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Thread: Internet-based companies

  1. #1
    Within my grasp! hungvuong's Avatar
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    Internet-based companies

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    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.

  2. #2
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    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 Official Answer

  3. #3
    An Urch Guru Pundit Swami Sage powerthelogic's Avatar
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    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

  4. #4
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    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..

  5. #5
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    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

  6. #6
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    I feel it should be E.

  7. #7
    Eager! ptandon's Avatar
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    Imo E

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