GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 18 Oct 2018, 15:35

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Because most investors prefer long term capital gains

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
User avatar
P
Joined: 13 Jun 2012
Posts: 189
Location: United States
WE: Supply Chain Management (Computer Hardware)
GMAT ToolKit User CAT Tests
Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post Updated on: 08 Jul 2017, 15:22
1
10
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

30% (01:24) correct 70% (01:21) wrong based on 347 sessions

HideShow timer Statistics

Because most investors prefer long term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.

a. the reduction in dividend payout ratios that have taken place during the last decade are
b. the reduction in dividend payout ratios that has taken place during the last decade is
c. the reduction that has taken place in dividend payout ratios during the last decades are
d. the reduction in dividend payout ratios that have taken place during the last decade is
e. the reduction that has taken place in dividend payout ratios during the last decades is

Originally posted by Turkish on 08 Jul 2017, 12:27.
Last edited by Turkish on 08 Jul 2017, 15:22, edited 2 times in total.
Senior Manager
Senior Manager
User avatar
G
Joined: 06 Jul 2016
Posts: 382
Location: Singapore
Concentration: Strategy, Finance
GMAT ToolKit User Premium Member
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 08 Jul 2017, 12:33
1
Turkish wrote:
Because most investors prefer long term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.

a. the reduction in dividend payout ratios that have taken place during the last decade are
b. the reduction in dividend payout ratios that has taken place during the last decade is
c. the reduction that has taken place in dividend payout ratios during the last decades are
d. the reduction in dividend payout ratios that have taken place during the last decade is
e. the reduction that has taken place in dividend payout during the last decades is


The reduction... is...
Ratios... have..

D is correct IMO.
What's the OA?
_________________

Put in the work, and that dream score is yours!

Director
Director
User avatar
P
Joined: 18 Aug 2016
Posts: 625
Concentration: Strategy, Technology
GMAT 1: 630 Q47 V29
GMAT 2: 740 Q51 V38
GMAT ToolKit User Premium Member Reviews Badge CAT Tests
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 08 Jul 2017, 12:37
The reduction ....is ....that has...

IMO B


Sent from my iPhone using GMAT Club Forum
_________________

We must try to achieve the best within us


Thanks
Luckisnoexcuse

Intern
Intern
User avatar
B
Joined: 07 Feb 2017
Posts: 41
GMAT ToolKit User
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 08 Jul 2017, 15:02
1
E is missing important info "ratios" from its structure although i must agree since "reduction is taking place" so E seems promising.

d. the reduction in dividend payout ratios that have taken place during the last decade is
e. the reduction that has taken place in dividend payout ratios during the last decades is
_________________

I'm just a hiker who is trying to conquer "GMAT Everest" and asking stupid questions!!!

Senior Manager
Senior Manager
avatar
G
Joined: 28 May 2017
Posts: 287
Concentration: Finance, General Management
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 08 Jul 2017, 17:34
3
Turkish wrote:
Because most investors prefer long term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.
a. the reduction in dividend payout ratios that have taken place during the last decade are
b. the reduction in dividend payout ratios that has taken place during the last decade is
c. the reduction that has taken place in dividend payout ratios during the last decades are
d. the reduction in dividend payout ratios that have taken place during the last decade is
e. the reduction that has taken place in dividend payout ratios during the last decades is


Basically there are two errors in this sentence.
First is Subject Verb Agreement
Since The subject "Reduction" of independent clause is singular, a singular verb "IS" should be used. So we can eliminate option A & C
Second is Restrictive Clause
THAT is used to modify immediately preceding noun and such modification should be logically correct.
Options B & D both are incorrect since the placement of THAT after RATIOS doesn't make any logical sense. Such placement means that "Ratios have take place during the last decades", an incorrect meaning.

Hence Answer is option E
_________________

If you like the post, show appreciation by pressing Kudos button

Intern
Intern
avatar
Joined: 01 Dec 2010
Posts: 6
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 09 Jul 2017, 04:10
Since "that has" clearly can't refer to ratios in B, why would it change the meaning and be wrong?

Posted from my mobile device
VP
VP
User avatar
P
Status: Learning
Joined: 20 Dec 2015
Posts: 1126
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE: Engineering (Manufacturing)
Reviews Badge
Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 09 Jul 2017, 05:40
Imo E
The meaning of the original sentence is that the reduction that has taken place in dividend payout ratio is perfectly understandable because most investors prefer long term capital gains to annual dividend payouts.

Subject here is the reduction and it is singular so we need singular very only option E is right .

B has a problem that is B refers to ratio that has taken place .
It does not make sense the reduction in ratio took place not the ratio .

_________________

Please give kudos if you found my answers useful

Director
Director
User avatar
P
Joined: 27 May 2012
Posts: 583
Premium Member
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 01 Sep 2017, 05:51
Turkish wrote:
Because most investors prefer long term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.

a. the reduction in dividend payout ratios that have taken place during the last decade are
b. the reduction in dividend payout ratios that has taken place during the last decade is
c. the reduction that has taken place in dividend payout ratios during the last decades are
d. the reduction in dividend payout ratios that have taken place during the last decade is
e. the reduction that has taken place in dividend payout ratios during the last decades is



Only contenders are B and E .
The difference between them lies in the placement of the phrases" that has taken place " and " in dividend payout ratios"

In B and E the phrases places have been interchanged.

Ideally the phrase should be placed very close to whatever it modifies.
In this case B can be argued to be correct also as " in dividend payout ratios" is rightly placed just after " the reduction " so we get:
the reduction in dividend payout ratios .......

also " that has taken place during the last decade " is better than " in dividend payout ratios during the last decade "

Feel as though B should be a better choice, as all modifiers are placed next to whatever they modify.
_________________

- Stne

Intern
Intern
avatar
B
Joined: 09 Aug 2017
Posts: 18
Location: India
GMAT 1: 700 Q49 V37
GPA: 3.71
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 01 Sep 2017, 09:01
4
there is a typo in option E..it says "decades", which is why I eliminated it. Please ensure you do not make such mistakes while posting questions! You are giving the GMAT!
Senior Manager
Senior Manager
User avatar
P
Joined: 29 Jun 2017
Posts: 473
GPA: 4
WE: Engineering (Transportation)
GMAT ToolKit User Premium Member Reviews Badge
Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 02 Sep 2017, 13:58
Turkish wrote:
Because most investors prefer long term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.

a. the reduction in dividend payout ratios that have taken place during the last decade are
b. the reduction in dividend payout ratios that has taken place during the last decade is
c. the reduction that has taken place in dividend payout ratios during the last decades are
d. the reduction in dividend payout ratios that have taken place during the last decade is
e. the reduction that has taken place in dividend payout ratios during the last decades is



B/E
In B ratios that has taken place during the last decade is non sensical,
In E reduction that has taken place in dividend payout during the last decade - makes sense..
_________________

Give Kudos for correct answer and/or if you like the solution.

Intern
Intern
avatar
B
Joined: 16 Jun 2018
Posts: 23
GMAT 1: 640 Q49 V29
GPA: 4
WE: Supply Chain Management (Energy and Utilities)
Re: Because most investors prefer long term capital gains  [#permalink]

Show Tags

New post 18 Sep 2018, 09:42
a. the reduction in dividend payout ratios that have taken place during the last decade are
b. the reduction in dividend payout ratios that has taken place during the last decade is
c. the reduction that has taken place in dividend payout ratios during the last decades are
d. the reduction in dividend payout ratios that have taken place during the last decade is
e. the reduction that has taken place in dividend payout ratios during the last decades is

E looked good enough but "decades" confused me and then I went for B. In B also "that" - an essential modifier is modifying ratios which doesn't make sense.
GMAT Club Bot
Re: Because most investors prefer long term capital gains &nbs [#permalink] 18 Sep 2018, 09:42
Display posts from previous: Sort by

Because most investors prefer long term capital gains

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.