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.
a)The company was believed to have lost a lot of money last year.
b)Lots of money is lost last year by that company.
c)The company is believed to have lost a lot of money last year.
d)Lots of money has been believed to be lost by the company.

Hint: A simple sentence consists of only an independent clause. An independent clause has the ability to stand alone as a sentence.

Complete step-by-step answer:

 As given in the hint, a simple sentence includes a single subject and a verb.
Example- He likes dancing. Here, we can only see a single subject and a verb.
The above-given sentence is a Complex sentence, as it has both Independent and Dependent clauses.
Let’s look at the given options:
a)The given sentence is grammatically inappropriate and use of ‘was’ is inaccurate. Hence, it is an incorrect option.
b)The use of ‘is lost’ expresses an illogical meaning, as we are describing an action that took place in the past. Hence, it is an incorrect option.
c)This sentence is grammatically accurate, as the dependable clause has been arranged into a phrase. Hence, it is the correct option.
d)The use of ‘has been’ is grammatically wrong. Hence, it is an incorrect option.
The correct answer is Option ‘c’.

Note: We can arrange the dependent clause of a complex sentence into a word or a phrase to form a simple sentence.