Renowned economist Susan Albernaght once stated, as an illustration of

"Opportunity cost" is not "a company". So "that" is essential. Eliminate D and E


We cannot compare returns to interest rates. It is like comparing $500 to 6%. Eliminate A and C.

IMO, it's B

Posted from my mobile device

[quote="acegmat123"]"Opportunity cost" is not "a company". So "that" is essential. Eliminate D and E


We cannot compare returns to interest rates. It is like comparing $500 to 6%. Eliminate A and C.

IMO, it's B

Posted from my mobile device[/q


OE might explain it in more detail. m with you on it.

Hi All ,

I would like to explain this SC question as per my understanding.

First and foremost thing to keep in mind is :
1) Read the given paragraph thoroughly to predict the errors .
2) identify the error and work on it

For the given paragraph , :

1) Idiom is used “ stated ..... that “ — that’s the correct idiom usage —- so eliminate the answer choices without “that “ in the beginning.
So here I go , Eliminate option “D “ and “E”.

2) Comparison word “than “ is used — which indicates the comparison between similar objects (thereby following the parallelism rule also )

Percentage return and interest rate ——both are expressed in percentage , so this comparison is correct !
So here I go and eliminate option “B” and “C”

So , the credited answer is A

Experts are requested to please evaluate my understand and provide the necessary updates .

Thank you all

Posted from my mobile device

Why c is incorrect? Kindly help me on the regard.

Posted from my mobile device

Hi Rashed12,

For C , the comparison is wrong ,it’s not comparing the similar things ,

Comparison is made between returns and saving account interest rate!!!

Return is going to be a numeric value where’s rate will be in %

So it’s bad form of comparing two dissimilar things .

Hope this helps

Posted from my mobile device

I think the people who made this question don't want to use a which here. They probably want to use a that.

... company which earned...

... company that earned...

This is because this type of which is not normally used this way (without a comma before it).

Hi

Can we compare returns with interest rates as give in option A?

Thanks,
Rishov

Hi Rishovnits,

Yes, that's not a problem. Here are a few more examples:

returns below the weighted average cost of capital
returns below the rate of return on a risk-free investment

A. that a company that earned a return lower than the interest rate on a savings account ought to be


C. that a company which earned returns lower than savings account interest rates ought to be

> C is wrong coz it compares "returns" and "savings account interest rates"

Also , I would like to update that
The passage is talking about a particular company which posses some characteristics based on some parameters ...

So , C is very generic which states that a company that earned a percentage returns lower than the [Savings account interest rate ] —- generic

Whereas , if we look at option A ) it clearly states that : a company that earned a percentage return lower than the interest rate on a saving account — here “interest rate in a savings accounts “— denotes a particular parameter

Hence , credited answer should be A

Posted from my mobile device

Hi AjiteshArun,

Although you validated that the comparison is correct, but in the given case it is difficult to logically appreciate that we are comparing the absolute amount (return) to the percentage (rate of interest) in the correct option A.

Renowned economist Susan Albernaght once stated, as an illustration of opportunity cost, that a company that earned a return lower than the interest rate on a savings account ought to be liquidated and the proceeds distributed to the shareholders.

A. that a company that earned a return lower than the interest rate on a savings account ought to beCan't find any mistake. But sensed that usage of that twice may be wrong. So keep it.

B. that a company, earning a return lower than the interest on a savings account, should be Here earning is modifying stated not the company so modifier error.

C. that a company which earned returns lower than savings account interest rates ought to be Usage of which is wrong

D. a company that was earning a lower return than a savings account was Was changes the tone of the author and should start with that as stated that is the correct idiom

E. a company earning a return lower than that of a savings account should beStated that

Coming straight to the point, its between A and C.

That vs Which.(but tats not the deciding factor here actualy)

If you carefully see u can notice returns and interests make it usual or generic.

In Rule-type statements we prefer stating conditions on one-o-one basis (though its a deep drilled preference).

Hence A is chosen over C. And hence its a 700+ level SC ??

Posted from my mobile device

Hi abhishekmayank,

As far as I know, it's okay to consider a percentage ("rate") as a return as well. That is, I don't think the word return is limited to "the absolute amount".

How to eliminate B?
I choose B because I though that we can't compare interest rates with returns as is the case in option A.

Please help.

jim441

I see your objection about A, but I'm not sure B fixes that. At least A is trying to compare rates of return, even if the wording could be more precise. B is comparing the return of the entire company to the interest on a savings account. That's not likely to be the right comparison, since one investor's account is not likely to yield the same dollar amount as an entire company, even if it might yield the same % gain per year.

Aside from that, B is wrong because it turns our noun modifier into an adverbial modifier. In A, we're narrowing down what company would get liquidated--a company that had low earnings. By using an adverbial modifier, B is no longer restricting which kind of company we're talking about. It's just saying a company should be liquidated. And why? Because it is has low returns. We're not talking about an actual company that currently has low earnings, and if we were, we'd need to say that much more clearly.

I was confused between A and E.

Finally chose E because the return is compared with return from savings account, while in option A return is compared with interest rate.

Can someone help me understand where I went wrong?