OG Gmat Review 11th edition Sentence Correction # 49

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Reporting that one of its many problems had been the recent extended sales slump in women's apparel, the seven store retailer said it would start a three month liquidation sale in all of its stores.

a. its many problems had been the recent
b. its many problems has been the recently
c. its may problems is the recently
d. their many problems is the recent
e. their many problems had been the recent

I narrowed down to a and b because of the singular subject retailer. However , I do not clearly see the reason why a is better than b. Is it because of the word SAID and the report happened before that? I don't see how to use HAD and HAS. PLEASE HELP!
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by simplyjat » Sun Jan 27, 2008 8:51 pm
To differentiate between had been and has been you need to know "Past Perfect" and "Present Perfect". Past perfect (had+past participle) signifies that the activity started and completed in past, whereas present perfect (has/have+past participle) signifies that activity started in past and is continuing in present.

Hope you are able to pick the correct answer....
simplyjat