Assign roles: A & B in advance. Role for person "A": Elvis Presley (i.e. "EP") Role for person "B": Colonel Tom Parker (i.e. "CTP") If you are not very familiar with EP and CTP, then please do a 5-min google search before starting. Background It is 1960. Under CTP's guidance, EP has become a major worldwide star. In fact, he is the biggest star in the western world. Any impartial person must admit that CTP is a marketing and financial genius. With any other manager, EP would not be near as rich, famous, or successful. Nonetheless, EP is the star, and CTP is merely his manager. Typically, managers/agents earn a small percentage of all income of their clients in this industry, usually in the range of 2- 5%, and occasionally up to 10%. In this case, they agreed that CTP would earn, and has earned, 33% of EP's income since the "partnership" was formed with a handshake in 1955. At that time, EP was merely a part-time truck driver, and a budding singer within the state of Tennessee. When they met, the onus was on EP to convince CTP that the two of them should work together! CTP demanded 33% before he agreed to be EP's manager. It is generally agreed that CTP is among the very best entertainment managers in the world. (Note: managers and agents are the same thing. It is merely a title. The important part is the 'cut' that this representative gets out of the star's earnings.) To Do Like they do periodically, it is time to reconsider CTP's share of EP's income. EP and CTP have agreed that either party can end their partnership at any time, for any reason. Thus, the only thing to negotiate is CTP's percentage. This must be completed and submitted WITHIN FIVE MINUTES OF STARTING NEGOTIATIONS. The parties have agreed to have NO OTHER conditions other than a handshake agreement specifying CTP's share. Note: This is essentially a true story! Settlement: CTP gets % of EP's income, starting now. Remember! It's Now or Never! It's a 'handshake deal' on the percentage, or the parties are going their separate ways. (Puns intended for Elvis junkies.) Then, in approximately 2-3 sentences, briefly explain how/why the two of you landed on that percentage:
Assign roles: A & B in advance. Role for person "A": Elvis Presley (i.e. "EP") Role for person "B": Colonel Tom Parker (i.e. "CTP") If you are not very familiar with EP and CTP, then please do a 5-min google search before starting. Background It is 1960. Under CTP's guidance, EP has become a major worldwide star. In fact, he is the biggest star in the western world. Any impartial person must admit that CTP is a marketing and financial genius. With any other manager, EP would not be near as rich, famous, or successful. Nonetheless, EP is the star, and CTP is merely his manager. Typically, managers/agents earn a small percentage of all income of their clients in this industry, usually in the range of 2- 5%, and occasionally up to 10%. In this case, they agreed that CTP would earn, and has earned, 33% of EP's income since the "partnership" was formed with a handshake in 1955. At that time, EP was merely a part-time truck driver, and a budding singer within the state of Tennessee. When they met, the onus was on EP to convince CTP that the two of them should work together! CTP demanded 33% before he agreed to be EP's manager. It is generally agreed that CTP is among the very best entertainment managers in the world. (Note: managers and agents are the same thing. It is merely a title. The important part is the 'cut' that this representative gets out of the star's earnings.) To Do Like they do periodically, it is time to reconsider CTP's share of EP's income. EP and CTP have agreed that either party can end their partnership at any time, for any reason. Thus, the only thing to negotiate is CTP's percentage. This must be completed and submitted WITHIN FIVE MINUTES OF STARTING NEGOTIATIONS. The parties have agreed to have NO OTHER conditions other than a handshake agreement specifying CTP's share. Note: This is essentially a true story! Settlement: CTP gets % of EP's income, starting now. Remember! It's Now or Never! It's a 'handshake deal' on the percentage, or the parties are going their separate ways. (Puns intended for Elvis junkies.) Then, in approximately 2-3 sentences, briefly explain how/why the two of you landed on that percentage:
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Transcribed Image Text:Assign roles: A & B in advance.
Role for person "A": Elvis Presley (i.e. "EP")
Role for person "B": Colonel Tom Parker (i.e. "CTP")
If you are not very familiar with EP and CTP, then please do a 5-min google search before starting.
Background
It is 1960. Under CTP's guidance, EP has become a major worldwide star. In fact, he is the biggest star in the western
world. Any impartial person must admit that CTP is a marketing and financial genius. With any other manager, EP
would not be near as rich, famous, or successful. Nonetheless, EP is the star, and CTP is merely his manager.
Typically, managers/agents earn a small percentage of all income of their clients in this industry, usually in the range of 2-
5%, and occasionally up to 10%. In this case, they agreed that CTP would earn, and has earned, 33% of EP's income
since the "partnership" was formed with a handshake in 1955. At that time, EP was merely a part-time truck driver, and a
budding singer within the state of Tennessee. When they met, the onus was on EP to convince CTP that the two of them
should work together! CTP demanded 33% before he agreed to be EP's manager. It is generally agreed that CTP is
among the very best entertainment managers in the world.
(Note: managers and agents are the same thing. It is merely a title. The important part is the 'cut' that this representative
gets out of the star's earnings.)
To Do
Like they do periodically, it is time to reconsider CTP's share of EP's income. EP and CTP have agreed that either party
can end their partnership at any time, for any reason. Thus, the only thing to negotiate is CTP's percentage.
This must be completed and submitted WITHIN FIVE MINUTES OF STARTING NEGOTIATIONS. The parties have
agreed to have NO OTHER conditions other than a handshake agreement specifying CTP's share.
Note: This is essentially a true story!
Settlement:
CTP gets
% of EP's income, starting now.
Remember! It's Now or Never! It's a 'handshake deal' on the percentage, or the parties are going their separate ways.
(Puns intended for Elvis junkies.)
Then, in approximately 2-3 sentences, briefly explain how/why the two of you landed on that percentage:
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