Dear a13ssandra,

Even I thought that choice B is wrong and unidiomatic, but alas, that's how 700 level question trick us.

Here's the reason:

Because of the enormous research and development expenditures required to survive in the electronics industry, an industry marked by rapid innovation and volatile demand, such firms tend to be very large.

If you give heed to "Such Firms", you would realize that it has no reference to any type of "firms", but since the word Such is used, it means that, there should be a reference to firms, and that should precede Such Firms .

Only answer choices B & E include reference to Firm.

But E is about Firm's Survival and not firm, moreover, a phrase such as, for firms' survival is unidiomatic and unacceptable in GMAT.

So B is the answer.

Hope that helps you.
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No, the problem above is different. In the SC, we are talking about the expenditures that are required of firms. Why are these expenditures required? To survive.

In the sentence you cited, "she" requires something of her friend, but she doesn't require it in order to work. In other words, she is not doing the working. Since the idea being expressed here is much simpler, we should use a simpler form: "She requires her friend to work."
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Dmitry Farber | Manhattan GMAT Instructor | New York


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Hi thangvietnam,

Let us recollect the pronoun rule: A possessive noun is not a good antecedent of a pronoun. e.g.,

The teacher is rechecking John's research thesis to determine whether he has used his original idea.

John's is not a good antecedent for he because of the above rule.

Please note that the word such combined with a noun is used to refer to an antecedent mentioned previously. The antecedent in this case also should preferably not be in possessive. For this reason the possessive firms' is a poor antecedent of such firms.

Is this explanation satisfactory?

Logic + Modifiers

A, C, and D can be eliminated because they give a meaning that “enormous research and development expenditures” are required of the ‘industry’. The correct meaning is that such enormous expenditures are required of firms to survive in the electronics industry.
E is wrong because it also fails to convey the meaning effectively.
B is the best choice.
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Thanks!
Do give some kudos.

Simple strategy:
“Once you’ve eliminated the impossible, whatever remains, however improbable, must be the truth.”

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My Notes:
Reading comprehension | Critical Reasoning | Absolute Phrases | Subjunctive Mood