Three federal lawsuits that charge a prominent investment firm with releasing fraudulent financial reports to promote sales of its mutual funds and raising disturbing questions about how to control fraudulent behavior in the financial services industry, behavior that appears to be on the rise.
A - that charge a prominent investment firm with releasing fraudulent financial reports to promote sales of its mutual funds and raising disturbing questions about how to control fraudulent behavior in the financial services industry, behavior that appears to be on the rise
B - charging a prominent investment firm with releasing fraudulent financial reports and promoting sales of its mutual funds raises disturbing questions about how to control fraudulent behavior in the financial services industry that appears to be on the rise
C- that charge a prominent investment firm with releasing fraudulent financial reports to promote sales of its mutual funds raises disturbing questions about how to control fraudulent behavior in the financial services industry, which appears to be on the rise
D- charge a prominent investment firm with releasing fraudulent financial reports to promote sales of its mutual funds raise disturbing questions about how to control fraudulent behavior in the financial services industry that appears to be on the rise
E- charging a prominent investment firm with releasing fraudulent financial reports to promote sales of its mutual funds raise disturbing questions about how to control fraudulent behavior in the financial services industry, behavior that appears to be on the rise
Please answer this.
Also please give comments on these 2 new answers
F - that charge a prominent investment firm with releasing fraudulent financial reports to promote sales of its mutual funds raise disturbing questions about how to control fraudulent behavior in the financial services industry, which appears to be on the rise
G - charging a prominent investment firm with releasing fraudulent financial reports and promoting sales of its mutual funds raise disturbing questions about how to control fraudulent behavior in the financial services industry that appears to be on the rise
Want to understand F and G to check where to use charge vs charging and which vs that. Thanks
ANSWER. The given sentence contains a case of illogical parallelism:
releasing ... and raising. A lawsuit can charge a firm with releasing fraudulent information, but not with raising disturbing questions. Therefore:
1. Eliminate option A.
2. The subject is the plural LAWSUITS. Therefore, the singular verb RAISES is incorrect. Eliminate options B and C.
3. In order for option D to be correct, the verb RAISE would have to be connected to the previous verb CHARGE by inserting AND before RAISE. Alternatively, the option would have to begin with the relative pronoun THAT to create a relative clause (
that charge a prominent investment firm with releasing ...) before the main clause (
raise disturbing questions ...). The structure would therefore be
lawsuits that charge a prominent investment firm ... raise disturbing questions...
Nevertheless, the option would still be wrong, because the clause
that appears to be on the rise is a misplaced modifier that illogically refers to THE FINANCIAL SERVICES INDUSTRY, whereas it really wants to refer to FRAUDULENT BEHAVIOR.
4. To avoid this illogicality, option E discards the pronoun and uses BEHAVIOR to refer back to the previous use of that noun. And since the verbs are all correct, this is the correct option.
OPTIONS F AND G
The beginnings are both acceptable. (Of the two, the GMAT tends to favor the first.)
In F, LAWSUITS is followed by THAT, so introducing a defining relative clause. The problem is the final clause. This is introduced by WHICH, and WHICH refers to the subject that it is next to. Consequently it refers to INDUSTRY, and therefore says that this industry is on the rise. This makes no sense. The intended reference is to BEHAVIOR.
In G, LAWSUITS is followed by CHARGING, which functions here as an adjective describing those lawsuits. There is no problem with this: the problems appear later. The parallel structure made with the use of PROMOTING is illogical, because lawsuits do not charge anyone with promoting sales of mutual funds. And finally, the relative clause introduced by THAT at the end of the sentence has the same problem of illogical modification that option D has: it seems that here, too, INDUSTRY is on the rise - not BEHAVIOR.
In other words, relative clauses introduced by WHICH and THAT need to follow on from the subject that they are intended to modify.
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