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# With a record number of new companies starting up in

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

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12 Dec 2006, 13:26
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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.

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12 Dec 2006, 13:44
Going for B

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

We also need to assume that the newly (added last year) added companies will not add recod number of jobs this year.

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12 Dec 2006, 14:12
I will bet on C.

Infererence: This year, previously established companies will not be adding as many new jobs overall as such companies added last year.

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

Assumption: Each new company this year will not create more number of jobs as last year. So record number of new companies should start this year.

Last edited by baski6 on 12 Dec 2006, 14:32, edited 1 time in total.

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12 Dec 2006, 14:18
Another B. The author clearly states:

Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created. => old companies are not going to add greater number of jobs, so unless new startups create these jobs, record will not be broken.

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12 Dec 2006, 14:28
I like C.
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12 Dec 2006, 14:43
hsampath wrote:
Another B. The author clearly states:

Therefore, unless a record number of companies start up this year, Derderia will not break its record for new jobs created. => old companies are not going to add greater number of jobs, so unless new startups create these jobs, record will not be broken.

Last Year,

Total number of new jobs added last Year=New jobs added in existing companies[Last Year] + (Number of new companies)[Last Year]*(Number of jobs per new company)[Last Year]

This Year,

Total number of new jobs added this Year=New jobs added in existing companies[Last Year] - X + (Number of new companies)[This Year]*(Number of jobs per new company)[This Year]

The passage says that the number of new jobs this year cannot exceed exceed last year unless a large amount of companies start year.

But the number of new jobs due to new companies is determined by two factors.

1.No. of new companies
2.No.of new jobs per new company.

So, for the conclusion to be true, the difference between the number of new jobs per new company this year and the number of new jobs per new company last year cannot be greater than,
X/(No.of new companies).

This can be rephrased as follows.

C. This year, the new companies starting up will not provide substantially more jobs per company than did new companies last year.

From this, it is clear that the answer is C.
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12 Dec 2006, 14:57
One can't argue against that. I am lousy with CRs. I agree with C now. You are right.

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12 Dec 2006, 15:34
thank you guys for the detail explanation, especially that of ncprasad.

OA is C

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

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20 Nov 2011, 10:52
+1 C
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Re: With a record number of new companies starting up in [#permalink]

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20 Nov 2011, 19:32
very tricky question, thanks :D

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

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23 Dec 2011, 21:52
C it is. Very tricky answer choices. Had to decide between B and C. C the winner.
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Re: With a record number of new companies starting up in [#permalink]

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26 Dec 2011, 04:18
C
Fact is record number of companies are starting in Derderia
Jobs from old company will be less
So if new company will have more new jobs then Derderian will have no problem
A and C sounds logical
But if new company start up number is more or less same as last year which was record breaking in itself then no problem, but problem is there so that can be due to fact that new company will have less number of new job compared to last year so more company has to start to break last year record

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

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05 Jul 2014, 04:34
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Re: With a record number of new companies starting up in [#permalink]

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12 Dec 2015, 06:51
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.

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

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12 Dec 2015, 07:25
enola wrote:
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.

Here B and C both seems logical. I think the Q should have chosen a stricter language. It is tough to decide whether the companies started last year could be termed as 'established' this year.
Choosing C would be safer in such a condition, I think.
Any expert comment?

Thanx.

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

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21 Jul 2016, 10:05
it is definitely c because B as restatement of argument. Assumption should not be same as stated in argument.

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Re: With a record number of new companies starting up in   [#permalink] 21 Jul 2016, 10:05
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