THE PUBLIC AND THE PRIVATE SECTOR

Question 1

to issue

Answer 1

to offer securities for sale to the general public

Question 2

stocks

Answer 2

securities bought on the stock exchange which belong to companies listed on the stock
exchange

Question 3

shares

Answer 3

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

Question 4

bankrupt

Answer 4

to be insolvent, that is unable to pay debts

Question 5

dividend

Answer 5

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

Question 6

premises

Answer 6

the place in which a company does business: an office, shop, workshop, factory,
warehouse, and so on

Question 7

annual general meeting (GB) or

annual stockholders meeting (US)

Answer 7

a yearly

meeting to which companies have to invite all shareholders

Question 8

annual report

Answer 8

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

Question 9

public limited company (javno dioničko društvo)

Answer 9

a joint-stock company whose shares are openly traded on the

stock exchange

Question 10

private limited company (privatno društvo s ograničenom odgovornošću)

Answer 10

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

Question 11

liability (odgovornost)

Answer 11

the responsibility to settle a debt

Question 12

limited liability

Answer 12

responsibility for debts up to the value of the company’s share capital, that
is up to the amount invested in the business

Question 13

unlimited liability

Answer 13

the legal obligation to pay all one’s debts, if necessary by the sale of
one’s personal assets

Question 14

limited company or corporation (društvo s ograničenom odgovornošću)

Answer 14

a company that is only liable for the amount of capital that shareholders have investéd, and not for debts greater than this amount

Question 15

share capital

Answer 15

capital that a company has from investors who have bought shares

Question 16

takeover

Answer 16

the act of getting control of a company by buying over 50% of its share

Question 17

creditor

Answer 17

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

Question 18

debtor (dužnik)

Answer 18

a person, organization or a company that owes money

Question 19

liquidity (likvidnost)

Answer 19

having assets that can easily be turned into cash

Question 20

liabilities

Answer 20

anything that a business owes

Question 21

solvency

Answer 21

having money to pay your debts at the time they must be paid

Question 22

franschise

Answer 22

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

Question 23

franchisor

Answer 23

a company that sells a franchise

Question 24

franchisee

Answer 24

someone who is sold a franchise

Question 25

franchise fee

Answer 25

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

Question 26

management service fee

Answer 26

a percentage of the annual turnover that a franchisee has to pay
to the franchisor

Question 27

prospectus

Answer 27

a document produced by a company when inviting the public to buy its shares,
which should include information, such as how the money is going to be used, what the chances of
future success are etc.

Question 28

Board of Directors

Answer 28

the group of people who have been elected to manage a company by
shareholders

Question 29

shareholders

Answer 29

the owners of a company

Question 30

stock exchange

Answer 30

a market where shares are bought and sold

Question 31

shares

Answer 31

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

Question 32

public corporation

Answer 32

a public sector enterprise owned by the central government

Question 33

municipal enterprise

Answer 33

business or service operated on a commercial basis by the local
authorities

Question 34

assets (imovina)

Answer 34

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 a debt

Question 35

overdraft (prekoračenje)

Answer 35

an arrangement by which a customer can withdraw more from a bank account than
has been deposited in it, up to an agreed limit

Question 36

bank loan

Answer 36

a fixed sum of money on which interest is paid, lent for a fixed period, and usually
for a specific purpose

Question 37

nationalised industries

Answer 37

companies previously owned by private owners which were taken
into public ownership

Question 38

public utility

Answer 38

a business enterprise, as a public service corporation, performing an essential
public service (e.g. electricity, railroads) and regulated by the central or local government

Question 39

nationalization

Answer 39

the act of bringing a company or industry under the control of a
government

Question 40

privatization

Answer 40

the act of selling a company or activity controlled by the government to private
investors

Question 41

denationalization

Answer 41

the act of putting a nationalized industry back into private ownership

Question 42

general partnership

Answer 42

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

Question 43

limited partnership

Answer 43

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

Question 44

memorandum of association (GB) or

certificate of incorporation (US)

Answer 44

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

Question 45

articles of association (GB) or

bylaws (US)

Answer 45

one of the documents needed when a

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

Question 46

turnover

Answer 46

a business’s total sales revenue