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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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A

B

C

D

E

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93% (01:46) correct
7% (00:00) wrong based on 43 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.

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.

(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.

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.

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 .

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?

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?

Last edited by tarek99 on 09 Jun 2009, 08:21, edited 2 times in total.

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!

gmatclubot

Re: SC- Formulas for cash flow
[#permalink]
09 Jun 2009, 08:17