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.
[spoiler]OA:D[/spoiler]
Why choice C & E are wrong???
[/u]
OG question - comparison
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to be subject to X means to be bound by X.Mo2men wrote:Why choice C & E are wrong???
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.
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Dear Mitch,GMATGuruNY wrote:to be subject to X means to be bound by X.Mo2men wrote:Why choice C & E are wrong???
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.
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
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Correct!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
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
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