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Tough question. And, FYI, OG explanations often leave a lot to be desired. :)
The explanation is not claiming that required lacks a subject - rather, it claims that required lacks a complement. This is required of someone or something... but the initial option doesn't tell us what or who.
To do this problem, though, I would focus more on the "such firms" clue. "Such" indicates that we've already mentioned the firms once. Choices A, C, and D don't mention the firms, though, so they can't be right. Only B and E mention the firms, and only B clearly tells us both that this is "required of firms" and matches "firms" with "to survive."
_________________ Stacey Koprince Instructor Director of Online Community ManhattanGMAT
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