With a record number of new companies starting up in

Question

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.

kalpvriksha14 · Answer

B..for me...
jobs created last year = jobs at startups + jobs at previously established comp.
jopbs this year = new jobs created at startups which opened last year+jobs at previosuly established comps+new start ups
but in the argument the author does not mention the first component of part two and goes on to give his conclusion..hence he is assuming that new jobs will not be created at the companies started the previous year.

eyunni · Answer

C it is.

c) This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.
 -- If they do provide substantially more jobs per company, we don't necessarily need record number of companies. 
b) Companies established last year will not add a greater number of jobs overall this year than they did last year.
--this is a repitition of the premise in the question

tarek99 · Answer

the OA is C. Why? here is the explanation: the argument concluded that Derderia will not break its record for new jobs created ONLY BECAUSE of the one fact that previously established companies will not be adding as many new jobs as such companies did last year. We have no information about the new companies this year, yet the argument thought that the information about the established companies this year is enough to consider the trend of job creations as negative.

hope you guys enjoyed this!

kalpvriksha14 · Answer

yeah..the explanation is logical..infact should have spent more time on this one...nice question though !!!

tarek99 · Answer

and the main reason why option b is wrong is that, we are dealing with an assumption question here. assumptions are never stated, so how can you choose an answer choice that is directly written in the text? see what I mean? an answer to the assumption question will never be stated in the argument, otherwise, how can it be assumed? if it is stated in the argument, then it is simply a premise.

hope this helps

ncp · Answer

For the Quant-minded, here is another way of looking at this CR. https://www.gmatclub.com/forum/p277619#277619

mich120 · Answer

Why wouldn't A work? I am so bad at these!

sondenso · Answer

ncprasad,

What is the role of X in the : " Total number of new jobs added this Year=New jobs added in existing companies  - X + (Number of new companies) *(Number of jobs per new company) ]"

Gradually I understand this question! Many thanks

ncp · Answer

Wow, this is a blast from the past. Good ole' GMAT days.

The argument says   This year, previously established companies will not be adding as many new jobs overall as such companies added last year.

The -X accounts for this decrease. Makes sense?

With a record number of new companies starting up in

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