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# SC: Formulas for cash flow

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SVP
Joined: 14 Dec 2004
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SC: Formulas for cash flow [#permalink]

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11 Jan 2006, 11:58
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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

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Director
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Location: NYC
Re: SC: Formulas for cash flow [#permalink]

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11 Jan 2006, 12:19
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
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Manager
Joined: 19 Jul 2005
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11 Jan 2006, 12:39
A) Ambiguous pronoun "they"

B) Agreed, misplaced modifier

C) Correct

D) Ambiguous pronoun "them

E) Misplaced modifier

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Director
Joined: 04 Oct 2005
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11 Jan 2006, 15:28
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

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Director
Joined: 04 Jan 2006
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11 Jan 2006, 20:47
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?

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Current Student
Joined: 29 Jan 2005
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11 Jan 2006, 21:31
In C, it is unclear as to which business is growing.

Take (D) for clarity.

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Director
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11 Jan 2006, 22:47
I think I am gonna change my answer to D too.. after a lot of thinking.. D is making more sense..
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VP
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11 Jan 2006, 22:58
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, 22:59, edited 2 times in total.

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SVP
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12 Jan 2006, 22:24
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 )

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Intern
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05 Jun 2006, 00:33
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

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Senior Manager
Joined: 29 Nov 2006
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01 Aug 2007, 23:44
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.

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01 Aug 2007, 23:44
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