Good Example Of Essay On Beta Corporation

Beta Corporation is the principal since it is the one that has mandated the management to carry out activities on their behalf. It cannot operate on its own and thus it outsources the services of the agents. Arnold is an agent since all his activities are subject to the oversight and approval by Beta’s board of directors. He has been mandated by Beta Corporation through the board of directors to run the operations of Beta Corporation on their behalf when dealing with the third party.
Carol is also an agent to the owners of Beta since she deals with the employees and other third parties on behalf of the board of directors. The third parties she deals with include suppliers, customers, employees and potential employees. The Beta Corporation is liable for any contract made on its behalf by either Arnold, Carol or Dave.
Dave is an agent of the company since his capacity as a salesman requires him to enter into contractual agreements with the third parties who are the buyers. He enters into these agreements on behalf of the corporation. He is what is referred to as a sub agent since he works under the control of Carol
Erin is an employee of Beta Corporation because, in her capacity, she does not deal with the third parties. She only does what she is instructed to do by Arnold. Fred is an independent contractor because he has Beta Corporation has no right of control over his actions. His activities are not subjected to control by Beta. Beta can only control the final results of Fred’s work and not how he performs the work.