Since 1986 when the Department of Labor began to allow : GMAT Sentence Correction (SC)
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# Since 1986 when the Department of Labor began to allow

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Joined: 16 Apr 2009
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Since 1986 when the Department of Labor began to allow [#permalink]

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15 Aug 2009, 11:05
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Since 1986 when the Department of Labor began to allow investment officers’ fees to be based on how the funds they manage perform, several corporations began paying their investment advisers a small basic fee, with a contract promising higher fees if the managers perform well.
(A) investment officers’ fees to be based on how the funds they manage perform, several corporations began
(B) investment officers’ fees to be based on the performance of the funds they manage, several corporations began
(C) that fees of investment officers be based on how the funds they manage perform, several corporations have begun
(D) fees of investment officers to be based on the performance of the funds they manage, several corporations have begun
(E) that investment officers’ fees be based on the performance of the funds they manage, several corporations began
[Reveal] Spoiler:
OA is D. What does 'they' refer here? is it 'the Dept of Labor' or 'the fees of investment officers'

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15 Aug 2009, 12:39
'they' refers to 'investment officers' in D, and that is why it is correct. 'they' can never refer to a company/department because these are singular nouns.
Re: Reference of they   [#permalink] 15 Aug 2009, 12:39
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