Internet-based companies

[hungvuong]

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.

[gmatgoal]

IMO : B

Question :Assumption -companies will increase profits by hiring fewer full-time employees

Tough one

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.

Establishes the feasibility that companies can function with 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.

Close one-Since it refers to both full-time employees and volunteer labor and does not specifically point out the advantage of using fewer employees

 

Interesting to find OA

[powerthelogic]

i feel E .

B speaks about administrative work only . Even if administrative work is less , over all work can be very high so if B is assumed the conclusion fails.

so i was not comfortable choosing B

[diya123]

I too am inclined towards B.

But as powerthe logic says, the specification of type of work seems to be tricky... So E it is..

[sandeep_142]

this looks tough to me....by the time I reached D I was exhausted and didnt even read E

 

But after reading again all the options including E....E looks best to me as well

[zuckerman]

I feel it should be E.

[ptandon]

Imo E