Quote:
If the year-end net profit had been below 5%, the board of directors would have recommended that all further investments must be kept on hold.
A. had been below 5%, the board of directors would have recommended that all further investments must
B. was below 5%, the board of directors would have recommended that all further investments should
C. was below 5%, the board of directors would recommend that all further investments
D. were below 5%, the board of directors would recommend that all further investments
E. would have been below 5%, the board of directors would have recommended that all further investments would
A classic example of the subjunctive mood and If-Then usage.
As we are aware, if the "if" clause uses past tense, the "then" clause should use past tense or 'would'.
and if the "if" clause uses past perfect, the "then" clause should use "would have".
For subjunctive, if a hypothetical is referred, such as the stated case, the verb will be plural.
Similarly, if a "command verb + that" is given, the verb will be plural or in the base form.
With that in mind, let's analyse the options:
Quote:
A. had been below 5%, the board of directors would have recommended that all further investments must
The usage of 'must' violates the rules of the subjunctive mood. Incorrect.
Quote:
B. was below 5%, the board of directors would have recommended that all further investments should
If 'was', then 'would have' = Incorrect.
Quote:
C. was below 5%, the board of directors would recommend that all further investments
The verb 'was' should be 'were' as per subjunctive mood. Incorrect.
Quote:
D. were below 5%, the board of directors would recommend that all further investments
This option fixes the error in option C. Let's hold on to this.
Quote:
E. would have been below 5%, the board of directors would have recommended that all further investments would
This option has all the errors that we talked about. Incorrect.
The answer is option D.