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rss GMAT Practice Question (One of Hundreds)
The owners of a fast growing tech start-up in Newport Beach organized the firm as a Limited Liability Company (LLC). The owners receive considerable personal liability protection from potential lawsuits, and they also avoid some egregious double-taxation that would occur if the company was set up as a C-corporation.
Correct Answer: E
if the company was is wrong and must be changed to the subjunctive mood

There are two main issues with this sentence.

(1) Since the double taxation would occur if the company.., we are dealing with a future hypothetical situation (or possibility) and must use the subjunctive mood. Consequently, if the company were must replace if the company was.

(2) The two things that are true about the owners of the LLC must be parallel: they receive...and avoid. The original sentence improperly breaks the parallelism (i.e., the phrase receive..., and they also avoid is not parallel).

  1. the subjunctive mood is not used; the sentence is not parallel (i.e., the phrase receive..., and they also avoid is not parallel)
  2. the subjunctive mood is not used
  3. the subjunctive mood is not used; the sentence is not parallel (i.e., the phrase receive..., avoiding is not parallel)
  4. the sentence is not parallel (i.e., the phrase receive..., and avoid is not parallel)
  5. the subjunctive mood is used; the sentence is parallel (i.e., the phrase receive... and avoid is parallel)

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