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In a leveraged buyout, investors borrow huge sums of money [#permalink]
 28 Feb 2009, 00:53
Question Stats:
37% (04:05) correct
62% (00:51) wrong based on 2 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
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ritula 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 hoping to pay off... and <hoping> to profit between A and E. A is better. "by using " .. better than "with "
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ritula 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 Hi mates, IMO ETo maintain //ism, the last part of the answer should be "to profit", therefore just A and E left "hoping to pay [...] and to profit [...] Now, between A and E, E seems to be simpler than A, so, E OA and Source? Cheers
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I think this should be C
using the companies' earnings and profiting
companies' is used correct and followed the parallelism (using and profiting) ...
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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. Explanation: ----------------------- A. by using the company's earnings and to profit ---> Incorrect use of apostrophe in the word company's. B. by using the companies' earnings and by profiting ---> Incorrect. Not parallel in structure. C. using the companies' earnings and profiting ---> Incorrect. Not parallel in structure. D. with the company's earnings, profiting ---> Incorrect use of apostrophe in the word company's. E. with the companies' earnings and to profit ---> Correct. It uses the apostrophe in the correct place to indicate that companies are involved and NOT just a company. It is also parallel in structure (... to pay off the debt... ... to profit richly...) JohnLewis1980 has given the correct explanation for the second part. ----------------------- Clearly option E. Hope that helps. Regards, Technext
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E. was my options for reasons posted above
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Here the parallelism is as "hoping to pay off.....by......and to profit....by...". A is the only choice left.
Hence, I will go with A.
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E
right use of apostrophe and maintains plurality
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hoping is common to both ,
to pay off the debt by using and to profit richly by the later are parallel
Hence A.
Company's is right because investors pay off the debt using one company's earnings (each company's earnings) and resale of all the companies...thats the best explanation i could think for Textnext argument.
OA please
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OA is E
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ritula wrote: OA is E A bit late to the discussion. I thought it should be A. Do you have the OE as well?
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Nope i dnt hv the OE. But Technext explained quite well sanjay_gmat wrote: ritula wrote: OA is E A bit late to the discussion. I thought it should be A. Do you have the OE as well? |
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ok this is the first day i am doing . this but in this case how are we supposed to know the right answers?? how do u guys usually settle this
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I choose E
E : In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt with the companies' earnings and to profit richly by the later resale of the companies or their divisions.
The question falls in parallelism category. 'to pay off' is parallel ' to profit' . ' with the companies' earnings' is parallel to ' by the later resale', they have same structure, preposition + N.
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A. by using the company's earnings and to profit B. by using the companies' earnings and by profitingC. using the companies' earnings and profitingD. with the company's earnings, profiting E. with the companies' earnings and to profit IMO E ..... 'to profit' parallel to 'to buy'
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my answer is (e)
I think the parallelism is between 'to buy 'and 'to profit' while the phrase 'hoping to pay off the debt by using the company's earnings' is simply an adiitive phrase
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Should be E.
I got the answer from somewhere else: The non-underlined part of the sentence uses "companies" (twice), so we need the plural possessive "companies'".
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ritula 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 I'll admit I havent seen this question for the first time and know that E is the right answer (because of parallelism between "to pay off" and "to profit", as well as between "buy companies" and "the companies' earnings"). When i saw this question for the first time, I had a hard time accepting the usage of "with" in the sense of "[by] using". Any comments, anyone?
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I think issue is parallelism....... to pay........to profit......E
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. with the companies' earnings and to profit ---> Correct. It uses the apostrophe in the correct place to indicate that companies are involved and NOT just a company. It is also parallel in structure
AGREED IMO--E
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