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

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Manager
Joined: 02 May 2008
Posts: 80
Formulas for cash flow and the ratio of debt to equity do [#permalink]

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15 Jul 2008, 09:21
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91% (00:45) correct 9% (00:40) wrong based on 94 sessions

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12. 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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Senior Manager
Joined: 01 Jan 2008
Posts: 493
Re: SC- Formulas for cash flow [#permalink]

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15 Jul 2008, 09:44
The Answer is between C & D. C has an idiom issue the correct idiom is same to x as to y.. and not same x as y

Hence D is better
Manager
Joined: 02 May 2008
Posts: 80
Re: SC- Formulas for cash flow [#permalink]

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15 Jul 2008, 09:48
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However In option D them can refer to formulas as well as to the small businesses.
this is what i thought is wrong with option D.
Senior Manager
Joined: 29 Aug 2005
Posts: 262
Re: SC- Formulas for cash flow [#permalink]

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15 Jul 2008, 13:23
MamtaKrishnia wrote:
However In option D them can refer to formulas as well as to the small businesses.
this is what i thought is wrong with option D.

IMO D is the correct answer

In D them refers to the formulas only (its a sub ordinate clause in which them is used and hence has to refer to formulas only)

i hope i m correct on this one

please post the OA for this
_________________

The world is continuous, but the mind is discrete

Manager
Joined: 02 May 2008
Posts: 80
Re: SC- Formulas for cash flow [#permalink]

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17 Jul 2008, 06:05
vdhawan1 wrote:
MamtaKrishnia wrote:
However In option D them can refer to formulas as well as to the small businesses.
this is what i thought is wrong with option D.

IMO D is the correct answer

In D them refers to the formulas only (its a sub ordinate clause in which them is used and hence has to refer to formulas only)

i hope i m correct on this one

please post the OA for this

Aaaha!!!! ..Now it makes sense to me .. Thanks
Manager
Joined: 12 May 2006
Posts: 164
Re: SC- Formulas for cash flow [#permalink]

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17 Jul 2008, 06:12
isn't "them" referring to "small businesses" in D
Director
Joined: 06 Jan 2008
Posts: 526
Re: SC- Formulas for cash flow [#permalink]

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17 Jul 2008, 06:46
vdhawan1 wrote:
MamtaKrishnia wrote:
However In option D them can refer to formulas as well as to the small businesses.
this is what i thought is wrong with option D.

IMO D is the correct answer

In D them refers to the formulas only (its a sub ordinate clause in which them is used and hence has to refer to formulas only)

i hope i m correct on this one

please post the OA for this

I think you chose the right answer but I disagree with the reasoning.
If them refers to formulas then the sentence does not convey any logical meaning.
Because new small businesses are X, formulas .. do not apply to them(formulas?) in the same way as to established big businesses. (formulas do not apply to formulas..weird)

Therefore, 'them' must refer to small businesses. D for me.
Manager
Joined: 04 Jun 2008
Posts: 143
Re: SC- Formulas for cash flow [#permalink]

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17 Jul 2008, 07:31
Quote:
(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.

here them refers to small businesses and agree with Option D.

OA pls
Manager
Joined: 02 May 2008
Posts: 80
Re: SC- Formulas for cash flow [#permalink]

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21 Jul 2008, 23:32
OA is D.

But then .. isn't the use of them ambiguous in D. Then in that case it shouldn't be the answer.
May be cuz it is the best option amongst all.Thats y its the answer.
Manager
Joined: 18 Aug 2006
Posts: 58
Location: Houston TX
Re: SC- Formulas for cash flow [#permalink]

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21 Jul 2008, 23:54
I think the ans is D and "them" refers to "small business"
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haveaniceday

Manager
Joined: 02 May 2008
Posts: 80
Re: SC- Formulas for cash flow [#permalink]

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22 Jul 2008, 01:49
Well i figured why them cannot refer to formulas.
since formulas is the subject of the subordinate clause if them were to refer to formulas it would have been themselves and not them .
Director
Joined: 01 Aug 2008
Posts: 661
Re: SC- Formulas for cash flow [#permalink]

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08 Jun 2009, 13:11
MamtaKrishnia wrote:
Well i figured why them cannot refer to formulas.
since formulas is the subject of the subordinate clause if them were to refer to formulas it would have been themselves and not them .

is the above logic true? can some one explain me why D is correct?
VP
Joined: 21 Jul 2006
Posts: 1463
Re: SC- Formulas for cash flow [#permalink]

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Updated on: 09 Jun 2009, 08:21
MamtaKrishnia wrote:
Well i figured why them cannot refer to formulas.
since formulas is the subject of the subordinate clause if them were to refer to formulas it would have been themselves and not them .

you're wrong, the subordinate clause in option D is "Because new small businesses are growing and are seldom in equilibrium." The rule is that the subordinate clause (or the dependant clause) + comma + independant clause, which is the case in option D. Can someone explain why and how "them" is appropriate in option D?

Originally posted by tarek99 on 09 Jun 2009, 08:06.
Last edited by tarek99 on 09 Jun 2009, 08:21, edited 2 times in total.
VP
Joined: 21 Jul 2006
Posts: 1463
Re: SC- Formulas for cash flow [#permalink]

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09 Jun 2009, 08:17
bhatiagp wrote:
The Answer is between C & D. C has an idiom issue the correct idiom is same to x as to y.. and not same x as y

Hence D is better

I don't think so. I've just looked up the use of idioms and found that the correct idiom is "To X is to Y". In your example, how would you apply it to opton D?

and if you are right, then may be it should be "to x same as to y"

suppose it's true that it's suppose to be "to x same as to y": because our y in this case is "established big businesses", and we know that we can only compare things that are similar, than it's MUST be another business, which is, in the case of our sentence, "new small businesses."

any thoughts on that? please share!

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
Re: SC- Formulas for cash flow   [#permalink] 09 Jun 2009, 08:17
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