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

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Director
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24 Nov 2005, 19:55
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Question Stats:

42% (00:54) correct 58% (01:02) wrong based on 1319 sessions

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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 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
[Reveal] Spoiler: OA

Last edited by Vyshak on 19 Apr 2016, 11:41, edited 2 times in total.
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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24 Nov 2005, 21:55
joemama142000 wrote:
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

A uses correct parallelism " hope to pay....to profit"

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

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25 Nov 2005, 07:38
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HIMALAYA wrote:
joemama142000 wrote:
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 companiesâ€™ earnings and by profiting
(C) using the companiesâ€™ earnings and profiting
(D) with the companyâ€™s earnings, profiting
(E) with the companiesâ€™ earnings and to profit

Agree with llism. but go with E.

agree...its E)...possessive form of "companies" is "companies`"
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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25 Nov 2005, 08:13
sure i can see it now

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

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25 Nov 2005, 12:18
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Clear E.

Because companies' is correctly used here and parallelism ( of the verbs to buy.. and to profit )

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

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25 Nov 2005, 15:52
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joemama142000 wrote:
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 companiesâ€™ earnings and by profiting
(C) using the companiesâ€™ earnings and profiting
(D) with the companyâ€™s earnings, profiting
(E) with the companiesâ€™ earnings and to profit

the OA is E

this is a case of parallelism
hoping to pay.... and to profit
B, C, D are out

by using is wordier than with so E is preffered

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28 Feb 2009, 00:53
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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 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

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28 Feb 2009, 07:29
ritula wrote:
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

hoping to pay off... and <hoping> to profit

between A and E.

A is better.

"by using " .. better than "with "
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28 Feb 2009, 08:55
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ritula wrote:
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

Hi mates,

IMO E

To maintain //ism, the last part of the answer should be "to profit", therefore just A and E left

"hoping to pay [...] and to profit [...]

Now, between A and E, E seems to be simpler than A, so, E

OA and Source?

Cheers
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28 Feb 2009, 10:14
I think this should be C

using the companies' earnings and profiting

companies' is used correct and followed the parallelism (using and profiting) ...

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28 Feb 2009, 12:39
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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 company's earnings and to profit) richly by the later resale of the companies or their divisions.

Explanation:
-----------------------
A. by using the company's earnings and to profit ---> Incorrect use of apostrophe in the word company's.
B. by using the companies' earnings and by profiting ---> Incorrect. Not parallel in structure.
C. using the companies' earnings and profiting ---> Incorrect. Not parallel in structure.
D. with the company's earnings, profiting ---> Incorrect use of apostrophe in the word company's.
E. with the companies' earnings and to profit ---> Correct. It uses the apostrophe in the correct place to indicate that companies are involved and NOT just a company. It is also parallel in structure (...to pay off the debt... ...to profit richly...)

JohnLewis1980 has given the correct explanation for the second part.
-----------------------

Clearly option E.

Hope that helps.

Regards,
Technext
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28 Feb 2009, 16:50
E. was my options for reasons posted above

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28 Feb 2009, 17:27
Here the parallelism is as "hoping to pay off.....by......and to profit....by...". A is the only choice left.

Hence, I will go with A.

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28 Feb 2009, 19:12
E

right use of apostrophe and maintains plurality

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28 Feb 2009, 22:53
hoping is common to both ,
to pay off the debt by using and to profit richly by the later are parallel

Hence A.

Company's is right because investors pay off the debt using one company's earnings (each company's earnings) and resale of all the companies...thats the best explanation i could think for Textnext argument.

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28 Feb 2009, 23:34
OA is E

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01 Mar 2009, 12:13
ritula wrote:
OA is E

A bit late to the discussion. I thought it should be A. Do you have the OE as well?

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02 Mar 2009, 06:58
Nope i dnt hv the OE. But Technext explained quite well
sanjay_gmat wrote:
ritula wrote:
OA is E

A bit late to the discussion. I thought it should be A. Do you have the OE as well?

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02 Jun 2009, 10:53
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?

Last edited by broall on 27 May 2017, 03:17, edited 1 time in total.
Merged topic. Please search before posting question.

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

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03 Jun 2009, 00:58
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 -Parallelism error - 'to profit' should be parallel to 'hoping' but not to 'to pay off'
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 am stuck between option C and D, but C looks better than D.

So C could be the correct answer.

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Re: In a leveraged buyout, investors borrow huge sums of money   [#permalink] 03 Jun 2009, 00:58

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