In a leveraged buyout, investors borrow huge sums of money : GMAT Sentence Correction (SC)
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# In a leveraged buyout, investors borrow huge sums of money

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02 Jan 2005, 14:35
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In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the companyâ€™s earnings and to profit richly by the later resale of the companies or their divisions.

a) by using the companyâ€™s earnings and to profit
b) by using the companies earnings and by profiting
c) using the companiesâ€™ earning and profiting
d) with the companyâ€™s earnings, profiting
e) with the companiesâ€™ earning and to profit
+++

The OA is (e). I do know that in the above sentence the correct answer needs to follow the //ism of â€œto.â€
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02 Jan 2005, 23:48
maybe because u pay off debt WITH something ( like cash, material etc )
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03 Jan 2005, 03:53
ForrestGump,

Thank you for your response.I did a further research to understand the difference in the usage of "by" and "with":
-->Both are prepositional words.
--> "by" represents a result of an action.Example will be:
This was acheived by his efforts.
-->Like you have mentioned "with" represents an action that you acheive using the factor.Example will be:
This quilt was bought with the money given by him.

Thus the answer should be (e) as you will pay off the debt with .Hope I make sense.Thank you.Rgds,

Anna
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03 Jan 2005, 06:16
Hi Anna,

I think the problem is with company's and companys'.

Company's is singular, where as companys' is plural which matches with the plural forms their division and buy companies.

Hope this helps...
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Bhimsen Joshi

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03 Jan 2005, 23:06
Bhimsen wrote:
Hi Anna,
I think the problem is with company's and companys'.
Company's is singular, where as companys' is plural which matches with the plural forms their division and buy companies.
Hope this helps...

very well put bhimsen, the problem comes from using singular form instead of plural.
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04 Jan 2005, 03:25
Thank you Bhimsen and Kayser.That makes sense:-) Now I am hitting myself hard on how I can miss the fundamentals:-)

Hrrrrrrrrrrrrrrrrrr:-)

Anna
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04 Jan 2005, 03:25
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# In a leveraged buyout, investors borrow huge sums of money

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