Roman is the chief executive officer of Salty Snax Corporation. Roman's re-sponsibilities include decisions on product development, marketing, and other significant business directions. Roman is subject to the approval and oversight of Salty Snax's
board of directors. Teri is a Salty Snax manager whose duties include the firm's day-to-day hiring, firing, purchasing, and selling. Umberto is a Salty Snax salesperson, whose daily activities are controlled by Teri. Velma writes sales manuals and promotional materials for Salty Snax's products ac-cording to Roman's instructions and subject to Salty Snax's control, but has no dealings with the company's customers or suppliers. Warren writes copy on a contract-per-project basis and is not otherwise subject to Salty Snax's control. Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?
What will be an ideal response?
Salty Snax is a principal. Roman, Teri, Umberto, and Velma are the company's agents and employees. Warren is an independent contractor.
In an agency relationship, an agent agrees to act for or on behalf of a principal. An agent is subject to the control of the principal. An employee is subject to the control of the employer. An independent contractor is not subject to an employer's control. A corporation is a "person" who has contractual capacity but who can act only through its agents.
Salty Snax, as a corporation, is acting through its agents. Roman, Teri, Umberto, and Velma act on behalf of the company, from which they obtain their authority. This authority differs-Roman, Teri, and Umberto can bind Salty Snax in certain ways in their dealings with third parties, but Velma does not have the authority to legally bind the company. Because Roman, Teri, Umberto, and Velma are subject to the control of Salty Snax, through their superiors, they are employees. Because Warren is not subject to Salty Snax's control with respect to the physical conduct in the performance of his contracts, Warren is an independent contractor.
You might also like to view...
An unhappy guest telling an employee that the employee is not providing the service properly is performing a(n) ______.
a. formal complaint b. improper escalation c. supervisory function d. service evaluation
Market segmentation can be best described as the process of ________
A) assigning specific human attributes to a given brand B) dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs C) evaluating each market segment's attractiveness and selecting one or more segments to enter D) turning marketing plans into marketing actions to accomplish strategic marketing objectives E) maintaining a strategic fit between organizational goals and changing marketing opportunities
Good service recovery can turn angry customers into loyal ones
Indicate whether the statement is true or false
Using email to communicate bad news ________
A) is never a good choice B) doesn't give your audience time to analyze the bad news before replying C) makes it more likely that the person communicating will sugarcoat the bad news D) frees the communicator from worrying about being confronted by an angry audience E) has been unanimously justified by human resource professionals in the case of firings and layoffs