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This is part one of an audio recording of a class on entrepreneurship and innovation taught by Peter Drucker. He opens with announcements and discussion about what the students can expect from this class. He states that you only need three rules to be able to use statistics. They are if you have control of the time base then you can prove anything, if you have control of the definition of the aggregation then you can disprove anything, and you can always find everything except what you need. Drucker then compares the organization to the human body, and how organization problems are similar to illness. He also mentions that matrix organization is similar to divorce, and you enter it because you have to, not by choice.