Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack
GMAT Club

 It is currently 28 Mar 2017, 09:15

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The company announced that its profits declined much less in

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Manager
Joined: 25 May 2009
Posts: 144
Concentration: Finance
GMAT Date: 12-16-2011
Followers: 3

Kudos [?]: 119 [3] , given: 2

The company announced that its profits declined much less in [#permalink]

### Show Tags

31 May 2009, 16:20
3
This post received
KUDOS
4
This post was
BOOKMARKED
00:00

Difficulty:

5% (low)

Question Stats:

76% (01:38) correct 24% (00:34) wrong based on 469 sessions

### HideShow timer Statistics

The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B) had expected and that its business would improve
C) expected it would and that it will improve its business
D) expected them to and its business would improve
E) expected and that it will have improved its business

[Reveal] Spoiler:
OG=B
[Reveal] Spoiler: OA
If you have any questions
you can ask an expert
New!
Manager
Joined: 25 May 2010
Posts: 142
Followers: 133

Kudos [?]: 735 [6] , given: 0

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

09 Jun 2010, 06:19
6
This post received
KUDOS
4
This post was
BOOKMARKED
I3igDmsu wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B) had expected and that its business would improve
C) expected it would and that it will improve its business
D) expected them to and its business would improve
E) expected and that it will have improved its business

[Reveal] Spoiler:
OG=B

Hi Guys,

There are some other important issues to take note of here!

1. Ellipsis: In A, "had expected it to" implies the word "decline," but "decline" is not in the sentence-- "declined" is! It's perfectly alright to leave a word out, as long as that exact same word appears somewhere else in the sentence!

Ex. CORRECT:Joe's shoes are nicer than Bob's (shoes). The last word is optional because "shoes" already appears.
Ex. CORRECT:Joe is taller than Bob (is). The last word is optional because "is" already appears.
Ex. INCORRECT: Joe has and always will be confident. The word "been" is missing! You cannot imply a word that never appears in the sentence!! This is considered an error in ellipsis.

2. The phrase of parallelism here is "A and B", meaning that "and" must connect between two words/phrases of the same grammatical structure. In this case A is the relative clause, "that its profits declined... So B must also be a relative clause!! "that+a subject+a verb..." Any answer that failed to put "that" after the "and" can be eliminated!!! This is tested a lot on the SC!!!

3. Why "would" and not "will"?
This is a matter of reported speech.
A direct quote would be this: The company announced, "Our business will improve..."
Reported speech pulls the tense back: The company announced that its business would improve...
_________________

Sarai
GMAT Verbal Instructor at http://www.linkedin.com/company/ofek-gmat/online-gmat-tutoring-22305743/product?trk=biz_product
Email me at saraiyaseen@gmail.com

If this helped, kindly give Kudos!

Manager
Joined: 12 Apr 2006
Posts: 218
Location: India
Followers: 1

Kudos [?]: 29 [3] , given: 17

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

01 Jun 2009, 20:49
3
This post received
KUDOS
Without seeing the spoiler I got B in first look.

The sentence is in past perfect tense, with analysts expected earlier in time and profits declined later in time.

So C, D, and E are out. Now the choice is between A and B.

A is incorrect because of no clear antecedents (precedent) of pronoun "it". [Thanks Allen for correcting me that pronoun have antecedent and not precedent..........]

Hence B is the answer.

Last edited by humans on 02 Jun 2009, 00:27, edited 2 times in total.
SVP
Joined: 30 Apr 2008
Posts: 1880
Location: Oklahoma City
Schools: Hard Knocks
Followers: 41

Kudos [?]: 581 [2] , given: 32

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

01 Jun 2009, 21:01
2
This post received
KUDOS
I think humans' explanation is great.

I think the antecedent of "it" in answer A is clear, but "it" is singular when the sentence is refering to "profits" which is plural. I think this is an error that is easier to notice. This same reason also means C is wrong. D seems awkward like "them to" is unnecessary. It's certainly implied, but I think we need "had expected" for past tense (past perfect?).

I3igDmsu wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B) had expected and that its business would improve
C) expected it would and that it will improve its business
D) expected them to and its business would improve
E) expected and that it will have improved its business

[Reveal] Spoiler:
OG=B

_________________

------------------------------------
J Allen Morris
**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a.

GMAT Club Premium Membership - big benefits and savings

Manager
Joined: 25 May 2009
Posts: 144
Concentration: Finance
GMAT Date: 12-16-2011
Followers: 3

Kudos [?]: 119 [1] , given: 2

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

02 Jun 2009, 04:43
1
This post received
KUDOS
I just noticed parallelism too which really narrows it down:

The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

B) had expected and that its business would improve
Chat Moderator
Joined: 19 Apr 2013
Posts: 746
Concentration: Strategy, Healthcare
Schools: Sloan '18 (A)
GMAT 1: 730 Q48 V41
GPA: 4
Followers: 14

Kudos [?]: 166 [1] , given: 537

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

24 Feb 2015, 02:11
1
This post received
KUDOS
Parallelism in B wins. In addition, "announced" is in the past, so will should be would.
_________________

If my post was helpful, press Kudos. If not, then just press Kudos !!!

Intern
Joined: 26 Oct 2009
Posts: 11
Followers: 0

Kudos [?]: 9 [0], given: 4

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

05 Mar 2010, 15:23
This site gives decent examples on when and why this case is used: http://www.ego4u.com/en/cram-up/grammar/simpas-pasper
Manager
Joined: 24 May 2010
Posts: 69
Followers: 1

Kudos [?]: 20 [0], given: 4

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

09 Jun 2010, 03:13
Simple B. Had is needed to explain that 'expected' occurred before actual decline. And past tense of will is would
Director
Status: Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
Affiliations: University of Chicago Booth School of Business
Joined: 26 Nov 2009
Posts: 993
Location: Singapore
Followers: 23

Kudos [?]: 781 [0], given: 36

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

09 Jun 2010, 06:33
I3igDmsu wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B) had expected and that its business would improve
C) expected it would and that it will improve its business
D) expected them to and its business would improve
E) expected and that it will have improved its business

[Reveal] Spoiler:
OG=B

checking for parallelism.

company announced that .... and that.......

So only B and C. left.

C violates the SV agreement. it cannot refer to plural "profits"

B it is.
_________________

Please press kudos if you like my post.

Intern
Joined: 09 May 2012
Posts: 16
Followers: 0

Kudos [?]: 8 [0], given: 7

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

09 May 2012, 10:12
We can eliminate C,D and E by using following principle.

Past sentence should be followed with past perfect tense.(In above situation- Company announced is past sentence and it should be followed "had expected")

And A is wrong since "had expected it" is makes wrong because of unnecessary use of "it".

Last Left B which is correct

Thanks and Regards
Milan
" No man is perfect"

PS: If my answer is perfect please reply back with kudos or else if it is stupid please correct me. Either way is highly appreciated.
Director
Status: My Thread Master Bschool Threads-->Krannert(Purdue),WP Carey(Arizona),Foster(Uwashngton)
Joined: 28 Jun 2011
Posts: 894
Followers: 91

Kudos [?]: 230 [0], given: 57

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

12 Sep 2013, 07:24
I3igDmsu wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B) had expected and that its business would improve
C) expected it would and that it will improve its business
D) expected them to and its business would improve
E) expected and that it will have improved its business

[Reveal] Spoiler:
OG=B

Two past events one preceded the other, Analysists must have predicted it earlier than the actual event. So the usage of past perfect "had" is correct.

Now there prediction that the business will improve must be followed by would and not will...To show the uncertainity of the event..

Hence B
_________________
Intern
Joined: 06 May 2013
Posts: 14
Location: United States
GMAT 1: 700 Q49 V36
Followers: 0

Kudos [?]: 12 [0], given: 2

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

29 Jan 2014, 21:39
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B )had expected and that its business would improve
C )expected it would and that it will improve its business
D )expected them to and its business would improve
E) expected and that it will have improved its business

Hi.
Please help me clarify my confusion.

(1) When I solved the question, I did not think that "would" or "will" is important because from the context I cannot determine whether "the second half of the year" passed.

However, some people say that "would", if used to express uncertainty, can only exist in sentence that has the structure "if X, then Y" or structures that indicate hypothesis. Is it correct?

If not, can "would" express uncertainty in the sentence?
----------

(2) In choice C, I overlooked an error that "it" does not match "profits", but I still eliminate the choice because "analysts expected" is wrong tense and because "X is more adj than analysts expected" is enough to convey intended meaning.

So, is "X is more adj than analysts expected X would" redundant?

Thank you.
Manager
Joined: 23 Oct 2013
Posts: 75
Location: India
Concentration: General Management, Strategy
GMAT 1: 680 Q46 V36
GPA: 3.95
WE: Research (Telecommunications)
Followers: 1

Kudos [?]: 12 [0], given: 35

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

29 Jan 2014, 23:57
phammanhhiep wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B )had expected and that its business would improve
C )expected it would and that it will improve its business
D )expected them to and its business would improve
E) expected and that it will have improved its business

Hi.
Please help me clarify my confusion.

(1) When I solved the question, I did not think that "would" or "will" is important because from the context I cannot determine whether "the second half of the year" passed.

However, some people say that "would", if used to express uncertainty, can only exist in sentence that has the structure "if X, then Y" or structures that indicate hypothesis. Is it correct?

If not, can "would" express uncertainty in the sentence?
----------

(2) In choice C, I overlooked an error that "it" does not match "profits", but I still eliminate the choice because "analysts expected" is wrong tense and because "X is more adj than analysts expected" is enough to convey intended meaning.

So, is "X is more adj than analysts expected X would" redundant?

Thank you.

Hi phammanhhiep,

Is the OA b? Thats the only one which seems correct at all..If yes, I can explain the logic
_________________

Please press KUDOS if my post helped !!

Intern
Joined: 19 Aug 2013
Posts: 5
Concentration: Entrepreneurship, Strategy
GMAT 1: 700 Q V
Followers: 0

Kudos [?]: 0 [0], given: 1

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

30 Jan 2014, 02:08
crackgmatg wrote:
phammanhhiep wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B )had expected and that its business would improve
C )expected it would and that it will improve its business
D )expected them to and its business would improve
E) expected and that it will have improved its business

Hi.
Please help me clarify my confusion.

(1) When I solved the question, I did not think that "would" or "will" is important because from the context I cannot determine whether "the second half of the year" passed.

However, some people say that "would", if used to express uncertainty, can only exist in sentence that has the structure "if X, then Y" or structures that indicate hypothesis. Is it correct?

If not, can "would" express uncertainty in the sentence?
----------

(2) In choice C, I overlooked an error that "it" does not match "profits", but I still eliminate the choice because "analysts expected" is wrong tense and because "X is more adj than analysts expected" is enough to convey intended meaning.

So, is "X is more adj than analysts expected X would" redundant?

Thank you.

Hi phammanhhiep,

Is the OA b? Thats the only one which seems correct at all..If yes, I can explain the logic

I'm not sure whether or not you had trouble with the first split so I'll start from there. AB/CDE
The first split is pretty easy to solve once you understand the meaning of the statement. Only the past perfect works for the underlined portion of the question as you have to specify that the "analysts had expected" came before the company's announcement so CDE are out.

Between A and B, the split is between had expected it/had expected and will/would. It can't be it because it must refer to profits (which are plural) however it is singular. If you didn't catch that, you could move onto the second split and figure out that since expect = subjunctive, would is the proper conjugation thus eliminating A.
_________________

770+ is the goal.

Feel free to give me kudos if I was helpful! :]

Intern
Joined: 01 Mar 2015
Posts: 19
Location: India
GPA: 4
WE: Consulting (Consulting)
Followers: 0

Kudos [?]: 7 [0], given: 23

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

19 May 2015, 00:05
I3igDmsu wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B) had expected and that its business would improve
C) expected it would and that it will improve its business
D) expected them to and its business would improve
E) expected and that it will have improved its business

[Reveal] Spoiler:
OG=B

Past perfect tense is correctly used to showcase different actions at different time zones.
1. Analysts expected (use past perfect)
2. Company announced (use simple past)
Hence, eliminate options C, D & E.

Use of will vs. Would – (meaning is important)
Will shows certainty whereas would indicates possibility. In given context Use of would is right.

Additionally, check for parallels:
that its profit ..... and that its business would ....

Option B is the correct answer.
Director
Joined: 04 Jun 2016
Posts: 658
GMAT 1: 750 Q49 V43
Followers: 54

Kudos [?]: 237 [0], given: 36

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

23 Jun 2016, 01:54
Two events had happened in the PAST
-----Analyst expected (first event/older event) ----->Profit declined(second event/new event)-----> direction of flow of time

When two event happen in the past the older event takes "Had+ed verb" and the recent event takes "ed verb"
so C,D,E are out
A and B remaining

A is out because the expectation are for future, so WOULD is the correct tense to use.

I3igDmsu wrote:
The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.

A) had expected it to and its business will improve
B) had expected and that its business would improve
C) expected it would and that it will improve its business
D) expected them to and its business would improve
E) expected and that it will have improved its business

[Reveal] Spoiler:
OG=B

_________________

Posting an answer without an explanation is "GOD COMPLEX". The world doesn't need any more gods. Please explain you answers properly.
FINAL GOODBYE :- 17th SEPTEMBER 2016. .. 16 March 2017 - I am back but for all purposes please consider me semi-retired.

Manager
Joined: 26 Jan 2015
Posts: 92
Followers: 0

Kudos [?]: 20 [0], given: 110

Re: The company announced that its profits declined much less in [#permalink]

### Show Tags

31 Aug 2016, 23:55
Hi egmat,

Are the 2 verbs related? The analysts expected but the profits declined. the expectations have no bearing on the profits declining.
For ex: Archaeologists discovered that Mayans had inhabited the place(Wrong - Mayans inhabiting the place has no bearing on the discovery).
Can you please clarify?

TIA,
Alok.
_________________

Kudos is the best way to say Thank you! Please give me a kudos if you like my post

Re: The company announced that its profits declined much less in   [#permalink] 31 Aug 2016, 23:55
Similar topics Replies Last post
Similar
Topics:
The company announced that its profits declined 0 30 Jan 2014, 02:08
2 The team announced that its record deteriorated much further 8 31 Aug 2012, 23:36
The company announced that its profits declined much less in 3 27 Nov 2011, 19:42
The company is negotiating to sell its profitable credit 4 19 Jul 2008, 07:45
1 The company is negotiating to sell its profitable credit 4 15 Mar 2008, 17:34
Display posts from previous: Sort by

# The company announced that its profits declined much less in

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.