[color=red]Identify the verbals (Participles, Gerunds or Infinitives) and their functions in the sentences below:-
1- Sarah and John were caught passing notes in class.
2- The horse galloped through the mountains moving with great speed.
3- By developing new products, the firm sold more and made more money.
The teacher caught them passing notes. “Passing notes” is a participial phrase modifying “them.” Passive: They were caught passing notes
(by the teacher). “Passing notes” is now a participial phrase being used as a subjective complement. You are 100% correct.