Choose the correct option for converting the statement given below in to the Indirect Speech:

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

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

The correct answer is Option (1) → The company is believed to have lost a lot of money last year

1. Direct Speech:

   • The sentence "It is believed that the company lost a lot of money last year" uses an impersonal passive construction (It is believed that...).
   • To convert this into indirect speech, we use a passive structure with "is believed to have lost".

2. Why is the correct option the best choice?

   • "The company is believed to have lost a lot of money last year" is grammatically correct because:
     • "Is believed" → passive form
     • "To have lost" → correct past infinitive form to indicate an event that happened in the past.

OTHER OPTIONS

 "The company believes to have lost a lot of money last year" → Incorrect

• "Believes" is in the active voice, whereas the original sentence is passive.

 "The company is believed to have had lost a lot of money last year" → Incorrect

• "To have had lost" is grammatically incorrect. It should be "to have lost."

 "The company is believed to having lost a lot of money last year" → Incorrect

• "Having lost" is incorrect after "is believed to"; it should be "to have lost."

Thus, the best choice is: The company is believed to have lost a lot of money last year.