The company announced that its profits declined much less in the second quarter than analysts had expected it to and its business will improve in the second half of the year.
had expected it to and its business will improve
had expected and that its business would improve
expected it would and that it will improve its business
expected them to and its business would improve
expected and that it will have improved its business
From Ron:
he only one of those pronouns that's incorrect is the "it" in choice (c).
in that choice, the context of the pronoun clearly refers to the company's profits; however, "profits" is plural, while "it" is singular.
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