Scenario: Arnold is the CEO of Beta Corp. Arnold\'s responsibilities include mak

Question

Scenario:Arnold is the CEO of Beta Corp. Arnold's responsibilities include making decisions on product development, marketing and other significant business directions. Arnold's position is subject to the approval and oversight by Beta's Board of Directors.

Carol is a Beta manager whose responsibilities include directing Beta's day to day hiring, firing, purchasing and selling.

Dave is a Beta salesperson whose daily activities are controlled by Carol, his supervisor.

Fred works from home to edit Beta's technical manuals on a contract- per-manual basis (he is paid for each manual he edits), and is not otherwise subject to Beta's control.

Identify each of the persons below as a principal, an agent, an agent-employee or an independent contractor - and explain your conclusion.     For example, is Arnold a principal, agent- employee, or independent contractor and why?  If you believe a person can hold more than one status, discuss/explain.

        Arnold

         Carol

         Dave

        Fred

Explanation / Answer

Keeping in view the job description and relationship with the Beta's Board of Directors, it is stated that Arnold is a principal.

Carol and Dave are employees of Beta as Carol holds the position of a manager and Dave is a sales person being controlled by Carol.

The position of Fred is that of an independent contractor as not subjected to any Beta's control and is paid on a contract-per-manual basis.

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