Describe a situation in which Dr. Friedman would support a corporation taking voluntary or socially responsible action
Dr. Friedman would allow a corporation to take voluntary or socially responsible actions if its managers could show a connection between those actions and profits for the shareholders. An example would be installing scrubbers on a plant so as to reduce pollution when the reduction of that pollution saves on health care costs for employees, allows the company to recruit better employees, and reduces taxes in the area for the company and employees.
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For users of financial statements, the current liability classification in the balance sheet is important because it is most closely tied to the concept of profitability
a. True b. False Indicate whether the statement is true or false
What is an example of an ethics-based initiative that could be evaluated through employee performance?
a. employee participation in personal philanthropy b. affirmative action hiring goals c. mood of employees in a department d. how many promotions have been made in a year
The Generally Accepted Auditing Standards (GAASs) are established by the American Institute of Certified Public Accountants
Indicate whether the statement is true or false
On December 28, 2018, Misty sold 300 shares of Low Grade, Inc. (a publicly traded company) at a loss of $8,500. On January 5, 2019, thinking that the stock price would rebound, Misty purchased 200 shares of Low Grade, Inc. for $7,000. What is the amount of the recognized loss on the December 28, 2018 sale and what is Misty's basis in the 200 shares she purchased on January 5, 2019?
What will be an ideal response?