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I would also go with B...."last month by reading" seems he read the book last month..
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one of the main issues in this question is misplace modifier. If we handle that issue first, we can eliminate
A) because a book is not an American management writer.
C) is wrong becuase "How the Mighty Fall" is singular and is modified by the plural "books"[quote="shaileshmishra"][u]A book by Jim Collins, an American management writer, prompted Akio Toyoda’s alarm call last month by reading “How the Mighty Fall”, which identifies five stages of corporate decline.

Then we have to look for a second error. E) is wrong becuase it has the phrase last month by reading at the end. We need to finish that sentence with what we are reading.

D) this sentence makes the alarm call the one that identifies the five stages, not the book - this changes the meaning of the sentence.

B is thus the best answer - it does have an "and" which indicates a potential parallelism issue but in this sentence the verbs are parallel. each of the modifiers correctly modify their nouns.
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B)Akio Toyoda’s alarm call last month was prompted by reading “How the Mighty Fall”, a book which identifies five stages of corporate decline and is written by Jim Collins, an American management writer.
Doesn't B try to say the the alarm call read the book?
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Zarrolou
A)A book prompted Akio Toyoda’s alarm call last month by reading (...)
A book prompted the alarm call by reading?

B)Akio Toyoda’s alarm call last month was prompted by reading “How the Mighty Fall”, a book which identifies five stages of corporate decline and is written by Jim Collins, an American management writer.
IMO CORRECT

C changes the meaning: the book is one only. Moreover "books" "was" is incorrect.
C)Akio Toyoda alarm call last month was prompted by reading “How the Mighty Fall”, books which identify five stages of corporate decline and was written by Jim Collins, an American management writer.

The COMMA +ING modifier in D and E is not used correctly: it does not presents the results of the action
D)“How the Mighty Fall”prompted Akio Toyoda’s alarm call last month, identifying five stages of corporate decline.
E) Jim Collins wrote “How the Mighty Fall”, prompting Akio Toyoda’s alarm call last month by reading.

Hi Zarrolou,

Can you please elaborate on why identifying is wrong in option D.
I read the other comments also, but somehow did not get it.

Thanks.
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ankurgupta03
Zarrolou
A)A book prompted Akio Toyoda’s alarm call last month by reading (...)
A book prompted the alarm call by reading?

B)Akio Toyoda’s alarm call last month was prompted by reading “How the Mighty Fall”, a book which identifies five stages of corporate decline and is written by Jim Collins, an American management writer.
IMO CORRECT

C changes the meaning: the book is one only. Moreover "books" "was" is incorrect.
C)Akio Toyoda alarm call last month was prompted by reading “How the Mighty Fall”, books which identify five stages of corporate decline and was written by Jim Collins, an American management writer.

The COMMA +ING modifier in D and E is not used correctly: it does not presents the results of the action
D)“How the Mighty Fall”prompted Akio Toyoda’s alarm call last month, identifying five stages of corporate decline.
E) Jim Collins wrote “How the Mighty Fall”, prompting Akio Toyoda’s alarm call last month by reading.

Hi Zarrolou,

Can you please elaborate on why identifying is wrong in option D.
I read the other comments also, but somehow did not get it.

Thanks.

Sure!
D)“How the Mighty Fall”, a book by Jim Collins, an American management writer, prompted Akio Toyoda’s alarm call last month, identifying five stages of corporate decline.

can be reduced to (removing modifiers)

D)“How the Mighty Fall” prompted Akio Toyoda’s alarm call last month, identifying five stages of corporate decline.

The first part is fine, then I see an COMMA + ING modifier: it's used to present the results of the action, add info ,...
This type of modifier must present the logical consequences of the action: "identifying five stages of corporate decline" was not the result of the fact that "the book prompted Akio Toyoda’s alarm call". The structure is not correct.

Take this Official Example:

Emily Dickinson’s letters to Susan Huntington Dickinson were written over a period beginning a few years before Susan’s marriage to Emily’s brother and ending shortly before Emily’s death in 1886, outnumbering her letters to anyone else.

The sentence is correct until the COMMA + ING modifier. The modifier outnumbering her letters to anyone else does not present the direct consequence of the action, hence this sentence is incorrect.

I scored the last shot, winning the game for my team. <== results of the action, correct
The book prompted the alarm call, identifying the five stages of the corporate decline. <== incorrect

Hope it's clear
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wonderful question challenge us to find correct logicness

i fail on this one but want to follow it
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wonderful question challenge us to find correct logicness

i fail on this one but want to follow it
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blueseas
A book by Jim Collins, an American management writer, prompted Akio Toyoda’s alarm call last month by reading “How the Mighty Fall”, which identifies five stages of corporate decline.

A)A book by Jim Collins, an American management writer, prompted Akio Toyoda’s alarm call last month by reading “How the Mighty Fall”, which identifies five stages of corporate decline.
this is so terribly constructed...my eyes hurt... which refers to what???

B)Akio Toyoda’s alarm call last month was prompted by reading “How the Mighty Fall”, a book which identifies five stages of corporate decline and is written by Jim Collins, an American management writer.
now which refers to a book. and correctly joins 2 verbs together. all modifiers are in place and the meaning is clear.

C)Akio Toyoda alarm call last month was prompted by reading “How the Mighty Fall”, books which identify five stages of corporate decline and was written by Jim Collins, an American management writer.
AK's alarm - 1st error. books-was - incorrect as there is only 1 book that prompted AT's alarm, but the subject and the first verb are plural.

D)“How the Mighty Fall”, a book by Jim Collins, an American management writer, prompted Akio Toyoda’s alarm call last month, identifying five stages of corporate decline.
ing modifier changes the meaning.

E) Jim Collins, an American management writer, wrote “How the Mighty Fall”, which identifies five stages of corporate decline, prompting Akio Toyoda’s alarm call last month by reading.
again, ing modifier changes the meaning.
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Of course, B is the best among the lot forcing people to choose it. But the passive voice in the sentence is rather jarring. Should we take that one cannot write the same in active voice?
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a book which identifies five stages of corporate decline and is written by Jim Collins, an American management writer.

Here, a dependent clause placed in the independent clause a book is written by Jim Collins, an American management writer -> why is `and` used here?
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