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Formulas for cash flow and the ratio of debt to equity do

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Formulas for cash flow and the ratio of debt to equity do [#permalink] New post 15 Mar 2011, 19:24
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A
B
C
D
E

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  15% (low)

Question Stats:

79% (01:51) correct 21% (01:14) wrong based on 57 sessions
312. Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
(A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
(B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses.
(C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.
(D) Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.
(E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium.
[Reveal] Spoiler: OA
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Re: 312/1000 - Small business vs big business [#permalink] New post 15 Mar 2011, 19:45
fanatico wrote:
312. Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
(A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
(B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses.
(C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.
(D) Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.
(E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium.


In A,B Structurally "they" refers to formulas which is wrong
In C and E applicability of formulas is wordy .....I think verb forms are always better than noun forms in GMAT..
Thus D.
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Re: 312/1000 - Small business vs big business [#permalink] New post 15 Mar 2011, 20:36
Between C and D

In C - "they" refers to small businesses but comparison is wrong.

D remains.
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Re: 312/1000 - Small business vs big business [#permalink] New post 15 Mar 2011, 20:45
Thank you...missed to notice the comparison problem in C
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Re: 312/1000 - Small business vs big business [#permalink] New post 15 Mar 2011, 20:53
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(A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.:Subject of first clause is formulas- formaulas dont apply- so in the clause satrting with because- the subject 'they' stands for formula. Inappropriate, hence wrong.
(B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses.Same reason as above - formulas are the subject pointed to by 'they' in the because part of the sentence.Incorrect
(C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.Applicability sounds unidiomatic- also sentence seems to imply that formulas dont apply at all-while the implication should be that the formulas dont apply in the same way as to the big businesses
(E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium.awckward and wordy construction, use of applicability- [/quote]
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Re: Formulas for cash flow and the ratio of debt to equity do [#permalink] New post 18 Jun 2014, 03:31
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I'm too late on this question. However it could help you. I could find a a clash between "C" and "D"..

In C, "as" is used to compare the 2 nouns (small and big business), which is wrong.
In D, "as" is used to compare the ways used in small and big business that makes it right.

Help me if I am wrong...
Re: Formulas for cash flow and the ratio of debt to equity do   [#permalink] 18 Jun 2014, 03:31
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