1)Look at the following image

1)Look at the following image. The dotted horizontal line (circled) represents:

Formal tasks/jobs

Coordination across departments

Formal reporting relationships

2)Look at the following image. The vertical lines (example circled) represent:

Coordination across departments

Formal tasks/jobs

Formal reporting relationships

3)Suppose an outside investor offers to buy all of the five men’s capital and hire them as employees of a blanket-making corporation. The more risk averse the men are, the ------ likely they are to accept this offer.

4)Suppose an outside investor offers to buy all of the five men’s capital and hire them as employees of a sweater-making corporation. The more the men prefer flexibility to a steady income stream, the -------------   likely they are to accept this offer.

5)Suppose an outside investor offers to buy all of the five men’s capital and hire them as employees of a sock-making corporation. The more volatile the mens’ profits are now (the way their work is currently structured), the ------- likely they are to accept this offer.