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# With a record number of new companies starting up in

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With a record number of new companies starting up in [#permalink]

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05 Sep 2010, 01:59
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With a record number of new companies starting up in Derderia, and with previously
established companies adding many new 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. In a given year, new companies starting up create more new jobs on average than
do previously established companies.
B. The number of people seeking employment is no larger this year than it was 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. Previously established companies in Derderia will be less profitable this year than
such companies were last year.
E. The number of jobs created in the Derderian economy last year was substantially
larger than the number of jobs lost.
[Reveal] Spoiler: OA

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05 Sep 2010, 02:54
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new jobs created = jobs created by new companies + new jobs added by established companies

The stimulus says that the established companies will not be adding as many new jobs as they did last year. Hence for the number of new jobs created this year to be greater than that created last year, number of jobs created by new companies this year should be greater than that created by the new companies last year.
The argument concludes that this can be possible only if number of new companies this year is greater than the number of new companies last year. The conclusion can hold only if we assume that the new companies starting up will not provide substantially more jobs per company than did new companies last year.

Hence C.
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05 Sep 2010, 06:13
C.
Record Number of new companies are required only of few new companies can't provide large number of jobs.
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05 Sep 2010, 11:10
Clear C.Can also eliminate other choices easily.
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06 Sep 2010, 00:11
Last Year:
Jobs created by EC + Jobs created by SC = Record number of new Jobs

This Year:
Jobs Created by EC is down + Jobs created by SC = To achieve Record number of new Jobs

Conclusion: unless a record number of companies start up this year, Derderia will not break its record for
new jobs created.

Assumption: Since we need record number of startups, the average number of jobs created should be approximately the same as the last year figure.

Comments, I know this is very vague explanation, but from among the given choices only answer C provides needed information.
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06 Sep 2010, 01:13
can anyone point out why not A? Although I picked C, I had to read A twice just to be sure.
Thanks
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06 Sep 2010, 01:35
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It cannot be A because there is no clear statement anywhere in the passage saying new companies create more jobs than the established companies on a given year when they are equal in numbers .

To be more precise, the number of jobs created between old and new companies was never compared or discussed. When the old companies don't create more jobs , it says that "unless a record number of new companies start this year" . So it means the number of new companies should be more than the previous year . Say there were
Last year = 5 new companies --- > 50 new jobs | 10 jobs per comp
This year = same 5 new new companies --> 60 new jobs | 12 jobs per comp
But the argument states that the new companies should be more to create more jobs , so the assumption is average number of jobs per company does not increase. ( If it increases , then the number of new companies need not be more than the previous year to achieve more new jobs ) - Option C

Hope I 've not confused you any further
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06 Sep 2010, 11:01
Very easy
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06 Sep 2010, 11:17
@sizzler - thanks! no you havent confused me.
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18 Oct 2010, 04:37
Nice post
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19 Oct 2010, 06:22
+1 C
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17 Nov 2010, 07:05
yeah C it is....
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17 Nov 2010, 07:55
went for B but see why its C....good question
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08 Apr 2011, 00:41
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08 Apr 2011, 09:31
C for sure
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14 Jun 2011, 04:16
between B and C.
Negating B leaves with a neutral view of the conclusion.

C it is.
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14 Jun 2011, 16:36
Good question....between A and C.
rest all are irrelevant

C for me
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14 Jun 2011, 16:43
C, the key phrase is "per company compare to last year"
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02 Nov 2011, 14:40
Good Question. Tough one. I got A but C is the winner.
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03 Nov 2011, 01:55
C clearly.
Fills the gap between the Premise-with previously
established companies adding many new jobs, a record number of new jobs were created
last year in the Derderian economy
and
Conclusion-unless
a record number of companies start up this year, Derderia will not break its record for
new jobs created.
Re: Interesting one !   [#permalink] 03 Nov 2011, 01:55

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