Hope you are consistent in your efforts. Conceptual clarity is very important to do well in SC questions. A correct answer choice should rectify the existing error, introduce no new error and should keep the intended meaning of the sentence unchanged. Also, it should be concise. Let us try to understand the following question
The modifying phrase “Discouraged by new data that show increases in toxic emissions from domestic factories” intends to modify shareholders. However, this incorrectly modifies searches. Now searches can’t be discouraged. This is an absurd logic. Hence there is an error of misplaced modifier present in the underlined portion.
Choice A can be eliminated as this is the repetition of the underlined portion.
Choice B repeats the error, hence can be eliminated on the same ground. Also, the placement of “who are looking for alternative investment opportunities” after “companies” gives an intended idea that companies are looking for alternatives and the shareholders.
Choice C Though the error of misplaced modifier is corrected, a new error is introduced. The use of past perfect tense is inappropriate. The use of “had begun” suggests that the “shareholders” had begun searching for new investment opportunities before the discouraging data were released. However, this is not the intended idea of the original sentence. The use of past perfect tense is to describe actions before a specific time in the past.
Also, this choice is less precise in nature as “investment opportunities outside of the manufacturing industry” is used as compared to “alternative investment opportunities”.
D. The choice has an error of misplaced modifier. The modifying phrase “Discouraged by new data that show increases in toxic emissions from domestic factories” intends to modify shareholders. However, this incorrectly modifies companies.
E. Correct answer. The modifier rightly touches shareholders.
Keep practicing; All the best!!
PythaGURUS Faculty Team