Bunuel
With Arcsun Corporation announcing their new home video system, Playlite has to upgrade their systems to compete with them.
(A) With Arcsun Corporation announcing their new home video system, Playlite has to upgrade their systems to compete with them
(B) With Arcsun Corporation announcing its new home video system, Playlite must upgrade their systems in competition with it
(C) Because Arcsun Corporation is announcing their new home video system, Playlite has to upgrade its own systems by competing with them
(D) Since Arcsun Corporation is announcing their new home video system, Playlite is to upgrade their systems by competing with them
(E) Since Arcsun Corporation has announced its new home video system, Playlite must upgrade its own systems to compete with Arcsun
Magoosh Official Explanation
Split #1: As explained in this blog, this question contains a “Case I” use of the “with” + [noun] + [participle] structure, action by a different actor. In the main clause, Playlite is the actor, and in the “with” phrase, Arscun Corporation is another actor. This is wrong. For this other actor, we need a new clause. (A) & (B) are wrong because of this.
Split #2a: Pronouns! Both companies are collective nouns. Collective nouns such as Arcsun Corporation or Playlite may have many members, but they are singular nouns and, as such, demand singular pronouns.
(A) “their” … “their” … “them” = totally wrong
(B) “its” … “their” … “it” = right on Arcsun, wrong on Playlite
(C) “their” … “its” … “them” = wrong on Arcsun, right on Playlite
(D) “their” … “their” … “them” = totally wrong
(E) “its” … “its” = pronouns are correct
Split #2b: another pronoun mistake is using the same pronoun in the same clause to refer to two different antecedent. In (A) & (D), even if the “their” and “them” were correct in singular/plural, they would be wrong because they refer to two different antecedent. If the sentence had all “it” and “its,” this still would be incorrect, because we can have multiple it’s referring to different antecedents. This is precisely why we needed to repeat Arcsun’s name in (E).
Answer = (E)