Contrast the viewpoints for and against social responsibility. Which leading economist argued against social responsibility?
What will be an ideal response?
Milton Friedman, a free-market economist, represents the view against social responsibility. He said, "The social responsibility of business is to make profits." That is, 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—all of which are the real social justification for the firm's existence. In short, Friedman believed that the pursuit (and earning) of profit had great social value in and of itself.
The arguments in favor of corporate social responsibility includes the following:
Businesses have an ethical obligation to contribute to society's welfare.
Businesses create problems and should help solve those problems.
Businesses have resources to solve problems that other entities do not have.
Socially responsible behavior can create a favorable public image, which in turn makes the business more profitable.
Being socially responsible can help head off government regulation.
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Which of the following is true about invigilation?
a. The strict controls imposed are temporary in nature. b. During the period of invigilation, evidence is presented to suspects with the hopes of getting a confession. c. When invigilation is conducted, it is best to cover all aspects of the business. d. Invigilation should be accomplished in 5-7 days.
Democratic leaders make all the decisions on their own and then announce them to employees.
Answer the following statement true (T) or false (F)
A company launching a new product must first decide ________
A) where to launch the product B) the sample size of the market C) when to launch the product D) the viability of a global launch E) the budget for print advertising
A company is planning to purchase a machine that will cost $24,000 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? Sales $90,000 Costs: Manufacturing$52,000 Depreciation on machine 4,000 Selling and administrative expenses 30,000 (86,000) Income before taxes $4,000 Income tax (50%) (2,000) Net income $2,000
A. 8.3%. B. 33.3%. C. 16.7%. D. 4%. E. 50.0%.