• Track 47 30 35 40 45 50 executives, company employees and analysts
  • S e c o n d e d I t I o n 1 Reading for the Real World 1




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    indications in ranking companies. There are two types of measurements for 
    companies’ performance. All companies involved in the ratings must publish 
    financial data and must report part or all of these figures to a government 
    agency. Ratings are based on yearly reported financial statements. A second 
    type of performance measurement used in ratings is companies’ market 
    performance. This includes their market valuemarket share, and number of 
    employees. Some rankings use only financial performance or market 
    performance as the basis for their rating of companies, such as the Wall Street 
    Journal. However, some ratings will use both measurements, such as the 
    Fortune 500 and Business Week’s ratings.
    The other major category of ratings relies on the results of surveys sent to 
    16
    indications --- a sign; a criterion
    19
    financial statement --- a record of how money comes in and goes out
    21
    market share --- percentage of the market controlled by a company
    Track 47


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    executives, company employees and analysts by the publishers. The publishers’ 
    surveys present detailed statistical and analytical data on the companies that 
    they rank. For example, in order to rank America’s most admired companies
    Fortune magazine started with the ten largest companies by revenue in sixty-
    six industries. They surveyed 10,000 executives, directors, and securities 
    analysts related to those companies, who then rated the various companies in 
    their own industries based on certain criteria. For the most admired companies
    the survey respondents were asked to select the ten companies in any industry 
    that they admired most. Another popular example is Fortune’s Best Companies 
    to Work For rating. To determine which companies make it on the list and 
    where they should rank, the publisher sends surveys to employees of all the 
    Fortune 1,000 companies, plus the 200 largest privately held US companies. 
    Among all the ratings, the most trusted and well-known rankings are done 
    by Fortune and Business Week magazines. Fortune magazine publishes many 
    company rankings every year, including the Fortune 500, Fortune 100 Best 
    Companies to Work For, Global Most Admired Companies and Fortune Global 
    500. In Fortune magazine’s Global 500, a few of the companies that regularly 
    show up on the list include General Electric, Exxon Mobile, IBM, and Bank of 
    America. This list’s ranking is based primarily on financial performance. By 
    comparison, the Fortune Global Most Admired rankings are based on executives’ 
    surveys. Companies regularly appearing on this list year after year include 
    General Electric, Wal-Mart, and Microsoft. Finally turning to Business Week 
    magazine’s Global 1,000 ratings, one will find such companies as General 
    Electric, Exxon Mobile, and Wal-Mart crop up in the top five companies year 
    after year.
    Reading Time
    _______ minutes _______ seconds
    550 words
    27
    analyst --- a person who studies trends in a particular field
    30
    revenue --- profit; income
    31
    securities analyst --- a person who studies stocks and the stock market
    34 
    respondent --- a person giving answers
    38
    privately held --- owned by one person
    45
    primarily --- mainly; for the most part
    50 
    crop up --- to appear; to show up
    145



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    146

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