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# When a group of people starts a company, the founders

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Manager
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When a group of people starts a company, the founders [#permalink]

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19 Dec 2013, 11:35
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65% (hard)

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58% (02:35) correct 42% (01:56) wrong based on 406 sessions

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When a group of people starts a company, the founders usually serve as sources both of funding and of skills in marketing, management, and technical matters. It is unlikely that a single individual can both provide adequate funding and be skilled in marketing, management, and technical matters. Therefore, companies founded by groups are more likely to succeed than companies founded by individuals.

Which one of the following is an assumption required by the argument?

A) A new company is more likely to succeed if every founding member contributes equally to the company’s initial funding than if some members contribute more funds than others.

B) Some founding members of successful companies can provide both funding and skills in marketing, management, or technical matters.

C) New companies are more likely to succeed when their founders can provide adequate funding and skills in marketing, management, and technical abilities than when they must secure funding or skills from nonfounders.

D) Founders of a new company can more easily acquire marketing and management abilities than technical abilities.

E) A new company is more likely to succeed if its technical experts are also skilled in management and marketing than if they lack management or marketing skills.

[Reveal] Spoiler: OA

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Re: When a group of people starts a company, the founders [#permalink]

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19 Dec 2013, 16:52
I go with "E".

C and E are best contenders. In C it is saying about non founders which is not at all mentioned in the argument.
Manager
Joined: 09 Apr 2013
Posts: 150
Location: India
WE: Supply Chain Management (Consulting)
Followers: 1

Kudos [?]: 104 [0], given: 24

Re: When a group of people starts a company, the founders [#permalink]

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20 Dec 2013, 00:48
schittuluri wrote:
I go with "E".
C and E are best contenders. In C it is saying about non founders which is not at all mentioned in the argument.

How can E be a contender?

Conculsion of the argument: companies founded by groups are more likely to succeed than companies founded by individuals.

E says a new company is likely to succeed if its technical experts are also skilled in management and marketing than if they lack management or marketing skills. Negating this answer choice would in no way hurt the conclusion that is mainly concerned with the likelihood of the success of companies founded by groups.

In contrast, choice C says that new companies are more likely to succeed when their founders can provide adequate funding and skills in marketing, management, and technical abilities than when they must secure funding or skills from nonfounders. Ah yes. Now this choice assures the success of new companies if their founders can provide adequate funding and skills in marketing, management and technical abilities. Moreover, if you negate this choice, the conclusion definitely falls apart. Hence this is the best choice.

Do you agree?
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Re: When a group of people starts a company, the founders [#permalink]

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20 Dec 2013, 02:16
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cssk wrote:
When a group of people starts a company, the founders usually serve as sources both of funding and of skills in marketing, management, and technical matters. It is unlikely that a single individual can both provide adequate funding and be skilled in marketing, management, and technical matters. Therefore, companies founded by groups are more likely to succeed than companies founded by individuals.

Which one of the following is an assumption required by the argument?

A) A new company is more likely to succeed if every founding member contributes equally to the company’s initial funding than if some members contribute more funds than others.

B) Some founding members of successful companies can provide both funding and skills in marketing, management, or technical matters.

C) New companies are more likely to succeed when their founders can provide adequate funding and skills in marketing, management, and technical abilities than when they must secure funding or skills from nonfounders.

D) Founders of a new company can more easily acquire marketing and management abilities than technical abilities.

E) A new company is more likely to succeed if its technical experts are also skilled in management and marketing than if they lack management or marketing skills.

Nice defender assumption question.
First of all, when we see this kind of question, a correct answer is the one that could eliminate the weakness of a conclusion.

ANALYZE THE STIMULUS:

Fact: When a group of people starts a company, the founders usually serve as sources both of funding and of skills in marketing, management, and technical matters.
Fact: It is unlikely that a single individual can both provide adequate funding and be skilled in marketing, management, and technical matters.
Conclusion: companies founded by groups are more likely to succeed than companies founded by individuals.

Pre-thinking: what if a single founder who only has funding can hire non-founder members who have skills in marketing, management and technical matters? Clearly, a company can be successful. <==This is a weakness of the conclusion.

Assumption: The defender assumption should eliminate the weakness above.
Thus, the assumption should be “it is likely that a company founded by an individual, who often hires non-founder members having skills in business, is less successful than a company founded by group of founders.

A) A new company is more likely to succeed if every founding member contributes equally to the company’s initial funding than if some members contribute more funds than others.
Wrong. The equal contribution does not help to bolster the conclusion. A can’t be an assumption.

B) Some founding members of successful companies can provide both funding and skills in marketing, management, or technical matters.
Wrong. B does not violate the conclusion. It’s true that some founding members can provide both funding and skills. But B does not help to elucidate why companies founded by groups are more likely to be successful than companies founded by individuals.

C) New companies are more likely to succeed when their founders can provide adequate funding and skills in marketing, management, and technical abilities than when they must secure funding or skills from non-founders.
Correct. C clearly ELIMINATES the weakness of the conclusion. C is the correct defender assumption.

D) Founders of a new company can more easily acquire marketing and management abilities than technical abilities.
Wrong. Nothing to compare here. D is out scope.

E) A new company is more likely to succeed if its technical experts are also skilled in management and marketing than if they lack management or marketing skills.
Wrong. Same error as in D. The comparison between each founding members does not help at all. E is not relevant.

Hope it helps a bit.
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Re: When a group of people starts a company, the founders [#permalink]

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10 May 2015, 11:32
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: When a group of people starts a company, the founders [#permalink]

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17 Oct 2016, 22:47
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: When a group of people starts a company, the founders   [#permalink] 17 Oct 2016, 22:47
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