Arnold is the CEO of Beta Corp. Arnold\'s responsibilities include making decisi

Question

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.

Explanation / Answer

Arnold: He is the Principal here. A principal is a person with decision making authority, which is clearly under Arnold's job descriptions as his responsibilities include: "Arnold's responsibilities include making decisions on product development, marketing and other significant business directions."

Carol: is the Agent here. An agent is a person who enters into third party contracts or get job done on behalf of principal. Although all these contracts are under Principal's name.

Fred: Fred here is an Individual Contractor. He gets paid on per-job basis and is not liable to the Principal.

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