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

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VP
Joined: 03 Apr 2007
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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
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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?
[Reveal] Spoiler: OA

Last edited by PiyushK on 16 Oct 2014, 12:46, edited 1 time in total.
If you have any questions
New!
SVP
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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
Senior Manager
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Re: Formulas for cash flow and the ratio of debt to equity do [#permalink]

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03 Mar 2008, 03:21
I feel gunned down when I see full underlined questions. ( Hate the poster too , just kidding )

I took a bit long ... but not 5 mins ... so here is my POE.

As I read the first option , came along "they". (Manhattan SC says it is one of the deadly pronouns ).

No clear referent, checked other options for they or them.
Eliminate A,B(formulas are growing),E(no clear referent).

Between C and D, eliminate C for improper usage of AS.

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

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03 Mar 2008, 07:08
i am confused between C and D.

the modifier is perfect in C.

in D, 'them' is ambiguous.

but i feel D is better..
confused.. whats the OA ?
VP
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Re: Formulas for cash flow and the ratio of debt to equity do [#permalink]

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03 Mar 2008, 19:44
Neochronic wrote:
i am confused between C and D.

the modifier is perfect in C.

in D, 'them' is ambiguous.

but i feel D is better..
confused.. whats the OA ?

In D, :"formulas" is the subject . "Small businesses" is the object.
VP
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Kudos [?]: 678 [0], given: 10

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?

Good job folks. The OA is D
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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
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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.
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Re: Formulas for cash flow and the ratio of debt to equity do [#permalink]

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05 Mar 2008, 04:41
i was contemplating between option C and D... however in c, the end of sentence should be " as established big businesses are "

In D, them does refer to businesses. hence correct answer is D
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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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16 Oct 2014, 21:51
Is B incorrect because - " Because they are growing and seldom in equilibrium" is ambiguous for a modifier ?
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Re: Formulas for cash flow and the ratio of debt to equity do [#permalink]

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06 Jan 2015, 19:22
"them" refers to "small business" unambiguously
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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.
Re: Formulas for cash flow and the ratio of debt to equity do   [#permalink] 18 May 2017, 06:29
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