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This one is testing PRONOUN agreement in number with its ANTECEDENT..
... the company required each employee to sign a confidentiality agreement prohibiting that its water purification methods be disclosed to companies...
(B) and (D) are wrong because of the pronoun THEM referring to the EACH employee... it should be singular
(A) and (E) are eliminated because of its wordiness in comparison to (C)...
"to be disclosed" -- "disclosure" is better
(C) is worded nicely "prohibitiing DISCLOSURE of ITS water purification methods to any company"
I think C and E are not grammatically wrong. When you can no longer see grammatical error, you choose based on meaning and concision. The two choices apparently keeps the sentence meaning. The tie breaker in this case is the concision.
E is wordy in two counts: "That would prohibit" instead of "prohibiting" "to be disclosed" instead of "disclosure"
Remember to eliminate answer choices based on its failure to meet the following: (1) Eliminate by Grammatical Errors (ALWAYS FIRST) (2) Eliminate by Meaning Change (3) Concision
You must evaluate answer choices in this order. If grammar is okay, use the other criteria as tie breaker.
Based on the MGMAT Book: GMAT frowns upon using phrase where a single word will do. Remember, that Concision is the LAST of the three principles tested on the GMAT. Do not simply pick the shortest choice and move on.
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