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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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12 Dec 2011, 07:00
00:00

Difficulty:

85% (hard)

Question Stats:

40% (01:17) correct 60% (01:03) wrong based on 922 sessions

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Its E..correct usage of " Companies' " and paralleism
[Reveal] Spoiler: OA

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

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12 Dec 2011, 19:25
I don't understand why it's not A. Although the non underlined uses the plural companies, to pay off debt, wouldn't we need the singular company for the underlined portion since you only use a single company's earning?

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

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12 Dec 2011, 21:50
nice question, silly me i was thinking the of going wid B, since 'by using' the companies' 'by profiting' is parallel.

But E is the clear winner here!

by using is passive construction ...... gmat doesn't like passive.

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12 Dec 2011, 22:14
JohnLewis1980 wrote:
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

I agree with you in point that E is simpler than A.

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

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14 Dec 2011, 05:19
i agree that E is correct because of plural possessive.
but in these two options, which one is correct:
E. with the companies' earnings and to profit
A. by using the companies' earnings and to profit

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

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28 Oct 2012, 23:09
1
KUDOS
guys for the answer to be either A or E, should'nt the construction be a bit different; should'nt the construction ".....earnings, and to profit.."
By using the commas, the parallelism seems straight forward but without comma, "hoping to pay off the debt by using the company's earnings and to profit richly by later resale of the companies or their divisions." seems to modify the preceding clause.
verbal experts, please explain where I am missing.
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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12 Dec 2012, 09:32
Can somebody please clarify why A is wrong??

I don't think it is just for using "by".

Thanks

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

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12 Dec 2012, 12:03
tricky one... Got it right though...E..

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

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15 Nov 2013, 12:16
E

Explains better how the debt will be pay off

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

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12 Dec 2014, 03:50
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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20 Jan 2016, 23:10
Hello from the GMAT Club VerbalBot!

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

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21 Jan 2016, 03:18
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

Investors are buying several companies and not one company. Therefore, the possessive noun company’s is erroneous in any given choice. So I am removing A and D straightaway. Among B, C and E:
The intended meaning is that investors buy companies, and hope to do two things namely 1. To pay off the debts using the earnings and 2. to profit richly by selling wholly or in part when the companies turn debt-free. As such, ‘by profiting’ is not part of paying off the debts. That is the reason ‘using’ and ‘profiting’ cannot go parallel. What should be parallel are the infinitives ‘to pay off’ and ‘to profit', the two intended goals of the leveraged buyout.
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Re: In a leveraged buyout, investors borrow huge sums of money [#permalink]

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21 Jan 2016, 18:34
I see many people overlooked the difference between companies' and company's .....

Second error : //ism : to pay and to profit ....

Hope tht helps guys !

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Re: In a leveraged buyout, investors borrow huge sums of money   [#permalink] 21 Jan 2016, 18:34
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