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gmat_Tutor
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12. 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.
=> Any pronoun used in a clause refers to the immediate preceding clause's subject. Here, they wrongly refers to "formulas". It should refer to the small businesses.
=> On the other hand, "they are growing" means the formulas are growing.
(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.
=> The use of pronoun at the beginning of the sentence is ambiguous. ON the other hand, the pronoun used in the beginning clause will logically refer to the subject of the next clause.
=> Example: Because they are good enough, the boys are doing well.
=> it could be better written as "The boys are doing well because they are good enough.
=> If they logically refer to formulas, it is awkward that formulas are growing.
(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.
=> As is used to compare two clauses. Every clause must have a subject and a verb.
=> "as established big businesses" does not have a verb.
(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.
=> There are two issues in this sentence. One is "subject to the same applicability", and other one is "as established big businesses".
Experts are requested to comment on the explanation. Is there any flaw in my explanation? If any, please correct me.
Thanks in advance.
(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.
=> Any pronoun used in a clause refers to the immediate preceding clause's subject. Here, they wrongly refers to "formulas". It should refer to the small businesses.
=> On the other hand, "they are growing" means the formulas are growing.
(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.
=> The use of pronoun at the beginning of the sentence is ambiguous. ON the other hand, the pronoun used in the beginning clause will logically refer to the subject of the next clause.
=> Example: Because they are good enough, the boys are doing well.
=> it could be better written as "The boys are doing well because they are good enough.
=> If they logically refer to formulas, it is awkward that formulas are growing.
(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.
=> As is used to compare two clauses. Every clause must have a subject and a verb.
=> "as established big businesses" does not have a verb.
(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.
=> There are two issues in this sentence. One is "subject to the same applicability", and other one is "as established big businesses".
Experts are requested to comment on the explanation. Is there any flaw in my explanation? If any, please correct me.
Thanks in advance.
