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The sentence "The volume of business depends on an institution's delivery method, production time, and whether or not it is open or closed" is faulty mainly because it mixes

Atwo adjectives with a noun phrase
Btwo noun phrases with a clause-like expression
Ctwo adverbs with a prepositional phrase
Dtwo clauses with an infinitive phrase
Answer & Solution
Correct answer: B. two noun phrases with a clause-like expression
The sentence begins with two noun phrases: "delivery method" and "production time." It then shifts to "whether or not it is open or closed," which is clause-like rather than parallel to the first two items. A parallel revision would end with another noun phrase, such as "hours of operation."
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