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

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Manager
Joined: 11 Aug 2009
Posts: 121

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29 Sep 2009, 07:32
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Question Stats:

100% (01:28) correct 0% (00:00) wrong based on 1 sessions

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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

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Manager
Joined: 13 Jul 2006
Posts: 64

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29 Sep 2009, 07:34
please search the forum before posting.
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Manager
Joined: 11 Aug 2009
Posts: 121

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29 Sep 2009, 13:21
OA is E. Can anybody explain why A cannot be the answer?

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Intern
Joined: 29 Sep 2009
Posts: 4

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29 Sep 2009, 14:34
should be E

as in A "by using" is sounding awkward

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Manager
Joined: 22 Jul 2009
Posts: 191

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02 Oct 2009, 16:38

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Manager
Joined: 22 Jul 2009
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02 Oct 2009, 16:43
kairoshan wrote:
OA is E. Can anybody explain why A cannot be the answer?

For two reasons:

1) "pay by using" is wordy compared to "pay with"
2) should be "companies'" and not "company's"
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Senior Manager
Joined: 29 Sep 2009
Posts: 391

Kudos [?]: 41 [0], given: 5

GMAT 1: 690 Q47 V38

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07 Nov 2009, 19:47
powerka wrote:
kairoshan wrote:
OA is E. Can anybody explain why A cannot be the answer?

For two reasons:

1) "pay by using" is wordy compared to "pay with"
2) should be "companies'" and not "company's"

I agree !
In addition to that to pay is parallel to profit so that just leaves us with A/E.

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Manager
Joined: 03 Aug 2009
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08 Nov 2009, 07:05
hoping to pay off ... and to profit ....
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Manager
Joined: 03 Aug 2009
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08 Nov 2009, 07:08
kairoshan 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

A & D are wrong because of "company's earnings".
B is wrong due to wrong parallelism. to pay off...and by profiting
D is wrong due to parallelism.
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Consider kudos for good post.

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Re: Brutal #2   [#permalink] 08 Nov 2009, 07:08
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# In a leveraged buyout, investors borrow huge sums of money

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