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To encourage foreign investment

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To encourage foreign investment

by RajeshP » Tue Nov 19, 2013 6:33 am
To encourage foreign investment in the country, the new governments have introduced reforms in its first budget that permits foreign companies to operate tax-free as long as they only offer financial advice to would be investors.

(A) the new government have introduced reforms in its first budget that permits foreign companies to operate tax-free

(B) the new government has introduced reforms in their first budget that permit foreign companies to operate tax-free

(C) the new government have introduced reforms in their first budget that permit foreign companies to operate tax-free

(D) the new government might have introduced reforms in their first budget that permit foreign companies operating tax free

(E) the new government will introduce reforms in its first budget that permits foreign companies to operate tax- free

OA C

1.Government take take singular and plural verbs. I wish to know when does it take singular and plural verbs.
2. Why is option E is wrong?
Last edited by RajeshP on Tue Nov 19, 2013 9:53 pm, edited 1 time in total.
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by theCodeToGMAT » Tue Nov 19, 2013 11:33 am
The noun "Government" takes the plural form when we are considering it a group of people

And, "Government" takes singular form when we refer it as an single entity; For example: Indian Government

{A} - INCORRECT; "its" doesn't go with plural "the new government"
{B} - INCORRECT; "has" doesn't go with plural "the new government"
{C} - CORRECT
{D} - INCORRECT; we need "to operate" to have clear meaning
{E} - INCORRECT; "its" doesn't go with plural "the new government"
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by GMATGuruNY » Tue Nov 19, 2013 1:00 pm
RajeshP wrote:Source: Manhattan Review

To encourage foreign investment in the country, the new governments have introduced reforms in its first budget that permits foreign companies to operate tax-free as long as they only offer financial advice to would be investors.

(A) the new government have introduced reforms in its first budget that permits foreign companies to operate tax-free

(B) the new government has introduced reforms in their first budget that permit foreign companies to operate tax-free

(C) the new government have introduced reforms in their first budget that permit foreign companies to operate tax-free

(D) the new government might have introduced reforms in their first budget that permit foreign companies operating tax free

(E) the new government will introduce reforms in its first budget that permits foreign companies to operate tax- free

OA C
In American usage, government is treated as SINGULAR.

In A and C, government (singular) does not agree with have introduced (plural).
Eliminate A and C.

In B and D, their (plural) does not agree with government (singular).
Eliminate B and D.

In E, its first budget that permits implies that the BUDGET permits foreign companies to operate tax-free.
The intended meaning is that the REFORMS permit foreign companies to operate tax-free.
Eliminate E.

Ignore this SC.
There is no correct answer here.
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by [email protected] » Tue Nov 19, 2013 9:01 pm
Hi All,

I agree with Mitch; none of the 5 answer choices uses correct grammar. I'd have to assume that this SC must a type (or multiple typos) in it.

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