The Axis Technology Company plans to spend the $30 million it holds in

OFFICIAL EXPLANATION




• NOTE
Nothing is wrong with the verbs in any of the options.
The word held in options C and E is a past participle (a verbED), not a past tense verb.

Held is part of a reduced relative clause: . . . the $30 million THAT IS held by [Axis Technology].
To "reduce" a relative clause, we shorten it.
Remove the relative pronoun (that).
Remove the to be verb, if present (is).
Keep the past participle (the verbED) (held).
Full relative clause:. . . the $30 million that is held by it.
Reduced relative clause: . . . the $30 million held by it.

Options A and D omit the word that (and are not reduced relative clauses): . . . $30 million [THAT] it holds in reserves.
Option B includes "that" and uses the permissible present progressive: . . . $30 million that it is holding in reserves.

No clear error exists in the verbs (holds, is holding) and verbals (held).

Just a heads up. I want to make sure that you remain aware of the ways in which past participles can be sneaky.

Held is not a reason to eliminate an option, although the passivity inherent in the construction held by it is a reason to eliminate option C.

Now, if the construction were ". . . the $30 million that it held in reserves . . .," we would have a verb tense problem.
The liquidation of the $30 million has not yet happened, so in verb form, past tense held would not make sense.

• Split #1: The definite article THE

This prompt is an instance in which the definite article the is needed to convey proper meaning quickly.

The non-underlined part suggests that by spending this $30 million, the company will end up completely liquidating its reserves.
In other words, to spend $30 million = to spend all the money in reserve.

To convey this meaning correctly and quickly, the word the must be placed before $30 million.
Otherwise, the company could have more money in reserves, out of which $30 million is being spent on something.

Options B, D, and E fail to place the before $30 million.

Furthermore, options B, D, and E are very similar; they are almost the same sentence with slightly different phrasing.
Option B is not as concise as options D and E, but option B is in the active voice.
Option E contains a trace of awkwardness and passivity.
These differences are very subtle.
Strategy tip: when answers are very similar to one another, so similar that discerning a real "standout" is difficult, all are likely to be incorrect.

ELIMINATE B, D, and E

• Split #2: Style

Option A: [that] it holds in reserves
Option C: [that is] held in reserves by it

Option C is written in passive voice, which in this instance is inferior to the active voice displayed in option A.
In these examples, the noun modifier (of "the $30 million") is a truncated or elided that-clause.
Well, that is a pronoun and a subject.

Option A displays the more direct and forceful construction: subject + verb + verb modifier [it + holds + in reserves].
Option C displays the "flabby by way of preposition" construction: verb + verb modifier + BY + subject.

Option C also tacitly contains the passive verb is.

Finally, option A is more concise than option C. Although option C contains only one more word than option A does, option A is still shorter. Overall, the construction in (A) is tighter.

ELIMINATE C

The best answer is A.

COMMENTS

mohammadfaraaz123 , welcome to SC Butler.

Yet again, I find a nice mixture of styles and participants.
As I have mentioned, diversity of approach, analysis, style, and presentation helps future aspirants; a post that resonates with Person A will be different from the post that resonates with Person B.

I might also add that writing posts helps those who post.
If you force yourself to articulate an explanation, you cement your understanding of both the material and the patterns.
You learn the patterns without realizing that you are doing so.
Trust me on this one.

These answers range from very good to outstanding, except that almost all (all?) include a sorta big error.

Held is a past participle, not a past tense verb. Despite their name, past participles do not have tense.

Suppose that you were on a witness stand.
Suppose that I were to show you a picture of Mohandas Gandhi.
I could ask any one of you, in the present moment, "Does this image accurately represent the person known to you as Mohandas Gandhi?"

Just as held is a past participle, so too is known.
I would actually be asking you, "Does this image accurately represent the person WHO IS known to you as Mohandas Gandhi?"
This "known" is true right now—so, too, is held.

In any event, with the exception of that one somewhat glaring error, you all have done well.

The Axis Technology Company plans to spend the $30 million it holds in reserves on upgrading its software and hardware infrastructure, but some investors have opposed this move, claiming that it is unwise for the company to completely liquidate its reserves.

the $30 million vs $30 million

'the $30 million it holds' means the total amount that the company holds is exactly $30 million.
'$30 million' (without 'the') means that the company holds more than $30 million in reserves.

In the non-underlined part, it is mentioned 'it is unwise for the company to completely liquidate its reserves.'
So, use of the $30 million is correct.
Eliminate B, D, and E

A) the $30 million it holds in reserves on upgrading its software and hardware infrastructure,
Correct

C) the $30 million held in reserves by it on upgrading its software and hardware infrastructure,
Held means that the company holds no more, but the company still holds the money in reserves. So, held is incorrect.

Choice A is the answer.

Damn, I missed the non-underlined party. A makes sense now.

My answer is (A). It took me 01:38.

(A) No obvious issue. Keep for now.
(B) Now, we do notice the split between "the $30 million" and "$30 million". Still, we should be able to eliminate (B) by its use of continuous verb tense. I do not see any good reason why continuous tense is needed. Eliminate (B).
(C) "held in reserves by it” is unnecessarily complicated, especially with "by it" spelt out. If "by it" were to be removed, it would be a stronger contender.
(D) This is option (A) without "the". Keep for now.
(E) See (C). If "by it" were not there, this option would be a stronger contender.

Now, (A) or (D)?
Since "$30 million" is modified by a restrictive relative clause "(that) it holds in reserves", it is not any "$30 million", but the "$30 million" (that) it holds in reserves. Definite article is used for specific people or things.

So, I picked (A).

The Axis Technology Company plans to spend the $30 million it holds in reserves on upgrading its software and hardware infrastructure, but some investors have opposed this move, claiming that it is unwise for the company to completely liquidate its reserves.

A) the $30 million it holds in reserves on upgrading its software and hardware infrastructure, -> the $30 million means something specific, let's check if intended meaning conveys the same or not. Money for "upgrading its software and hardware infrastructure" It is specific money. Further, plans and holds are parallel too. Let's keep it.

B) $30 million that it is holding in reserves on upgrading its software and hardware infrastructure, -> plans and holding are not parallel. Incorrect.

C) the $30 million held in reserves by it on upgrading its software and hardware infrastructure, -> held in reserves by...We don't need passive. Incorrect.

D) $30 million it holds in reserves on upgrading its software and hardware infrastructure, -> Only difference with A is "the". Incorrect.

E) $30 million held by it in reserves on upgrading its software and hardware infrastructure, -> Same as C.

So, I think A.

A quick vertical scan tells us evident difference is in the use of "the" with $30 millions. Using "The" tells us we are talking about a specific fund in reserve and that is all the fund in reserve.

The phrase "completely liquidate" also suggests that $30 million is the total amount of fund in reserve and we are concerned about this very fund. Using "the" makes complete sense, imo.


Using POE:

A) the $30 million it holds in reserves on upgrading its software and hardware infrastructure,

Uses article "The". Looks parallel and right tense. Lets keep it.

B) $30 million that it is holding in reserves on upgrading its software and hardware infrastructure,

Does not use article "The". So if company using some $30 million fund laying idle in funds how does it "completely" liquidate? Because that's all the fund company has in account. Also, we don't need hold in a continuous form. Eliminated

C) the $30 million held in reserves by it on upgrading its software and hardware infrastructure,

So, company doesn't hold it now or does it? Tense mismatch. Eliminated.

D) $30 million it holds in reserves on upgrading its software and hardware infrastructure,

We need article "the".Eliminated.

E) $30 million held by it in reserves on upgrading its software and hardware infrastructure,

Same reason as Option D. Eliminated

Leaves us with answer choice A which should be the correct answer, imo.

Holds is the right tense, so eliminate everything except A and D. "The $30 million" is right.

The Axis Technology Company plans to spend the $30 million it holds in reserves on upgrading its software and hardware infrastructure, but some investors have opposed this move, claiming that it is unwise for the company to completely liquidate its reserves.

A) the $30 million it holds in reserves on upgrading its software and hardware infrastructure, - Correct

B) $30 million that it is holding in reserves on upgrading its software and hardware infrastructure,

C) the $30 million held in reserves by it on upgrading its software and hardware infrastructure,

D) $30 million it holds in reserves on upgrading its software and hardware infrastructure,

E) $30 million held by it in reserves on upgrading its software and hardware infrastructure,

the 30 million vs 30 million

the 30 million means all the amount, the specific amount

30 million means (30 out of the amount from reserves)

so the 30 makes sense

so b,d,e, are incorrect

a vs c

it holds vs held in

the company holds the reserve so it holds makes sense

(A) imo
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The Axis Technology Company plans to spend the $30 million it holds in reserves on upgrading its software and hardware infrastructure, but some investors have opposed this move, claiming that it is unwise for the company to completely liquidate its reserves.

A) the $30 million it holds in reserves on upgrading its software and hardware infrastructure,

B) $30 million that it is holding in reserves on upgrading its software and hardware infrastructure,

C) the $30 million held in reserves by it on upgrading its software and hardware infrastructure,

D) $30 million it holds in reserves on upgrading its software and hardware infrastructure,

E) $30 million held by it in reserves on upgrading its software and hardware infrastructure,

Solution:

The 30 million implies that that is the total amount in reserves
So just ’30 million’ changes the meaning – it suggests that they have more than 30 mn in reserves
Eliminate B, D and E
C – ‘by it’ is redundant; ‘held’ says that company doesn’t hold it anymore, but it actually does

Leaves us with A
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The official explanation is here.
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Certainly did not see "Held" as a participle. Eliminate the incorrect option for a wrong reason.

Thanks for the post! Great explanation.

"Held" is indeed past participle, yet "held in reserves by it” is unnecessarily complicated, especially with "by it" spelt out.

If "by it" were to be removed, "held in reserves" would be a stronger contender.