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V04-27

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Several internet-based companies that use open-source software for their day-to-day operations have been surprised at the degree to which volunteer contributions increase productivity. At the same time, the overall profits of most of these companies have increased, since a much smaller percentage of overall revenue per working hour must be directed toward salaries. Beginning internet companies should imitate this successful model by hiring only a small core staff and leaving the rest of the tasks to volunteers.

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 amount of administrative work to be performed in internet companies is small enough that it can reasonably be completed by fewer full-time employees.
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.
[Reveal] Spoiler: OA

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New post 16 Sep 2014, 01:01
Official Solution:


Several internet-based companies that use open-source software for their day-to-day operations have been surprised at the degree to which volunteer contributions increase productivity. At the same time, the overall profits of most of these companies have increased, since a much smaller percentage of overall revenue per working hour must be directed toward salaries. Beginning internet companies should imitate this successful model by hiring only a small core staff and leaving the rest of the tasks to volunteers.

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 amount of administrative work to be performed in internet companies is small enough that it can reasonably be completed by fewer full-time employees.
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 administrative tasks to be performed by full-time employees. The passage assumes, therefore, that the amount of administrative work to be performed can reasonably be accomplished by a small number of core staff.
  1. Internet companies and traditional companies are not directly compared in the passage.
  2. The passage assumes that a small number of full-time employees can successfully perform all needed administrative tasks.
  3. Outside the scope. The passage does not mention levels of access.
  4. Plans for hiring more full-time employees are not discussed in the passage.
  5. This is not an assumption underlying the conclusion

Answer: B
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New post 08 Dec 2015, 15:26
I think this is a poor-quality question. Administrative tasks and day to day operations aren't necessarily synonymous. I'd bucket finance, sales, customer support, etc. into the realm of things that are day-to-day (necessary to run the business). It just isn't clear that the volunteers day-to-day work consists only of administrative work.

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New post 16 Dec 2015, 09:34
same question..can any one reply ?

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New post 15 Feb 2016, 06:00
Hi @chaten2u / daagh

How could Can you please explain how could we assume " However, the total amount of work must necessarily include administrative tasks to be performed by full-time employees."

Nowhere the argument talks about administrative work.
Do you think its an standardized question ..??

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New post 09 Apr 2016, 21:43
I agree. Poor Quality question. Nowhere it says about administrative work.

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New post 28 Jun 2016, 11:46
chetan2u
Please explain this one .
the only reason i left out B is bcos the argument doesn't talk about administrative work.
Here how can we assume day to day activities to be equal to administrative work?

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goforgmat wrote:
chetan2u
Please explain this one .
the only reason i left out B is bcos the argument doesn't talk about administrative work.
Here how can we assume day to day activities to be equal to administrative work?


The author assumes that the sum of ALL the work required in a "beginning internet company" can be managed by a small group of full-time employees. (Since the author mentions "rest of the tasks", it is evident that he is referring to the SUM of all the task required for the start-up company - admistrative and non-administrative, day-to-day operations and other operations). If the sum of ALL the work can be managed, then a part of that work (i.e. adminstrative work) MUST also be managed by a small group of full-time staff. This explanation has been given in the solution and is in my view reasonable.

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New post 29 Jun 2016, 10:36
sayantanc2k wrote:
goforgmat wrote:
chetan2u
Please explain this one .
the only reason i left out B is bcos the argument doesn't talk about administrative work.
Here how can we assume day to day activities to be equal to administrative work?


The author assumes that the sum of ALL the work required in a "beginning internet company" can be managed by a small group of full-time employees. (Since the author mentions "rest of the tasks", it is evident that he is referring to the SUM of all the task required for the start-up company - admistrative and non-administrative, day-to-day operations and other operations). If the sum of ALL the work can be managed, then a part of that work (i.e. adminstrative work) MUST also be managed by a small group of full-time staff. This explanation has been given in the solution and is in my view reasonable.



Thanks for ur reply,i see the gap now:)

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New post 18 Sep 2016, 19:52
I think this is a poor-quality question. No mention of admin tasks. The explanation for A mentions there is no comparison of traditional companies... well there is equally no mention of administrative tasks.

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New post 19 Sep 2016, 10:52
dpgiii wrote:
I think this is a poor-quality question. No mention of admin tasks. The explanation for A mentions there is no comparison of traditional companies... well there is equally no mention of administrative tasks.


It could be any other task - administrative or otherwise. The point is that the argument is based on the assumption that other allied supporting / non-core tasks ( administrative or otherwise) can be handled by volunteers. Once you negate this statement, it would be clear why answer B must be an assumption:

Negating option B: The amount of administrative work to be performed in internet companies is NOT small enough that it can reasonably be completed by fewer full-time employees. Therefore full-time employees will be required for this non-core work. The argument breaks down.

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New post 21 Jan 2017, 03:24
I think this is a poor-quality question. poor quality of questions

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New post 21 Jan 2017, 19:04
sandesh87 wrote:
I think this is a poor-quality question. poor quality of questions


Why do you consider this a poor quality question? Please elaborate specifically your concern, so that we may address it.

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New post 18 Jul 2017, 08:52
There is no way mention of Administrative work ??? how come we can conclude B as the answer for this . In my opinion D is the correct answer?? Can you please explain why D is wrong and why we have preferred B here

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D seems out of scope. The conclusion is: Beginning internet companies hire fewer full-time employees and let volunteer do the bulk of the work. What the company does LATER IN THE FUTURE when they become profitable (i.e. hire employees, fire employees, issue IPOs, increase stock options, expand globally... anything) is out of scope of the argument.

I agree with sayantanc2k. Negating option B completely breaks down the argument, and hence is the correct answer.

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Re: V04-27   [#permalink] 24 Oct 2017, 10:26
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