Identify the following relationships and parties. a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property. She agrees to pay him $75 an hour for his services, and he agrees to use his own office and secretarial staff to

negotiate and draft the agreement. b. Mel owns a retail store. He hires Sarah to work for him as a salesclerk in the home furnishings department. c. Carl is the general contractor for the construction of a large office complex. Carl hires Ed's Electric Company to do all of the wiring for the building. d. Invox Corporation hires Gary as an outside salesman and instructs him to call on customers in a specified territory and to solicit orders for their products. e. Marlin, who is the owner of Marlin's Department Store, hires Melissa as the general manager of his new branch in the Hillridge Mall.


a. Patricia is a principal, and Andrew is an independent contractor. Patricia is not an employer and Andrew is not an employee, because Andrew has his own office and controls the method and manner of the job performance.
b. Mel is an employer, and Sarah is an employee. Mel has the right to control the manner in which Sarah performs her job. She is an agent since she is an employee.
c. Carl is the principal, and Ed is an independent contractor, but he is probably not an agent.
d. Invox is the principal, and Gary is the agent. Invox is also an employer, and Gary is an employee. Gary probably has a great deal of independence in the performance of his job.
e. Marlin (or Marlin's Department Store) is the principal and also the employer, and Melissa is an agent and also an employee.

Business

You might also like to view...

Aleve Company purchased inventory on credit. The effect of this transaction is that the

a. earnings per share decreased b. working capital increased c. debt-to-equity ratio increased d. earnings per share increased

Business

Shankman and Allen's (2002) model of emotionally intelligent leadership suggests leaders must take into account these three fundamental facets of leadership: ______.

A. context, self, and others B. referent power, expert power, and legitimate power C. desire for power, desire to help others, and desire to win D. determination, integrity, and sociability

Business

During May, Photo Mart sold 150 instant cameras for $100 each. Each camera had cost Photo Mart $69 to purchase and carried a one-year warranty. If 4 percent typically need to be replaced over the warranty period and two actually are replaced during May, the entry to record the Product Warranty Expense for the month is:

a. Product Warranty Expense 138 Estimated Product Warranty Liability 138 b. Product Warranty Expense 276 Cash 276 c. Product Warranty Expense 552 Cash 552 d. Product Warranty Expense 414 Estimated Product Warranty Liability 414

Business

Which of the following types of interviews is most likely to involve several people, such as a search committee, who gather in a conference or seminar room with a job applicant to discuss the position?

A) Group interview B) Telephone interview C) Panel interview D) One-on-one interview E) Action interview

Business