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Companies try to judge how they will be affected, ________ with their competitors, by drastic challenges in today's business environment.
1. comparing 2. comparison 3. compare 4. compared

Companies try to judge how they will be affected, 當它們被拿來和競爭對手比較時, by drastic challenges in today's business environment. 所以應該用 compared.

再看兩例:

Compared with their competitors, company A spends much more on advertising.
主詞是company A, 它被別人拿來做比較, 所以用被動的 compared

Comparing company A with their competitors, we found it spends much more on advertising.
主詞是we, 我們在做比較的工作, 所以用主動的 comparing