BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Dividend

This topic has expert replies
Post new topic Locked
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 313
Joined: Tue Oct 13, 2015 7:01 am
Thanked: 2 times

Dividend

by jain2016 » Fri Jan 29, 2016 10:05 am
Because most investors prefer long term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.

A) the reduction in dividend payout ratios that have taken place during the last decade are

B) the reduction in dividend payout ratios that has taken place during the last decade is

C) the reduction that has taken place in dividend payout ratios during the last decade are

D) the reduction in dividend payout ratios that have taken place during the last decade is

E) the reduction that has taken place in dividend payout ratios during the last decade is

OAE

Hi Experts,

Whats wrong with B.

Please advise.

Many thanks in advance.

SJ
Top
Source: — Sentence Correction |

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 2095
Joined: Tue Dec 04, 2012 3:22 pm
Thanked: 1443 times
Followed by:247 members

by ceilidh.erickson » Sat Jan 30, 2016 2:23 pm
Hi SJ,

The difference between B and E is very subtle indeed.

You've correctly identified that the subject is REDUCTION, so the verb must be IS, not ARE.

The only difference between B and E is in the placement of the dependent clause "that has taken place." Whenever MODIFIERS change position, the GMAT is testing you on differences in MEANING.

In B, the clause comes right after RATIOS, leading to a bit of ambiguity. Have the dividend payout ratios taken place? Or has a reduction (in dividend payout ratios) taken place? The latter interpretation makes more sense. Furthermore, the verb "has" can only go with "reduction," not "ratios."

If we move the clause "that has taken place" to come right after the word "reduction," we get rid of the ambiguity entirely. Thus, E is a better answer.

By the way, what was the source of this question? (Please always post your sources).
Ceilidh Erickson
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
Top
Master | Next Rank: 500 Posts
Posts: 313
Joined: Tue Oct 13, 2015 7:01 am
Thanked: 2 times

by jain2016 » Sun Jan 31, 2016 10:14 pm
Hi Ceilidh ,

Thanks for your reply.

This is from Aristotle SC grail.

Thanks,

SJ
Top
User avatar
Legendary Member
Posts: 2135
Joined: Mon Feb 03, 2014 9:26 am
Location: https://martymurraycoaching.com/
Thanked: 955 times
Followed by:140 members
GMAT Score:800

by MartyMurray » Mon Feb 01, 2016 5:18 am
Depending on your outlook and whom you talk with, B might be considered correct or even the best answer here.

reduction in dividend payout ratios can be seen as one concept, one that is then correctly modified by that has taken place.

Also, in B, the use of the singular form has makes clear that the verb and the modifier that contains the verb go with the singular subject reduction.

Further, I like B better than E, because I don't really like the wording, reduction that has taken place in dividend payout ratios during the last decade, which wording conveys that the reduction took place in the ratios and may convey that the ratios were in the last decade.

B more clearly conveys that the reduction in ratios took place in the last decade.
Marty Murray
Perfect Scoring Tutor With Over a Decade of Experience
MartyMurrayCoaching.com
Contact me at [email protected] for a free consultation.
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 2095
Joined: Tue Dec 04, 2012 3:22 pm
Thanked: 1443 times
Followed by:247 members

by ceilidh.erickson » Mon Feb 01, 2016 8:09 am
To Marty's point, this is a poorly written question. The real GMAT will almost certainly not ask you to make such a subtle distinction between two answer choices that could both be construed as grammatically correct.

I'd recommend that you stop studying from this source.
Ceilidh Erickson
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
Top
Post new topic Locked
• Page 1 of 1