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Brutal#002!

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by gmat_perfect » Sun Aug 01, 2010 12:56 am
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit
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by neha.patni » Sun Aug 01, 2010 1:45 am
gmat_perfect wrote:In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit
IMO A

B,C and E - out because it should be company's earning not companies's earnings
D - sentence fragmentation
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by kvcpk » Sun Aug 01, 2010 1:49 am
"to pay off" needs "to profit" for parallel construction.
BCD out.

"By using" looks wordy.

pick E.
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by Emeraldweapon » Sun Aug 01, 2010 2:29 am
gmat_perfect wrote:In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit
Need "to profit" to maintain ||ism with "to buy"

"Pay off the debt with st" is better than "pay off the debt by doing st"
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by clock60 » Sun Aug 01, 2010 3:07 am
hard one.
between A and C
finally A

but my doubt about A
to pay off....by using....and to profit...by resale

here using and resale are not ||
don`t know is it acceptable form
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by abhigang » Sun Aug 01, 2010 4:30 am
I agree with kvcpk on the parallel construction., the reason behind elimnating BCD.

Between A and E, I eliminated A because the sentence talks about "to buy companies" whereas A talks about "using the company's earnings".
Hence IMO, E
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by GMATGuruNY » Sun Aug 01, 2010 6:00 am
gmat_perfect wrote:In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit
A and D incorrectly say company's (singular), while the rest of the sentence refers to companies (plural). Eliminate A and D.

B changes the meaning. The investors are not hoping to pay off debt...by profiting richly by the later resale of the companies. Eliminate B.

In C, it's unclear what is being modified by using. Placing using next to debt makes it sound as though the debt is using the companies' earnings. Eliminate C.

The correct answer is E.
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by gmat_perfect » Sun Aug 01, 2010 8:28 am
GMATGuruNY wrote:
gmat_perfect wrote:In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit
A and D incorrectly say company's (singular), while the rest of the sentence refers to companies (plural). Eliminate A and D.

B changes the meaning. The investors are not hoping to pay off debt...by profiting richly by the later resale of the companies. Eliminate B.

In C, it's unclear what is being modified by using. Placing using next to debt makes it sound as though the debt is using the companies' earnings. Eliminate C.

The correct answer is E.
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Very good explanation.

Thanks for your efforts. I request you to explain the brutal sc's.

Thanks again.
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by reply2spg » Sun Aug 01, 2010 4:14 pm
What an awesome catch between A and E Guru!!!!

Thanks for the same.....
GMATGuruNY wrote:
gmat_perfect wrote:In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

A. by using the company's earnings and to profit
B. by using the companies' earnings and by profiting
C. using the companies' earnings and profiting
D. with the company's earnings, profiting
E. with the companies' earnings and to profit
A and D incorrectly say company's (singular), while the rest of the sentence refers to companies (plural). Eliminate A and D.

B changes the meaning. The investors are not hoping to pay off debt...by profiting richly by the later resale of the companies. Eliminate B.

In C, it's unclear what is being modified by using. Placing using next to debt makes it sound as though the debt is using the companies' earnings. Eliminate C.

The correct answer is E.
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(have lot of things to learn from all of you)
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by sumanr84 » Mon Aug 02, 2010 11:53 pm
Papgust Flashcard says,
Possessive cases (- 's) is used only with the names of living things.

Examples:
The president's bodyguard -- RIGHT!
The table's leg -- WRONG! Rather it should be "The leg of the table"

How do you guys relate this to all the options present here ?

It should be " earnings of the companies" to be grammatically correct.

"the company's earnings" - Since we don't have a correct grammatical sentence in any of the options. So, E is better as explained. However, this will not be a case with GMAT Standard questions. Be careful with Brutals..
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by showbiz » Tue Aug 03, 2010 6:51 pm
GMATGuruNY wrote:The investors are not hoping to pay off debt...by profiting richly by the later resale of the companies. Eliminate B.

The correct answer is E.
Sorry, I didn't get how B is changing the meaning. Could someone please explain? :(
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by mk101 » Mon Apr 18, 2011 5:21 pm
showbiz wrote:
GMATGuruNY wrote:The investors are not hoping to pay off debt...by profiting richly by the later resale of the companies. Eliminate B.

The correct answer is E.
Sorry, I didn't get how B is changing the meaning. Could someone please explain? :(
In this question - Investors are hoping to pay off the debt by using companies' earnings and not by profiting richly.

Sentence B, by making - by using the companies' earnings and by profiting parallel gives the impression that companies are hoping to pay off debt by two things - 1) using companies' earnings and 2) BY profiting richly
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by mundasingh123 » Tue Sep 13, 2011 6:59 am
hi gmatguruny , are both
pay x by using y
and pay x with y
correct ?
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by GMATGuruNY » Tue Sep 13, 2011 7:13 am
mundasingh123 wrote:hi gmatguruny , are both
pay x by using y
and pay x with y
correct ?
Pay X with Y is better. By using is needlessly wordy.
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by saketk » Tue Sep 13, 2011 8:05 pm
GMATGuruNY wrote:
mundasingh123 wrote:hi gmatguruny , are both
pay x by using y
and pay x with y
correct ?
Pay X with Y is better. By using is needlessly wordy.
Hi Mitch,

is it similar to the idiom - "to credit x with Y" ?
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