Point Average (GPA) = prosjek ocjena
acceptance rate = upisna kvota
university = sveučilište, fakultet
extra-curricular activities = izvannastavne aktivnosti
campus = kampus; kompleks sveučilišta
private school ≠ public school
tuition fee = školarina
scholarship = stipendija
government grant (državna potpora) = a financial award given by the federal, state or local government to an
eligible grantee
financial aid (financijska pomoć) = money that is given or lent to students at a university or college who cannot
pay the full cost of their education
student loan = studentski kredit
major (main subject) ≠ minor (additional subject)
student-faculty ratio = omjer studenata i nastavnika na određenom fakultetu
senior staff (the managers, or the most important managers, in an organization, rather than ordinary employees)
≠ junior staff (ordinary employees or those with less important jobs in an organization, rather than managers)
courses marked via exams ≠ courses marked via course work
letter of reference = pismo preporuke
high-school transcript = svjedodžba
associate's degree = a degree from a two-year college, such as a community college
application form = obrazac za prijavu
room and board (krevet i pansion) = a room to sleep in and food
work-study (adj.) = of or relating to a college program that enables students to work part-time while attending
school
Ivy League = connected with a group of eight traditional universities in the eastern US with high academic
standards and a high social status
credit (bod koji određeni predmet nosi) = the acknowledgment of a student's completion of a course that counts
toward a degree or diploma as maintained in a school's records
MEETING
chairperson (predsjedavajući) = the person in charge of a meeting, who tells people when they can speak, opens
the meeting, introduces objectives, controls time and agenda, summarises, gives conclusion
participants/ attendees (sudionici) = they take part in discussion; give and seek opinions, (dis)agree, interrupt,
comment, suggest…, give mini-presentations
secretary (tajnica) = this person records names of the participants, topics discussed (items of the agenda),
arguments in favour and against (pros & cons), decisions made, voting details, action points (who, what, when),
date, place, time of the next meeting and distributes the minutes
to chair (predsjedavati) = to run the meeting
venue = mjesto održavanja sastanka
agenda (dnevni red) = a list of subjects to be discussed in a meeting
items (“točke”) = topics on the agenda
A.O.B. (razno) = Any Other Business; last item on the agenda
to send an apology = poslati ispriku
minutes (zapisnik) = a written record of what is said in a meeting
minute-taker = zapisničar
to appoint a minute-taker = odrediti zapisničara
to take minutes = pisati zapisnik
action points = a specific proposal for action to be taken; who has to do what and by when
to call/arrange/schedule a meeting = sazvati sastanak
to hold a meeting = održati sastanak
to cancel a meeting = otkazati sastanak
to postpone/put off/delay a meeting = odgoditi sastanak
to put forward a meeting = pomaknuti sastanak ranije
to reschedule a meeting = promijeniti (ponovno dogovoriti) vrijeme sastanka
to attend/be in a meeting = biti na sastanku/ići na sastanak
to chair/moderate/run a meeting = voditi sastanak
to close a meeting = zaključiti sastanak
at short notice = u kratkom roku
objective (purpose) = svrha
to discuss a proposal = raspraviti prijedlog
to reach/make a decision = donijeti odluku
without further ado = bez daljnjega
to open up a meeting = započeti sastanak
view (opinion) = mišljenje, stav
to sum up/summarize/recap = sažeti, rekapitulirati
to put sth to a vote = glasovati
those in favour/against = oni koji su za/protiv
Chairperson: Madam Chair, Chairwoman, Chairman, Mr Chair, Chair
tight agenda = tijesan dnevni red; a lot of subjects to go through
to get down to business = krenuti na posao
to deal with = baviti se
agreement (consensus) = general agreement

ECONOMICS AND ECONOMY

economics (ekonomija) = the study of the way in which wealth is produced and used
economy (ekonomija, gospodarsto, ekonomični)
1. (noun) the system by which a country's goods and services are produced and used
2. (noun) the careful use of money, goods, time… so that nothing is wasted
3. (noun) a way of spending less money, the intentional saving of money, or less commonly the saving of
time, energy, words…
4. (adjective) an economy fare, hotel… is cheaper than other things of the same type
5. (adjective) an economy sized product or packet contains more than a normal one and is cheap
compared to the normal sized product
economist (ekonomist) = someone who studies the way in which wealth is produced and used in an area
economic (ekonomski, gospodarski)
1. (adjective) having to do with the production, distribution and consumption of wealth and income
2. (adjective) relating to the science of economics, or to commerce and industry
economical (ekonomičan) = using time, money, goods… carefully, without wasting
to economise (štedjeti) = to reduce the amount of time, money, goods… that you use ≈ to make economies
economies of scale (ekonomija razmjera) = the advantages that a big factory, shop… has over a smaller one
because it can spread its fixed costs over a large number of units and therefore produce or sell things more
cheaply
to achieve the economy = uštedjeti
economics: Keynesian, theoretical, classical, applied
economy: booming, healthy, fragile, global, black, international
resources = resursi; e.g. wood, iron, fish…
to allocate = raspodijeliti, alocirati
consumption = potrošnja
manufacturing = proizvodnja
commodity = roba, dobra
tax = porez
trade (exchange) = trgovina
scarcity = oskudnost
scarce = oskudan, rijedak
income = prihod, dohodak
abundant = kojeg ima u izobilju
affluence = izobilje
supply (ponuda) ≠ demand (potražnja)
issue („stvar“) = an important topic that people are discussing or arguing about
to affect (utjecati na) = to have an influence on something
infinite (beskonačan) = impossible to measure, very great
a head start (prednost) = an advantage that somebody already has before they start doing something
assumption (pretpostavka) = a belief or feeling that something is true/ that something will happen, although
there is no proof
to arise (izniknuti, pojaviti se) = to happen, to start to exist, to occur
captive (zarobljen) = kept as a prisoner; unable to escape
occupation = zanimanje
economic growth = gospodarski rast
probability = vjerojatnost
wages = nadnice, plaće
income distribution = raspodjela (distribucija) dohotka
econometrics (ekonometrija) = the branch of economics concerned with the use of mathematical methods
(especially statistics) in describing economic systems
foreign trade (vanjska trgovina) ≠ domestic trade (domaća trgovina)
workforce = radna snaga
economic analysis (ekonomska analiza) = the study of economic systems which involves assessing or
examining topics or issues from an economist’s perspective
scarce resources = oskudni resursi
household = kućanstvo
scientific approach = znanstveni pristup
to have the dice loaded against you = to be out of control, facing uncertainty and risk
to invest the nest egg = to use your savings to increase your wealth
to have a square meal = to eat properly at least once a day
to run up against sth = to experience difficulty

THE DIFFERENT SECTORS OF THE ECONOMY

- PRIMARY SECTOR:
 extracting of raw materials and natural resources; harvesting products from the earth (raw materials, basic
foods)
AGRICULTURE = subsistence (growing enough only to live on, not to sell) and commercial (intensive
farming and large production which is only done to sell and earn profit)
 mining (rudarstvo), forestry (šumarstvo), farming (uzgoj), harvesting (žetva), grazing (ispaša), hunting and
gathering (lov i sakupljanje), drilling oil (vađenje nafte), fishing (ribolov), quarrying (mining stone/ores;
vađenje kamena/ruda) + packaging and processing of raw materials
- SECONDARY SECTOR:
 transformation of raw materials into part-finished (e.g. car seat) or finished goods (e.g. car)
 manufacturing, processing, construction (making plastics from oil, producing smartphones, building
bridges..); building, making machines for industry, making products for consumers
capital goods (kapitalna dobra) = sold to other producers (e.g. planks for furniture) or goods that provide a
service to a manufacturer (e.g. delivery van); goods that are used in producing other goods, rather than being
bought by consumers
consumer goods (roba široke potrošnje) = sold to the final consumer  consumables (a commodity that is
intended to be used up relatively quickly, used up when consumed; e.g. bread) and consumer durables (goods
which are expected to last for a long time after they have been bought; e.g. car)
- industries (examples):
automotive (automobilska) = a company which makes trucks
construction (građevinska) = a company which builds houses
consumer electronics (potrošačka elektronika) = a company which makes TVs
financial services (financijske usluge) = a company which sells investment advice
confectionery (konditorska) = a company which makes chocolate
software = a company which writes computer programmes
telecommunications = a company which makes mobile phones
media = a newspaper publisher
pharmaceuticals (farmaceutska) = a company which makes aspirin
beverages (pića) = a company which makes beer
textiles (tekstilna) = a company which makes men's suits
toiletries (toaletne potrepštine, kozmetika) = a company which makes schampoo
real estate (nekretnine) = a property company
transport = an airline
utilities (komunalne usluge) = a company which distributes electricity
household goods (proizvodi za domaćinstvo) = a company which makes washing machines
retail (maloprodaja) = a supermarket chain ≠ wholesale (veleprodaja)
fast food = a company which sells hamburgers
catering (ugostiteljstvo) = a restaurant chain
defence = a company which makes fighter planes
e-commerce (e-prodaja) = a company which sells things over the Internet
tourism = a company which sells package holidays
extractive = a company which mines diamonds
- TERTIARY SECTOR:
 service industry
services  intangible (nematerijalne)
- provides services to:
1. businesses = commercial services  help them in the production or distribution of goods
2. consumers = direct services  provided to them (e.g. hairdressers, waiters, nurses…)
3. both = e.g. banking, insurance
 transportation, retail and wholesale sales, media, tourism, law, restaurants…
- THE QUATERNARY SECTOR:
 information services
 „knowledge based“
 intellectual activities; technological inovations
 government, culture, libraries, scientific research, education, information technology (IT) => drivers of
technological advancement
- THE QUINARY SECTOR:
 human services
 highest level of decision making in a society
 government, science, universities, nonprofits (police, fire department), health care, culture, and the media

PRIMARY: agriculture (tomatoes)  SECONDARY: food factory (tomato sauce)  TERTIARY:

supermarkets or restaurants (pizza) + QUATERNARY: IT, R&D (research and development)
employment structure = shows how the labour force is divided between various sectors
 rich countries = more people employed in the tertiary and quaternary sector
 poor countries = more people employed in primary and secondary sector
advanced society = napredno društvo
to provide a service = pružiti uslugu
developed countries = razvijene zemlje
developing countries = zemlje u razvoju

THE THREE TYPES OF ECONOMIC SYSTEMS

- PLANNED ECONOMY:
 command/socialist economy
 vital role: government - they plan, coordinate and organize the whole production
 resources are owned by the state
 goods and services are distributed to consumers by the state
 downsides: production of standardized goods (little variety or choice), people tend to be less motivated to
work efficiently, lower standard of living
 advantages: more equal distribution of wealth and income, the aim is not profit but need
 examples: socialist economy (in the past: the Soviet Union, Poland, Yugoslavia…), today: China, Cuba…,
but they are changing and starting to rely more on market forces
- MARKET ECONOMY:
 capitalist/free market economy
 resources are allocated automatically by the forces of demand and supply (market mechanism)
 competition = lower costs, wider choice of goods and services, better quality
 the role of the government is limited = passing laws, providing some essential goods and services (police,
national defence, judiciary), ensuring a level playing field (fair competition/rivalry)
 downsides: imperfections can occur, some goods and services are not provided by private firms (e.g.
defence), private firms are not interested in services that don't make a profit, sometimes public interest is not
the focus of firms, but profit
- MIXED ECONOMY:
 in reality no country has entirely market or planned economy, most countries have a mixture of both
 public sector: owned by the government (passes laws, provides essential services; army, police, justice,
ensures fair competition in the private sector + regulates the market), provides some public goods and services
(decided by central or local government), public goods provided free (paid by taxes)
 private sector: resources allocated by the market (market mechanism), production decisions made by firms
in response to the demands of consumers, means of production are owned by businesses and individuals
 welfare states (države blagostanja, socijalne države) = countries with mixed economy where the private
sector operates on the basis of the market mechanism but where the government provides a minimum standard
of living for everyone through the public sector (pensions, health care, elementary education, unemployment
benefits and other help for the poor)
scarce (oskudan) ≠ plentiful, abundant (obilan, izdašan)
allocation = raspodjela
market regulation = regulacija tržišta
means of production = sredstva za proizvodnju
economic system = gospodarski sustav
standard of living = životni standard
limited resources = ograničeni resursi
unlimited wants/needs = neograničene želje/potrebe
basic economic problem = osnovni gospodarski problem
standardized goods = standardizirana roba
THE PUBLIC SECTOR
- companies and organizations are owned and controlled by the government
- funded mostly by taxes collected from all the citizens and sometimes by their own income
- it provides goods and services that are generally free of charge (public goods)
- types of companies and organizations in the public sector:
1. PUBLIC CORPORATIONS/STATE-OWNED ENTERPRISES (tvrtke pod vlasništvom javnosti)
 e.g. HRT, HEP, HOLDING, Podravka…
 paid by: taxes + their own income
 public utilities (e.g. electricity, national television, public transport…) + purely commercial products
 owned by central or local government
 has a Board od Directors (day-to-day control)  report to ministers in charge  ministers report to the
Parliament
2. CENTRAL GOVERNMENT DEPARTMENTS OR MINISTRIES, GOVERNMENT AGENCIES,
INSTITUTIONS…
 national health, education, defence, police, judiciary…
 various services, for free, financed from taxation
3. LOCAL AUTHORITY SERVICES
 e.g. municipal services: cemeteries, street cleaning, waste dump, car parks, street lighting, fire
protection, recreation facilities, theaters, museums, airports…
 financed from taxation
- public goods (javna dobra) = a product that one individual can consume without reducing its availability to
another individual and from which no one is excluded
 non-rival = consuption by one consumer does not reduce the quantity available to other consumers
 non-excludable = once provided, anybody can use them
 private sector doesn't provide them because there is no way to charge for their usage
- merit goods (meritorna dobra) = goods and services provided by the public sector whose concept is based on
the idea that people wouldn't buy enough of them if they were provided by the free market
 services that may not be available to all individuals if not provided by the state; some people would not have
enough money to buy them (e.g. expensive health insurance), would be affordable only to rich people
 state thinks they are good for an individual, a society as a whole (e.g. vaccination)
 e.g. education, health care, libraries, vaccination, work training programs…
 both public and merit goods increase the well-being of the society, raise society's standard of living and
increase economic growth
- ADVANTAGES: essential for social welfare (socijalna skrb); uneconomic for private businesses, national
security (e.g. atomic energy), government has resources to fund a vast industry, even if uneconomic, provision
for essential services, profits benefit the whole nation
- DISADVANTAGES: often less efficient, bosses are politicians (lack of business expertise), local issues may
be disregarded in favour of policies of national importance, taxpayers pay for losses
- PRIVATE SECTOR:
 individuals and businesses own businesses
 main aim: profit
 in the majority of free-market economies, most companies are in the private sector
 ADVANTAGES: provide most jobs, contribute taxes, increase the well-being of the society as a whole
- M. Friedman:
 small role of the government
 government intervention limits our economic and human freedom
 market alone is sufficient for the functioning of the economy
- J.K. Galbraith:
 government has a public responsibility to all citizens because it ensures long-term economic growth
 market is insufficient because of interest in short-run returns
 government helps market work better (avoiding market failure)
to own companies = biti vlasnik tvrtki
to make a profit = zaraditi
to increase well-being = povećati dobrobit
to collect taxes = ubirati poreze
to provide services = pružiti usluge
to raise standard of living = podići životni standard
to increase economic growth = povećati gospodarski rast
free of charge = besplatno
social security/welfare (socijalna skrb) = money that the government pays regularly to people who are poor,
unemployed, sick, etc.
Social Security (socijalno osiguranje) = a system in which people pay money regularly to the government when
they are working and receive payments from the government when they are unable to work, especially when
they are sick or too old to work
urban planning = „urbanizam“
health insurance = zdravstveno osiguranje
nationalized industries (nacionalizirane industrije) = companies previously owned by private owners which
were taken into public ownership
government departments = vladin odjel
local authority services = službe lokalnih vlasti
to pass laws = donositi zakone
to enforce laws = provoditi zakone
to manage = upravljati
license fee = naknada za licencu (dozvolu)
cooperation = suradnja
to subsidize (subvencionirati) = support (an organization or activity) financially
(positive) externalities (eksternalije) = a consequence of an industrial or commercial activity which affects other
people or things without this being reflected in market prices
social benefit ≠ private benefit
provision = opskrba
inclusion (v. to include) = uključenje, ubrajanje ≠ exclusion (v. to exclude) = isključenje
reduction = smanjenje

TAXATION (oporezivanje)
- we pay taxes so the public sector can use that money to provide various services for citizens
- it is compulsory to pay taxes
- we pay taxes to state revenue (državni prihod)
- the government (tax authorities) levies taxes
- taxes can be on workers' income, business profits, added to cost of goods…
revenue ≈ income = prihod
profit ≈ income = dobit
tax authorities = porezna uprava
to levy (collect) taxes = ubirati poreze
to levy sth on sb/sth = to use official authority to demand and collect a payment, tax, etc.
to impose taxes = nametnuti poreze
to reduce (decrease)/increase taxes = smanjiti/povećati poreze
to evade taxes = izbjegavati plaćanje poreza
to file a tax return = zatražiti povrat poreza
to fill in a tax return = ispuniti poreznu prijavu (za povrat poreza)
to provide a tax relief = pružiti/osigurati poreznu olakšicu
to exploit a loophole = iskorištavati rupu u zakonu
to be exempt from = biti oslobođen/izuzet; pr. Some products are exempt from VAT.
cost of goods = cijena robe
tax = a compulsory contribution to state revenue, levied by the government on workers' income and business
profits, or added to the cost of some goods, services and transactions
- taxation raises revenue for government spending and redistributes income (decreases inequalities in the
distribution of income and wealth)
- CONSEQUENCES: affects prices, reduces the level of disposable income (raspoloživ dohodak), reduces the
ability to save, may affect businesses
- types of taxes:
income tax (porez na dobit (U.S.)/dohodak) = on wages and salaries
inheritance tax (porez na nasljedstvo) = on gifts to family members over a certain value
capital gains tax (porez na kapitalni dobitak) = on profits made by selling assets (imovina)
value-added tax (VAT) (porez na dodatnu vrijednost; PDV) = tax collected at each stage of production,
excluding the already-taxed costs from previous stages
wealth tax (porez na bogatstvo) = on people's fortunes
- direct vs. indirect taxes:
direct taxes = imposed and collected on a specific group of people or organizations (e.g. income taxes – people
who actually earn their income have to pay taxes on it)
indirect taxes = from someone or some organization other than the person or entity that would normally be
responsible for the taxes (e.g. VAT – the money is collected from merchants (trgovci), not from the people who
actually pay the tax (consumers))
- tax assessment (razrezivanje poreza):
progressive tax = the more a taxpayer earns, the higher percentage/taxes they pay (e.g. income tax of 10, 15,
20%)
proportional (flat) tax = all the taxpayers pay the same percentage regardless of their income or wealth (e.g.
income tax of 10%)
regressive tax = taxpayers with low incomes pay a higher amount of that income in taxes compared to high-
income earners (e.g. percentage of the item being purchased; sales tax = porez na promet)
tax evasion (utaja poreza) = an illegal practice where a person, organization or corporation intentionally avoids
paying their true tax liability (porezna obveza)
tax avoidance (izbjegavanje poreza) = the use of legal methods to modify an individual's financial situation to
lower the amount of income tax owned
creative accounting (kreativno računovodstvo) = accounting practices that follow laws and regulations, but
deviate from what those standards intend to accomplish
loophole (rupa u zakonu) = a technicality that allows a person or business to avoid a scope of a law or
restriction without directly violating the law
tax havens (porezna utočišta) = a country that offers foreign individuals and businesses a minimal tax liability,
with little or no financial information shared with foreign tax authorities (e.g. Cayman Islands)
public spending (javna potrošnja) = money expended by a government to pay for defence, development
projects, education, health, infrastructure, law and order maintenance…
budget deficit (proračunski deficit) = amount by which actual expenses exceed planned expenses
≠ budget surplus (višak proračuna) = amount by which planned expenses exceed actual expenses
default = neispunjenje ugovorne obveze
to secure a bailout = osigurati spašavanje
stringent austerity plan = plan stroge štednje
shadow economy (siva ekonomija) = all work activity and business transaction that occur ‘below the radar’ –
economic activity that is undeclared and for which taxes that should be paid are not
to enforce the law = provesti zakon
fraud = prevara
loopholes and exemptions = rupe u zakonu i iznimke
to underreport sb's income = prijaviti manji porez od stvarnoga
tax evader = utajivač poreza
tax evasion = utaja poreza
tax compliance = pridržavanje poreznih propisa
tax officials = poreznici (porezni obveznici)
tax rates = porezne stope
tax-collection system = sustav sakupljanja poreza
tax revenue = prihod od poreza
tax law = porezni zakon
tax morale = porezni moral
tax exemption = oslobođenje od poreza (porezno oslobođenje)
tax reform = porezna reforma

PRIVATIZATION
- transfer of some public sector businesses to the private sector
- in ex-communist countries (after the fall of communism)  mass privatization; issuing vouchers to the
general public that can be exchanged directly for shares in a privatizing company
- in market economies (capitalist countries)  public stock offering (stock exchange)
- AIM: more efficient enterprises, more productive economy, to raise capital, outsourcing (to invigorate and
expand local capital markets and attract foreign capital)
- PROS:
1. industries will become more efficient if they are subjected to the „disciplines of the market“, that is the
fear of being taken over or bankruptcy
2. private firms will be able to diversify into new areas of business and take up new business
opportunities, whereas in the past they were limited in scope by the Acts of Parliament that established
them
3. the managers of the businesses will be free from the intervention of government ministers
4. if there is competition there will be alternative suppliers so trade union power within the old state
owned industries will be reduced
5. selling shares in essenial industries expands the number of people in the country who own shares and
who, therefore, have a greater interest in the prosperity of these conserns
6. selling the state owned industries raises revenue for the Government
- CONS:
1. when industries become more efficient, they often do so by closing down a plant and laying off
workers
2. in pursuit of profit, private firms may engage in activities that are not necessarily in the public interest
instead of concentrating on those services they were set up to provide
3. once in the private sector, businesses will be more interested in profit than in providing services for
broader economic and social reasons, which can be guaranteed by state control
 4. if trade unions are weakened by privatization, they may not be able to protect workers' interests in the
event of new working practices being adopted
5. state owned industries already belong to all the people in the country who, therefore, already have an
interest in the prosperity of these conserns and in the services they provide
6. state owned enterprises can only be sold once; financing government spending in this way is like
„selling the family silver to pay the butcher's bill“
state owned enterprises = poduzeća u državnom vlasništvu
to issue vouchers = izdavati voučere (bonove)
broad public stock offerings = široke ponude javnih dionica
to increase efficiency = povećati učinkovitost
to protect workers' interests = štititi interese radnika
to expand local capital markets = proširiti lokalna tržišta kapitala
to lay off workers = otpustiti radnike
to make economy more productive = učiniti gospodarstvo produktivnijim
mass privatization = masovna privatizacija
to sell shares = prodavati dionice
share = udio, dionica
auctions = dražba, javna prodaja
to increase profitability = povećati profitabilnost
to raise capital/revenue = povećati kapital/prihod
to attract foreign capital = privući strani kapital
to diversify (into) (branch out into) = diverzificirati, učiniti raznovrsnim
trade union = sindikat
to close down a plant = zatvoriti pogon, tvornicu
pursuit of profit = trčanje za profitom
governement spending = državna potrošnja
- THE PENDULUM OF CONTROL:
pendulum (njihalo) = a long straight part with a weight at the end that moves regularly from side to side to
control the movement of a clock; used to refer to the tendency of a situation to oscillate between one extreme
and another
to grapple with sth (uhvatiti se u koštac s nečim) = to try hard to find a solution to a problem
to fashion (oblikovati) = to make or shape something, especially with your hands
to prosper (uspijevaati, napredovati) = to develop in a successful way; to be successful, especially in making
money
government interference = uplitanje vlade
freewheeling = not concerned about rules or the possible results of what you do (e.g. freewheeling marketplace
= slobodno tržište)
to cater to sb/sth = to provide the things that a particular type of person wants, especially things that you do not
approve of
whim = hir
to neglect = zapostaviti, zanemariti
to exploit = iskorištavati
to regulate working conditions = regulirati radne uvjete
to reduce unemployment = smanjiti nezaposlenost
dismantled = rastavljen
to collapse = doživjeti slom
private investors = privatni ulagači (investitori)
government-run enterprises = vladina poduzeća
to outperform = nadigrati, nadmašiti
public-opinion polls = ispitivanja javnog mijenja
to create jobs = stvoriti (nova) radna mjesta
to raise incomes = povećati prihode
to promote prosperity = promicati blagostanje, napredak

TYPES OF BUSINESS ORGANIZATIONS

- UNINCORPORATED BUSINESSES (neinkorporirano poslovanje) (društvo osoba):
 the owners are not legally separated from the business (not legal entities); they are the business themselves
 personally responsible for all the liabilities and debts of the business
=> unlimited liability for the debts of the business = personal financial responsibility for your business
=> if there are debts, creditors can take their personal assets and take over business assets
=> bankruptcy = you lose your personal fortune
 fewer legal requirements for setting up a business = start-up fees and recurring costs (costs which a
business owner has to pay again and again) are lower
1. SOLE PROPRIETORSHIP (UK) (poslovna aktivnost u vlasništvu jedne osobe; CRO: craft business)
- one person is the owner, makes decisions, has the claim on profits = sole trader, sole proprietor (trgovac
pojedinac, obrtnik)
- sources of finance: past savings, bank loans and overdrafts
- advantages: direct control of business, quick decisions, few legal requirements to set up the company,
claim on profits provides incentive (motivated)
- disadvantages: unlimited liability for debts, no opportunity to specialize (skills limited to those of owner),
business ends after death
- manufacturing goods, providing various services; e.g. shops, taxi drivers, hairdressers…
2. PARTNERSHIP (UK) (ortaštvo)
- partners are owners (e.g. lawyers, doctors, accountants…)
 - they make decisions together, share the profit and have equal authority in managment; share profit/losses
- sources of finance: capital of partners (money they have), bank loans
- advantages: more capital than sole owners, can specialize, easy communication
- disadvantages: unlimited liability for debts, relatively limited finance, partnership ends on death of any
partner
general partner (komplementar) = has responsibility for the actions of the business, can legally bind the
business and is personally liable for all the business's debts and obligations
limited partner (komanditor) = receives limited profits from the business and whose liability toward its
debts is legally limited to the extent of his or her investment
deed of partnership/partnership agreement/articles of partnership = društveni ugovor
general partnership = javno trgovačko društvo (j.t.d.)
limited partnership = komanditno društvo (k.d.)
active (managing) partner = članovi koji vode poslove
dormant (silent, sleeping) partner (tajni član) = an individual whose involvement in a partnership is limited
to providing capital to the business
- INCORPORATED BUSINESSES (inkorporirano poslovanje)
 LIMITED COMPANIES (US: CORPORATIONS) (društvo s ograničenom odgovornošću):
 legal entities = have legal identity distinct from the owner
 can be taken over, sued and liquidated
 easy transfer of ownership through selling stocks (shares); shareholders get a part of a profit proportional to
the amount of stock they have
 continue existing after the owner retires or dies
 limited liability for debts = company’s finances are separated from the personal finances of the
shareholders; all the losses are covered by the company’s assets, only liable for the amount of capital they have
invested
 creditors cannot claim personal property in case of bankruptcy
 if the company goes bankrupt – company wound up, assets sold (liquidated) to cover debts; if that is not
enough, creditors do not get their money back
 disadvantages: high start-up fees (legal costs high), more legal requirements, more record keeping
(vođenje evidencije), obligation to disclose their accounts, management often separated from the owners
- types of limited companies (UK) (društvo kapitala):
1. PRIVATE LIMITED COMPANIES (Ltd) (similar to d.o.o. – društvo s ograničenom odgovornosti =
CRO: limited liability company) / CLOSE CORPORATION (US) (privately-held corporation)
- smaller companies, most companies start like this
- owners are shareholders (udjeličari) and they share the profit (dividend payments)
- start-up capital: borrow from friends, banks, venture capital institutions
- can sell shares (udjeli), but not to the general public
- decisions are made by Board of Directors (Upravni odbor) elected by the shareholders
- advantages: limited liability for debts, more finance (access to large amounts of capital), can have larger
scale organization, continuity of life of business
- disadvantages: a lot of formalities, difficult to sell shares, possible conflicts between owners and
management
2. PUBLIC LIMITED COMPANY (Plc) (similar to d.d. – javno dioničko društvo = CRO: joint stock
company/company limited by shares) / OPEN CORPORATION (US) (publicly-held corporation)
- successful private limited companies apply to the stock exchange  publish prospectus (Uvodna objava
upisa vrijednosnih papira), issue shares (sell shares on the open stock market); investors become
shareholders (dioničari)
- selling shares to general public (flotation) up to the limit of authorized capital (upisani kapital)  way of
raising capital
- profit shared by shareholders = dividend payments (isplata dividendi)
- decisions made by the Board of Directors (Upravni odbor, uprava) elected by shareholders
- advantages: limited liability for debts, continuity of life of business, access to large amounts of capital, can
have larger scale organization
- disadvantages: lot of formalities and regulations, disclosure of accounts, possibility of takeovers, increased
separation of ownership and management
Companies Act (UK)/ Model Business Corporation Act (US) = Zakon o trgovačkim društvima
annual general meeting (AGM) (UK)/ annual meeting of stockholders (US) = glavna skupština
Articles of Association (UK)/ bylaws (US) = statut (d.d.)
Memorandum of Association (UK)/ charter (US) = društveni ugovor/izjava o osnivanju (d.o.o.)
Chairperson (UK)/ Chairperson, President (US) = predsjednik uprave/upravnog odbora
Board of Directors = upravni odbor
Supervisory Board = nadzorni odbor
Management Board = uprava
Managing Director (MD) (UK)/ Chief Executive Officer (CEO) (US) = generalni, glavni izvršni direktor
to share profits and losses = dijeliti dobit i gubitke
legal entity = prava osoba
bankruptcy = stečaj
personal fortune = osobno bogatstvo
to be liable for = biti odgovoran za
to go bankrupt = otići u stečaj
assets = imovina
to liquidate (likvidirati) = to sell something in order to get money
debts = dugovi
to cover the debts = pokriti dugove
creditors = vjerovnici
enterprise = tvrtka
to raise capital = sakupiti kapital
venture capital = poduzetnički kapital
stock exchange = burza
stock market = tržište dionicama
prospectus = uvozna objava upisa vrijednosnih papira
flotation (flotacija) = the process of selling shares in a company to the public for the first time in order to
raise money
IPO (initial public offering) = javno izdavanje dionica
to make a loss (on) = to lose money (on)
overdraft (dopušteno prekoračenje) = amount of money which a company or a person can withdraw from a
bank account with the banl's permission, and which is more than there is in the account
incentive (poticaj) = a thing that encourages someone to work better
dividend (dividenda) = a percentage of profits (after taxes) paid to shareholders, large companies usually
pay it twice a year
takeover (preuzimanje vlasti) = buying a controlling interest in business by buying more than 50% of its
shares