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# Formulas for cash flow and the ratio of debtto equity do not

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VP
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Formulas for cash flow and the ratio of debtto equity do not [#permalink]

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13 Jul 2008, 15:35
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Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin 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 inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.

C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equityas established big businesses.

D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity donot apply to them in the same way as toestablished big businesses.

E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.
Manager
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Re: SC-Formulas for cash flow [#permalink]

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13 Jul 2008, 16:05
a. they is potentially referring incorrectly to big business in the second part eliminate
b. they refers to formulas in the first part eliminate
c. hold
d. missing "formulas do" eliminate
e. they is potentially referring incorrectly to big business in the second part eliminate
VP
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Re: SC-Formulas for cash flow [#permalink]

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13 Jul 2008, 17:55
In the end I chose C because D has them which can refer to SB and also Formulas

Can a pronoun appear before a noun it is referring to? as in C?
VP
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Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 11:42
Maple wrote:
a. they is potentially referring incorrectly to big business in the second part eliminate
b. they refers to formulas in the first part eliminate
c. hold
d. missing "formulas do" eliminate
e. they is potentially referring incorrectly to big business in the second part eliminate

Maple,
-"they" in A is not referring to Big businesses. It is referring to the subject "formulas". in the main clause. This is a illogocal error becuase "they are growing and are seldom in equilibrium" applies to small businesses.
VP
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Posts: 1352
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Kudos [?]: 678 [0], given: 10

Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 11:47
rao_1857 wrote:
goalsnr wrote:
Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin 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 inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.

C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equityas established big businesses.

D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity donot apply to them in the same way as toestablished big businesses.

E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.

IMO C

"notsubject to the same applicability of formulasfor cash flow " is not coorect usage. Therefore C is not the correct answer here.
Senior Manager
Joined: 25 Nov 2006
Posts: 271
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Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 11:57
It is D.

Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
What is they referring to?
B. Because they are growing and are seldom inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.
Wrong modifier usage...
C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equity as established big businesses.
Wrong comparison
D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.
Best of the lot!!!...not perfect( i usually keep away from answer choices that say 'in the same way....')
E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.
What is they referring to?
VP
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Posts: 1352
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Kudos [?]: 678 [0], given: 10

Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 12:12
Ashwin_Mohan wrote:
It is D.

Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
What is they referring to?
B. Because they are growing and are seldom inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.
Wrong modifier usage...
C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equity as established big businesses.
Wrong comparison
D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.
Best of the lot!!!...not perfect( i usually keep away from answer choices that say 'in the same way....')
E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.
What is they referring to?

-"they" is referring to the subject "New small businesses". in the main clause. I dont think "they" is the error and cause for elimination in E.
Senior Manager
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Posts: 271
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Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 12:21
goalsnr wrote:
Ashwin_Mohan wrote:
It is D.

Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
What is they referring to?
B. Because they are growing and are seldom inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.
Wrong modifier usage...
C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equity as established big businesses.
Wrong comparison
D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.
Best of the lot!!!...not perfect( i usually keep away from answer choices that say 'in the same way....')
E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.
What is they referring to?

-"they" is referring to the subject "New small businesses". in the main clause. I dont think "they" is the error and cause for elimination in E.

Well there lies an ambiguity, is they referring to New small businesses or formulas? .... formulas could be in equilibrium.....it's difficult to decide which is which....
VP
Joined: 03 Apr 2007
Posts: 1352
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Kudos [?]: 678 [0], given: 10

Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 17:19
Ashwin_Mohan wrote:
goalsnr wrote:
Ashwin_Mohan wrote:
It is D.

Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.
What is they referring to?
B. Because they are growing and are seldom inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.
Wrong modifier usage...
C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equity as established big businesses.
Wrong comparison
D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.
Best of the lot!!!...not perfect( i usually keep away from answer choices that say 'in the same way....')
E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.
What is they referring to?

-"they" is referring to the subject "New small businesses". in the main clause. I dont think "they" is the error and cause for elimination in E.

Well there lies an ambiguity, is they referring to New small businesses or formulas? .... formulas could be in equilibrium.....it's difficult to decide which is which....

Thats my point. If " they" was in the main clause then there would have been ambiguity about the referent, "they" here is in the subordinate clause.
VP
Joined: 03 Apr 2007
Posts: 1352
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Kudos [?]: 678 [0], given: 10

Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 17:24
goalsnr wrote:
Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin 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 inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.

C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equityas established big businesses.

D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity donot apply to them in the same way as toestablished big businesses.

E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.

OA is D

My explanation:

A. Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.

C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equityas established big businesses.
-According to OG "notsubject to the same applicability" is incorrect usage.

D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity donot apply to them in the same way as toestablished big businesses.

E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.
-same as C
Manager
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Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 19:26
goalsnr wrote:

Maple,
-"they" in A is not referring to Big businesses. It is referring to the subject "formulas". in the main clause. This is a illogocal error becuase "they are growing and are seldom in equilibrium" applies to small businesses.

That "they" can refer to a number of plurals in the sentence. I chose one to eliminate the answer choice.
Manager
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Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 19:42
Agree C is not correct. Can anyone explain the ellipsis for D?
Senior Manager
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Re: SC-Formulas for cash flow [#permalink]

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14 Jul 2008, 20:02
goalsnr wrote:
goalsnr wrote:
Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 debtto equity do not apply to new small businessesin 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 inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.

C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equityas established big businesses.

D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity donot apply to them in the same way as toestablished big businesses.

E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.

OA is D

My explanation:

A. Formulas for cash flow and the ratio of debtto equity do not apply to new small businessesin 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 inequilibrium, formulas for cash flow and theratio of debt to equity do not apply to newsmall businesses in the same way as they do toestablished big businesses.

C. Because they are growing and are seldom inequilibrium, new small businesses are notsubject to the same applicability of formulasfor cash flow and the ratio of debt to equityas established big businesses.
-According to OG "notsubject to the same applicability" is incorrect usage.

D. Because new small businesses are growingand are seldom in equilibrium, formulas forcash flow and the ratio of debt to equity donot apply to them in the same way as toestablished big businesses.

E. New small businesses are not subject to the applicability of formulas for cash flow andthe ratio of debt to equity in the same way asestablished big businesses, because they aregrowing and are seldom in equilibrium.
-same as C

For C I can see on more issue: Idiom. the correct idiom is same x as to y, whereas in the sentence the idiom is "same x as y".
Re: SC-Formulas for cash flow   [#permalink] 14 Jul 2008, 20:02
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