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

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

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New post Updated on: 25 Sep 2017, 19:16
1
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A
B
C
D
E

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  45% (medium)

Question Stats:

62% (01:14) correct 38% (01:21) wrong based on 601 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?

Originally posted by goalsnr on 24 Feb 2008, 16:26.
Last edited by hazelnut on 25 Sep 2017, 19:16, edited 3 times in total.
Edited the question.
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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 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
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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 03 Mar 2008, 03:21
1
I feel gunned down when I see full underlined questions. ( Hate the poster too :evil: , 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
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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 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 ?
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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 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.
->Them refers to "Small businesses"
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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 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 not apply to [#permalink]

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New post 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 not apply to [#permalink]

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New post 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 not apply to [#permalink]

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New post 15 Mar 2011, 20:45
fanatico wrote:
312. 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.


In A,B Structurally "they" refers to formulas which is wrong
In C and E applicability of formulas is wordy .....I think verb forms are always better than noun forms in GMAT..
Thus D.
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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 15 Mar 2011, 21:36
Between C and D

In C - "they" refers to small businesses but comparison is wrong.

D remains.
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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 15 Mar 2011, 21:45
Thank you...missed to notice the comparison problem in C
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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 15 Mar 2011, 21:53
1
2
(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.:Subject of first clause is formulas- formaulas dont apply- so in the clause satrting with because- the subject 'they' stands for formula. Inappropriate, hence 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.Same reason as above - formulas are the subject pointed to by 'they' in the because part of the sentence.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.Applicability sounds unidiomatic- also sentence seems to imply that formulas dont apply at all-while the implication should be that the formulas dont apply in the same way as to the 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.awckward and wordy construction, use of applicability- [/quote]
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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 Updated on: 07 Jul 2015, 02:49
1
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.

my doubt is in option D modifying phrase " because new businesses..." correctly modifies the following clause " formulas for cash.."
Is "them" refers to formulas.
please explain

Originally posted by TomB on 22 May 2012, 16:42.
Last edited by reto on 07 Jul 2015, 02:49, edited 1 time in total.
proper format
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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 22 May 2012, 20:45
Just to discuss the vexing pronoun reference of the them, if you have any doubt that them may refer to formulas, then just try to replace it with what you think might be correct.

(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 formulas in the same way as to establish big businesses.
Please ponder whether formulas will apply to formulas. New small businesses is the logical referent.
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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 22 May 2012, 20:57
TomB wrote:
312. 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.

my doubt is in option D modifying phrase " because new businesses..." correctly modifies the following clause " formulas for cash.."
Is "them" refers to formulas.
please explain

The same has already been discussed in the forum. Please refer to the below link:
formulas-for-cash-flow-and-the-ratio-of-debt-to-equity-do-60474.html
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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 05 Oct 2012, 00:54
My answer is D.
A and E are incorrect "they" can refer to small businesses or big businesses.
B is incorrect because of incorret usage of incorrect modifier "formulas".
C is incorrect because of term " same applicability of formulas"

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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 06 Oct 2012, 07:12
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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New post 07 Oct 2012, 02:42
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.


between c and d
i will go with D
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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 18 Jan 2013, 05:37
Ans E because in the others ans they or them can refer to small businesses or formulas
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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 19 Jan 2013, 01:25
the same noun 1 as noun 2

is idiom. this is one piece.

noun1 and noun2 must be comparable logically

in C and E
the same capability ... as businesses
the same way as businesses

are wrong.

is my thinking correct?
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Re: Formulas for cash flow and the ratio of debt to equity do not apply to   [#permalink] 19 Jan 2013, 01:25

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