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# In a leveraged buyout, investors borrow huge sums of money

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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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03 Jun 2009, 04:52
I will prefer A.

To pay...........and..........to profit.

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Senior Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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03 Jun 2009, 06:24
I will go with E..

to pay off the debts with companies earnings
to profit by the resale..
whats the oa ?

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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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03 Jun 2009, 06:59
A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit -not wordy

I'll go with E because the paralleism is correct and not wordy..
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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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04 Jun 2009, 01:04
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It's E. Because the investors "hope" to pay off the debt and profit richly. Also observe the 3/2 split - eliminate company's because the parent clause is talking about companies.

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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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08 Jun 2009, 18:22
Oa is E.

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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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09 Jun 2009, 07:47
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gmatprep09 wrote:
２． In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit

Can anyone explain why the answer is not A?

I got E for this answer choice. First of all, "with the companies' earnings" is much more concise than saying "by using the companies' earnings." Suppose that you were unable to spot this, the use of "by" suggests a different logic. Example:

1) I was hit by a police. ----> the police performed the act of hitting

Now, according to option A, it suggests that "using" is hoping to pay off the debt. Don't forget, because we have the article "the" after "using", the article has turned "using" into a gerund. Because such a construction is illogical, options A and B are gone.
Option C suggests that the debt is using the companies' earnings....so this answer choice is out.
Option D uses "profiting." We already have the present participle "hoping", so if "profiting" is really suppose to be there, then we should have "and" before it to connect it with "hoping."

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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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09 Jun 2009, 21:06
gmatprep09 wrote:
２． In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit

Can anyone explain why the answer is not A?

It's can not A because it's not parallel: by + N ....and by the later resale of...
E is parallel: to pay off ....with the companies' earnings....and to profit ....by the later resale of...

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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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14 Jun 2009, 01:46
I will chose E...It maintains parallelism...
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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14 Jun 2009, 09:47
Good one...
parallel structure...
hoping + (to payoff ......to profit)
IMO E too

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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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15 Oct 2009, 17:53
1
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Parallilsm appears to be simple at first but lately I am having problems with it.
first,the question:
Quote:
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit

Non-underlined portion uses companies so A,D are eliminated.
Between B,C and E>>
E is voted as the correct answer because ".. to pay.." is parallel to "..to profit"

Why are we not looking for the parallism between using..earning..profiting..?Please explain B and C clearly.Thanks!
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Director
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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17 Oct 2009, 20:53
c'mon guys..explanations pleease!
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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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18 Oct 2009, 22:44
1
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tejal777 wrote:
c'mon guys..explanations pleease!

investors borrow huge sums of money to buy companies, hoping to pay off the debt with the companys' earnings and to profit richly by the later resale of the companies or their divisions.

The inverstors hope to pay off... and to profile richly later is correct parallelism.

investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and by profiting by the later resale of the companies or their divisions.
If you make "earnings" and "profiting" parallel, it will mean that the investors hope to pay off debt by selling the company later. Moreover "by profiting" makes the setence meaning awakward. If inversters hoped to pay off the debt using the profit the correct sentence should have been-

In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and by the profit of later resale of the companies or their divisions.
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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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18 Nov 2009, 22:43
It is not clear..will somebody give a meaningful explaination??

Rohit

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01 Dec 2009, 11:42
ok this is the first day i am doing . this but in this case how are we supposed to know the right answers?? how do u guys usually settle this

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04 Dec 2009, 06:43
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I choose E

E : In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt with the companies' earnings and to profit richly by the later resale of the companies or their divisions.

The question falls in parallelism category. 'to pay off' is parallel ' to profit' . ' with the companies' earnings' is parallel to ' by the later resale', they have same structure, preposition + N.

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07 Dec 2009, 03:59
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A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit

IMO E ..... 'to profit' parallel to 'to buy'
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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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28 Dec 2009, 11:38
Hi I too got it wrong...
Stuck with C...
A proper look reveals certain stuff...
We need to look for parallelism in the verbs rather than the prepositional phrase.
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

Since only E satisfies the criterion, the answer should be E....
A really challenging question tooo.....

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Manager
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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04 Jan 2010, 20:39
"We need to look for parallelism in the verbs rather than the prepositional phrase."

I do not think we can applied this rule to every question. I come across many questions in which prepositional phrase parallelism is required.

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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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12 Jan 2010, 15:11
BCD are out because they are not parallel .... E is preferable over B because by using is wordy
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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01 Aug 2010, 11:29
Must be very silly question but plz tell me difference between company's AND companies'.
what is the usage.

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Re: In a leveraged buyout, investors borrow huge sums of money   [#permalink] 01 Aug 2010, 11:29

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