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Reporting a 90 percent drop in net income during the second quarter

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Reporting a 90 percent drop in net income during the second quarter  [#permalink]

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New post Updated on: 04 Jan 2019, 09:42
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Question Stats:

43% (02:01) correct 57% (01:47) wrong based on 219 sessions

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Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.


A. Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.

B. Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company also withdrew its earnings guidance for the year.

C. Reporting a 90 percent drop in net income during the second quarter dragged down by restructuring charges and weak sales, Best Buy Co. withdrew the earnings guidance for the year.

D. Best Buy Co. has reported a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.

E. Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.

Originally posted by pjaseem on 01 Aug 2013, 05:17.
Last edited by Bunuel on 04 Jan 2019, 09:42, edited 2 times in total.
Edited the question, renamed the topic.
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Re: Reporting a 90 percent drop in net income during the second quarter  [#permalink]

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New post 01 Aug 2013, 06:56
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pjaseem wrote:
Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.

A.Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.
B.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company also withdrew its earnings guidance for the year.
C.Reporting a 90 percent drop in net income during the second quarter dragged down by restructuring charges and weak sales, Best Buy Co. withdrew the earnings guidance for the year.
D.Best Buy Co. has reported a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.
E.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.


Please do mention the source.
Who is reporting? What has brought down the percent income? In retaliation, what has Best Buy done?
These are the questions that should be answered by the correct answer choice.
A has modifier issue, C has merged two parts of the sentences into one without any verb or any conjunction.
B and E use present continuous, which is really not needed.
D is the ideal choice here.
Regards
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Re: Reporting a 90 percent drop in net income during the second quarter  [#permalink]

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New post 01 Aug 2013, 12:14
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pjaseem wrote:
Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.

A.Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.
B.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company also withdrew its earnings guidance for the year.
C.Reporting a 90 percent drop in net income during the second quarter dragged down by restructuring charges and weak sales, Best Buy Co. withdrew the earnings guidance for the year.
D.Best Buy Co. has reported a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.
E.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.



None of the options seems correct.

As per e-gmat explanation, "ed modifier" always modifies the preceding noun or noun phrase. So in all the options, "dragged down" is modifying second quarter. However, its not the second quarter that is dragged down but the net income is dragged down.

Below are the examples are given by e-gmat. Experts can weigh in if I am wrong.

Verb-ed Modifiers
1: Always modify preceding noun or noun phrase.

Discouraged by the long hours and low pay, my sister finally quit her job. Correct.

My sister, discouraged by the long hours and low pay, finally quit her job. Correct.

My sister finally quit her job, discouraged by the long hours and low pay. Incorrect as per GMAT rules Here the verb-ed modifier is modifying the preceding noun “her job” which does not make sense.
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Re: Reporting a 90 percent drop in net income during the second quarter  [#permalink]

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New post 01 Aug 2013, 21:08
Marcab wrote:
pjaseem wrote:
Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.

A.Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.
B.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company also withdrew its earnings guidance for the year.
C.Reporting a 90 percent drop in net income during the second quarter dragged down by restructuring charges and weak sales, Best Buy Co. withdrew the earnings guidance for the year.
D.Best Buy Co. has reported a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.
E.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.


Please do mention the source.
Who is reporting? What has brought down the percent income? In retaliation, what has Best Buy done?
These are the questions that should be answered by the correct answer choice.
A has modifier issue, C has merged two parts of the sentences into one without any verb or any conjunction.
B and E use present continuous, which is really not needed.
D is the ideal choice here.
Regards




The source is 4gmat blog.

I think the answer choice D is incorrect.The modifier "dragged down by restructuring charges" is not close to the noun it modifies .Morover the modifier doesn't seem to be an adverbial clause. Experts correct me if i am wrong.
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Re: Reporting a 90 percent drop in net income during the second quarter  [#permalink]

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New post 01 Aug 2013, 21:09
maaadhu wrote:
pjaseem wrote:
Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.

A.Reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales, the earnings guidance for the year was withdrawn by Best Buy Co.
B.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company also withdrew its earnings guidance for the year.
C.Reporting a 90 percent drop in net income during the second quarter dragged down by restructuring charges and weak sales, Best Buy Co. withdrew the earnings guidance for the year.
D.Best Buy Co. has reported a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.
E.Best Buy Co. is reporting a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales; the company has also withdrawn its earnings guidance for the year.



None of the options seems correct.

As per e-gmat explanation, "ed modifier" always modifies the preceding noun or noun phrase. So in all the options, "dragged down" is modifying second quarter. However, its not the second quarter that is dragged down but the net income is dragged down.

Below are the examples are given by e-gmat. Experts can weigh in if I am wrong.

Verb-ed Modifiers
1: Always modify preceding noun or noun phrase.

Discouraged by the long hours and low pay, my sister finally quit her job. Correct.

My sister, discouraged by the long hours and low pay, finally quit her job. Correct.

My sister finally quit her job, discouraged by the long hours and low pay. Incorrect as per GMAT rules Here the verb-ed modifier is modifying the preceding noun “her job” which does not make sense.



I agree. :) . the answer choice D seems to be wrong
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Re: Reporting a 90 percent drop in net income during the second quarter  [#permalink]

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New post 30 Jun 2016, 11:47
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Things to keep in mind:

1. Reporting has already been done - past tense for reporting
2. Best Buy Co. is doing the reporting. - correct modifier. We need to tell correctly who did the reporting

Option A can be eliminated based on the 2nd point.
Option B uses a present continuous tense for reporting. Hence incorrect
Option C merges two parts of the sentence without using any conjunction
Option E uses a present continuous tense for reporting. Hence incorrect

Correct Option: D
Although there are issues with this option too, but this is the best of the lot.
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Re: Reporting a 90 percent drop in net income during the second quarter  [#permalink]

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New post 29 Jul 2017, 09:42
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OE

https://practice-questions.wizako.com/g ... se-2.shtml

Step 1: Identifying What Is Tested

Look for differences across the answer options to identify what is being tested in the sentence.
Some of the options use “reporting a 90%.... and weak sales” as a modifier in the sentence and some of the options use it as a main part of the sentence.
When this phrase is part of the main part of the sentence, the tense construction varies with some options using the progressive tense “is reporting” and some using the present perfect “has reported”.
Similarly, the verb “withdraw” has also been constructed in different tenses.

Step 2: Understanding the Sentence

The use of the progressive tense “is reporting” would imply that the company is right now doing the action of reporting and that it is still happening. Then progressive tense would therefore, be incorrect.
The tense form for “withdraw” must match the tense for “reporting” (if “reporting…” has not been used as a modifier) because the actions are related and happened at the same time.
If “reporting a 90%.... and weak sales” is used as a modifier, it has to refer to the company because the company is doing the action of reporting.

Step 3: Eliminating Options

Choice (A) is incorrect because the modifier “reporting a 90%.... and weak sales” refers to “the earnings guidance” and not to “Best Buy Co.”.
Choices (B) and (E) can be eliminated for the use of the progressive tense “is reporting”. Also, in both sentences, the verbs “withdrew” and “has withdrawn” imply that the action of withdrawing is completed. However, the verb “is reporting” leads to the impression that the action is yet to happen. This conflict in verb tense causes ambiguity in meaning.
Choice (C) uses the construction “reporting… and dragged down”. The usage of the conjunction “and” implies that there are two reasons for the withdrawal of the earnings guideline. However, this construction does not make sense because the company cannot be dragged down by restructuring charges. Rather, it is the “net income” that is dragged down. The change in the intent of the sentence is the reason to eliminate the option.

Choice D is the correct answer.
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Re: Reporting a 90 percent drop in net income during the second quarter   [#permalink] 29 Jul 2017, 09:42
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Reporting a 90 percent drop in net income during the second quarter

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