Formulas for cash flow

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Formulas for cash flow

by EricKryk » Tue Feb 25, 2014 1:35 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.

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by Patrick_GMATFix » Tue Feb 25, 2014 1:44 am
It's a comparison question; the ways formulas are applied in the two scenarios should be stated in parallel. We should also avoid awkward, passive phrasing if we can (eg: subject to the applicability of formulas is much worse than formulas apply)

I look at each answer in detail in the full solution below (taken from the GMATFix App).

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by parveen110 » Sun Mar 02, 2014 6:18 am
Hi Patrick,

I had chosen the answer to be C. As i din't find the phrasing awkward.However, I had a li'l doubt in '...as to established big businesses.' in D. Is the usage 'as to' correct to compare?

Thanks!

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by Patrick_GMATFix » Sun Mar 02, 2014 1:29 pm
Hey Parveen,

"as to" can be used in comparisons as part of the construction "same to X as to Y". Here the idiom is really "same as".
Correct: "Formulas apply the same way to X as [they apply] to Y"

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