Foundations of GMAT Verbal, 5th edition, Pg72, Pop Quiz

[abhishek.gupta]

Foundations of GMAT Verbal, 5th edition, Pg72, Pop Quiz
The sentence" The company's profits WERE outstanding, AND IT went bankrupt because of outrageously poor management."

I understand that AND is not the appropriate conjunction. BUT would be more appropriate to suugest contrast.

My question regarding the use of pronoun IT. IT refers to company. However the main subject of this sentence is "The company's profits" which agrees with plural verb " WERE".
IT is not the correct pronoun due to lack of clear antecedent.

Is my understanding correct. Please advise.

[tim]

correct.

[abhishek.gupta]

Thanks...a big relief.

[tim]

:)