Hi
I have a question on the sentence given below.
I am not sure which of the two the underlined clause modifies—new small businesses or established big businesses?
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.
Please give your views.
It doesn't really "modify" anything. However, "they" must refer to "new small businesses".
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It doesn't really "modify" anything. However, "they" must refer to "new small businesses".
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].
Modern grammar classifies "because" as a preposition; thus the underlined constituent is a