Because the management of a large corporation will often refer to

To me it comes down to options A and E.

I prefer E, as the sentence following the , directly modifies the the subject (management).

Seems to be E as its concise and sounds correct

Because the management of a large corporation will often refer to macroeconomic forecasts when it plans for the future, it is probable that its belief in their soundness is significant.

Meaning : because Management will OFTEN refer to forecasts, it is likely that the managements thinks of the forecasta as significant. Or why wpuld it refer to forecasts OFTEN??

Structure :
Subordinate clause : Because management (singular)will refer to ... forecasts(plural)
main clause: it (placeholder) that its (management's) belief in their(forecasts) is signicant (belief is the subject / is - verb)

The empty it though right grammatically unnecessarily makes the sentence wordy. Keep it until you find a better one.

their(forecasts) ...forecasts do not have a belief

"comma+ verbing " modifies preceding main clause. As the preceding structure is a subordinate clause, this choice makes the sentence a fragment
same error as B

management's belief in forecasts' soundness is probably significant. CLear and concise and not WORDY as A.

it was all between A and E - I prefer E because of the usage of the word 'Because' - So option E intends to management directly

My approach is as below

Question stem clearly states that Management refers to forecasts when it plans for the future.
So Answer choice should also follow the same approach.
Eliminate B, C, D (their belief)

A - it is not clearly tagged. Does it refer to the management, future plans. Ambiguous. Hence eliminate A.
E - its belief correctly modifies management and their soundness modifies macroeconomic forecasts. Hence correct.

Please find the difference by checking the word " Probably". In either of 2 cases, it modifies different sections, thus leading to a change in meaning.

Read the Original Sentence Carefully, Looking for Errors:

The underlined portion of this sentence contains the needlessly wordy and awkward clause "it is probable that." This is just a long way of saying probably. Also, the pronoun "it" is used to represent "management," so the insertion of the nonspecific "it" in "it is probable" is somewhat confusing as well as creating an annoying repetition.

Scan and Group the Answer Choices:

(A) and (B) are distinct from the other three choices in that they duplicate the wordy "it is probable that." The other choices are quite different from each other.

Eliminate Wrong Answer Choices:

Eliminate (A) and (B). The remaining choices have no clear split, so examine each one individually.

Eliminate (C). First, it changes the meaning of the underlined clause to the complete opposite by adding the word "not." Second, this part of the sentence is now just a modifying phrase, lacking a subject and verb. The non-underlined part of the sentence is a dependent clause starting with "Because," so there is now no independent clause and this sentence is a fragment.

Eliminate (D). It introduces the unidiomatic structure "belief on." "Belief in," as used in the original, is correct here. Also, it uses the plural pronoun "their" to mean the management's, but that noun requires the singular pronoun its.

(E) makes the underlined portion much more succinct by reducing the "it is probable that" modifier to "probably." Also, the modifier is moved to a place that makes the sentence’s meaning more clear. (E) fits perfectly into the original sentence and is the correct answer.

TAKEAWAY: Shorter is better on the the GMAT. If you're unsure where to begin, start with the shortest choice and carefully fit it into the original sentence. If it retains the meaning of the original and is grammatically correct, it is the correct answer.

https://gmatclub.com/forum/because-the- ... 81844.html - how to differentiate between A and E?