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

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Senior Manager
Joined: 21 Jun 2004
Posts: 336

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Formulas for cash flow and the ratio of debt to equity do [#permalink]

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29 Sep 2004, 21:48
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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.
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Manager
Joined: 24 Aug 2004
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29 Sep 2004, 21:59

A. incorrect because the pronoun 'they' doesn't clearly refer to 1 antecedant. ( they does it refer to formulas or to businesses)

B. The modifier "Because they are growing and are seldom in equilibrium" should be followed by businesses and not formulas

C. the modifier "Because they are growing and are seldom in equilibrium" correctly modifies the noun small businesses, and removes the ambigity of the pronoun 'they'.

D. same reasoning as 'B'

E. " ...not subject to the applicability of formulas-- " applicability sounds quite awkward.

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Intern
Joined: 23 Sep 2004
Posts: 31

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01 Oct 2004, 15:32
I thought the answer was A. I felt applicability etc was complicating the sentence and i also thought A was more clearer in terms of what each pronoun was refering to.

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Manager
Joined: 15 Jul 2004
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01 Oct 2004, 22:50
D

OA from OG

In A, the they after because is ambiguous; it seems illogically to refer to Formulas because they and Formulas are each the grammatical subject of a clause and because the previous they refers to Formulas. In A and B, do not apply to... in the same way as they do to is wordy and awkward. D, the best choice, says more concisely in the same way as to. Also in B, because they refers to formulas, the introductory clause states confusedly that the formulas are growing. In C and E, subject to the [same] applicability of... is wordy, awkward, and imprecise; furthermore, are is preferable either before or after established big businesses to complete the
comparison. Finally, the referent of they is not immediately clear in E.

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Director
Joined: 31 Aug 2004
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02 Oct 2004, 03:24
C is my favorite one too... and D is the OA...
Explaination : less wordy... Sometimes OG detailed answers are weird...

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Manager
Joined: 26 Sep 2004
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03 Oct 2004, 01:37
and i thought yu can't start a sentence with "because"..is english getting distorted
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03 Oct 2004, 01:37
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