Question

Arnold is the chief executive officer of Beta Corporation. Arnold's re­sponsibilities include decisions on product development, marketing, and other significant business directions. Arnold is subject to the approval and oversight of Beta's board of directors. Carol is a Beta manager whose duties include the firm's day-to-day hiring, firing, purchasing, and sell­ing. Dave is a Beta salesperson, whose daily activities are con­trolled by Carol. Erin writes technical manuals for Beta products ac­cording to Arnold's instructions and subject to Beta's control, but has no dealings with Beta custom­ers or sup­pliers. Fred edits the manuals on a contract-per-manual basis and is not otherwise subject to Beta's control. Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?

Answer

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