Milton Friedman would have agreed with which of the following statements about social responsibility?
a. A company will produce higher quality products when it practices social responsibility.
b. A company will increase its sales when it practices social responsibility.
c. A company will be able to create better jobs when it practices social responsibility.
d. A company will become distracted from its task to maximize profits when it practices social responsibility.
e. A company will provide improved value when it practices social responsibility.
d. A company will become distracted from its task to maximize profits when it practices social responsibility.
Friedman represents the view that “the social responsibility of business is to make profits.” Unless a company focuses on maximizing profits, it will become distracted and fail to provide goods and services, benefit the stockholders, create jobs, and expand economic growth, which is the real social justification for the firm’s existence.
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Intransigence can be defined as
A. an unwillingness to move to any fall-back position through concession or compromise. B. a propensity to use distributive bargaining in all negotiation situations. C. the use of concession or compromise to deceive an opponent. D. the escalation of power in international negotiations.
Each state is required to prepare a state implementation plan (SIP) that sets out how the state plans to meet the federal pollutant standards
Indicate whether the statement is true or false
Preparing a bank reconciliation on a monthly basis is an example of:
A. Establishing responsibility. B. Protecting assets by proving the accuracy of cash records. C. A technological control. D. Separation of duties. E. Poor internal control.
Harrison, Inc. acquires 100% of the voting stock of Rhine Company on January 1, 2017 for $400,000 cash. A contingent payment of $16,500 will be paid on April 15, 2018 if Rhine generates cash flows from operations of $27,000 or more in the next year. Harrison estimates that there is a 20% probability that Rhine will generate at least $27,000 next year, and uses an interest rate of 5% to incorporate the time value of money. The fair value of $16,500 at 5%, using a probability-weighted approach, is $3,142.What will Harrison record as its Investment in Rhine on January 1, 2017?
A. $406,000. B. $400,000. C. $409,142. D. $403,142. E. $416,500.