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You are the chief executive officer for Game Sportz Corporation(GSC) with the duty to determine the firm's business goals, strategies, and tactics. Felicity manages the daily operations of the firm. Ethan is its marketing executive. Desiree is your creative resource, sometimes sparkling with new game ideas, sometimes fulfilling others. Cody writes and edits the games' manuals on a per-project basis. In light of the agency principles spelled out in the text, answer the following questions.
1) As a chief executive office, you are responsible only to the board of directors. Felicity, Ethan, Desiree and Cody do your bidding to one extent or another.All of you have contact with third parties on the firm's behalf. Who is principal? Agent? Employee? Independent contractor?2) Ethan negotiates on GSC's behalf a marketing campaign that includes rebates to the firm based on the number of hits to its links on its web site and games. Ethan arranges for the payments to go in to his personal account. When the company learns of this they file suit against Ethan. What remedies are possible?
Do you recognize an ethical dilemma? What would be the likely impact of subsequent the controller's suggestions? Who would benefit? Who would be injured?
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