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

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24 Oct 2009, 06:56
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80% (02:19) correct 20% (01:33) wrong based on 17 sessions

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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.

(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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Re: leveraged buyout [#permalink]

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24 Oct 2009, 09:38
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 - IMO A

(B) by using the companies’ earnings and by profiting - Parallelism fails to pay off ... to profit.

(C) using the companies’ earnings and profiting - requires the much needed 'by' and fails parallelism.

(D) with the company’s earnings, profiting - Profiting is not parallel.Also the verb needs to be separated by an 'and'.

(E) with the companies’ earnings and to profit - Pay off debt by seems better.

IMO A.
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Re: leveraged buyout [#permalink]

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24 Oct 2009, 10:23
amit2k9..everything you did is correct...only missed the significance of apostrophe.

E is the answer. companies' is required instead of company's.
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Re: leveraged buyout [#permalink]

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24 Oct 2009, 10:33
Ok.You are right.I was stuck between A and E.
However, which one is idomatic pay off debt with or pay of debt by.

Thank you in advance.
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Re: leveraged buyout [#permalink]

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28 Nov 2009, 13:20
amit2k9 wrote:
Ok.You are right.I was stuck between A and E.
However, which one is idomatic pay off debt with or pay of debt by.

Thank you in advance.

I personally don't think that there's a difference between the two. I think the trick here is to recognize the difference between company's and companies'
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Re: leveraged buyout [#permalink]

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28 Nov 2009, 23:05
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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.

(A) by using the company’s earnings and to profit
(B) by using the companies’ earnings and by profiting (parallelism fails)
(C) using the companies’ earnings and profiting (parallelism fails)
(D) with the company’s earnings, profiting
(E) with the companies’ earnings and to profit (as if along with debt pay off company earning)

wats the OA ????????

feel as if none of the answer choices are correct - using companies's and to profit (parallel with 'to pay off') is needed i feel
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Re: leveraged buyout   [#permalink] 28 Nov 2009, 23:05
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# In a leveraged buyout, investors borrow huge sums of money

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