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

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24 Feb 2008, 16:26

3

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00:00

A

B

C

D

E

Difficulty:

35% (medium)

Question Stats:

61% (02:14) correct
39% (01:21) wrong based on 219 sessions

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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

I spent 5 minutes on this question and finally got it right. Is there a quicker way to solve this beast?

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

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24 Feb 2008, 16:53

D.

Eliminated A and E because 'they' refers to big businesses, which is incorrect. Eliminated B due to modifier issue. Down to C and D, and eliminated C because 'applicability of formulas' seemed incorrect ... very wordy

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

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03 Mar 2008, 19:45

goalsnr wrote:

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

I spent 5 minutes on this question and finally got it right. Is there a quicker way to solve this beast?

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

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03 Mar 2008, 21:04

goalsnr wrote:

goalsnr wrote:

[u] (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.

Good job folks. The OA is D

In D , is it not possible that that "them" can refer back to formulas ? I see an referent problem

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

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03 Mar 2008, 22:37

If I replace with what you say,

Because new small businesses are growing and are seldom in equilibrium, formulas do not apply to them in the same way as to established big businesses.

Now, Because new small businesses are growing and are seldom in equilibrium, formulas do not apply to formulas in the same way as to established big businesses.

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

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16 Oct 2014, 03:03

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

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18 May 2017, 06:29

got to D in less than a minute... what is not applicable? the usage of formulas and ratio... why? because small businesses are growing and are rarely in equilibrium. usage of comparison - they apply for X as they do for Y. only D uses proper comparison. Moreover, it conveys the intended meaning.

gmatclubot

Re: Formulas for cash flow and the ratio of debt to equity do
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18 May 2017, 06:29

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