Official Solution:
Several internet-based companies that use open-source software for their day-to-day operations have increased their productivity by relying on volunteer contributions. This increase in productivity has led to higher overall profits, as the companies spend less revenue on salaries. Therefore, start-up internet companies should follow this model by hiring a small core staff and assigning the rest of the necessary work to volunteers in order to increase profits.
The argument above that internet companies will increase profits by hiring fewer full-time employees is based on which of the following assumptions?
A. Internet companies that use open-source software are better suited to function efficiently with only a small core staff than traditional companies.
B. The core staff at start-up internet companies can manage all essential tasks that cannot be performed by volunteers.
C. Full-time employees and volunteers will have different levels of access to most projects undertaken by the company.
D. Internet companies will hire more full-time employees as they become more profitable due to volunteer contributions.
E. Companies that rely on both full-time employees and volunteer labor increase their overall revenue per working hour.
Situation:In order to increase profits, beginning internet companies should hire few staff and rely on volunteers for the bulk of tasks.
Reasoning: Which is the assumption underlying the conclusion that fewer full-time employees will result in greater profits? The model presented in the passage imagines that all work necessary to success can be performed when it is divided between full-time staff and volunteers. However, the total amount of work must necessarily include certain essential tasks to be performed by full-time employees that cannot be performed by volunteers (e.g. CEO position or salespeople or security - who knows but there will be some essential positions). The passage assumes, therefore, that the amount of essential tasks to be performed can reasonably be accomplished by a small number of core staff.
A. Internet companies and
traditional companies are not directly compared in the passage.
B. CORRECT. We examine the argument by negating option B: the amount of essential in-house work to be performed in start-up companies is NOT small enough that it can be managed by the hired core staff. Therefore the company would not function without these essential activities (That’s why they are “essential”) and when a company does not function, the question of making profits does not arise. Hence option B is a required assumption.
C. Outside the scope. The passage does not mention
levels of access.
D. Plans for hiring
more full-time employees are not discussed in the passage.
E. The argument is about the increasing profit, whereas this option deals with revenues. It is possible to increase profit without increasing the revenues. Hence option E is incorrect.
Answer: B