Official Explanation
After a quick glance at the answer choices, you may think that none of them is a clear-cut winner. That’s okay; the “correct” answer doesn’t have to be great. It merely needs to be better than the others. Start by looking for definite grammar errors.
The 2/3 split between “that a company” and “a company” is a good place to start. The correct idiom is “state…that.” Eliminate (D) and (E). Notice that it is hard to identify the idiom words when they are separated by all of the other words in between. As you saw on earlier examples, you need to focus on the relevant parts.
You probably noticed that some answers have “ought to be” and some have “should be,” and you may want to eliminate the “ought to be” choices. However, you shouldn’t eliminate answers unless they clearly violate a grammar rule. Is “ought to be” breaking some rule, or do you merely not like the way it sounds? Look for a more concrete reason to eliminate some answers. Another reason to eliminate (D) is the word “was.” It implies that the liquidation actually occurred already, rather than being a hypothetical example or a recommendation for the future.
One difference among the remaining answers is “that earned” versus “earning” versus “which earned.” You can eliminate (C) because of the “which.” You use “which,” as opposed to “that,” when it is setting off a nonessential phrase. This phrase, however, is necessary to the sentence because it identifies the company that should be liquidated. If you throw out that phrase, it sounds like you’re just picking some arbitrary company to shut down.
Between (A) and (B), you might be tempted again to eliminate “ought to be.” However, there’s no particular rule that it is breaking. In (B), however, the phrase set off by commas, “earning…savings account,” creates a problem. Separating it from the rest of the sentence with commas is something you do with nonessential phrases. As you just saw, this phrase is essential to identify the company that should be liquidated. Also, you should generally be skeptical of -ing endings if there is a reasonable alternative. The best answer is (A), even though “ought to be” doesn’t sound that great.
The questions for which (A) is the best answer often follow this pattern. None of the answers will sound good, but (A) doesn’t make any clear grammatical errors. So, if all of the answers seem poor, reconsider (A). Make sure you didn’t eliminate it for a bad reason.
Answer: A