While investigating the reasons behind the bankruptcy of the trading company, the empowered committee realized that the company collapsed more due to poor management of funds than due to customers not buying the company’s products.
This sentence is checking "parallelism error" by using more...than...
Also it's checking usage of due to / because of
construction of the sentence should be parallel after 'more' and 'than'. 'Because of' is used to modify the action or complete clause. 'Due to' is used to modify the noun. In this case, committee realized something, hence because of should be used to modify the clause.
(A) that the company collapsed more due to poor management of funds than due to customers not buying the company’s products - usage of 'due to' is not correct
(B) that the collapse was caused more by the poor management of funds than due to customers not buying the company’s products - was caused more by X than due to Y is not parallel
(C) that the company collapsed more because of poor management of funds than because of customers not buying its products - company collapsed more because of X than because of Y , hence correct
(D) that the collapse was more due to poor management of funds than because of customers not buying the company’s products - due to is not correct
(E) that poor management of funds did more to cause the collapse than did customers by not buying the company’s products - change in meaning