Rewrite the given sentence into a simple sentence:

(The meaning should remain the same)

It is believed that the company lost a lot of money last year.

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The company was believed to have lost a lot of money last year.

Lots of money was lost last year by that company.

The company is believed to have lost a lot of money last year.

Lots of money has been believed to be lost by the company.

answer is C.

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Detailed Solution

Concept: The given sentence is grammatically inappropriate and use of ‘was’ is inaccurate. Hence, it's an incorrect option.
The use of ‘is lost’ expresses an illogical meaning, as we are describing an action that passed within the past. Hence, it's an incorrect option.
This sentence is grammatically accurate, because the dependable clause has been arranged into a phrase. Hence, it's the proper option.
The use of ‘has been’ is grammatically wrong. Hence, it's an incorrect option.
Hence, the correct answer is option 3.

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