Sentence Correction

2. The J. C. Penney chain of retail stores broke with its conservative cash-and-carry policy during its 1958 reorganization for deciding to sell on credit
1. during its 1958 reorganization for deciding to sell
2. for the decision at its 1958 reorganization to sell
3. when it was reorganized in 1958 for its decision to sell
4. in deciding during its reorganization in 1958 to sell
5. by deciding at its reorganization in 1958 on the selling of

The correct answer is 4

Can somebody explain?.
I am still not convinced how Choice 4 is correct.
The sentence will sound like this if we put 4 in..
The J. C. Penney chain of retail stores broke with its conservative cash-and-carry policy in deciding during its reorganization in 1958 to sell on credit.

Two things that throws me away here
1. Policy in deciding???
2. We are breaking Deciding to by adding "during its recognization" in between.

Appreciate any clarification on this

Thanks