Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 31 Aug 2016, 09:06

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# At the beginning of each month, companies report to the

Author Message
TAGS:

### Hide Tags

Director
Joined: 08 Jul 2004
Posts: 598
Followers: 2

Kudos [?]: 194 [0], given: 0

At the beginning of each month, companies report to the [#permalink]

### Show Tags

08 Mar 2005, 15:33
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

At the beginning of each month, companies report to the federal government their net loss or gain in jobs over the past month. These reports are then consolidated by the government and reported as the total gain or loss for the past month. Despite accurate reporting by companies and correct tallying by the government, the number of jobs lost was significantly underestimated in the recent recession.
Which one of the following, if true, contributes most to a resolution of the apparent discrepancy described?
(A) More jobs are lost in a recession than in a period of growth.
(B) The expenses of collecting and reporting employment data have steadily increased.
(C) Many people who lose their jobs start up their own businesses.
(D) In the recent recession a large number of failing companies abruptly ceased all operations.
(E) The recent recession contributed to the growing preponderance of service jobs over manufacturing jobs.
_________________

Regards, S

Senior Manager
Joined: 07 Nov 2004
Posts: 458
Followers: 2

Kudos [?]: 64 [0], given: 0

### Show Tags

08 Mar 2005, 15:51
D. "In the recent recession a large number of failing companies abruptly ceased all operations."
VP
Joined: 18 Nov 2004
Posts: 1440
Followers: 2

Kudos [?]: 34 [0], given: 0

### Show Tags

08 Mar 2005, 16:53
clearly "D"....if the companies r out of commission then they fail to report the numbers, hence the discrepency.
Senior Manager
Joined: 30 Dec 2004
Posts: 296
Location: California
Followers: 1

Kudos [?]: 2 [0], given: 0

### Show Tags

08 Mar 2005, 17:43

A - This fact does not describe the discrepancy explained in the passage

B - Again what does cost have to do with the discrepancy between reported job loss and actual job loss...nothing

C - This would mean that the unemployment numbers should be overestimated not underestimated

E - Again nothing to do with the discrepancy

D - If this is true then it explains the discrepancy because if many companies abruptly ceased all operations that would mean all of those employees lost their jobs and there would be less companies reporting their employment stats.
_________________

"No! Try not. Do. Or do not. There is no try.

VP
Joined: 26 Apr 2004
Posts: 1218
Location: Taiwan
Followers: 2

Kudos [?]: 507 [0], given: 0

### Show Tags

08 Mar 2005, 20:06
concure with above-mentioned opinions.

D it is.
GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5062
Location: Singapore
Followers: 30

Kudos [?]: 315 [0], given: 0

### Show Tags

09 Mar 2005, 03:06
At the beginning of each month, companies report to the federal government their net loss or gain in jobs over the past month.
These reports are then consolidated by the government and reported as the total gain or loss for the past month.
Despite accurate reporting by companies and correct tallying by the government, the number of jobs lost was significantly underestimated in the recent recession.

Which one of the following, if true, contributes most to a resolution of the apparent discrepancy described?

(A) More jobs are lost in a recession than in a period of growth.
- Does not explain about the discrepancy

(B) The expenses of collecting and reporting employment data have steadily increased.
- Out of scope

(C) Many people who lose their jobs start up their own businesses.
- Still they have to report the net loss/gain even if they have set up their own businesses.

(D) In the recent recession a large number of failing companies abruptly ceased all operations.
- the abrupt nature will explain the discrepancy

(E) The recent recession contributed to the growing preponderance of service jobs over manufacturing jobs.
- No use at all

D it is.
Intern
Joined: 27 Jun 2004
Posts: 33
Followers: 0

Kudos [?]: 0 [0], given: 0

### Show Tags

09 Mar 2005, 06:13
D it is.

Companies closing down and not reporting the job losses can lead to the low number of jobs lost.
Director
Joined: 08 Jul 2004
Posts: 598
Followers: 2

Kudos [?]: 194 [0], given: 0

### Show Tags

09 Mar 2005, 07:04
OA is C. I am not sure if it correct or not?
S
_________________

Regards, S

SVP
Joined: 03 Jan 2005
Posts: 2243
Followers: 16

Kudos [?]: 299 [0], given: 0

### Show Tags

09 Mar 2005, 10:50
Ok suppose company A has lossed two jobs and company B gained one job. The net result would be one loss. But the number of jobs that were lost really was two. So the one of course would be an underestimate.

(A) More jobs are lost in a recession than in a period of growth.
That does not explain the discrepency.

(B) The expenses of collecting and reporting employment data have steadily increased.
Irrelevant.

(C) Many people who lose their jobs start up their own businesses.
The self business would be reporting job gains and offseting the losses which causing the underestimate.

(D) In the recent recession a large number of failing companies abruptly ceased all operations.
But they still have to report before they close.

(E) The recent recession contributed to the growing preponderance of service jobs over manufacturing jobs.
Different situation in different job fields is irrelevant to the issue.
Director
Joined: 21 Sep 2004
Posts: 610
Followers: 1

Kudos [?]: 28 [0], given: 0

### Show Tags

09 Mar 2005, 10:59
(D) doesn't apply here because they are not talking about what operations are being closed.. in the sense do we even consider reporting as an operation of the company. well we can look it in any way but still will not be the reason for the discrepancy.

(C) Many people who lose their jobs start up their own businesses.
the gains are offsetting..
Director
Joined: 27 Dec 2004
Posts: 905
Followers: 1

Kudos [?]: 38 [0], given: 0

### Show Tags

09 Mar 2005, 11:00
I pick (D) but if OA is C then i must be missing something or what is the source of this question? OE?
VP
Joined: 18 Nov 2004
Posts: 1440
Followers: 2

Kudos [?]: 34 [0], given: 0

### Show Tags

09 Mar 2005, 11:52
hmm....,I disagree with the OA.....stem says that the company has to report last month job numbers in start of every month. Say company B closes down on 27 April, does it still have to report losses on 1 May. Reporting job numbers is part of the comp operations, if the opn r shut down, who is there to report anything ? I think "D" is best that way.

In "C"....there is no reason to believe that the start of business contributes to job growth. Bet "D" and "C"..."D" gives stronger reasons, I think.
SVP
Joined: 03 Jan 2005
Posts: 2243
Followers: 16

Kudos [?]: 299 [0], given: 0

### Show Tags

09 Mar 2005, 11:57
banerjeea_98 wrote:
stem says that the company has to report last month job numbers in start of every month. Say company B closes down on 27 April, does it still have to report losses on 1 May. Reporting job numbers is part of the comp operations, if the opn r shut down, who is there to report anything ?

That is true. I'm convinced by you.
SVP
Joined: 03 Jan 2005
Posts: 2243
Followers: 16

Kudos [?]: 299 [0], given: 0

### Show Tags

09 Mar 2005, 11:59
Although, if the government is doing their tally's right, they would have total jobs for each company, and when one company fails to report because it has ceased operation, then the government will know to write all the jobs for that company off. This should be part of doing the tally correctly shouldn't it?
VP
Joined: 18 Nov 2004
Posts: 1440
Followers: 2

Kudos [?]: 34 [0], given: 0

### Show Tags

09 Mar 2005, 12:12
HongHu wrote:
Although, if the government is doing their tally's right, they would have total jobs for each company, and when one company fails to report because it has ceased operation, then the government will know to write all the jobs for that company off. This should be part of doing the tally correctly shouldn't it?

I think in CR ques one shudn't assume so many things abt government opn , customer opn etc, as we are doing. I believe the CR choices here are ambiguous. By the time we all have put our assumptions in, we will end up with a nice convoluted RC passage
SVP
Joined: 03 Jan 2005
Posts: 2243
Followers: 16

Kudos [?]: 299 [0], given: 0

### Show Tags

09 Mar 2005, 12:21
It did say in the stem that we are to assume that the government is doing the tally right. It's what is right is the question.
VP
Joined: 18 Nov 2004
Posts: 1440
Followers: 2

Kudos [?]: 34 [0], given: 0

### Show Tags

09 Mar 2005, 12:26
HongHu wrote:
:lol: It did say in the stem that we are to assume that the government is doing the tally right. It's what is right is the question.

yes, but it doesn't say that failure to report = government will write off all those jobs as joblosses.
GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5062
Location: Singapore
Followers: 30

Kudos [?]: 315 [0], given: 0

### Show Tags

09 Mar 2005, 20:07
banerjeea_98 wrote:
HongHu wrote:
:lol: It did say in the stem that we are to assume that the government is doing the tally right. It's what is right is the question.

yes, but it doesn't say that failure to report = government will write off all those jobs as joblosses.

D does say the business ended abruptly. The abrupt nature could have caused the discrepancy because at the time the figures were released, they might not have been updated fast enought to keep up with the change.

I'm not totally convinced with C. We're told that all business have to submit their net loss/gain, and this is true for all those who started their new business.
Intern
Joined: 17 Feb 2005
Posts: 28
Location: SE Michigan
Followers: 0

Kudos [?]: 26 [0], given: 0

### Show Tags

09 Mar 2005, 20:29
I picked C.

Companies are supposed to report "net gain/ loss" per month over the past month. So if a person loses his job, his ex-employer would report him as a job loss. Now when he starts up his own business, his business wouldn't report that as a net gain, since that's how his business started. So let's say he hires no-one else in the first month. He would not report a net gain, as there're no previous month to compare to. If there are many such cases, as C states, it would weaken the argument.

"Correct tallying by gov and accurate reporting by companies" negate the possible weakening effects of D.

Last edited by amit_upasani on 09 Mar 2005, 20:40, edited 2 times in total.
GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5062
Location: Singapore
Followers: 30

Kudos [?]: 315 [0], given: 0

### Show Tags

09 Mar 2005, 20:32
but the person starting up his own business would have to report it to the governement as well and this would be accounted for.

D had the word abrupt which raises suspicion that things happened so fast that even with reporting, the tallying could not be done in time.
Similar topics Replies Last post
Similar
Topics:
6 When telecom companies, used to reporting several million ne 4 04 Aug 2014, 00:56
1 At the beginning of each month, companies report to the 7 10 Jun 2010, 14:04
1 Productivity has declined at Company X in recent months. The 5 19 Feb 2009, 10:11
1 A U.S. car company reported a 2004 second-quarter net income 7 29 Jun 2008, 09:22
Four randomly chosen market research companies each produced 6 10 Apr 2008, 23:26
Display posts from previous: Sort by