Big companies vs Small companies (which or where)

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In large companies with many layers of management stress-inducing managerial practices such as unreasonable standards, poor listening skills, and inflexibility induce higher rates of employee absenteeism, but the problem rarely appears in small companies, in which most employees answer directly to the owner.

(A) the problem rarely appears in small companies, in which most employees answer directly
(B) the problem rarely appears in small companies and most employees answer
(C) small companies rarely have the same problem, where most employees are answering directly
(D) small companies rarely suffer from that problem, where direct answers from most employees
(E) rarely do small companies have that problem, where most employees have directly answered.
(Source: 800score.com)
OA : A

I narrowed down answer choices A and C. However, here is my reason for eliminating option C - unnecessary usage of continuous tense "are answering" in the sentence.

However, I want to experts to weigh in if there is anything incorrect with the usage of 'where' in the sentence.

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by [email protected] » Mon Jun 30, 2014 7:19 pm
Hi apoorva.rattan,

In GMAT SCs, the word "where" is meant to refer to a place (meaning a physical location). Here, we're not dealing with physical locations - we're dealing with companies that vary in size. Therefore, the word "where" is incorrect. With these sorts of errors, the "fix" is almost always to replace the incorrect word with the phrase "in which", which is what occurs in the correct answer.

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