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## OG question - comparison

This topic has 2 expert replies and 1 member reply
Mo2men Legendary Member
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#### OG question - comparison

Wed Sep 21, 2016 8:34 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.

OA:D

Why choice C & E are wrong???
[/u]

### GMAT/MBA Expert

GMATGuruNY GMAT Instructor
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Posted:
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GMAT Score:
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Thu Sep 21, 2017 7:42 am
Mo2men wrote:
Dear Mitch,

In the OA, can you please the implied ellipses in the comparison part? is it as follows:

formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as [formulas for cash flow and the ratio of debt to equity apply] to established big businesses.

Thanks
Correct!

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Mo2men Legendary Member
Joined
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Posted:
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Mon Sep 18, 2017 6:06 pm
GMATGuruNY wrote:
Mo2men wrote:
Why choice C & E are wrong???
to be subject to X means to be bound by X.
the applicability of X means the relevance of X in terms of its ability to be applied.

C and E: Small businesses are not subject to the applicability of formulas.
Conveyed meaning:
Small businesses are not bound by the relevance of formulas.
This meaning is nonsensical.
How can a business be bound by a relevance?
Eliminate C and E.
Dear Mitch,

In the OA, can you please the implied ellipses in the comparison part? is it as follows:

formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as [formulas for cash flow and the ratio of debt to equity apply] to established big businesses.

Thanks

### GMAT/MBA Expert

GMATGuruNY GMAT Instructor
Joined
25 May 2010
Posted:
14040 messages
Followed by:
1813 members
13060
GMAT Score:
790
Wed Sep 21, 2016 1:07 pm
Mo2men wrote:
Why choice C & E are wrong???
to be subject to X means to be bound by X.
the applicability of X means the relevance of X in terms of its ability to be applied.

C and E: Small businesses are not subject to the applicability of formulas.
Conveyed meaning:
Small businesses are not bound by the relevance of formulas.
This meaning is nonsensical.
How can a business be bound by a relevance?
Eliminate C and E.

_________________
Mitch Hunt
GMAT Private Tutor
GMATGuruNY@gmail.com
If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon.
Available for tutoring in NYC and long-distance.

Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now.

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