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Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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06 Oct 2012, 06:12

My 2 cents ..

The term - "because they are growing and are seldom in equilibrium" is clearly referring to "small businesses" therefore it must be touching it. In the original sentence it can easily be confused with big businesses i.e. big businesses are growing and are seldom in equilibrium.

Therefore A is wrong ..

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.

B is suggesting that the formulas for cash flow are growing and are seldom in equilibrium. This is clearly not what the sentence is trying to imply ... (common sense) ...

B is incorrect ..

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.

Clearly the mistake which dogged the statement A and B has been rectified here .. So C can be shortlisted ...

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.

The same mistake that dogged A and B is now corrected in D , therefore we can shortlist it as a potential correct answer.

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.

This passage again suggests that established big businesses are growing and seldom in equilibrium .. Therefore it is WRONG ..

We are down to 2 potentially correct choices C & D ...

Out of the two , I think that D delivers the message (that the author of the passage wants to deliver) better, and in a more simplistic form than C . There may well be a grammatical reason for why C is not correct but i have not been able to pin point it. I base my answer on simplicity and clarity..
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Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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07 Oct 2012, 01:42

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.---they refers to the nearest noun small business

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 the subject i.e small business.

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.

Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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29 May 2013, 23:31

Quote:

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.

The problem with C, among others, is that

We are comparing what "new small businesses are not subject to" with large businesses. We need an verb here. C would be right if the construction were- 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 are established big businesses.

Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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07 Nov 2013, 15:37

carcass 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.

Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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18 Jun 2014, 03:31

2

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This post was BOOKMARKED

I'm too late on this question. However it could help you. I could find a a clash between "C" and "D"..

In C, "as" is used to compare the 2 nouns (small and big business), which is wrong. In D, "as" is used to compare the ways used in small and big business that makes it right.

Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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10 Sep 2014, 19:23

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Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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16 Oct 2014, 02:03

Hello from the GMAT Club VerbalBot!

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Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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04 Jan 2015, 07:40

carcass 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. Later OA

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. >> they referring back to Formulas or 'new small businesses'?? Also, it is wordy and unclear construction. 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. >> by comma subject rule, they referring to formulas, this is wrong 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. >> unclear and wordy construction 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. >> clear and concise construction 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. >> unclear and wordy construction. they referring to??

Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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26 Nov 2015, 08:43

Quote:

OE:

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 to either before or after established big businesses to complete the comparison. Finally, the referent of they is not immediately clear in E.

I did not understand how and why are is important as indicated in OE above in option C. Can someone explain C in terms of comparison only.
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The point about "are" is that C says that small businesses "are not subject to the same XYZ as big businesses." It would be helpful to provide an "are" to complete the comparison: "small businesses are not subject to the same XYZ as are big businesses."

In a simple sentence, we don't need this clarification:

I'm not as strong as you.

But in a sentence with even a slight bit more complexity, that verb can make a big difference. Compare these:

I'm more interested in economics than you. I'm more interested in economics than you are.

We would probably figure out the intended meaning in the first case (especially if we consider ourselves more interesting than economics), but the second is clearer.

Now look at a sentence with a more involved second half:

The singer is less excited about the concert than the legions of fans seeking her autograph.

This sentence is truly ambiguous. Is she more excited about the fans than about the concert (notice my second "about" to make that clear), or are the fans more excited about the concert than she is? Let's rewrite to indicate the former meaning and then the latter:

The singer is less excited about the concert than about the legions of fans seeking her autograph. The singer is less excited about the concert than are the legions of fans seeking her autograph.

Here, we put the "are" before that long noun phrase at the end just to make it easier to catch. We could technically put it at the end, but it would be less useful there--by the end, either you've interpreted the meaning correctly or you haven't, and so it's better to make the intended meaning clear sooner.
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Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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28 Aug 2016, 11:05

Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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18 May 2017, 05:29

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 not apply to [#permalink]

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16 Sep 2017, 21:41

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. They is ambiguous (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. Modifier error (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. Comparison error (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. Correct (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 They is ambiguous _________________

Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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20 Sep 2017, 08:54

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.

Answer Choices

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. 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. 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. 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. 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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Last edited by broall on 20 Sep 2017, 17:11, edited 1 time in total.

Re: Formulas for cash flow and the ratio of debt to equity do not apply to [#permalink]

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20 Sep 2017, 09:28

Where is the underlined mark??? Is the whole Question is underlined or partially ?? Also put official answer so that everyone can put there valuable comments and suggestions below that question.

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