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The Life and Casualty Company hopes that by increasing its

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The Life and Casualty Company hopes that by increasing its environmental fund revenues to $1.2 billion, that it has set aside enough to pay for environmental claims and no longer has to use its profits and capital to pay those claims bit by bit, year by year.
A) that it has set aside enough to pay for environmental claims and no longer has
B) enough has been set aside with which environmental claims can be paid and it will have no longer
C) it has set aside enough for payment of environmental claims and thus no longer having
D) enough has been set aside to pay for environmental claims, thus no longer having
E) it has set aside enough to pay for environmental claims and will no longer have

Official Answer

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GMATwithCJ
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Solution

Sentence Analysis

  • The Life and Casualty Company hopes that (Main Clause. Subject ? "The Life and Causality Company"; Verb ? "hopes")
    • by increasing its environmental fund revenues to $1.2 billion, (prepositional phrase modifying the "that" clause)
    • that it ("that" is repeated here. This repetition is incorrect. "it" is the subject of the "that" clause)
      • has set aside enough to pay for environmental claims (first verb of "that" clause ? "has set aside")
      • and no longer has to use its profits and capital (second verb of "that" clause ? "has")
        • to pay those claims bit by bit, year by year. (infinitive phrase modifying "use")

The sentence talks about what Life and Casualty Company hopes. It hopes that by increasing its environmental fund revenues to a level, it has enough to pay for environmental claims and does not need to set aside some amount every year to pay those claims.

The sentence has the following problems:

  1. The repetition of "that" is incorrect.
  2. Since the "hope" is forward looking i.e. looking into the future, as indicated by "bit by bit, year by year", the use of future tense "will no longer have to" is preferable over the present tense "no longer has to".

Option Analysis

(A) Incorrect . For the reasons mentioned above.

(B) Incorrect . For the following reasons:

  1. As is, "it will no longer" seems like an independent clause. To indicate that it is also a part of "hope", "that" needs to be repeated before this clause. In general, "that" needs to be repeated for every clause for parallelism and also for meaning clarity.
  2. Since the beginning modifier is "by increasing_", it is highly preferable to have the subject of the clause the entity that will be doing the action of "increasing". However, in this case, "enough" is the subject of the clause, leaving one in doubt "who has increased_?"
  3. The position of "no longer" after "will have" is incorrect. The correct positions are "will no longer have to" and "no longer will have to".

(C) Incorrect . "having" is not parallel to anything before ?and?.

(D) Incorrect . For the following reasons:

  1. "having" acts as a verb-ing modifier modifying the preceding clause and thus needs to make sense with the subject of the preceding clause, which is "enough". Clearly, "having" doesn?t make sense with "enough".
  2. Problem no. 2 of option B.

(E) Correct . Both the problems of the original sentence have been rectified in this option.

answered Jun 10, 2017 by Beginner (1 point)
gmatclubforum
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The Life and Casualty Company hopes that by increasing its environmental fund revenues to $1.2 billion, that it has set aside enough to pay for environmental claims and no longer has to use its profits and capital to pay those claims bit by bit, year by year.
Meaning of the sentence:
The L and C company has increased the fund revenues to $1.2B. It has set aside enough to pay for claims and it will no longer have to pay those claims but by bit or year by year.
A) that it has set aside enough to pay for environmental claims and no longer has
1) No longer -> indicates that the event will happen in the future. "will" is required here.
B) enough has been set aside with which environmental claims can be paid and it will have no longer
1) "enough has been set aside with which environmental claims can be paid" modifies the amount of money. But it is not clear that who has set aside the amount.
2) It is longer compared to a shorter option that conveys the same meaning in concise way.

C) it has set aside enough for payment of environmental claims and thus no longer having
1) having -> verb+ing -> acts as a modifier but we require a clause as "and" is used and "and" can join two similar functions together. 1st one is a clause.
D) enough has been set aside to pay for environmental claims, thus no longer having
"enough has been set aside to pay for environmental claims" modifies the amount but for the second part of the sentence "no longer having" doesn't modify the amount. We require a clause stating the company no longer will have to pay.
E) it has set aside enough to pay for environmental claims and will no longer have
Correct

answered Jun 10, 2017 by Beginner (21 points)
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