SC: Formulas for cash flow : GMAT Sentence Correction (SC)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 23 Feb 2017, 03:11

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# SC: Formulas for cash flow

Author Message
TAGS:

### Hide Tags

SVP
Joined: 14 Dec 2004
Posts: 1702
Followers: 3

Kudos [?]: 139 [0], given: 0

SC: Formulas for cash flow [#permalink]

### Show Tags

11 Jan 2006, 10:58
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 2 sessions

### HideShow timer Statistics

Try to spot the error in wrong choices, this is not tough one...

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
If you have any questions
New!
Director
Joined: 24 Oct 2005
Posts: 575
Location: NYC
Followers: 1

Kudos [?]: 60 [0], given: 0

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

### Show Tags

11 Jan 2006, 11:19
Here is my take on this..

(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.
--> Misplaced modifier

(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.-- 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 them in the same way as to established big businesses.--> Not parallel.

(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 -- Awkward
_________________

Success is my only option, failure is not -- Eminem

Manager
Joined: 19 Jul 2005
Posts: 67
Location: Atlanta
Followers: 1

Kudos [?]: 4 [0], given: 0

### Show Tags

11 Jan 2006, 11:39
A) Ambiguous pronoun "they"

B) Agreed, misplaced modifier

C) Correct

D) Ambiguous pronoun "them

E) Misplaced modifier

Director
Joined: 04 Oct 2005
Posts: 586
Location: Chicago
Followers: 1

Kudos [?]: 7 [0], given: 0

### Show Tags

11 Jan 2006, 14:28
I would go with D..

(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" are growing..We dnt know which one..So pronoun error

(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... instead of formulaes in the second part, it should be small business
(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.
A confusing one..Seems correct but "applicability of formulaes" looks awkward.
(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.
Between C and D , i would go with this one.
(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
Pronoun error again
Director
Joined: 04 Jan 2006
Posts: 923
Followers: 1

Kudos [?]: 32 [0], given: 0

### Show Tags

11 Jan 2006, 19:47
In C, you need something to end with big businesses.. I dont know if this is a pronoun or what, but you are saying.. small businesses are not subject to blah blah in the same way big businesses are.

Hence I go with D.

What is OA?
Current Student
Joined: 29 Jan 2005
Posts: 5238
Followers: 26

Kudos [?]: 381 [0], given: 0

### Show Tags

11 Jan 2006, 20:31
In C, it is unclear as to which business is growing.

Take (D) for clarity.
Director
Joined: 24 Oct 2005
Posts: 575
Location: NYC
Followers: 1

Kudos [?]: 60 [0], given: 0

### Show Tags

11 Jan 2006, 21:47
I think I am gonna change my answer to D too.. after a lot of thinking.. D is making more sense..
_________________

Success is my only option, failure is not -- Eminem

VP
Joined: 20 Sep 2005
Posts: 1021
Followers: 3

Kudos [?]: 35 [0], given: 0

### Show Tags

11 Jan 2006, 21:58
I picked D.

I have a question on answer choice C,
Because they are growing......., small businesses..... IS this a legal sentence ? Can a sentence start with a pronoun followed by the appropriate subject....excuse my ignorace !

Last edited by lhotseface on 11 Jan 2006, 21:59, edited 2 times in total.
SVP
Joined: 14 Dec 2004
Posts: 1702
Followers: 3

Kudos [?]: 139 [0], given: 0

### Show Tags

12 Jan 2006, 21:24
Very well tried by all The OA is 'D'!

(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' has no clear antecedant.

(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.
>> This is wordy. "in the same way as they do to". Otherwise 'they' has no problems. Also, first part modifies formulas, it should be new small business.

(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.
>> This is false comparison. "as established big businesses". Also, "are not subject to the same applicability of formulas" sounds awkward.

(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.

(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' has no clear antecedant.

I like full underlined SCs ! (Irrespective of whether I get it right/wrong )
Intern
Joined: 28 Nov 2005
Posts: 7
Followers: 0

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

### Show Tags

04 Jun 2006, 23:33
lhotseface wrote:
I picked D.

I have a question on answer choice C,
Because they are growing......., small businesses..... IS this a legal sentence ? Can a sentence start with a pronoun followed by the appropriate subject....excuse my ignorace !

YES, but second sentence should have a correct modifier to midify the pronoun
Senior Manager
Joined: 29 Nov 2006
Posts: 321
Location: Orange County, CA
Followers: 1

Kudos [?]: 114 [0], given: 0

### Show Tags

01 Aug 2007, 22:44
How come "them" in answer D isn't considered vague?

Is it only vague and incorrect if two plural nouns (i.e. small business vs. big businesses) are introduced before "they" or "them"?

If that were the case, then would D be correct b/c "them" refers to small business (since big business isn't introduced until the end)?

Still tying to full understand why certain references to "they" are incorrect and why some clearly reference the intended noun.
01 Aug 2007, 22:44
Similar topics Replies Last post
Similar
Topics:
8 Formulas for cash flow and the ratio of debt to equity do 7 15 Mar 2011, 19:24
Formulas for cash flow and the ratio of debt to equity do 2 03 Jul 2010, 17:45
Formulas for cash flow and the ratio of debt to equity do 13 15 Jul 2008, 08:21
Formulas for cash flow and the ratio of debtto equity do not 12 13 Jul 2008, 14:35
1 Formulas for cash flow and the ratio of debt to equity do 11 24 Feb 2008, 15:26
Display posts from previous: Sort by