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My answer is (E). It took me 1 minute and 21 seconds to answer this question.

Issue with (A): This in "this led" does not have clear noun to refer to.
Issue with (B): The subject of the sentence should be the "two shipping companies" to work with the modifier " In a delightful move..."
Issue with (C): Which in ""which lead" does not have clear noun to refer to.
Issue with (D): "decided to merge and to lead" indicates that they made two decisions, while the most logical interpretation is that they made only one decision (to merge), which results in the formation of the 2nd largest company in the world. If there is no better option, D may be accepted.
(E) makes the meaning clearer without introducing other issues. So E it is.
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In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, and this led to the formation of the second largest shipping company in the world.

The original sentence has only one problem: ' This lead ' --> refers to what? --> to present the result of an action use of verb-ing modifier is better suited.

So as a decision to merge --> they led to Y.

Choice E corrects this error.

IMHO E
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In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, and this led to the formation of the second largest shipping company in the world.

(A) In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, and this led
- Structure issue

(B) In a delightful move for their shareholders and a distressful one for their competitors, it has been decided by the two shipping companies to merge, leading
'In a delightful move for their shareholders and a distressful one for their competitors' should modify 'the two shipping companies'

(C) In a move delighting their shareholders as much as distressing their competitors, the two shipping companies decided to merge, which led
'which' noun modifier modifies 'to merge' - incorrect

(D) The two shipping companies, in a move that delighted their shareholders and distressed their competitors, decided to merge and to lead
the merger led to the formation of the second largest company. This meaning is missing in this sentence which used 'to merge and to lead'

(E) In a move that delighted their shareholders as much as it distressed their competitors, the two shipping companies decided to merge, leading
Correct.

I think answer would be E.
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Correct Answer should be E


(E) In a move that delighted their shareholders as much as it distressed their competitors, the two shipping companies decided to merge, leading - "In a move that....." here that perfectly narrows down to the particular move, & leading (Verb + ing) modifier modifies the preceding clause that the merger helped in becoming the largest shipping company ..
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IMO E.

In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, and this led[/u] to the formation of the second largest shipping company in the world.

(A) In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, and this led - Tense error, It's decided to merge (not yet happened) and the sentence uses past tense for future action i.e. leading.

(B) In a delightful move for their shareholders and a distressful one for their competitors, it has been decided by the two shipping companies to merge, leading - Modifier error,

(C) In a move delighting their shareholders as much as distressing their competitors, the two shipping companies decided to merge, which led - Pronoun reference error, which refers to the action, i.e. decision to merge.

(D) The two shipping companies, in a move that delighted their shareholders and distressed their competitors, decided to merge and to lead - Distorts meaning due to faulty parallelism.

(E) In a move that delighted their shareholders as much as it distressed their competitors, the two shipping companies decided to merge, leading-- Correct answer.
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In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, and this led to the formation of the second largest shipping company in the world.

(A) In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, andthis led - it is not allowed to use this without noun

(B) In a delightful move for their shareholders and a distressful one for their competitors, it has been decided by the two shipping companies to merge, leading - unnessary use of passive

(C) In a move delighting their shareholders as much as distressing their competitors, the two shipping companies decided to merge, which led - correct

(D) The two shipping companies, in a move that delighted their shareholders and distressed their competitors, decided to merge and to lead - wrong meaning

(E) In a move that delighted their shareholders as much as it distressed their competitors, the two shipping companies decided to merge, leading - unclear
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The official explanation has been posted HERE
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generis
OFFICIAL EXPLANATION

Project SC Butler: Day 132: Sentence Correction (SC2)


THE PROMPT

In a move that delighted their shareholders as much as distressed their competitors, the two shipping companies decided to merge, and this led to the formation of the second largest shipping company in the world.

THE OPTIONS

Quote:
(A) In a move that delighted their shareholders as much as [IT] distressed their competitors, the two shipping companies decided to merge, and this led
• PARALLELISM - we need an IT
The opening clause is trying to make two things equal: the delight of the shareholders and the distress of the competitors.
The use of the phrase as much as necessitates the use of the noun move before both the things being compared; repeating the noun move would be awkward, so we need an it before distressed to get the comparison correct.
To keep the comparison parallel, we need the move delighted the shareholders as much asit [the move] distressed the competitors.
• THIS without a clear reference is almost always wrong.
-- Typically, GMAC requires "this" to "point" to a noun: this red chair near me, not that white couch on the other side of the room. (that, used in this way, is also a demonstrative adjective)
-- For the first time that I know of, OG 2020 published a question in which THIS was a standalone pronoun rather than (grammar Nazi here :lol: ) a demonstrative adjective.
-- That is, GMAC allowed THIS to refer to a situation described but not actually named by a noun.
Spoiler alert: if you click on the link, the correct answer to a new official question is revealed
You can find that official question HERE

Quote:
(B) In a delightful move for their shareholders and a distressful one for their competitors, it has been decided by the two shipping companies to merge, leading
• modifier error - the introduction says THEIR. The introduction refers to the two shipping companies, but the subject of the subsequent clause is IT.
-- although introductory prepositional phrases have many fewer restrictions than other kinds of introductory phrases (see examples of those restrictions in this post), we go by meaning. The intro modifies the two shipping companies; the companies should be the subject of the subsequent clause
• passive voice is not automatically wrong
• if you want to be conservative, KEEP and compare

Quote:
(C) In a move delighting their shareholders as much as [IT was] distressing [TO] their competitors, the two shipping companies decided to merge, which led
• The phrase move delighting their shareholders as much as distressing their competitors is not very clear and makes parallelism impossible to achieve.
• PARALLELISM - as is the case in A, we need an IT (the move) before distressing, but "it distressing" is not grammatical.
• WHICH cannot modify the action of the entire preceding clause

Quote:
(D) The two shipping companies, in a move that delighted their shareholders and distressed their competitors, decided to merge and to lead
• MEANING: This sentence suggests that the two shipping companies decided to do two things: to merge and to lead.
Really, they decided to do just one thing—merge—and merging, in turn, led to the formation of the world’s second largest shipping company.

Quote:
(E) In a move that delighted their shareholders as much as it distressed their competitors, the two shipping companies decided to merge, leading
• No errors
leading is a participial modifier (comma + verbING) that correctly modifies the entire preceding clause

Compare (B) to (E). Option B is not as clear and its passive voice is not as effective.

ANSWER E

COMMENTS

Hmm. Interesting. No one mentioned parallelism, although everyone picked the correct answer, which uses IT.
as much as is a parallelism marker. :)

I am glad to see that people picked up on the problem with (D).
I thought it would throw people. Apparently not.

Good and full explanations get kudos.

I am about to post questions for Wednesday, 7/3. (Pacific Daylight Time )

generis GMATNinja

Why do we need noun or pronoun before distressed in option A?

Is there any rule that as much as should be followed by noun or pronoun and not the verb?

Thank you.
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