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Change the given sentence to a simple sentence:
It is said that the company is losing a lot of money.
A) The company was said to be losing a lot of money
B) The company is said to be losing a lot of money
C) Lot of money is being lost by the company
D) Lot of money has being lost by the company

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Answer
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Hint: A simple sentence is a sentence that consists of just one independent clause. An independent clause can stand alone as a sentence.

Complete step by step answer:
Option A) The company was said to be losing a lot of money – is an incorrect answer because ‘was said' refers to the past tense and is different from the tense of the complex sentence 'is said'. Thus, this is an incorrect answer
Option B) The company is said to be losing a lot of money – is the correct answer because the sentence ‘the company is said to be losing a lot of money’ contains all the necessary elements of the complex sentence, without changing its meaning. Thus, this is the correct answer.
Option C) Lot of money is being lost by the company – is an incorrect answer because the sentence omits the words 'is said to be'. Hence the meaning formed is slightly different. So, this is an incorrect answer.
Option D) Lot of money has being lost by the company – is an incorrect answer because 'has been lost' is in the present perfect tense. It's different from the simple present tense of the given sentence. The use of the sentence ‘Lot of money has being lost by the company’ is inappropriate if replaced with the sentence given in the question. Thus, this is an incorrect answer.

So, the correct answer is “Option B ”.

Note:
The given sentence is complex and needs to be changed to a simple sentence. The clauses are 'It is said' and 'that the company is losing a lot of money'. One way of reducing a clause to a phrase is, by omitting the relative pronoun 'that' and the 'to-be' form after. Next, we change the verb form from 'is losing' to 'to be losing'. Also, the subject should be modified to one. 'It is said' about the 'company'. Hence the subject 'company' will remain.