That's not the point. The point is that you can stand up for yourself without throwing a fit, because genuine power doesn't come from how angry you can get.
The second boss did threw fit and did not stoop up for himself. He even needed secretary to do the firing.
Also, he literally runs business based on his emotions. He had power, but also does not seem to me like someone I could respect. He does not seem well adjusted. Also, he did not had power that would be related to his own personality or skills, if someone he cant fire would insult him, he is powerless.
His power against employee is purely from his ability to fire them. And yes, if you have that sort of power, a lot of things are easier, because people end up scared of very real damage you will cause them. Getting angry, if it achieves the same goal is more ethical and does not require disproportionally harming people.
The second boss is someone who is to be avoided and also someone who will create shitty culture.
I expect the ideal boss to react to the situation, shut the thing down. I don't expect him to fire everyone involved.