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Quote:
The owners of a fast growing tech start-up in Newport Beach organized the firm as a Limited Liability Company (LLC). The owners receive considerable personal liability protection from potential lawsuits, and they also avoid some egregious double-taxation that would occur if the company was set up as a C-corporation.

(A) protection from potential lawsuits, and they also avoid some egregious double-taxation that would occur if the company was set up as a C-corporation
(B) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company was set up as a C-corporation
(C) protection from potential lawsuits, avoiding some egregious double-taxation that would occur if the company was set up as a C-corporation
(D) protection from potential lawsuits, and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation
(E) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation

MEANING
The owners RECEIVE protection from lawsuits and AVOID double-tax that WOULD occur IF the company WERE set up as a corporation.

Parallelism: receive and avoid;
Subjunctive (hypothetical situation): if…were;

Ans (E)
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The right answer is option E.

This question tests two concepts: parallelism and hypothetical subjunctive.
Based on the correct usage of the hypothetical subjunctive, we can eliminate options A, B, and C for the use of the verb was instead of were.
Between D and E, option E is rightly constructed in a parallel structure, expressing a parallelism between the verbs avoid and receive. In option D, the comma before and, the parallelism marker, suggests that avoid some egregious double taxation that would occur if the company were set up as a C-corporation should be an independent clause, but this is not the case. We can therefore eliminate option D and keep E as the answer.

The owners of a fast-growing tech start-up in Newport Beach organized the firm as a Limited Liability Company (LLC). The owners receive considerable personal liability protection from potential lawsuits, and they also avoid some egregious double-taxation that would occur if the company was set up as a C-corporation.

(A) protection from potential lawsuits, and they also avoid some egregious double-taxation that would occur if the company was set up as a C-corporation
(B) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company was set up as a C-corporation
(C) protection from potential lawsuits, avoiding some egregious double-taxation that would occur if the company was set up as a C-corporation
(D) protection from potential lawsuits, and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation
(E) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation
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The use of hypothetical condition by using if required the use of were instead of was. Eliminate A, B and C based on this. In between D and E the use of comma before the and is preferred.

IMO D

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Bunuel

Competition Mode Question



The owners of a fast growing tech start-up in Newport Beach organized the firm as a Limited Liability Company (LLC). The owners receive considerable personal liability protection from potential lawsuits, and they also avoid some egregious double-taxation that would occur if the company was set up as a C-corporation.

(A) protection from potential lawsuits, and they also avoid some egregious double-taxation that would occur if the company was set up as a C-corporation
(B) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company was set up as a C-corporation
(C) protection from potential lawsuits, avoiding some egregious double-taxation that would occur if the company was set up as a C-corporation
(D) protection from potential lawsuits, and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation
(E) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation

OFFICIAL EXPLANATION



There are two main issues with this sentence.

(1) Since the double taxation would occur if the company.., we are dealing with a future hypothetical situation (or possibility) and must use the subjunctive mood. Consequently, if the company were must replace if the company was.

(2) The two things that are true about the owners of the LLC must be parallel: they receive...and avoid. The original sentence improperly breaks the parallelism (i.e., the phrase receive..., and they also avoid is not parallel).

A. the subjunctive mood is not used; the sentence is not parallel (i.e., the phrase receive..., and they also avoid is not parallel)
B. the subjunctive mood is not used
C. the subjunctive mood is not used; the sentence is not parallel (i.e., the phrase receive..., avoiding is not parallel)
D. the sentence is not parallel (i.e., the phrase receive..., and avoid is not parallel)
E. the subjunctive mood is used; the sentence is parallel (i.e., the phrase receive... and avoid is parallel)
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