1.

KOLOKVIJ
MIXED ECONOMIES............................................................
UNIVERSITY ESSENTIALS.................................................
VOCABULARY.......................................................................
VOCABULARY.............................................................................
STUDENTS...................................................................................................
THE PUBLIC SECTOR........................................................
ORGANIZATION........................................................................................
FACULTY.....................................................................................................
THE ROLE OF GOVERNMENT...........................................
COURSES.....................................................................................................
PUBLIC SECTOR ORGANISATIONS..................................
PAPERS AND EXAMINATION.................................................................
TAXATION.............................................................................
ECONOMICS AND ECONOMY............................................
PRIVATISATION...................................................................
VOCABULARY.............................................................................
THE DIFFERENT SECTORS OF KEY VOCABULARY..............................................................
ECONOMY............................................................................
THE PRIVATE SECTOR.....................................................
THE PRIMARY SECTOR............................................................
UNINCORPORATED BUSINESS..........................................
SOLE PROPRIETORSHIP.................................................................
THE SECONDARY SECTOR.......................................................
PARTNERSHIP...................................................................................
THE TERTIARY SECTOR...........................................................
INCORPORATED BUSINESS................................................
THE QUATERNARY SECTOR....................................................
PRIVATE LIMITED COMPANY (Ltd).............................................
PUBLIC LIMITED COMPANY (Plc.)...............................................
THE QUINARY SECTOR............................................................
FRANCHISING...................................................................................
COOPERATIVE..................................................................................
KEY VOCABULARY....................................................................
THE THREE TYPES OF ECONOMIC THE PRIVATE SECTOR IN CROATIA................................
CRAFT;INDEPENDENT PROFESSION...........................................
SYSTEMS..............................................................................
LIMITED LIABILITY COMPANY...................................................
MARKET ECONOMIES..............................................................
JOINT STOCK COMPANY...............................................................
KEY VOCABULARY..............................................................
PLANNED ECONOMIES.............................................................
UNIVERSITY ESSENTIALS

VOCABULARY

predmet subject
program predmeta subject program
obavezni predmet compulsory subject
predavač lecturor
katedra za računovodstvo department of accounting
nastavni program curriculum
seminarski rad seminar paper
magisterij master's Degree
izborni predmet elective course
dekan dean
predati rad submit work
nastavnici teachers/professors
prijaviti se za ispit apply for the exam
EFZG Faculty of Economics in Zagreb
doktorat doctor's Degree / doctorate
pohađanje nastave class attendance
sveučilište u Zagrebu University of Zagreb
brucoš freshman
preddiplomski studij undergraduate study
redovni student full-time student
pasti ispit to fail an exam
diplomski studij graduate study
završni ispit final exam
diplomirati na smjeru graduate in the field
upisati predmet enroll in a course
referada faculty
pročelnik katedre head of the department
izvanredni student part-time student
poslijediplomski studij postgraduate studies
diplomirati ekonomiju to graduate in economics

STUDENTS

full-time
part-time
first-year
second-year
undergraduate
graduate
postgraduate
freshmen
sophomore
junior
senior

ORGANIZATION
The Faculty of Economics and Business
The University of Zagreb
Rector (Vice-Chancellor)
The School, The Faculty, The Department (Dean and Vice-Deans)
Department (e.g. Department of Accounting)
Head of Department
Student Administration Office

FACULTY

professors, lecturers, assistants

COURSES

core course vs. non-core course

compulsory (mandatory) course
vs.
elective course, optional course
curriculum, curricula
syllabus, syllabi
take a course in…enroll on a couse
attend a course in…
participate in classes (class participation)

PAPERS AND EXAMINATION

exams
written exam/oral exam
final exam, comprehensive exam,
mid-term exam, preliminary exam,
quiz
sign up for an exam
apply for an exam
take an exam
pass an exam
fail an exam
papers
write a paper on monetary policy
submit a paper
hand in a paper
correct a paper
grade a paper
mark a paper
grades, marks

ECONOMICS AND ECONOMY

VOCABULARY

economics – the study of the way in which wealth is produced and used

economy – the system by which a country's goods and services are produced
and used.

economist – someone who studies the way in which wealth is produced and
used in an area.

economic – having to do with the production, distribution and consumption of

wealth and incom e.g. economic development
relating to the science of economics, or to commerce and industry
e.g. economic activity

economical – using time, money, goods etc. carefully, without wasting.

economize/economise – to reduce the amount of time, money goods etc. that

you use
economies of scale – the advantages that a big factory, shop etc. 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.

THE DIFFERENT SECTORS OF ECONOMY

THE PRIMARY SECTOR

- extracts, collects or harvests products from the earth, such as raw materials and basic
foods.
- agriculture, mining, forestry, farming, grazing, hunting, fishing…

THE SECONDARY SECTOR

- produces or manufactures finished goods from raw materials

- capital goods – sold to other producers
- consumer goods – sold to the final customer
- consumables (bread)
- consumer durables (TV)
- metal working, automobile production, textile production, chemical and engineering
industries, aerospace manufacturing, energy utilities…

THE TERTIARY SECTOR

- the service industry

- sells the goods produced by the secondary sector and provides services to both the
general population and to businesses in all five economic sectors
- intangible, used up at the time of consumption
- commercial services – services for businesses
- direct services – provided to consumers (e.g. hairdressers, restaurant meals)
- financial services – both businesses and consumers (banking or insurance)
- retail, wholesale sales, transportation and distribution, restaurants…

THE QUATERNARY SECTOR

- intellectual activities often associated with technological innovation

- „the knowledge economy“
- government, culture, libraries, scientific research, education and information
technology

THE QUINARY SECTOR

- highest level of decision making in society or economy

KEY VOCABULARY

CONSUMER – a person who buys goods and services; a person whose needs are satisfied
by producers

CUSTOMER – a person or an organization that buy a product or service from a shop or a

producer

COMMODITY – goods that can be bought

GOODS – physical objects that can be bought for a price

SERVICES – non-physical products (education, medical care…)

GDP – the total value of goods and services produced in a country in a year

GNP – the total value of goods and services produced in a country in year, including income
from abroad

PRODUCT – anything capable of satisfying a want or a need; somethinf made,

manufactured or a produced by a mechanical, industrial or natural process

INFRASTRUCTURE – the basic systems and structures that a country needs to make
economic activity possible, such as roads railways telecommunications, etc.

RAW MATERIAL – a substance used to make a product

MANUFACTURING – the process of producing goods in factories

THE THREE TYPES OF ECONOMIC SYSTEMS

An economic system is a means by which societies or governments organize and distribute
available resources, services, and goods across a geographic region or country.

MARKET ECONOMIES

- „capitalist economies“ or „free market economies“

- resources are allocated automatically by the forces of demand and supply, which
stimulates competiton  lower costs, a wider choice of goods and services and better
quality for consumers
- the role of government is limited; they pass laws, provide certain essential products
and services such as policing, national defence and the judiciary and ensure level
playing field (fair competition).
- defence – not provided by private firms and firms are not interested in services which
do not make a profit
- firms may choose to sacrifice public interest in exchange for lower costs
PLANNED ECONOMIES

- „command economy“
- the government plans, organises, and co-ordinates the whole production process.
- the planners encourage the production of standardised goods with little variety and
choice for consumers
- resources in planned economies belong to the state, and goods and services are
distributed to consumers by the state.
- more equal distribution of wealth and income
- production is for need rather than profit
- people tend to be less motivated to work efficiently
- the standard of living is often lower

MIXED ECONOMIES

- some resources are allocated by the government (in the public sector) and the rest by
the market (in the private sector)
- the public sector – responsible for the supply of some public goods and services
 public goods are usually provided free when used and are paid for by taxes
- the private sector – production decisions are made by firms in response to the
demands of consumers.

VOCABULARY

supply and demand – an exchange mechanism that brings together sellers and buyers of a
product, factor or production.

public goods – goods and services provided by a government for the benefit of all or most of
the populace.
allocating – the choosing of the particular use to which a scarce resource is put, e.g. whether
to use water for electric power or crops.

resources – raw materials and means of labour employed in the production process.

standardised goods – products that are the same because they satisfy the same technical
requirements.

juditiary – the branch of government that includes courts of law and judges.

market imperfection – the inability of markets to deliver goods or services.

standard of living – the level of wealth, comfort, material goods and necessities available to
a certain socioeconomic class in a certain geographic area.

economic system – an organized way in which a state or nation allocates its resources and
apportions of goods and services in the national community.
THE PUBLIC SECTOR
- made up of organizations which are, directly or indirectly, owned or controlled by
central or local government
- means government ownership for the benefit of everyone
- includes public corporations, municipal enterprises, etc.
- contains the army, the police force, most schools and hospitals, etc.
- MERIT GOODS – goods or services provided free or cheaply for the benefit of the
entire society by a government, their consumption is believed to generate positive
externalities, they raise soicety's standard of living (e.g. education, healthcare,
libraries…)
- PUBLIC GOODS – non-excludable and non-rivalrous: consumption by one person
does not reduce the amount available to others and, once provided, all individuals will
benefit, individuals cannot be excluded from use or the goods could be enjoyed
without paying for them, can be effectively consumed simultaneously by more than
one person (e.g. knowledge)

THE ROLE OF GOVERNMENT

- LEFT-WING VIEWS
the government has an essential role in providing:
 economic infrastructure – public transport…
 services – education, health care, social security and housing
 regulating working conditions, health and safety standards…
- RIGHT-WING VIEWS
 most of these activities can be left to private enterprise and the market system
 too much regulation is bad for business and leads to inefficiency 
deregulation!
 the role of government should be restricted to activities such as: defence,
police, justice system

- according to Galbraith, the good society accepts the basic market system and its
managers, but there are some things the market system does not do either well or
badly. In the good society these are the responsibilities of the state.
- WELFARE STATE – a political system based on the premise that the government has
the responsibility for the well-being of its citizens, by ensuring a minimum standard
of living for everyone
PUBLIC SECTOR ORGANISATIONS
state-owned enterprises
- partially or wholly owned by the government
- their purpose is to carry out commercial activities on behalf of the government
- e.g. public utilities (electricity), transportation systems, nationalised industries…

NATIONALISED INDUSTRIES
- companies previously owned by private owners which were taken into public
ownership
PRIVATISED INDUSTRIES
 - public sector businesses have been privatised i.e., transferred from the public to the
private sector

TAXATION
- when an authority, usually a government, levies or imposes a financial obligation on
its citizens or residents

THE FUNCTIONS OF TAXATION

 to raise revenue – finance government expenditure
 indirect excise duties – to discourage people from harmful activities, e.g. from
drinking, smoking, gambling
 to encourage capital investment to reduce companies' tax bills

TAXPAYER
- to pay tax on, to be liable for tax
- to file a tax return
- to avoid/evade paying taxes
TAX AUTHORITY
- to levy/impose tax
- to collect tax
- to raise revenue through taxation

CLASSIFICATION OF TAX

 PROGRESSIVE – has more of a financial impact on higher-income individuals and

businesses than on low-income earners.
 REGRESSIVE – greater impact on low-income individuals than they have on high-
income earners.
 PROPORTIONAL (flat) – impacts low-,middle- and high- income earners relatively
equally. They all pay the same tax rate, regardless of income.
DIRECT AND INDIRECT TAX

 DIRECT – paid directly by an individual or organization to the government for

different purposes (real property tax, personal property tax…)
 INDIRECT – collected by one entity in the supply chain (usually a producer or
retailer) and paid to the government, passed on to the consumer as part of the
purchase price of a good or service. The consumer is ultimately paying the tax by
paying more for the product.

PROBLEMS

 TAX EVASION – an illegal activity in which a person or entity deliberately avoids

paying a true tax liability. It can either be illegal non-payment or underpayment of
actual tax liabilities due.

 TAX AVOIDANCE – a legal activity used to minimize the amount of income tax
owned by an individual or a business. It's generally accomplished by claiming as
many deductions and credits as are allowable.
  BLACK OR UNDERGROUND ECONOMY – economic transactions that are
deemed illegal, either because the goods or services trade are unlawful in nature, or
because transactions fail to comply with governmental reporting requirements. Also
called the shadow economy, the black marke tor the informal economy.
e.g. illegal drugs, human trafficking, endangered species, human organs, antiquities,
and stolen goods.

 MOONLIGHTING – to hold down more than one job for the sole purpose of gaining
additional income.

 LOOPHOLES IN TAX LAWS – a loophole is a technicality that allows a person or

business to avoid the scope of a law or restriction without directly violating the law.

 TAX HAVEN – a country that offers foreign businesses and individuals minimal or
no tax liability for their bank deposits in a politically and economically stable
environment.

 MONEY LAUNDERING – an illegal process of making large amounts of money

generated by a criminal activity, such as drug trafficking or terrorist funding, appear
to have come from a legitimate source. (an illegal process of making „dirty“ money
appear legitimate instead of ill-gotten)

PRIVATISATION

- relying less on government to meet people's need for goods and services, and more on
private institutions such as the marketplace, the family and voluntary organizations.

KEY VOCABULARY

TAXATION – the transfer of money from individuals and companies to finance the
government expenditure.

CORPORATION TAX – the tax on company profits in Britain.

CUSTOMS DUTIES – taxes charged on most imports.

INCOME TAX – the tax people pay on their wages and salaries, and also on business profits
in the US.

DIRECT TAX – a tax paid directly to the government (such as income tax on wages and
salaries or on company profits).

PROGRESSIVE TAX – taxation system where tax levels increase as the income is higher.

INDIRECT TAX – a tax which is not paid directly to the government (such as sales tax
levied on the sale of goods and services).
VALUE-ADDED TAX – a tax on goods and services, added as a percentage to the invoiced
sales price.

CAPITAL GAINS TAX – a tax on profits made by selling assets.

CAPITAL TRANSFER TAX OR INHERITANCE TAX – a tax people pay on gifts and
inheritances over a certain value.

WEALTH TAX – the annual tax imposed on people's fortunes (in some countries) if their
value is above a particular amount.

TAX EVASION – making false declarations to the tax authorities, trying illegally not to pay
tax.

TAX AVOIDANCE – reducing the amount of tax you pay to a legal minimum.

REGRESSIVE TAX – a tax where people with low incomes spend a larger proportion of
what they earn on sales tax than those with high incomes.

CONSUMPTION – spending money to buy things, rather than saving it.

NATIONAL INSURANCE – a tax on incomes that pays for sickness benefit,

unemployment benefit, and old-age pensions.

PERKS – non-financial benefits or advantages of a job.

TAX SHELTER – a way to postpone or reduce taxation by spending income on a pension

plan, life insurance policy, etc.

TAX DEDUCTIBLE – expenditures (such as business expenses, or donations to charity)

that can be taken away from taxable income or profits.

TAX HAVEN – a country offering very low tax rates to non-residents and foreign
businesses.

TAX LOSS – a loss made deliberately by a business to avoid paying tax on profits, usually
by bringing forward capital expenditure to use up profits at the end of the tax year.

EXCISE DUTIES – taxes raised on certain products, particularly on tobacco and alcoholic
drinks.

FISCAL POLICY – the government's policz relating to government finances (taxation,

expenditure, etc.)

BUDGET – financial operation plan showing expected income and expenditure.

BUDGET DEFICIT – if government's expenditures exceed money collected by taxes.

BUDGET SUFICIT – if tax revenues are higher than government spending.

MONEY LAUNDERING – processing illegally obtained money through more than one
bank, in order to conceal its origin.

LOOPHOLE – a legal way of avoiding tax by exploiting part of a law.

SALES TAX – a tax on wide range of goods and services, a percentage of the retail price.

TAX RELIEF – allowing someone not to pay tax on certain parts of their income.

UNDERGROUND OR BLACK ECONOMY – all employment and business transactions

on which tax is not paid.

TO LEVY – to demand payment of a tax and collect it; to impose or collect tax ot other
financial charge.

TAX YEAR – 12 month period on which taxes are calculated.

TAXPAYER – a person or organisation that is obliged to pay taxes.

DOUBLE TAXATION – taxing a single amount of money twice, e.g. company profits are
taxed and then taxed again when they are given to shareholders in the form of dividends.

TAX BREAK – a special reduction in taxes that the government allows for a particular
purpose.

TAX RETURN – the form on which you have to give information so that your tax can be
calculated.

MOONLIGHTING – undeclared, part-time evening jobs.

THE PRIVATE SECTOR

- the private sector is characterized by private ownership in the hands of private
individuals.
- it includes businesses that are run for the benefit of the people who own them.

UNINCORPORATED BUSINESS

- UNINCORPORATED – the owners of the business are legally not separated from
the busines: they are the business themselves.
- LIABILITY – the responsibility to settle a debt.
- UNLIMITED LIABILITY – the legal obligation to pay all one's debts and
obligations, if necessary by the sale of one's personal assets.

SOLE PROPRIETORSHIP
 - common in service industries; retailing, repairing services, tourism, hairdressers,
beauty services, restaurants, catering services, intellectual services-consulting,
tutoring service, freelance writer.

SETTING UP THE BUSINESS

- one person provides the capital (e.g. past savings, bank loans and overdrafts)
- easy to set up (fewer legal requirements)
- no special legal documents needed
- not necessary to disclose the accounts
- owner has a complete control over the business
- receives and keeps profits, bears the losses of them

UNLIMITED LIABILITY
- legal obligation to pay one's debts and obligations, if necessary by the sale of one's
personal assets
- in the case on bankruptcy – may have to sell nearly all the assets of the business +
personal possessions to pay debts to creditors

DISADVANTAGES
- limited finance, no opportunity to specialise, skills limited to those of the owner,
business ends on death

PARTNERSHIP

- common in services industries: physicians, attorneys, accountants, architects, licensed

financial advisers

SETTING UP THE BUSINESS

- two or more partners contribute capital to the business and share the profit
- no special legal requirements
- future partners are advised to draw up a deed of partnership  legal document on:
who provides the CAPITAL, CONTROLS the business + how to distribute
PROFITS.

UNLIMITED LIABILITY

DISADVANTAGES
- relatively limited finance
- partnership ends on death of any partner

INCORPORATED BUSINESS
(i.e. companies)

- a legal entity separate from its owners – debts, legal issues and other responsibilities
of the company do not carry over to the person of the owners
 - transfer of business ownership: through the selling of stocks – the business can
continue existing even if the owners retire or die
- allows more opportunities for financing and taking out larger bank loans

LIMITED LIABILITY
- responsibility for debts up to the value of the company's share capital, that is up to
the amount that was invested in the business
- creditors cannot claim personal property in cases of bankruptcy

PRIVATE LIMITED COMPANY (Ltd)

- private = shares can be sold, but not to general public

- limited = limited liability for debts
- owner(s) invest the share capital – e.g. borrow from banks (bank loan) – easier access
to capital than with unlimited businesses.
- owners claim profit

SETTING UP A COMPANY
- more legal requirements: incorporation documents
- controlled by a Board of Directors appointed/elected by the shareholders –
shareholders may or may not take part in the running of the business
- continuity of life of business

PUBLIC LIMITED COMPANY (Plc.)

- public = shares sold on the stock exchange (anyone buying 51% of the shares gains
control of a Plc.) – issue (sell) shares to raise finance for growth – possibility of
takeover
- limited = limited liability for debts
SETTING UP A COMPANY
- legal requirements : (1) incorporation documents (2) disclosure of annual accounts
- shareholders are the ownders who appoint the Boars of Directors to control the
management (increased separation of ownership and management); shareholders can
take part in running the company; AGM (annual general meeting of all shareholders)
- the profit which is no tre-invested in the company is paid out as a dividend
- continuity of life of business

FRANCHISING

- business in which entrepreneurs ( FRANCHISEE ) purchase the rights to open and

run a business from a larger corporation ( FRANCHISOR ), using its established
format
- the franchisee must put up the necessary capital to open the business, and is under
contract to pay and initial sum of money ( FRANCHISE FEE ) to the franchisor, as
well as percentage of the annual turnover ( MANAGEMENT SERVICE FEE )
COOPERATIVE

- limited liability for debts

- for-profit or not-for-profit
- differs from a corporation in that it has members, not shareholders
- members share decision-making authority – whether they are the customers,
employees or residents they have an equal say in what the business does and a share
in the profits
- fundamental to the ideology of economic democracy

THE PRIVATE SECTOR IN CROATIA

CRAFT;INDEPENDENT PROFESSION
- obrt; samostalna djelatnost
- unlimited liability (bankruptcy – may have to sell nearly all the assets of the business
+ personal possessions to pay debts9
- not legal entities on their own
- one person provides the capital – past savings, bank loans and overdrafts
- complete control of the business
- keeps all the profits; bears the losses

LIMITED LIABILITY COMPANY

- Društvo s ograničenom odgovornošću, d.o.o.
- limited liability for debts
- one or more person or legal entities invest in share capital (shareholder, vlasnik
poslovnog udjela)
- they can sell shares, but not to the general public
- owners of shares claim profit
- management bord (uprava)
- supervisory bord (nadzorni odbor) and general meeting (skupština) are not mandator
- obligation to submit financial reports regularly

JOINT STOCK COMPANY

- Dioničko društvo, d.d.
- company limited by shares – limited liability for debts
- more complex structure, higher share capital, more shareholders
- company bodies : AGM – annual general meeting (glavna skupština), management
bord (uprava), supervisory bord (nadzorni odbor); alternatively, a single board –
board of directors (upravni odbor)
- must regularly submit financial reports
- disclose their accounts, make information available to (potential) shareholders
- GO PUBLIC = trade shares publicly on the stock exchange
KEY VOCABULARY

TO ISSUE – to offer securities for sale to the general public

STOCKS – securities bought on the stock exchange which belong to the companies listed on
the stock exchange.

SHARES – securities which include both stocks and privately held stakes in small firms that
are not publicly traded, pay dividends and enable the bearer to own a part of the company

DIVIDEND – a proportion of the annual profits of a limited company, paid to shareholders

ANNUAL GENERAL MEETING OR ANNUAL STOCKHOLDERS MEETING – a

yearly meetiing to which companies have to invite all shareholders

ANNUAL REPORT – sent by all the publicly quoted companies to their shareholders after
each financial year, before the AGM

PUBLIC LIMITED COMPANY – a joint-stock company whose shares are openly traded
on the stock exchange

PRIVATE LIMITED COMPANY – a company that cannot offer its shares to the public;
their owners have to raise capital themselves, or borrow from friends, banks or venture
capital institutions

LIABILITY – the responsibility to settle a debt

LIABILITIES - anything that a business owes

LIMITED LIABILITY – responsibility for debts up to the value of the company's share
capital, that is up to the amount invested in the business

UNLIMITED LIABILITY – the legal obligation to pay all one's debts, if necessary by the
sale of one's personal assets

LIMITED COMPANY OR CORPORATION – a company that is only liable for the

amount of capital that shareholders have invested, and not for debts greater than this amount

SHARE CAPITAL – capital that a company has from investors who have bought shares

TAKEOVER – the act of getting control of a company by buyinh over 50% of its share

CREDITOR – a person, organization or a company to whom the money is owed

DEBTOR – a person, organization or a company that owes money

LIQUIDITY – having assets that can easily be turned into cash

SOLVENCY – having money to pay your debts at the time they must be paid
FRANCHISE – an arrangement in which a big company sells an individual the rights to run
a business using its established format in return for a fee or a share of the profits

FRANCHISOR – a company that sells a franchise

FRANCHISEE – someone who is sold a franchise

FRANCHISE FEE – an initial sum of money that a franchisee has to pay to the franchisor

MANAGEMENT SERVICE FEE - a percentage of the annual turnover that a franchisee

has to pay to the franchisor

GENERAL PARTNERSHIP – in the US, a partnership where partners are responsible for
the partnership's debts without limit up to the value of its assets

LIMITED PARTNERSHIP – in the US, a partnership where partners are responsible for
the partnership's debts only up to the amount they originally invested

MEMORANDUM OF ASSOUCIATION OR CERTIFICATE OF INCORPORATION

– one of the documents needed when a company starts doing business, giving details about its
name, activities, capital etc.

ARTICLES OF ASSOCIATION OR BYLAWS – one of the documents needed when a

company starts doing business, which set out the rights and duties of directors and
shareholders

TURNOVER – a business's total sales revenue

BOARD OF DIRECTORS – the group of people who have been elected to manage a
company by shareholders.

SHAREHOLDERS – the owners of a company

STOCK EXCHANGE – a market where sales are bought and sold

SHARES – any of the equal parts into which the ownership of a company is divided

PUBLIC CORPORATION – a public sector enterprise owned by the central government

MUNICIPAL ENTERPRISE – business or service operated on a commercial basis by the

local authorities

ASSETS – items of value belonging to a person or a company, such as shares , a piece of

land, a building or a machine that can be sold to pay debt

OVERDRAFT – an arrangement by which a customer can withdraw more from a bank

account than has been deposited in it, up to an agreed limit

BANK LOAN – a fixed sum of money on which interest is paid, lent for a fixed period, and
usually for a specific purpose
BANKRUPT – to be insolvent, that is unable to pay debts

BANKRUPTCY – when someone is judged to be unable to pay their debts by a court of law,
and their assets are shared among the people and businesses that they owe money to.

NATIONALISED INDUSTRIES – companies previously owned by private owners which

were taken into public ownership

PUBLIC UTILITY – a business enterprise, as a public service corporation, performing and

essential public service and regulated by the central or local government.

NATIONALIZATION – the act of bringing a company or industry under the control of a

government.

PRIVATIZATION – the act of selling a company or activity controlled by the government

to private investors

DENATIONALIZATION – the act of putting a nationalized industry back into private

ownership.