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I believe the answer should be C based on the following reasoning:

Since the "United States Navy" is a collective noun and we are referring to the entire Navy as one, it will take a singular verb and pronoun. So, eliminate options A, B, D and E. In E although 'they' is replaced with 'it', the 2nd error i.e. 'their' is not corrected.
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I really wonder why this has been posted as 700-level..
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souvik101990
This question is part of the GMAT Club Sentence Correction : Pronoun Revision Project.

The United States Navy announced that, beginning next year, they plan to close several of their bases in order to reduce operating expenses.

A. they plan to close several of their bases

B. they are planning to close several of their bases

C. it plans to close several of its bases

D. they plan several closures of their bases

E. it plans to close several of their bases

ans C... The United States Navy is singular, and only C follows it
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OA and OE posted. Kudos to the contibutors.
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souvik101990
The United States Navy announced that, beginning next year, they plan to close several of their bases in order to reduce operating expenses.

Navy = Collective Noun ( Referring to a group/Organisation) hence a singular pronoun must be used.

A. they plan to close several of their bases - Incorrect reference " They "

B. they are planning to close several of their bases - Incorrect reference " They "

C. it plans to close several of its bases - Hold it

D. they plan several closures of their bases - Incorrect reference " They "

E. it plans to close several of their bases

Option C and E remains.

it plans to close several of their bases - Incorrect reference " Their "

Only (C) remains , that is the answer ..
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"United States Navy" is singular .. so the pronoun should be singular "it" C is the correct answer
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The United States Navy announced that, beginning next year, they plan to close several of their bases in order to reduce operating expenses.

A. they plan to close several of their bases

B. they are planning to close several of their bases

C. it plans to close several of its bases

D. they plan several closures of their bases

E. it plans to close several of their bases

United States Navy is collective singluar noun and it should be referd by singular pronoun..'They' is wrong and so is 'their'

Option A,B,D,and E are eliminated and we are left with option C,which is correct.

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+1 for C

The United States Navy announced that, beginning next year, they plan to close several of their bases in order to reduce operating expenses.


A. they plan to close several of their bases

B. they are planning to close several of their bases

C. it plans to close several of its bases

D. they plan several closures of their bases

E. it plans to close several of their bases
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