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Established

by j_shreyans » Sun Sep 14, 2014 12:57 am
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.

OAD

Guys ,

Can we use TO ESTABLISHED?

To always follows verb first form.

Pls help me and correct me
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by David@GMATPrepNow » Sun Sep 14, 2014 7:47 am
Hi j_shreyans,

You are correct about the general rule about using "to."

However, in this case we can correctly use "to established" because "established" is being used as an attributive verb.

An attributive verb is a verb that modifies a noun in the manner of an attributive adjective, rather than express an independent idea as a predicate.

The noun in that "established" is modifying is "big business," creating the larger noun "established big business" - not suggesting any action related to establishing. That is to say, "established big business" is already a thing, there is no action being done to big business.

Here is another example of an attributive verb being used to modify a noun: "Interested prospective employees should apply at once." In this case "interested" is being used as an attributive verb, modifying "prospective employees." It does not suggest any action.

In answer D, we need the "to established big businesses" because of parallelism. The sentence compares "to them (new small businesses)" with "to established big businesses."
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