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Formulas for cash flow and the ratio of debt to equity do not apply to

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B
Joined: 25 Jan 2013
Posts: 26

Kudos [?]: 3 [0], given: 2033

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

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New post 20 Sep 2017, 10:51
amol143 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.

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

Ans D

Kudos [?]: 3 [0], given: 2033

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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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New post 20 Sep 2017, 11:30
Top Contributor
No need to go beyond kicking out choices that have 'they', namely A, B, C, and E. One cannot decide, whether 'they' refers to big businesses or small businesses or formulas. D is the odd man out that doesn't use the dubious pronoun and one is justified in choosing D instantly.
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Kudos [?]: 8168 [0], given: 364

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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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New post 24 Sep 2017, 01:14
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.
use of they is ambiguous. Incorrect

(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.
use of they is ambiguous. 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.
same applicability as established big businesses. (wrong comparison)

(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.
do not apply to them 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
use of they is ambiguous. Incorrect

Kudos [?]: 8 [0], given: 19

Re: Formulas for cash flow and the ratio of debt to equity do not apply to   [#permalink] 24 Sep 2017, 01:14

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