In a leveraged buyout, investors borrow huge sums of money : GMAT Sentence Correction (SC)
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# In a leveraged buyout, investors borrow huge sums of money

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Manager
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29 Sep 2009, 06:32
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２． 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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29 Sep 2009, 06:34
please search the forum before posting.
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29 Sep 2009, 12:21
OA is E. Can anybody explain why A cannot be the answer?
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29 Sep 2009, 13:34
should be E

as in A "by using" is sounding awkward
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02 Oct 2009, 15:38
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02 Oct 2009, 15:43
kairoshan wrote:
OA is E. Can anybody explain why A cannot be the answer?

For two reasons:

1) "pay by using" is wordy compared to "pay with"
2) should be "companies'" and not "company's"
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07 Nov 2009, 18:47
powerka wrote:
kairoshan wrote:
OA is E. Can anybody explain why A cannot be the answer?

For two reasons:

1) "pay by using" is wordy compared to "pay with"
2) should be "companies'" and not "company's"

I agree !
In addition to that to pay is parallel to profit so that just leaves us with A/E.
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08 Nov 2009, 06:05
hoping to pay off ... and to profit ....
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08 Nov 2009, 06:08
kairoshan wrote:
２． 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

A & D are wrong because of "company's earnings".
B is wrong due to wrong parallelism. to pay off...and by profiting
D is wrong due to parallelism.
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Re: Brutal #2   [#permalink] 08 Nov 2009, 06:08
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# In a leveraged buyout, investors borrow huge sums of money

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