Renowned economist Susan Albernaght once stated, as an

Question

Renowned economist Susan Albernaght once stated, as an illustration of opportunity cost,  that a company that earned a return lower than the interest rate on a savings account ought to be  liquidated and the
proceeds distributed to the shareholders. 
(A) that a company that earned a return lower than the interest rate on a savings account ought to be 
(B) that a company, earning a return lower than the interest on a savings account, should be
(C) that a company which earned returns lower than savings account interest rates ought to be
(D) a company that was earning a lower return than a savings account was
(E) a company earning a return lower than that of a savings account should be

talk2sunder@gmail.com · Answer

B for me too.

earned is past tense, so we can eliminate A and C

D compares lower return to a savings account

qhoc0010 · Answer

OA is (A)

This question is from hard SC of Princeton Review course.
Their reasoning is that only (A) correctly uses "company that ..." to specify a "restricted clause". The sentence is not perfect, but it is the best one.

I would pick (B) also, but my reasoning is little different. Take a look at (A)

Renowned economist Susan Albernaght once stated, as an illustration of opportunity cost,  that a company that  earned a return   lower than  the  interest rate  on a savings account ought to be  liquidated and the proceeds distributed to the shareholders. 


This comparison is incorrect because it compares "a return" to "interest rate". But we all know we don't "earn" on "interest rate", we "earn" on "interest" itself.

Earn $$ = Rate x SUM

Rate x SUM = interest

 Earn  CANNOT equal  INTEREST RATE 



Tell me what you think.

qhoc0010 · Answer

If it is a typo, then not from me because I copied it straight out from the ebook.

artabro · Answer

I would have chosen A because it is the one that has the right syntax, but I now agree that the comparison of return and interest rate is wrong. So all of them are wrong. However, if the comparison were right in A (return amount vs interest amount), then A would be correct, and B wouldnâ€™t be.

From a syntax viewpoint:

(Subject) content that a company that earned a return lower than the interest rate on a savings account should beâ€¦ makes more sence than B or C.

The bold subordinate clause is having the function of an adjective. The clause gives more restriction to the noun â€œcompanyâ€

Paul · Answer

I agree with you qhoc, A is comparing the earning to interest rates; apples to oranges

Questor · Answer

I pick A.

By the way, great explanation, artabro.

Renowned economist Susan Albernaght once stated, as an

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