Because most investors prefer long-term capital gains to annual divide : Sentence Correction (SC)

Because most investors prefer long-term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.


(A) the reduction in dividend payout ratios that have taken place during the last decade are
that HAVE taken place is wrong. Have refers to the reduction, which is a singular not a plural.

(B) the reduction in dividend payout ratios that has taken place during the last decade is
correct

(C) the reduction that has taken place in dividend payout ratios during the last decade are
The expression after the comma must refer to the preceding part. Therefore, the correct noun must be the reduction in dividend payout ratios.

(D) the reduction in dividend payout ratios that have taken place during the last decade is
that HAVE taken place is wrong. Have refers to the reduction, which is a singular not a plural.

(E) the reduction that has taken place in dividend payout ratios during the last decade is
The expression after the comma must refer to the preceding part. Therefore, the correct noun must be the reduction in dividend payout ratios.

Can someone explain why B is a better choice than E?

Because most investors prefer long-term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.


(A) the reduction in dividend payout ratios that have taken place during the last decade are
the reduction is singular hence we need the verb "is" and not "are"

(B) the reduction in dividend payout ratios that has taken place during the last decade is
ratios is plural and hence we need the verb "have" and not "has"

(C) the reduction that has taken place in dividend payout ratios during the last decade are
Same as option A

(D) the reduction in dividend payout ratios that have taken place during the last decade is
Gramatically correct. Only issue is that the meaning is wrong. The intended emphasis is on the reduction that has taken place during the last decade and not on the dividend payout ratios that have taken place during the last decade.

(E) the reduction that has taken place in dividend payout ratios during the last decade is
Correct option.

Bunuel wrote:Because most investors prefer long-term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable.


(A) the reduction in dividend payout ratios that have taken place during the last decade are

(B) the reduction in dividend payout ratios that has taken place during the last decade is

(C) the reduction that has taken place in dividend payout ratios during the last decade are

(D) the reduction in dividend payout ratios that have taken place during the last decade is

(E) the reduction that has taken place in dividend payout ratios during the last decade is

(A) Because most investors prefer long-term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade are perfectly understandable. -> "are" is used for "the reduction". The correct verb for "the reduction" is "is" because "the reduction" is singular

(B) Because most investors prefer long-term capital gains to annual dividend payouts, the reduction in dividend payout ratios that has taken place during the last decade is perfectly understandable. -> This option can be interpreted in two ways -
1. the reduction in dividend payout ratios that has taken place
2. the reduction in dividend payout ratios that has taken place
This answer choice can be discarded for the ambiguity

(C) Because most investors prefer long-term capital gains to annual dividend payouts, the reduction that has taken place in dividend payout ratios during the last decade are perfectly understandable. -> Same explanation as in option (A)

(D) Because most investors prefer long-term capital gains to annual dividend payouts, the reduction in dividend payout ratios that have taken place during the last decade is perfectly understandable. -> This option changes the intended meaning. This option suggests that the dividend payout ratios have taken place during the last decade. This is, however, not the intended meaning. It's the "reduction" that has taken place during the last decade

(E) Because most investors prefer long-term capital gains to annual dividend payouts, the reduction that has taken place in dividend payout ratios during the last decade is perfectly understandable. -> Correct! This option clearly indicates that the reduction has taken place during the last decade