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.
A) 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
B) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company was set up as a C-corporation
C) protection from potential lawsuits, avoiding some egregious double-taxation that would occur if the company was set up as a C-corporation
D) protection from potential lawsuits, and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation
E) protection from potential lawsuits and avoid some egregious double-taxation that would occur if the company were set up as a C-corporation



i chose the answer D. but the right answer is E. the reason for E being the right answer seems to be the right usage of SUBJUNCTIVE MOOD, and paralellism between "receive"
& "avoid". please explain SUBJUNCTIVE MOOD and the parallelism between the two.

Hi Siddharth ,
The difference between D & E is just a comma after ‘lawsuits’. As per my knowledge goes - this is not a standard method in GMAT to decide wrong answer from right , there normally will have more splits .
Any way just to explain the different here - the owners is the subject having two verbs receive and avoid. To use comma the 2nd clause should have a subject (noun/pronoun).

This is a case of hypothetical subjunctive mood. This is why E is correct and not B . As the company was actually not set up as a C-corporation , the verb should be ‘were’ and not ‘was’ .
'If I were a rich man' and not 'If I was a rich man'.
Hope this will clarify your doubt.

Thanks,
PM.

Excellent points prana. Yes, ask yourself which of these sentences is correct (I made them up):
1) I would like to receive money and avoid taxes.
2) I would like to receive money, and avoid taxes.

The parallelism marker is "and" and the correct construction is "X and Y". "X and, Y" is not correct.

prana is also right about the "hypothetical subjunctive mood" and the use of "were" in this situation. Please let us know if you have further questions.

Thanks!

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Jamie Nelson
ManhattanGMAT Instructor