In a leveraged buyout, investors borrow huge sums of money : GMAT Sentence Correction (SC)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 18 Jan 2017, 16:40

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# In a leveraged buyout, investors borrow huge sums of money

Author Message
TAGS:

### Hide Tags

Director
Joined: 17 Oct 2005
Posts: 932
Followers: 1

Kudos [?]: 201 [0], given: 0

### Show Tags

24 Nov 2005, 18:55
25
This post was
BOOKMARKED
00:00

Difficulty:

85% (hard)

Question Stats:

42% (01:54) correct 58% (01:01) wrong based on 1042 sessions

### HideShow timer Statistics

In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

(A) by using the company's earnings and to profit

(B) by using the companies' earnings and by profiting

(C) using the companies' earnings and profiting

(D) with the company's earnings, profiting

(E) with the companies' earnings and to profit
[Reveal] Spoiler: OA

Last edited by Vyshak on 19 Apr 2016, 10:41, edited 2 times in total.
Underlined
If you have any questions
New!
SVP
Joined: 24 Sep 2005
Posts: 1890
Followers: 19

Kudos [?]: 292 [0], given: 0

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

24 Nov 2005, 20:55
joemama142000 wrote:
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the companyâ€™s earnings and to profit richly by the later resale of the companies or their divisions.

(A) by using the companyâ€™s earnings and to profit

A uses correct parallelism " hope to pay....to profit"
VP
Joined: 30 Sep 2004
Posts: 1488
Location: Germany
Followers: 6

Kudos [?]: 327 [0], given: 0

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

25 Nov 2005, 06:38
1
This post was
BOOKMARKED
HIMALAYA wrote:
joemama142000 wrote:
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the companyâ€™s earnings, and to profit richly by the later resale of the companies or their divisions.

(A) by using the companyâ€™s earnings and to profit
(B) by using the companiesâ€™ earnings and by profiting
(C) using the companiesâ€™ earnings and profiting
(D) with the companyâ€™s earnings, profiting
(E) with the companiesâ€™ earnings and to profit

Agree with llism. but go with E.

agree...its E)...possessive form of "companies" is "companies`"
_________________

If your mind can conceive it and your heart can believe it, have faith that you can achieve it.

SVP
Joined: 24 Sep 2005
Posts: 1890
Followers: 19

Kudos [?]: 292 [0], given: 0

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

25 Nov 2005, 07:13
sure i can see it now
Manager
Joined: 05 Nov 2005
Posts: 232
Location: Germany
Followers: 2

Kudos [?]: 68 [0], given: 0

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

25 Nov 2005, 11:18
Clear E.

Because companies' is correctly used here and parallelism ( of the verbs to buy.. and to profit )
Director
Joined: 17 Oct 2005
Posts: 932
Followers: 1

Kudos [?]: 201 [1] , given: 0

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

25 Nov 2005, 14:52
1
KUDOS
joemama142000 wrote:
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the companyâ€™s earnings and to profit richly by the later resale of the companies or their divisions.

(A) by using the companyâ€™s earnings and to profit
(B) by using the companiesâ€™ earnings and by profiting
(C) using the companiesâ€™ earnings and profiting
(D) with the companyâ€™s earnings, profiting
(E) with the companiesâ€™ earnings and to profit

the OA is E

this is a case of parallelism
hoping to pay.... and to profit
B, C, D are out

by using is wordier than with so E is preffered
Director
Joined: 25 Oct 2008
Posts: 608
Location: Kolkata,India
Followers: 13

Kudos [?]: 794 [1] , given: 100

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

15 Oct 2009, 16:53
1
KUDOS
Parallilsm appears to be simple at first but lately I am having problems with it.
first,the question:
Quote:
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit

Non-underlined portion uses companies so A,D are eliminated.
Between B,C and E>>
E is voted as the correct answer because ".. to pay.." is parallel to "..to profit"

Why are we not looking for the parallism between using..earning..profiting..?Please explain B and C clearly.Thanks!
_________________

http://gmatclub.com/forum/countdown-beginshas-ended-85483-40.html#p649902

Director
Joined: 25 Oct 2008
Posts: 608
Location: Kolkata,India
Followers: 13

Kudos [?]: 794 [0], given: 100

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

17 Oct 2009, 19:53
c'mon guys..explanations pleease!
_________________

http://gmatclub.com/forum/countdown-beginshas-ended-85483-40.html#p649902

Manager
Joined: 03 Aug 2009
Posts: 83
Followers: 1

Kudos [?]: 109 [1] , given: 1

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

18 Oct 2009, 21:44
1
KUDOS
tejal777 wrote:
c'mon guys..explanations pleease!

investors borrow huge sums of money to buy companies, hoping to pay off the debt with the companys' earnings and to profit richly by the later resale of the companies or their divisions.

The inverstors hope to pay off... and to profile richly later is correct parallelism.

investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and by profiting by the later resale of the companies or their divisions.
If you make "earnings" and "profiting" parallel, it will mean that the investors hope to pay off debt by selling the company later. Moreover "by profiting" makes the setence meaning awakward. If inversters hoped to pay off the debt using the profit the correct sentence should have been-

In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and by the profit of later resale of the companies or their divisions.
_________________

Consider kudos for good post.

Manager
Joined: 02 Oct 2009
Posts: 93
Followers: 1

Kudos [?]: 39 [0], given: 2

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

18 Nov 2009, 21:43
It is not clear..will somebody give a meaningful explaination??

Rohit
Manager
Joined: 30 Sep 2009
Posts: 58
Followers: 1

Kudos [?]: 26 [0], given: 6

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

28 Dec 2009, 10:38
Hi I too got it wrong...
Stuck with C...
A proper look reveals certain stuff...
We need to look for parallelism in the verbs rather than the prepositional phrase.
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

Since only E satisfies the criterion, the answer should be E....
A really challenging question tooo.....
Manager
Joined: 12 Oct 2008
Posts: 58
Followers: 1

Kudos [?]: 2 [0], given: 3

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

04 Jan 2010, 19:39
"We need to look for parallelism in the verbs rather than the prepositional phrase."

I do not think we can applied this rule to every question. I come across many questions in which prepositional phrase parallelism is required.
Senior Manager
Joined: 21 Dec 2009
Posts: 268
Location: India
Followers: 10

Kudos [?]: 233 [0], given: 25

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

12 Jan 2010, 14:11
BCD are out because they are not parallel .... E is preferable over B because by using is wordy
_________________

Cheers,
SD

Intern
Status: Simply - Chasing GMAT
Joined: 04 May 2010
Posts: 27
Location: United Kingdom
GMAT Date: 01-30-2012
GPA: 3
WE: Consulting (Computer Software)
Followers: 1

Kudos [?]: 34 [0], given: 5

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

01 Aug 2010, 10:29
Must be very silly question but plz tell me difference between company's AND companies'.
what is the usage.
Senior Manager
Joined: 14 Jun 2010
Posts: 333
Followers: 2

Kudos [?]: 24 [0], given: 7

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

02 Aug 2010, 01:32
appy001 wrote:
Must be very silly question but plz tell me difference between company's AND companies'.
what is the usage.

If I am not wrong Company's refers to one company's owning like XYZ is a company and it's (XYZ company's) profit has reduced while companies' means that it belongs to the list of companies....like XYZ has merged with another financial biggie-ABC and hence the companies' profit have doubled.

Hope that makes sense!
SVP
Joined: 17 Feb 2010
Posts: 1558
Followers: 19

Kudos [?]: 575 [0], given: 6

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

13 Aug 2010, 07:32
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt ........and to profit...................

The non-underlined part of the sentence has 'companies' [plural], hence we need plural companies in the underlined part also.

A is incorrect because it uses company's [singular possessive]

E is correct for using companies' [plural possessive]

In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit - CORRECT
Manager
Joined: 27 Jul 2010
Posts: 197
Location: Prague
Schools: University of Economics Prague
Followers: 1

Kudos [?]: 42 [0], given: 15

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

28 Jan 2011, 08:12
appy001 wrote:
Must be very silly question but plz tell me difference between company's AND companies'.
what is the usage.

company's - possesive form of one company - singular
company's profit - is the profit of the company

companies' - possesive form of plural companies
companies' objective - is the objective of more companies

Is it clear now?
_________________

You want somethin', go get it. Period!

Manager
Joined: 19 Dec 2010
Posts: 145
Followers: 2

Kudos [?]: 29 [0], given: 12

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

08 Mar 2011, 02:33
I agree, the answer should be E. I stuck with C but you can see (pun intended) how that is not correct.
Manager
Joined: 19 Dec 2010
Posts: 145
Followers: 2

Kudos [?]: 29 [0], given: 12

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

09 Mar 2011, 00:15
This makes sense now, I looked at the question harder and I see how company's is different from companies'. This could be a hard spot under exam pressure though.
Senior Manager
Joined: 17 May 2010
Posts: 299
GMAT 1: 710 Q47 V40
Followers: 4

Kudos [?]: 48 [0], given: 7

Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

### Show Tags

17 Jul 2011, 15:33
I narrowed down to E and A as they both have proper parallel forms: to profit and to pay.

Go with E as the latter part of the sentence uses companies as well.
_________________

If you like my post, consider giving me KUDOS!

Re: In a leveraged buyout, investors borrow huge sums of money   [#permalink] 17 Jul 2011, 15:33

Go to page    1   2    Next  [ 40 posts ]

Similar topics Replies Last post
Similar
Topics:
In a leveraged buyout, investors borrow huge sums of money 1 20 May 2009, 16:55
39 In a leveraged buyout, investors borrow huge sums of money 32 27 Feb 2009, 23:53
In a leveraged buyout, investors borrow huge sums of money 3 11 Apr 2008, 05:54
In a leveraged buyout, investors borrow huge sums of money 5 18 Dec 2007, 11:38
In a leveraged buyout, investors borrow huge sums of money 14 15 Aug 2007, 12:00
Display posts from previous: Sort by