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Hello Everyone!

This question has already generated some great discussion, so let's see if we can find a quick and easy way to narrow down the options to get the correct answer. First, let's take a quick look at the options and highlight any major differences in orange:

Companies are relying more and more on networked computers for such critical tasks as inventory management, electronic funds transfer, and electronic data interchange, in which standard business transactions are handled via computer rather than on paper.

(A) in which standard business transactions are handled via computer rather than on paper
(B) where computers handle standard business transactions rather than on paper
(C) in which computers handle standard business transactions instead of on paper
(D) where standard business transactions are handled, not with paper, but instead via computer
(E) in which standard business transactions are being handled via computer, in place of on paper

While you could easily highlight all of the text on each option because they're so different, let's focus on a few key differences first:

1. in which vs. where
2. computers handle vs. business transactions are handled
3. rather than vs. instead of


The easiest place to start is #1: in which vs. where. No matter which one we end up choosing, we'll eliminate 2-3 options rather quickly. There is a difference between using "where" and "in which" to modify nouns, so let's explore that first:

where = indicates or modifies a location
(We got married at our local park, where we first met last summer, because it was beautiful and fit our whole family. --> "where" is modifying "park," which is a location.)
in which = modifies nouns
(The wedding lasted only 30 minutes, in which the officiant only stuck to the basic ceremony traditions. --> "in which" is modifying "wedding," which is a noun.)

If we look closely at the original sentence, this phrase is supposed to modify the noun "critical tasks," so we know we need to use "in which" to indicate we're modifying a noun, and not a location:

(A) in which standard business transactions are handled via computer rather than on paper
(B) where computers handle standard business transactions rather than on paper
(C) in which computers handle standard business transactions instead of on paper
(D) where standard business transactions are handled, not with paper, but instead via computer
(E) in which standard business transactions are being handled via computer, in place of on paper

We can eliminate options B and D because they use "where," which is suppose to show location, instead of "in which," which is used to modify a noun.

Now that we have it narrowed down to only 3 options, let's take a closer look at each remaining option. We need to focus on both #2 and #3 on our list: what order to put the computers and the transactions, and making sure we're using "instead of" or "rather than" properly:

(A) in which standard business transactions are handled via computer rather than on paper

This is CORRECT! The two things that are contrasted here make sense (via computer vs. on paper), and everything is written clearly and concisely!

(C) in which computers handle standard business transactions instead of on paper

This is INCORRECT because the two things being contrasted here don't make sense (the computers vs. on paper). It also suggests that the computers handle the business transactions themselves, instead of a PERSON handling the business transactions by using a computer or paper. As of right now, computers can't do things like that by themselves, so it makes more sense to suggest a person is doing the action, and they're merely using different tools to do that task.

(E) in which standard business transactions are being handled via computer, in place of on paper

This is INCORRECT because it's overly wordy, and the phrase "in the place of" is confusing. It's too wordy to say "are being handled," and it subtly suggests that the computer is handling the transactions. Saying "are handled" is better because it's less wordy, and it doesn't suggest the computer is doing the action itself. The phrase "in place of" is also overly wordy and confusing. "In place of" means that you replace one thing with another because you need to - as if you're saying paper is no longer an option for them to use. Saying "rather than" means you PREFER to do your work via computer rather than on paper. You could still use paper, but you prefer not to!


There you have it - option A was the correct choice!


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Can someone help me.

At the first sight, I choose A over C. But I notice that "standard business transaction are handled" It should be "is"

In choice C, the word "instead of" is not preferred in GMAT and it breaks parallelism.
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Option A looks clear and concise but I think there is some ambiguity over the usage of 'in which' . what is it referring to?
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is "instead of" kinda redundant? Experts please clarify.
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gmatguy16 wrote:
Option A looks clear and concise but I think there is some ambiguity over the usage of 'in which' . what is it referring to?


In which refers to critical tasks.

Companies are relying more and more on networked computers for such critical tasks as [...], in which standard business transactions are handled via computer rather than on paper.

The comma after the "and electronic data interchange, " is the key. Without a comma, the in which would modify electronic data interchange. With the comma, the in which modifies the noun before the list.
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thanhmaitran wrote:
Companies are relying more and more on networked computers for such critical tasks as inventory management, electronic funds transfer, and electronic data interchange, in which standard business transactions are handled via computer rather than on paper.


A. in which standard business transactions are handled via computer rather than on paper
B. where computers handle standard business transactions rather than on paper
C. in which computers handle standard business transactions instead of on paper
D. where standard business transactions are handled, not with paper, but instead via computer
E. in which standard business transactions are being handled via computer, in place of on paper
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Re: Companies are relying more and more on networked computers for such [#permalink]
I am unable figure out, if "in which" modifies "electronic data interchange" or "critical tasks".

From the position of "in which", it appears that, it is modifying "electronic data interchange". Please suggest.
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RMD007 wrote:
I am unable figure out, if "in which" modifies "electronic data interchange" or "critical tasks".

From the position of "in which", it appears that, it is modifying "electronic data interchange". Please suggest.


The modifier "in which...." refers to "critical tasks" (i.e. all the three tasks including "electronic data exchange"). In general the modifier touch rule is a strictly followed rule in GMAT, but there are certain exceptions that are acceptable. Manhattan SC Guide summarizes these exceptions. Following is an acceptable exception corresponding to the above:

A short non-essential modifier (e.g.,examples) may come in between a modifier and the noun it refers to.
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Re: Companies are relying more and more on networked computers for such [#permalink]
Can anyone help me with option C.
Company is substituting paper for Computer, shouldn't we use instead of? i.e C
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mayankjain wrote:
Can anyone help me with option C.
Company is substituting paper for Computer, shouldn't we use instead of? i.e C


C has two major errors:

1. Parallelism error: X instead of Y - X = computers handle standard business transactions (clause), Y = on paper (prepositional phrase). Faulkty parallelism.

2. Wrong use of "instead of" - can only be used for noun / noun phrase.
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thanhmaitran wrote:
Companies are relying more and more on networked computers for such critical tasks as inventory management, electronic funds transfer, and electronic data interchange, in which standard business transactions are handled via computer rather than on paper.

A. in which standard business transactions are handled via computer rather than on paper
B. where computers handle standard business transactions rather than on paper
C. in which computers handle standard business transactions instead of on paper
D. where standard business transactions are handled, not with paper, but instead via computer
E. in which standard business transactions are being handled via computer, in place of on paper


Sentence Analysis
Computers are relying increasingly on networked computers for several critical tasks. In these tasks, standard business transactions are handled ‘via computer’ rather than ‘on paper’. VIA COMPUTER is a prepositional phrase and ON PAPER is also a prepositional phrase. Thus, perfect parallelism.

As explained above, the sentence, as is, is clear in meaning, and it also has the parallel structure ‘via computer’ and ‘on paper’. Therefore, the original sentence has no errors.

Also, this SC question is classic example of the mechanisms used by GMAC for the change of meaning by changing the voice of the sentence. Lets see how??

1. in which standard business transactions are handled via computer rather than on paper
The original underlined sentence is in PASSIVE VOICE and we are not aware of the doer of the action (ACTION -- handling of standard business transactions). But the intended meaning is clear. In these tasks, standard business transactions are handled ‘via computer’ rather than ‘on paper’. Perfect.

VERSUS

2. in which computers handle standard business transactions instead of on paper
Here the voice is changed to ACTIVE and now we are told that the COMPUTERS are the doer. As can be seen that the meaning now implied by this active voice sentence is completely NON-SENSICAL. Therefore, incorrect.

Option Analysis

(A) Correct.

(B) Incorrect. For the following reasons:
--“where”, on GMAT, refers to only physical locations. Therefore, ‘where’ cannot refer to ‘tasks’ here.
-- We have ‘on paper’ after “rather than”. However, ‘on paper’ is not parallel to anything before “rather than”. The only thing it can be parallel to is “where”. However, that interpretation will lead to an illogical meaning that computers handle transactions in critical tasks rather than on paper!

(C) Incorrect. It has Error no. 2 of option B.

(D) Incorrect. For the following reasons:
-- Error no. 1 of option B
-- Enclosing ‘not with paper’ in double commas indicate that it is non-essential part of the sentence. However, in its absence, ‘but instead via computer’ will not make any sense. TIP : -- whenever you have a NON-ESSENTIAL modifier separated by double commas in between, try to eliminate that non-essential modifier and check whether the remaining sentence still makes sense. If not, then the construction is wrong.

(E) Incorrect. ‘in place of’ is a preposition and therefore must be followed by a noun and never by another prepositional phrase “on paper”.

ALso, notice that in the choice E, the usage of BEING is correct.

E. in which standard business transactions are being handled via computer, in place of on paper
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Re: Companies are relying more and more on networked computers for such [#permalink]
How do we eliminate the wrong choices here? Expert Reply?
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mansi1997 wrote:
How do we eliminate the wrong choices here? Expert Reply?

Hi Mansi, lot of discussion has already happened on this thread, around the various answer choices. Hope you had a chance to go thru it.

Is there any specific option that is bothering you the most?
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Re: Companies are relying more and more on networked computers for such [#permalink]
"in which standard business...." is "in which" not modifying electronic data interchange?
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kritikumari wrote:
"in which standard business...." is "in which" not modifying electronic data interchange?

Hello, kritikumari. In the sentence at hand, in which is referring back to all three critical tasks collectively: such critical tasks as A, B, and C, in which... The sentence could just as easily be written with, say, inventory management occupying the third slot in the list. You can think of in which more as a description of all three processes at once. Here is the sentence with the correct answer and no underlining:

Companies are relying more and more on networked computers for such critical tasks as inventory management, electronic funds transfer, and electronic data interchange, [tasks] in which standard business transactions are handled via computer rather than on paper.

I hope that helps. If you have further questions, feel free to ask. Good luck with your studies.

- Andrew
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Big Idea #1

"In which " can be used to metaphorically describe places. You can say " I had a dream in which I was dancing with angels :D"
but the use of "where" is strictly limited to physical locations.

Big Idea #2
"rather than" shows a contrast between clauses, verbs or even nouns.
"Instead of " is limited in it's usage to nouns. Usually "rather than " structure is preferred.
The options here give a wrong construction of "instead of" and "where"
So A is correct , by all means!
Hope this helps!
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The phrase in place of is followed by the prepositional phrase on paper. This usage is incorrect because prepositions must be followed by nouns.

The use of are being handled is incorrect since it conveys that the action is taking place continuously.
However, as per the original sentence, this information is a fact.
Hence, use of present continuous tense is not correct.
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