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

It is currently 20 May 2013, 04:46
Customize  |  Hide

With a record number of new companies starting up in

  Question banks Downloads My Bookmarks Reviews  
Author Message
TAGS:
Senior Manager
Senior Manager
Joined: 03 Aug 2012
Posts: 318
Concentration: General Management, General Management
GMAT 1: 630 Q47 V29
GPA: 3.7
Followers: 2

Kudos [?]: 10 [0], given: 67

With a record number of new companies starting up in [#permalink] New post 09 Jan 2013, 22:05
00:00

Question Stats:

64% (02:23) correct 35% (01:38) wrong based on 1 sessions
With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.

Which of the following is an assumption on which the argument relies?

a) Each year, new companies starting up create more new jobs overall than do previously established companies.

b) Companies established last year will not add a greater number of jobs overall this year than they did last year.

c) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.

d) This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies.

e) The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year.

Took this question from repository,I had doubts so want to discuss them.

My LOR(line of reasoning):

Last Year:
New Comp(10 jobs/comp)
Old Comp (+10 jobs) Total = 20
Source:GMAT Club repository

This Year:
NC(Last Year ,these will not be called prev established as these are in establishing mode,opened up last year oly): 10 jobs/comp (Considering B if NC of last year add up more jobs than last year then it is uncertain that the increase would be more or less. So B incorrect
Old Comp (+5 jobs) Total (15)
NC(This year) unknown

Considering C which is the OA lets say NC(This year) 3 jobs/comp then Total :18 and last year total:20

Then how C is justified ???
[Reveal] Spoiler: OA

_________________

Plz Correct me if I am deviating somewhere!!
Consider KUDOS if the post was informative!!

Kaplan Promo CodeKnewton GMAT Discount CodesVeritas Prep GMAT Discount Codes
Director
Director
User avatar
Joined: 02 Jul 2012
Posts: 753
Location: India
Concentration: Strategy
GMAT 1: 740 Q49 V42
GPA: 3.8
WE: Engineering (Energy and Utilities)
Followers: 19

Kudos [?]: 255 [0], given: 45

GMAT Tests User
Re: With a record number of new companies starting [#permalink] New post 09 Jan 2013, 22:26
Last Year :
New Companies = 10
Jobs per new company = 10
Total Jobs from new companies = 10*10 = 100
Jobs from old companies = 100
Total Jobs = 200

This Year :
New Companies = 1
Jobs per new company = 1000
Total Jobs from new companies = 1000
Jobs from old companies = 1
Total Jobs = 1001

In this scenario, we can see that although significantly fewer companies were created, the record for number of jobs is broken. The argument assumes that such a situation is not possible and C correctly addresses this assumption.
_________________

Kudos Please... If my post helped.

Thanks To The Almighty - My GMAT Debrief
My Own CR Question 1|My Own CR Question 2|My Own DS Question 1|My Own DS Question 2|
My Own PS Question 1

Senior Manager
Senior Manager
Joined: 03 Aug 2012
Posts: 318
Concentration: General Management, General Management
GMAT 1: 630 Q47 V29
GPA: 3.7
Followers: 2

Kudos [?]: 10 [0], given: 67

Re: With a record number of new companies starting [#permalink] New post 09 Jan 2013, 22:52
MacFauz wrote:
Last Year :
New Companies = 10
Jobs per new company = 10
Total Jobs from new companies = 10*10 = 100
Jobs from old companies = 100
Total Jobs = 200

This Year :
New Companies = 1
Jobs per new company = 1000
Total Jobs from new companies = 1000
Jobs from old companies = 1
Total Jobs = 1001

In this scenario, we can see that although significantly fewer companies were created, the record for number of jobs is broken. The argument assumes that such a situation is not possible and C correctly addresses this assumption.


Few Changes:
New Companies = 10
Jobs per new company = 10
Total Jobs from new companies = 10*10 = 100
Jobs from old companies = 100
Total Jobs = 200

This Year :
New Companies = 10
Jobs per new company = 11
Total Jobs from new companies = 110
Jobs from old companies = 1
Jobs from company opened up last year =88 (assume)
Total Jobs = 199 (Still less , despite 11>10)

Thoughts plz
_________________

Plz Correct me if I am deviating somewhere!!
Consider KUDOS if the post was informative!!

Director
Director
User avatar
Joined: 02 Jul 2012
Posts: 753
Location: India
Concentration: Strategy
GMAT 1: 740 Q49 V42
GPA: 3.8
WE: Engineering (Energy and Utilities)
Followers: 19

Kudos [?]: 255 [0], given: 45

GMAT Tests User
Re: With a record number of new companies starting [#permalink] New post 09 Jan 2013, 23:00
targetgmatchotu wrote:
MacFauz wrote:
Last Year :
New Companies = 10
Jobs per new company = 10
Total Jobs from new companies = 10*10 = 100
Jobs from old companies = 100
Total Jobs = 200

This Year :
New Companies = 1
Jobs per new company = 1000
Total Jobs from new companies = 1000
Jobs from old companies = 1
Total Jobs = 1001

In this scenario, we can see that although significantly fewer companies were created, the record for number of jobs is broken. The argument assumes that such a situation is not possible and C correctly addresses this assumption.


Few Changes:
New Companies = 10
Jobs per new company = 10
Total Jobs from new companies = 10*10 = 100
Jobs from old companies = 100
Total Jobs = 200

This Year :
New Companies = 10
Jobs per new company = 11
Total Jobs from new companies = 110
Jobs from old companies = 1
Jobs from company opened up last year =88 (assume)
Total Jobs = 199 (Still less , despite 11>10)

Thoughts plz

True.. Of course this is a situation which is in accordance with the argument. But the problem with the argument is that it fails to consider the situation in my previous post. The very fact that such a situation is possible is enough to invalidate the argument.
_________________

Kudos Please... If my post helped.

Thanks To The Almighty - My GMAT Debrief
My Own CR Question 1|My Own CR Question 2|My Own DS Question 1|My Own DS Question 2|
My Own PS Question 1

Director
Director
Status: Struggling with GMAT prep
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 896
Location: India
WE: Engineering (Transportation)
Followers: 12

Kudos [?]: 80 [0], given: 55

CAT Tests
Re: With a record number of new companies starting [#permalink] New post 09 Jan 2013, 23:35
targetgmatchotu wrote:
With a record number of new companies starting up in Derderia and with previously established companies adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year, previously established companies will not be adding as many new jobs overall as such companies added last year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.

Which of the following is an assumption on which the argument relies?

a) Each year, new companies starting up create more new jobs overall than do previously established companies.

b) Companies established last year will not add a greater number of jobs overall this year than they did last year.

c) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.

d) This year, the overall number of jobs created by previously established companies will be less than the overall number of jobs lost at those companies.

e) The number of jobs created in the Derderian economy last year was substantially larger than the number of jobs lost last year.

Took this question from repository,I had doubts so want to discuss them.

My LOR(line of reasoning):

Last Year:
New Comp(10 jobs/comp)
Old Comp (+10 jobs) Total = 20
Source:GMAT Club repository

This Year:
NC(Last Year ,these will not be called prev established as these are in establishing mode,opened up last year oly): 10 jobs/comp (Considering B if NC of last year add up more jobs than last year then it is uncertain that the increase would be more or less. So B incorrect
Old Comp (+5 jobs) Total (15)
NC(This year) unknown

Considering C which is the OA lets say NC(This year) 3 jobs/comp then Total :18 and last year total:20

Then how C is justified ???


Conclusion: Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created.
There are only 2 modes for getting jobs, out of which one area is going to under perform hence the other must make up for the lost.

c) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.
The author assumes that if new companies are started they will create jobs. I mean to say that he assumes that there can be cases where new companies just start up with creating no jobs i.e. just on paper.To achieve the goal if the number of start up company is high than they must add more jobs to the economy..Than only the goal of achieving an economy at par to the last year can be materialised.
1 KUDOS received
Director
Director
Status: Struggling with GMAT prep
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 896
Location: India
WE: Engineering (Transportation)
Followers: 12

Kudos [?]: 80 [1] , given: 55

CAT Tests
Re: With a record number of new companies starting [#permalink] New post 10 Jan 2013, 01:22
1
This post received
KUDOS
http://www.manhattangmat.com/blog/index ... -problems/
http://www.manhattangmat.com/forums/cri ... t2279.html

The question is discussed in detail on the above link...
Really it will help

Excellent question

Kudos If my post helped!!!!!!!!
Re: With a record number of new companies starting   [#permalink] 10 Jan 2013, 01:22
    Similar topics Author Replies Last post
Similar
Topics:
Popular new posts With a record number of new companies starting up in lan583 12 22 Aug 2006, 09:11
Popular new posts With a record number of new companies starting up in enola 12 12 Dec 2006, 13:26
New posts With a record number of new companies starting up in tarek99 9 20 Nov 2007, 12:46
New posts With a record number of new companies starting up in mymba99 5 21 May 2008, 06:21
New posts 1 With a record number of new companies starting up in yavasani 8 30 Jun 2008, 04:32
Display posts from previous: Sort by

With a record number of new companies starting up in

  Question banks Downloads My Bookmarks Reviews  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.