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In a leveraged buyout, investors borrow huge sums of money

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In a leveraged buyout, investors borrow huge sums of money [#permalink] New post 24 Nov 2005, 18:55
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A
B
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D
E

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Question Stats:

35% (01:34) correct 65% (00:47) wrong based on 228 sessions
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 carcass on 12 Mar 2014, 09:42, edited 1 time in total.
Formatted properly and added OA
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Re: SC leveraged buyout [#permalink] New post 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 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


A uses correct parallelism " hope to pay....to profit"
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Re: SC leveraged buyout [#permalink] New post 25 Nov 2005, 06:38
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 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


Agree with llism. but go with E.


agree...its E)...possessive form of "companies" is "companies`"
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 [#permalink] New post 25 Nov 2005, 07:13
sure i can see it now :P
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Re: SC leveraged buyout [#permalink] New post 25 Nov 2005, 11:18
Clear E.

Because companies' is correctly used here and parallelism ( of the verbs to buy.. and to profit )
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Re: SC leveraged buyout [#permalink] New post 25 Nov 2005, 14:52
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joemama142000 wrote:
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


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
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Re: SC leveraged buyout [#permalink] New post 15 Oct 2009, 16:53
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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!
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Re: SC leveraged buyout [#permalink] New post 17 Oct 2009, 19:53
c'mon guys..explanations pleease!
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Re: SC leveraged buyout [#permalink] New post 18 Oct 2009, 21:44
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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.
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Re: SC leveraged buyout [#permalink] New post 18 Nov 2009, 21:43
It is not clear..will somebody give a meaningful explaination??

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Re: SC leveraged buyout [#permalink] New post 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.....
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Re: SC leveraged buyout [#permalink] New post 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.
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Re: SC leveraged buyout [#permalink] New post 12 Jan 2010, 14:11
BCD are out because they are not parallel .... E is preferable over B because by using is wordy
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Re: SC leveraged buyout [#permalink] New post 01 Aug 2010, 10:29
Must be very silly question but plz tell me difference between company's AND companies'.
what is the usage.
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Re: SC leveraged buyout [#permalink] New post 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!
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Re: SC leveraged buyout [#permalink] New post 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
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Re: SC leveraged buyout [#permalink] New post 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?
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Re: SC leveraged buyout [#permalink] New post 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.
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Re: SC leveraged buyout [#permalink] New post 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.
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Re: SC leveraged buyout [#permalink] New post 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.
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Re: SC leveraged buyout   [#permalink] 17 Jul 2011, 15:33
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