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Vocabulary Preview
 
Match each word or phrase with the correct definition.
1. assign 
a. a business manager
2. criterion 
b. a number
3. executive 
c. the opinion people have about something; the good name
4. figure 
d. a standard of judgment
5. financial 
e. to designate
6. reputation 
f. related to managing of money
Pre-Reading Questions
Think about the following questions.
1. What company is rated #1 in your country? How do you know?
2. Who do you think rates companies?
3. How do you think companies are rated?
Rating Companies
 
B u s i n e s s & E c o n o m i c s 2
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Rating Companies
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P 
ublications such as Business Week 
and Fortune are two of the 
several publishers that produce 
ratings of different American and international 
companies. These ratings not only concentrate on public or private 
companies, but many other kinds as well. Companies are assigned two 
main types of ratings. One of these can be summarized as the company’s actual 
performance. The other type of rating pertains to the results of publishers’ surveys.
There are several reasons why publishing companies rate companies. One is 
for the companies that are ranked to know where they stand in their industry. 
Investors and lenders of the rated company also use the ratings to decide the 
risk associated with doing business with the company. Consumers also use 
ratings to learn about the company’s reputation and to rate companies when 
making investment decisions. 
Companies’ actual financial performance is one of the most important 

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